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Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023. The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at June 30, 2023 and December 31, 2022. Other long-term assets, net includes long-term lease amendment fee receivables from contracts with customers. Revenues from Alpha Metallurgical Resources, Inc. and Foresight are included within the Partnership's Mineral Rights segment. The fair value of the Opco Senior Notes at June 30, 2023 and December 31, 2022 were estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit facility at June 30, 2023 and December 31, 2022, respectively. Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023. Amounts reclassified into income out of accumulated other comprehensive loss were $2.3 million and $(3.0) million for the three months ended June 30, 2023 and 2022, respectively, and $(18.3) million and $(4.7) million for the six months ended June 30, 2023 and 2022, respectively. Relates to accrued distribution paid upon the redemption of 45,000 preferred units in June 2023. Relates to accrued distribution paid upon the redemption of 19,321 preferred units paid-in-kind in February 2022. Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest. Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner. Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $3.9 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively and $9.5 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining transportation and processing services revenues of $0.6 million and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1.9 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 15. Financing Transaction for more information. Relates to accrued distribution paid upon the redemption of 35,000 preferred units in August 2023. 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Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2023 or

 

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

     
  

Commission file number:

 001-31465

 

 

nrp20220630_10qimg001.jpg

 

NATURAL RESOURCE PARTNERS LP

 

(Exact name of registrant as specified in its charter)

 

 

Delaware

35-2164875

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1415 Louisiana Street, Suite 3325

Houston, Texas 77002

(Address of principal executive offices)

(Zip Code)

(713) 751-7507

(Registrant’s telephone number, including area code) 

   

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Units representing limited partner interests

 

NRP

 

New York Stock Exchange

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of "accelerated filer", "large accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

☐

Accelerated Filer

 ☒

Non-accelerated Filer

☐

Smaller Reporting Company

 ☐
  

Emerging Growth Company

 ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes ☐    No  ☐

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

 

 
Table of Contents

 

 

NATURAL RESOURCE PARTNERS, L.P.

TABLE OF CONTENTS

 

   

Page

Part I. Financial Information

Item 1.

Consolidated Financial Statements

  
 

Consolidated Balance Sheets

1
 

Consolidated Statements of Comprehensive Income

2
 

Consolidated Statements of Partners’ Capital

3
 

Consolidated Statements of Cash Flows

5
 

Notes to Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

Part II. Other Information

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

Item 3.

Defaults Upon Senior Securities

31

Item 4.

Mine Safety Disclosures

31

Item 5.

Other Information

31

Item 6.

Exhibits

31
 

Signatures

32

 

i
Table of Contents
 

 

 

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED BALANCE SHEETS

 

  

September 30,

  

December 31,

 
  2023  2022 

(In thousands, except unit data)

 

(Unaudited)

    

ASSETS

        

Current assets

        

Cash and cash equivalents

 $18,411  $39,091 

Accounts receivable, net

  38,569   42,701 

Other current assets, net

  2,570   1,822 

Total current assets

 $59,550  $83,614 

Land

  24,008   24,008 

Mineral rights, net

  400,548   412,312 

Intangible assets, net

  14,014   14,713 

Equity in unconsolidated investment

  282,491   306,470 

Long-term contract receivable, net

  26,997   28,946 

Other long-term assets, net

  7,601   7,068 

Total assets

 $815,209  $877,131 

LIABILITIES AND CAPITAL

        

Current liabilities

        

Accounts payable

 $1,143  $1,992 

Accrued liabilities

  6,511   11,916 

Accrued interest

  1,224   989 

Current portion of deferred revenue

  6,399   6,256 

Current portion of long-term debt, net

  36,780   39,076 

Total current liabilities

 $52,057  $60,229 

Deferred revenue

  35,076   40,181 

Long-term debt, net

  170,735   129,205 

Other non-current liabilities

  6,833   5,472 

Total liabilities

 $264,701  $235,087 

Commitments and contingencies (see Note 13)

          

Class A Convertible Preferred Units (71,666 and 250,000 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at September 30, 2023 and December 31, 2022) (See Note 3)

 $47,181  $164,587 

Partners’ capital

        

Common unitholders’ interest (12,634,642 and 12,505,996 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively)

 $461,043  $404,799 

General partner’s interest

  7,196   5,977 

Warrant holders’ interest

  32,843   47,964 

Accumulated other comprehensive income

  2,245   18,717 

Total partners’ capital

 $503,327  $477,457 

Total liabilities and partners' capital

 $815,209  $877,131 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

1
Table of Contents
 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands, except per unit data)

 

2023

  

2022

  

2023

  

2022

 

Revenues and other income

                

Royalty and other mineral rights

 $68,533  $81,379  $205,811  $231,795 

Transportation and processing services

  4,579   5,969   11,447   15,377 

Equity in earnings of Sisecam Wyoming

  12,401   14,556   58,633   44,036 

Gain on asset sales and disposals

  854   354   955   699 

Total revenues and other income

 $86,367  $102,258  $276,846  $291,907 
                 

Operating expenses

                

Operating and maintenance expenses

 $8,358  $7,898  $23,451  $25,989 

Depreciation, depletion and amortization

  4,594   6,850   12,469   16,565 

General and administrative expenses

  5,669   4,518   17,157   14,037 

Asset impairments

  63   812   132   874 

Total operating expenses

 $18,684  $20,078  $53,209  $57,465 
                 

Income from operations

 $67,683  $82,180  $223,637  $234,442 
                 

Other expenses, net

                

Interest expense, net

 $(3,837) $(5,141) $(10,182) $(22,636)

Loss on extinguishment of debt

  —   (2,484)  —   (6,532)

Total other expenses, net

 $(3,837) $(7,625) $(10,182) $(29,168)
                 

Net income

 $63,846  $74,555  $213,455  $205,274 

Less: income attributable to preferred unitholders

  (2,936)  (7,500)  (14,568)  (22,500)

Less: redemption of preferred units

  (17,083)  —   (60,929)  — 

Net income attributable to common unitholders and the general partner

 $43,827  $67,055  $137,958  $182,774 
                 

Net income attributable to common unitholders

 $42,951  $65,714  $135,199  $179,119 

Net income attributable to the general partner

  876   1,341   2,759   3,655 
                 

Net income per common unit (see Note 5)

