NRP · Natural Resource Partners L.P.

Natural Resource Partners L.P. reported first quarter 2026 net income of $19.6 million, a significant decline from $43.8 million in the same period last year. The decrease was driven by weaker performance in both the Mineral Rights and Soda Ash segments. Mineral Rights net income fell $11.7 million due to lower metallurgical and thermal coal sales volumes and higher depletion rates, reflecting ongoing headwinds from weak global steel demand, low natural gas prices, and ample coal stockpiles. Soda Ash net income dropped $12.5 million primarily due to lower sales prices, with the market oversupplied by Chinese natural soda ash and weak flat glass demand. NRP made a $39.2 million capital investment in Sisecam Wyoming to reduce debt and improve competitiveness, but expects no distributions from the soda ash business for several years. Despite these challenges, NRP generated $33.8 million of free cash flow before the soda ash investment and $167 million over the last twelve months. The company declared a first quarter 2026 distribution of $0.75 per common unit, consistent with the prior quarter, and also paid a special $0.12 distribution in March 2026 to help unitholders with tax liabilities. Management highlighted substantial free cash flow generation despite headwinds. NRP ended the quarter with $185.4 million in liquidity and a low leverage ratio of 0.4x, indicating a strong balance sheet. The company continues to explore carbon sequestration and renewable energy opportunities but has no material developments to report.