                

Basic

 $3.40  $5.25  $10.72  $14.36 

Diluted

  2.91   3.71   8.88   10.24 
                 

Net income

 $63,846  $74,555  $213,455  $205,274 

Comprehensive income (loss) from unconsolidated investment and other

  2,200   289   (16,472)  (1,179)

Comprehensive income

 $66,046  $74,844  $196,983  $204,095 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

2
Table of Contents
 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(Unaudited)

 

                  

Accumulated

     
                  

Other

  

Total

 
  

Common Unitholders

  

General

  

Warrant

  

Comprehensive

  

Partners'

 

(In thousands)

 

Units

  

Amounts

  

Partner

  

Holders

  

Income (Loss)

  

Capital

 

Balance at December 31, 2022

  12,506  $404,799  $5,977  $47,964  $18,717  $477,457 

Net income (1)

  —   77,690   1,585   —   —   79,275 

Redemption of preferred units

  —   (15,904)  (324)  —   —   (16,228)

Distributions to common unitholders and the general partner

  —   (40,082)  (818)  —   —   (40,900)

Distributions to preferred unitholders

  —   (7,924)  (162)  —   —   (8,086)

Issuance of unit-based awards

  129   —   —   —   —   — 

Unit-based awards amortization and vesting, net

  —   (1,178)  —   —   —   (1,178)

Capital contribution

  —   —   142   —   —   142 

Comprehensive loss from unconsolidated investment and other

  —   —   —   —   (19,583)  (19,583)

Balance at March 31, 2023

  12,635  $417,401  $6,400  $47,964  $(866) $470,899 

Net income (2)

  —   68,927   1,407   —   —   70,334 

Redemption of preferred units

  —   (27,065)  (553)  —   —   (27,618)

Distributions to common unitholders and the general partner

  —   (9,476)  (193)  —   —   (9,669)

Distributions to preferred unitholders

  —   (7,248)  (148)  —   —   (7,396)

Unit-based awards amortization and vesting

  —   2,299   —   —   —   2,299 

Comprehensive income from unconsolidated investment and other

  —   —   —   —   911   911 

Balance at June 30, 2023

  12,635  $444,838  $6,913  $47,964  $45  $499,760 

Net income (3)

  —   62,569   1,277   —   —   63,846 

Redemption of preferred units

  —   (16,741)  (342)  —   —   (17,083)

Distributions to common unitholders and the general partner

  —   (9,475)  (194)  —   —   (9,669)

Distributions to preferred unitholders

  —   (4,349)  (88)  —   —   (4,437)

Unit-based awards amortization and vesting

  —   2,318   —   —   —   2,318 

Warrant settlement

  —   (18,117)  (370)  (15,121)  —   (33,608)

Comprehensive income from unconsolidated investment and other

  —   —   —   —   2,200   2,200 

Balance at September 30, 2023

  12,635  $461,043  $7,196  $32,843  $2,245  $503,327 
         
(1)

Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
(2) Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
(3) Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. 

 

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NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(Unaudited)

 

                  

Accumulated

     
                  

Other

  

Total

 
  

Common Unitholders

  

General

  

Warrant

  

Comprehensive

  

Partners'

 

(In thousands)

 

Units

  

Amounts

  

Partner

  

Holders

  

Income

  

Capital

 

Balance at December 31, 2021

  12,351  $203,062  $1,787  $47,964  $3,211  $256,024 

Net income (1)

  —   62,621   1,278   —   —   63,899 

Distributions to common unitholders and the general partner

  —   (5,559)  (113)  —   —   (5,672)

Distributions to preferred unitholders

  —   (7,603)  (155)  —   —   (7,758)

Issuance of unit-based awards

  155   —   —   —   —   — 

Unit-based awards amortization and vesting, net

  —   (1,754)  —   —   —   (1,754)

Capital contribution

  —   —   112   —   —   112 

Comprehensive income from unconsolidated investment and other

  —   —   —   —   2,545   2,545 

Balance at March 31, 2022

  12,506  $250,767  $2,909  $47,964  $5,756  $307,396 

Net income (1)

  —   65,484   1,336   —   —   66,820 

Distributions to common unitholders and the general partner

  —   (9,379)  (191)  —   —   (9,570)

Distributions to preferred unitholders

  —   (7,350)  (150)  —   —   (7,500)

Unit-based awards amortization and vesting

  —   1,231   —   —   —   1,231 

Comprehensive loss from unconsolidated investment and other

  —   —   —   —   (4,013)  (4,013)

Balance at June 30, 2022

  12,506  $300,753  $3,904  $47,964  $1,743  $354,364 

Net income (1)

  —   73,064   1,491   —   —   74,555 

Distributions to common unitholders and the general partner

  —   (9,380)  (191)  —   —   (9,571)

Distributions to preferred unitholders

  —   (7,350)  (150)  —   —   (7,500)

Unit-based awards amortization and vesting

  —   1,245   —   —   —   1,245 

Comprehensive income from unconsolidated investment and other

  —   —   —   —   289   289 

Balance at September 30, 2022

  12,506  $358,332  $5,054  $47,964  $2,032  $413,382 
         

(1)

Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

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NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2023

  

2022

 

Cash flows from operating activities

        

Net income

 $213,455  $205,274 

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation, depletion and amortization

  12,469   16,565 

Distributions from unconsolidated investment

  66,140   34,055 

Equity earnings from unconsolidated investment

  (58,633)  (44,036)

Gain on asset sales and disposals

  (955)  (699)

Loss on extinguishment of debt

  —   6,532 

Asset impairments

  132   874 

Bad debt expense

  813   641 

Unit-based compensation expense

  7,903   4,216 

Amortization of debt issuance costs and other

  1,043   1,887 

Change in operating assets and liabilities:

        

Accounts receivable

  4,090   (10,118)

Accounts payable

  (850)  223 

Accrued liabilities

  (6,288)  (4,831)

Accrued interest

  235   3,014 

Deferred revenue

  (4,963)  (17,094)

Other items, net

  (1,399)  1,447 

Net cash provided by operating activities

 $233,192  $197,950 
         

Cash flows from investing activities

        

Proceeds from asset sales and disposals

 $961  $699 

Return of long-term contract receivable

  1,830   1,138 

Capital expenditures

  (10)  (59)

Net cash provided by investing activities

 $2,781  $1,778 
         

Cash flows from financing activities

        

Debt borrowings

 $215,034  $— 

Debt repayments

  (176,061)  (197,665)

Distributions to common unitholders and the general partner

  (60,238)  (24,813)

Distributions to preferred unitholders

  (19,919)  (22,758)

Redemption of preferred units

  (178,334)  — 

Redemption of preferred units paid-in-kind

  —   (19,321)

Warrant settlement

  (33,608)  — 

Other items, net

  (3,527)  (9,754)

Net cash used in financing activities

 $(256,653) $(274,311)
         

Net decrease in cash and cash equivalents

 $(20,680) $(74,583)

Cash and cash equivalents at beginning of period

  39,091   135,520 

Cash and cash equivalents at end of period

 $18,411  $60,937 
         

Supplemental cash flow information:

        

Cash paid for interest

 $9,484  $18,501 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

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NATURAL RESOURCE PARTNERS L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.    Basis of Presentation

 

Nature of Business

 

Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The Partnership is organized into two operating segments further described in Note 6. Segment Information. The Partnership’s operations are conducted through, and its operating assets are owned by, its subsidiaries. The Partnership owns its subsidiaries through one wholly owned operating company, NRP (Operating) LLC ("Opco"). As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context.

 

Principles of Consolidation and Reporting

 

The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2022 and notes thereto included in the Partnership's Annual Report on Form 10-K, which was filed with the SEC on March 3, 2023. Reclassifications have been made to prior year amounts in the Consolidated Financial Statements to conform with current year presentation. These reclassifications had no impact on previously reported total assets, total liabilities, partners' capital, net income, or cash flows from operating, investing or financing activities.

 

Recently Adopted Accounting Standard

 

On January 1, 2023, NRP adopted Accounting Standards Update ("ASU") 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The ASU includes targeted improvements to earnings per share, which the Partnership adopted on a modified retrospective basis. The adoption of this ASU did not have a material impact on the Partnership’s Consolidated Financial Statements. See Note 5. Net Income Per Common Unit for the calculations of our basic and diluted net income per common unit. See Note 3. Class A Convertible Preferred Units and Warrants for disclosures related to our convertible preferred units and warrants.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

2.    Revenues from Contracts with Customers

 

The following table presents the Partnership's Mineral Rights segment revenues by major source:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Coal royalty revenues

 $55,544  $52,381  $161,527  $170,775 

Production lease minimum revenues

  850   1,885   2,025   3,542 

Minimum lease straight-line revenues

  4,464   4,778   13,414   14,235 

Carbon neutral initiative revenues

  681   8,600   2,914   8,600 

Property tax revenues

  1,770   1,360   4,710   4,527 

Wheelage revenues

  2,385   2,977   9,538   11,073 

Coal overriding royalty revenues

  827   1,367   1,165   2,307 

Lease amendment revenues

  623   759   2,322   2,450 

Aggregates royalty revenues

  736   884   2,175   2,691 

Oil and gas royalty revenues

  324   6,170   5,126   10,890 

Other revenues

  329   218   895   705 

Royalty and other mineral rights revenues

 $68,533  $81,379  $205,811  $231,795 

Transportation and processing services revenues (1)

  4,579   5,969   11,447   15,377 

Total Mineral Rights segment revenues

 $73,112  $87,348  $217,258  $247,172 
     
(1)

Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $3.9 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively and $9.5 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining transportation and processing services revenues of $0.6 million and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1.9 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 15. Financing Transaction for more information.

 

The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Receivables

        

Accounts receivable, net

 $34,775  $39,004 

Other current assets, net (1)

  2,382   — 

Other long-term assets, net (2)

  —   75 
         

Contract liabilities

        

Current portion of deferred revenue

 $6,399  $6,256 

Deferred revenue

  35,076   40,181 
     
(1)

Other current assets, net includes short-term notes receivables from contracts with customers.

(2)

Other long-term assets, net includes long-term lease amendment fee receivables from contracts with customers.

 

The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue:

 

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2023

  

2022

 

Balance at beginning of period (current and non-current)

 $46,437  $61,862 

Increase due to minimums and lease amendment fees

  11,525   11,309 

Recognition of previously deferred revenue

  (16,487)  (28,403)

Balance at end of period (current and non-current)

 $41,475  $44,768 

 

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty leases are as follows as of  September 30, 2023 (in thousands):

 

Lease Term (1)

 

Weighted Average Remaining Years

  

Annual Minimum Payments

 

0 - 5 years

  1.7  $19,867 

5 - 10 years

  4.8   10,417 

10+ years

  12.0   27,129 

Total

  7.2  $57,413 
     
(1)

Lease term does not include renewal periods.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

3.      Class A Convertible Preferred Units and Warrants

 

On March 2, 2017, NRP issued $250 million of Class A Convertible Preferred Units representing limited partner interests in NRP (the "preferred units") to certain entities controlled by funds affiliated with The Blackstone Group Inc. (collectively referred to as "Blackstone") and certain affiliates of GoldenTree Asset Management LP (collectively referred to as "GoldenTree") (together the "preferred purchasers") pursuant to a Preferred Unit and Warrant Purchase Agreement. NRP issued 250,000 preferred units to the preferred purchasers at a price of $1,000 per preferred unit (the "per unit purchase price"), less a 2.5% structuring and origination fee. The preferred units entitle the preferred purchasers to receive cumulative distributions at a rate of 12% of the purchase price per year, up to one half of which NRP may pay in additional preferred units (such additional preferred units, the "PIK units"). The preferred units have a perpetual term, unless converted or redeemed as described below.

 

NRP also issued two tranches of warrants (the "warrants") to purchase common units to the preferred purchasers (warrants to purchase 1.75 million common units with a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00). The warrants may be exercised by the holders thereof at any time before the eighth anniversary of the closing date. Upon exercise of the warrants, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis.

 

After March 2, 2022 and prior to March 2, 2025, the holders of the preferred units may elect to convert up to 33% of the outstanding preferred units in any 12-month period into common units if the volume weighted average trading price of our common units (the "VWAP") for the 30 trading days immediately prior to date notice is provided is greater than $51.00. In such case, the number of common units to be issued upon conversion would be equal to the per unit purchase price plus the value of any accrued and unpaid distributions divided by an amount equal to a 7.5% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion. Rather than have the preferred units convert to common units in accordance with the provisions of this paragraph, NRP would have the option to elect to redeem the preferred units proposed to be converted for cash at a price equal to the per unit purchase price plus the value of any accrued and unpaid distributions.

 

On or after March 2, 2025, the holders of the preferred units may elect to convert the preferred units to common units at a conversion rate equal to the Liquidation Value divided by an amount equal to a 10% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion. The “liquidation value” will be an amount equal to the greater of: (1) (a) the per unit purchase price multiplied by (i) prior to March 2, 2020, 1.50, (ii) on or after March 2, 2020 and prior to March 2, 2021, 1.70 and (iii) on or after March 2, 2021, 1.85, less (b)(i) all preferred unit distributions previously made by NRP and (ii) all cash payments previously made in respect of redemption of any PIK units; and (2) the per unit purchase price plus the value of all accrued and unpaid distributions.

 

To the extent the holders of the preferred units have not elected to convert their preferred units before March 2, 2029, NRP has the right to force conversion of the preferred units at a price equal to the liquidation value divided by an amount equal to a 10% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion.

 

In addition, NRP has the ability to redeem at any time (subject to compliance with its debt agreements) all or any portion of the preferred units and any outstanding PIK units for cash. The redemption price for each outstanding PIK unit is $1,000 plus the value of any accrued and unpaid distributions per PIK unit. The redemption price for each preferred unit is the liquidation value divided by the number of outstanding preferred units. The preferred units are redeemable at the option of the preferred purchasers only upon a change in control.

 

The terms of the preferred units contain certain restrictions on NRP's ability to pay distributions on its common units. To the extent that either (i) NRP's consolidated Leverage Ratio, as defined in the Partnership's Fifth Amended and Restated Partnership Agreement dated March 2, 2017 (the "restated partnership agreement"), is greater than 3.25x, or (ii) the ratio of NRP's Distributable Cash Flow (as defined in the Restated Partnership Agreement) to cash distributions made or proposed to be made is less than 1.2x (in each case, with respect to the most recently completed four-quarter period), NRP may not increase the quarterly distribution above $0.45 per quarter without the approval of the holders of a majority of the outstanding preferred units. In addition, if at any time after January 1, 2022, any PIK units are outstanding, NRP may not make distributions on its common units until it has redeemed all PIK units for cash.

 

The holders of the preferred units have the right to vote with holders of NRP’s common units on an as-converted basis and have other customary approval rights with respect to changes of the terms of the preferred units. In addition, Blackstone has certain approval rights over certain matters as identified in the restated partnership agreement. GoldenTree also has more limited approval rights that will expand once Blackstone's ownership goes below the minimum preferred unit threshold (as defined below). These approval rights are not transferrable without NRP's consent. In addition, the approval rights held by Blackstone and GoldenTree will terminate at such time that Blackstone (together with their affiliates) or GoldenTree (together with their affiliates), as applicable, no longer own at least 20% of the total number of preferred units issued on the closing date, together with all PIK units that have been issued but not redeemed (the "minimum preferred unit threshold").

 

At the closing, pursuant to the Board Representation and Observation Rights Agreement, the Preferred Purchasers received certain board appointment and observation rights, and Blackstone appointed one director and one observer to the Board of Directors.

 

NRP also entered into a registration rights agreement (the "preferred unit and warrant registration rights agreement") with the preferred purchasers, pursuant to which NRP is required to file (i) a shelf registration statement to register the common units issuable upon exercise of the warrants and to cause such registration statement to become effective not later than 90 days following the closing date and (ii) a shelf registration statement to register the common units issuable upon conversion of the preferred units and to cause such registration statement to become effective not later than the earlier of the fifth anniversary of the closing date or 90 days following the first issuance of any common units upon conversion of preferred units (the "registration deadlines"). In addition, the preferred unit and warrant registration rights agreement gives the preferred purchasers piggyback registration and demand underwritten offering rights under certain circumstances. The shelf registration statement to register the common units issuable upon exercise of the warrants became effective on April 20, 2017. If the shelf registration statement to register the common units issuable upon conversion of the preferred units is not effective by the applicable registration deadline, NRP will be required to pay the preferred purchasers liquidated damages in the amounts and upon the term set forth in the preferred unit and warrant registration rights agreement.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 

Accounting for the Preferred Units and Warrants

 

Classification

 

The preferred units are accounted for as temporary equity on NRP's Consolidated Balance Sheets due to certain contingent redemption rights that may be exercised at the election of preferred purchasers. The warrants are accounted for as equity on NRP's Consolidated Balance Sheets.

 

Initial Measurement

 

The net transaction price was allocated to the preferred units and warrants based on their relative fair values at inception date. NRP allocated the transaction issuance costs to the preferred units and warrants primarily on a pro-rata basis based on their relative inception date allocated values.

 

Subsequent Measurement

 

Preferred Units

 

Subsequent adjustment of the preferred units will not occur until NRP has determined that the conversion or redemption of all or a portion of the preferred units is probable of occurring. Once conversion or redemption becomes probable of occurring, the carrying amount of the preferred units will be accreted to their redemption value over the period from the date the feature is probable of occurring to the date the preferred units can first be converted or redeemed. 

 

In  February 2023, the Partnership received a notice from holders of the Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 47,499 Class A Preferred Units. The Partnership chose to redeem the preferred units for $47.5 million in cash rather than issuing common units. In May 2023, the Partnership received a notice from holders of the Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 35,834 Class A Preferred Units. The Partnership chose to redeem the preferred units for $35.8 million in cash rather than issuing common units. In June 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 45,000 Class A Preferred Units for $45.0 million in cash. In August 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 35,000 Class A Preferred Units for $35.0 million in cash. In September 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 15,001 Class A Preferred Units for $15.0 million in cash. Of the originally issued 250,000 Class A Preferred Units, 71,666 Class A Preferred Units remain outstanding as of September 30, 2023. Following these repurchases, the Subject units were retired and are no longer outstanding, and all rights of Blackstone thereof have ceased with respect to the subject units, therefore, Blackstone's board designee resigned from the board of the Partnership's general partner.

 

Activity related to the preferred units is as follows:

 

  

Units

  

Financial

 

(In thousands, except unit data)

 

Outstanding

  

Position

 

Balance at December 31, 2021

  269,321  $183,908 

Redemption of preferred units paid-in-kind

  (19,321)  (19,321)

Balance at December 31, 2022

  250,000  $164,587 

Redemption of preferred units

  (178,334)  (117,406)

Balance at September 30, 2023

  71,666  $47,181 

 

Warrants

 

Subsequent adjustment of the warrants will not occur until the warrants are exercised, at which time, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis. The net basis will be equal to the difference between the Partnership's common unit price and the strike price of the warrant. Once warrant exercise occurs, the difference between the carrying amount of the warrants and the net settlement amount will be allocated on a pro-rata basis to the common unitholders and general partner.

 

On September 18, 2023 (the "exercise date"), the Partnership negotiated a transaction with holders of the Partnership's warrants pursuant to which the Partnership repurchased and retired an aggregate of 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for approximately $33.6 million in cash. As of September 30, 2023 there were 2.19 million warrants to purchase common units with a strike price of $34.00 outstanding and no warrants to purchase common units with a strike price of $22.81 outstanding. As of December 31, 2022 there were 3.0 million warrants outstanding, which included warrants to purchase 0.75 million common units at a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00. These warrants had a $32.8 million carrying value included in warrant holders' interest within partners' capital on the Partnership's Consolidated Balance Sheets at September 30, 2023 and $48.0 million at December 31, 2022. 

 

Activity related to the warrants is as follows:

 

  

Warrants

  

Financial

 

(In thousands, except warrant data)

 

Outstanding

  

Position

 

Balance at December 31, 2021 and 2022

  3,002,500  $47,964 

Warrant settlement

  (812,500)  (15,121)

Balance at September 30, 2023

  2,190,000  $32,843 

 

Embedded Features

 

Certain embedded features within the preferred unit and warrant purchase agreement are accounted for at fair value and are remeasured each quarter. See Note 10. Fair Value Measurements for further information regarding valuation of these embedded derivatives.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

4.    Common and Preferred Unit Distributions

 

The Partnership makes cash distributions to common and preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes both common unit and preferred unit distributions on the date the distribution is declared.

 

Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2% of such distributions.

 

Income available to common unitholders and the general partner is reduced by preferred unit distributions that accumulated during the period. NRP reduced net income available to common unitholders and the general partner by $2.9 million and $7.5 million during the three months ended September 30, 2023 and 2022, respectively, and $14.6 million and $22.5 million during the nine months ended September 30, 2023 and 2022, respectively, as a result of accumulated preferred unit distributions earned during the period. Of the $6.7 million in accumulated preferred unit distributions earned during the three months ended March 31, 2023, $0.6 million was paid in February 2023 in connection with the preferred units that were redeemed in February. Of the $5.0 million in accumulated preferred unit distributions earned during the three months ended June 30, 2023, $0.4 million was paid in May 2023 and $0.9 million was paid in June 2023 in connection with the preferred units that were redeemed during those months. Of the $2.9 million in accumulated preferred unit distributions earned during the three months ended September 30, 2023, $0.4 million was paid in August 2023 and $0.4 million was paid in September 2023 in connection with the preferred units that were redeemed during those months. Income available to common unitholders and the general partner is also reduced by the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units. As such, NRP reduced net income available to common unitholders and the general partner by $17.1 million and $60.9 million during the three and nine months ended September 30, 2023, respectively. 

 

The following table shows the cash distributions declared and paid to common and preferred unitholders during the nine months ended September 30, 2023 and 2022, respectively:

 

                   
    

Common Units

  

Preferred Units

 

Month Paid

 

Period Covered by Distribution

 

Distribution per Unit

  

Total Distribution (1) (In thousands)

  

Distribution per Unit

  

Total Distribution (In thousands)

 

2023

                  

February

 

October 1 - December 31, 2022

 $0.75  $9,571  $30.00  $7,500 

February (2)

 

January 1 - February 8, 2023

  —   —   12.33   586 

March (3)

 

Special Distribution

  2.43   31,329   —   — 

May

 

January 1 - March 31, 2023

  0.75   9,669   30.00   6,075 

May (4)

 

April 1 - May 5, 2023

  —   —   11.33   406 

June (5)

 

April 1 - June 2, 2023

  —   —   20.33   915 

August

 

April 1 - June 30, 2023

  0.75   9,669   30.00   3,650 

August (6)

 

June 30 - August 8, 2023

  —   —   12.33   432 

September (7)

 

June 30 - September 12, 2023

  —   —   23.67   355 
                   

2022

                  

February

 

October 1 - December 31, 2021

 $0.45  $5,672  $30.00  $7,500 

February (8)

 

January 1 - February 8, 2022

  —   —   13.35   258 

May

 

January 1 - March 31, 2022

  0.75   9,570   30.00   7,500 

August

 

April 1 - June 30, 2022

  0.75   9,571   30.00   7,500 
     
(1)

Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.

(2)Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
(3)Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
(4)Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
(5)Relates to accrued distribution paid upon the redemption of 45,000 preferred units in June 2023.
(6)Relates to accrued distribution paid upon the redemption of 35,000 preferred units in August 2023. 
(7)Relates to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023.
(8)Relates to accrued distribution paid upon the redemption of 19,321 preferred units paid-in-kind in February 2022.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

5.    Net Income Per Common Unit

 

Basic net income per common unit is computed by dividing net income, after considering income attributable to preferred unitholders, the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units and the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's preferred units, warrants, and unvested unit-based awards if the inclusion of these items is dilutive.

 

The dilutive effect of the preferred units is calculated using the if-converted method. Under the if-converted method, the preferred units are assumed to be converted at the beginning of the period, and the resulting common units are included in the denominator of the diluted net income per unit calculation for the period being presented. Distributions declared in the period and undeclared distributions on the preferred units that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the assumed conversion of the remaining preferred units while it does not include the assumed conversion of the preferred units that were redeemed during the three and nine months ended September 30, 2023 as the inclusion of these units would be anti-dilutive. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2022 includes the assumed conversion of the preferred units.

 

The dilutive effect of the warrants is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to purchase common units at the average market price for the period. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the net settlement of warrants to purchase 2.19 million common units with a strike price of $34.00. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2022 includes the net settlement of warrants to purchase 0.75 million common units at a strike price of $22.81 and the net settlement of warrants to purchase 2.25 million common units with a strike price of $34.00.

 

The following table reconciles the numerator and denominator of the basic and diluted net income per common unit computations and calculates basic and diluted net income per common unit:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands, except per unit data)

 

2023

  

2022

  

2023

  

2022

 

Basic net income per common unit

                

Net income attributable to common unitholders

 $42,951  $65,714  $135,199  $179,119 

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Basic net income per common unit

 $3.40  $5.25  $10.72  $14.36 
                 

Diluted net income per common unit

                

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Plus: dilutive effect of preferred units

  1,104   6,210   2,434   6,210 

Plus: dilutive effect of warrants

  1,492   807   1,296   759 

Plus: dilutive effect of unvested unit-based awards

  240   195   190   204 

Weighted average common units—diluted

  15,471   19,718   16,533   19,649 
                 

Net income

 $63,846  $74,555  $213,455  $205,274 

Less: income attributable to preferred unitholders

  (786)  —   (2,693)  — 

Less: redemption of preferred units

  (17,083)  —   (60,929)  — 

Diluted net income attributable to common unitholders and the general partner

 $45,977  $74,555  $149,833  $205,274 

Less: diluted net income attributable to the general partner

  (920)  (1,491)  (2,997)  (4,105)

Diluted net income attributable to common unitholders

 $45,057  $73,064  $146,836  $201,169 
                 

Diluted net income per common unit

 $2.91  $3.71  $8.88  $10.24 

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

6.    Segment Information

 

The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments:

 

Mineral Rights—consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The Partnership is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally to the glass and chemicals industries.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

The following table summarizes certain financial information for each of the Partnership's business segments:

 

  

Operating Segments

         

(In thousands)

 

Mineral Rights

  

Soda Ash

  

Corporate and Financing

  

Total

 

For the Three Months Ended September 30, 2023

                

Revenues

 $73,112  $12,401  $—  $85,513 

Gain on asset sales and disposals

  854   —   —   854 

Operating and maintenance expenses

  8,305   53   —   8,358 

Depreciation, depletion and amortization

  4,589   —   5   4,594 

General and administrative expenses

  —   —   5,669   5,669 

Asset impairments

  63   —   —   63 

Other expenses, net

  —   —   3,837   3,837 

Net income (loss)

  61,009   12,348   (9,511)  63,846 
                 

For the Three Months Ended September 30, 2022

                

Revenues

 $87,348  $14,556  $—  $101,904 

Gain on asset sales and disposals

  354   —   —   354 

Operating and maintenance expenses

  7,867   31   —   7,898 

Depreciation, depletion and amortization

  6,850   —   —   6,850 

General and administrative expenses

  —   —   4,518   4,518 

Asset impairments

  812   —   —   812 

Other expenses, net

  —   —   7,625   7,625 

Net income (loss)

  72,173   14,525   (12,143)  74,555 
                 

For the Nine Months Ended September 30, 2023

                

Revenues

 $217,258  $58,633  $—  $275,891 

Gain on asset sales and disposals

  955   —   —   955 

Operating and maintenance expenses

  23,226   225   —   23,451 

Depreciation, depletion and amortization

  12,455   —   14   12,469 

General and administrative expenses

  —   —   17,157   17,157 

Asset impairments

  132   —   —   132 

Other expenses, net

  —   —   10,182   10,182 

Net income (loss)

  182,400   58,408   (27,353)  213,455 
                 

For the Nine Months Ended September 30, 2022

                

Revenues

 $247,172  $44,036  $—  $291,208 

Gain on asset sales and disposals

  699   —   —   699 

Operating and maintenance expenses

  25,884   105   —   25,989 

Depreciation, depletion and amortization

  16,565   —   —   16,565 

General and administrative expenses

  —   —   14,037   14,037 

Asset impairments

  874   —   —   874 

Other expenses, net

  —   —   29,168   29,168 

Net income (loss)

  204,548   43,931   (43,205)  205,274 

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

7.    Equity Investment 

 

The Partnership accounts for its 49% investment in Sisecam Wyoming using the equity method of accounting. Activity related to this investment is as follows: 

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Balance at beginning of period

 $290,900  $280,300  $306,470  $276,004 

Income allocation to NRP’s equity interests (1)

  13,608   15,732   62,184   47,601 

Amortization of basis difference

  (1,207)  (1,176)  (3,551)  (3,565)

Other comprehensive income (loss)

  2,200   289   (16,472)  (1,179)

Distribution

  (23,010)  (10,339)  (66,140)  (34,055)

Balance at end of period

 $282,491  $284,806  $282,491  $284,806 
     
(1)Amounts reclassified into income out of accumulated other comprehensive loss were $0.9 million and $(1.2) million for the three months ended September 30, 2023 and 2022, respectively, and $(17.4) million and $(5.7) million for the nine months ended September 30, 2023 and 2022, respectively. 

 

The following table represents summarized financial information for Sisecam Wyoming as derived from their respective unaudited financial statements for the three and nine months ended September 30, 2023 and 2022:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Net sales

 $180,232  $190,450  $588,725  $542,955 

Gross profit

  34,454   39,679   148,063   119,723 

Net income

  27,772   32,105   126,906   97,144 

 

 
 

8.    Mineral Rights, Net

 

The Partnership’s mineral rights consist of the following:

 

  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Carrying Value

  

Accumulated Depletion

  

Net Book Value

  

Carrying Value

  

Accumulated Depletion

  

Net Book Value

 

Coal properties

 $661,680  $(279,988) $381,692  $661,812  $(269,037) $392,775 

Aggregates properties

  8,655   (3,723)  4,932   8,655   (3,410)  5,245 

Oil and gas royalty properties

  12,354   (9,962)  2,392   12,354   (9,600)  2,754 

Other

  13,144   (1,612)  11,532   13,150   (1,612)  11,538 

Total mineral rights, net

 $695,833  $(295,285) $400,548  $695,971  $(283,659) $412,312 

 

Depletion expense related to the Partnership’s mineral rights is included in depreciation, depletion and amortization on its Consolidated Statements of Comprehensive Income and totaled $4.1 million and $6.4 million for the three months ended September 30, 2023 and 2022, respectively and $11.6 million and $15.5 million for the nine months ended September 30, 2023 and 2022, respectively.

 

The Partnership has developed procedures to evaluate its long-lived assets for possible impairment periodically or whenever events or changes in circumstances indicate an asset's net book value may not be recoverable. Potential events or circumstances include, but are not limited to, specific events such as a reduction in economically recoverable reserves or production ceasing on a property for an extended period. This analysis is based on historic, current and future performance and considers both quantitative and qualitative information. As a result of the Partnership's analyses, NRP recorded immaterial impairment expenses during the three and nine months ended September 30, 2023 and September 30, 2022. 

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

9.    Debt, Net

 

The Partnership's debt consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Opco Credit Facility

 $128,034  $70,000 

Opco Senior Notes

        

5.55% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023

 $—  $2,366 

4.73% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023

  6,004   6,004 

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  12,684   25,368 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  4,011   8,023 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  45,683   45,683 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  11,643   11,643 

Total Opco Senior Notes

 $80,025  $99,087 

Total debt at face value

 $208,059  $169,087 

Net unamortized debt issuance costs

  (544)  (806)

Total debt, net

 $207,515  $168,281 

Less: current portion of long-term debt

  (36,780)  (39,076)

Total long-term debt, net

 $170,735  $129,205 

 

Opco Debt

 

All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of September 30, 2023 and December 31, 2022, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

 

Opco Credit Facility

 

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. The Sixth Amendment also includes modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

 

•

A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x; provided, and

 

•

an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0.

 

As of December 31, 2022, the Partnership had $70.0 million in borrowings outstanding under the Opco Credit Facility. During the nine months ended September 30, 2023, the Partnership borrowed $215.0 million and repaid $157.0 million, resulting in $128.0 million in borrowings outstanding under the Opco Credit Facility as of September 30, 2023. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2023 was 8.85% and 8.61%, respectively. During the three and nine months ended September 30, 2022, the Partnership did not have any borrowings outstanding under the Opco Credit Facility. The Partnership had $27.0 million and $60.0 million of available borrowing capacity as of September 30, 2023 and December 31, 2022, respectively.

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $321.6 million and $326.4 million classified as mineral rights, net and other long-term assets, net and $27.0 million and $28.9 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

 

Opco Senior Notes   

 

Opco has issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of September 30, 2023 and December 31, 2022, the Opco Senior Notes had cumulative principal balances of $80.0 million and $99.1 million, respectively. Opco made mandatory principal payments of $19.1 million during the nine months ended September 30, 2023 and 2022.

 

The 8.92% Opco Senior Notes also provides that in the event that Opco’s leverage ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the Note Purchase Agreements) exceeds 3.75 to 1.00 at the end of any fiscal quarter, then in addition to all other interest accruing on these notes, additional interest in the amount of 2.00% per annum shall accrue on the notes for the two succeeding quarters and for as long thereafter as the leverage ratio remains above 3.75 to 1.00. Opco has not exceeded the 3.75 to 1.00 ratio at the end of any fiscal quarter through September 30, 2023.

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

10.    Fair Value Measurements

 

Fair Value of Financial Assets and Liabilities

 

The Partnership’s financial assets and liabilities consist of cash and cash equivalents, a contract receivable and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its debt and contract receivable.

 

The following table shows the carrying value and estimated fair value of the Partnership's debt and contract receivable:

 

      

September 30, 2023

  

December 31, 2022

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $79,481  $75,815  $98,281  $96,060 

Opco Credit Facility (2)

  3   128,034   128,034   70,000   70,000 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $29,570  $24,880  $31,371  $24,833 
     
(1)The fair value of the Opco Senior Notes at September 30, 2023 and December 31, 2022 were estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit facility at September 30, 2023 and December 31, 2022, respectively.
(2)The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty.
(3)The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2023 and December 31, 2022.

 

NRP has embedded derivatives in the preferred units related to certain conversion options, redemption features and the change of control provision that are accounted for separately from the preferred units as assets and liabilities at fair value on the Partnership's Consolidated Balance Sheets. Level 3 valuation of the embedded derivatives are based on numerous factors including the likelihood of the event occurring. The embedded derivatives are revalued quarterly and changes in their fair value would be recorded in other expenses, net on the Partnership's Consolidated Statements of Comprehensive Income. The embedded derivatives had zero value as of September 30, 2023 and December 31, 2022.

 

 

11.    Related Party Transactions

 

Affiliates of our General Partner

 

The Partnership’s general partner does not receive any management fee or other compensation for its management of NRP. However, in accordance with the partnership agreement, the general partner and its affiliates are reimbursed for services provided to the Partnership and for expenses incurred on the Partnership’s behalf. Employees of Quintana Minerals Corporation ("QMC") and Western Pocahontas Properties Limited Partnership ("WPPLP"), affiliates of the Partnership, provide their services to manage the Partnership's business. QMC and WPPLP charge the Partnership the portion of their employee salary and benefits costs related to their employee services provided to NRP. These QMC and WPPLP employee management service costs are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP also reimburses overhead costs incurred by its affiliates, including Quintana Infrastructure Development ("QID"), to manage the Partnership's business. These overhead costs include certain rent, information technology, administration of employee benefits and other corporate services incurred by or on behalf of the Partnership’s general partner and its affiliates and are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Direct general and administrative expenses charged to the Partnership by QMC, WPPLP and QID are included on the Partnership's Consolidated Statement of Comprehensive Income as follows:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Operating and maintenance expenses

 $1,663  $1,687  $5,094  $5,044 

General and administrative expenses

  1,287   1,195   3,860   3,660 

 

The Partnership had accounts payable to QMC of $0.4 million on its Consolidated Balance Sheets at both  September 30, 2023 and December 31, 2022, and $0.3 million and $1.0 million of accounts payable to WPPLP at September 30, 2023 and December 31, 2022, respectively.

 

During the three months ended September 30, 2023 and 2022, the Partnership recognized $1.1 million and $2.2 million, respectively, in operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to an overriding royalty agreement with WPPLP. These amounts were $5.1 million and $6.5 million during the nine months ended September 30, 2023 and 2022, respectively. 

 

15
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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

12.    Major Customers 

 

Revenues from customers that exceeded 10 percent of total revenues for any of the periods presented below are as follows:

 

  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 
  

2023

  

2022

  

2023

  

2022

 

(In thousands)

 

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

 

Alpha Metallurgical Resources, Inc. (1)

 $17,219   20% $21,000   21% $61,122   22% $81,638   28%

Foresight Energy Resources LLC ("Foresight") (1)

 $18,600   22% $19,334   19% $43,453   16% $47,081   16%
     

(1)

Revenues from Alpha Metallurgical Resources, Inc. and Foresight are included within the Partnership's Mineral Rights segment.

 
 

13.    Commitments and Contingencies

 

NRP is involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, Partnership management believes these ordinary course matters will not have a material effect on the Partnership’s financial position, liquidity or operations.

 

 

14.    Unit-Based Compensation

 

During the nine months ended September 30, 2023, the Partnership granted service, performance and market-based awards under its 2017 Long-Term Incentive Plan and during the nine months ended September 30, 2022, the Partnership granted service-based awards. The Partnership's service and performance-based awards are valued using the closing price of NRP's common units as of the grant date while the Partnership's market-based awards are valued using a Monte Carlo simulation. The grant date fair value of these awards granted during nine months ended September 30, 2023 and 2022 was $16.0 million and $7.9 million, respectively. Total unit-based compensation expense associated with these awards was $2.7 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, and $7.9 million and $4.2 million for the nine months ended September 30, 2023 and 2022, respectively, and is included in general and administrative expenses and operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. The unamortized cost associated with unvested outstanding awards as of September 30, 2023 is $15.8 million, which is to be recognized over a weighted average period of 2.1 years. The unamortized cost associated with unvested outstanding awards as of  December 31, 2022 was $6.3 million.

 

A summary of the unit activity in the outstanding grants during 2023 is as follows:

 

(In thousands)

 

Common Units

  

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2023

  386  $28.96 

Granted

  281  $56.84 

Fully vested and issued

  (184) $26.30 

Outstanding at September 30, 2023

  483  $46.21 

 

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NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

15.    Financing Transaction

 

The Partnership owns rail loadout and associated infrastructure at the Sugar Camp mine in the Illinois Basin operated by a subsidiary of Foresight. The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and is accounted for as a financing transaction (the "Sugar Camp lease"). The Sugar Camp lease expires in 2032 with renewal options for up to 80 additional years. Minimum payments are $5.0 million per year through the end of the lease term. The Partnership is also entitled to variable payments in the form of throughput fees based on the amount of coal transported and processed utilizing the Partnership's assets. In the event the Sugar Camp lease is renewed beyond 2032, payments become a fixed ten thousand dollars per year for the remainder of the renewed term.

 

 

16.    Credit Losses

 

The Partnership is exposed to credit losses through collection of its short-term trade receivables resulting from contracts with customers and a long-term receivable resulting from a financing transaction with a customer. The Partnership records an allowance for current expected credit losses on these receivables based on the loss-rate method. NRP assessed the likelihood of collection of its receivables utilizing historical loss rates, current market conditions, industry and macroeconomic factors, reasonable and supportable forecasts and facts or circumstances of individual customers and properties. Examples of these facts or circumstances include, but are not limited to, contract disputes or renegotiations with the customer and evaluation of short and long-term economic viability of the contracted property. For its long-term contract receivable, management reverts to the historical loss experience immediately after the reasonable and supportable forecast period ends.

 

As of September 30, 2023 and December 31, 2022, NRP had the following current expected credit loss (“CECL”) allowance related to its receivables and long-term contract receivable:

 

  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Gross

  

CECL Allowance

  

Net

  

Gross

  

CECL Allowance

  

Net

 

Receivables

 $46,294  $(5,343) $40,951  $47,237  $(4,461) $42,776 

Long-term contract receivable

  27,965   (968)  26,997   29,984   (1,038)  28,946 

Total

 $74,259  $(6,311) $67,948  $77,221  $(5,499) $71,722 

 

NRP recorded $1.6 million and $0.0 million of operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to the change in the CECL allowance during the three months ended September 30, 2023 and 2022, respectively and $0.8 million and $0.6 million during the nine months ended September 30, 2023 and 2022, respectively. 

 

NRP has procedures in place to monitor its ongoing credit exposure through timely review of counterparty balances against contract terms and due dates, account and financing receivable reconciliation, bankruptcy monitoring, lessee audits and dispute resolution. The Partnership may employ legal counsel or collection specialists to pursue recovery of defaulted receivables.

 

 

17.    Subsequent Events

 

The following represents material events that have occurred subsequent to September 30, 2023 through the time of the Partnership’s filing of its Quarterly Report on Form 10-Q with the SEC:

 

Common Unit and Preferred Unit Distributions

 

In November 2023, the Board of Directors declared a distribution of $0.75 per common unit with respect to the third quarter of 2023. The Board of Directors also declared a $2.15 million cash distribution on NRP's outstanding preferred units with respect to the third quarter of 2023.

 

Warrant Repurchases

 

On October 6, 2023, the Partnership executed a negotiated transaction with holders of the warrants pursuant to which the Partnership repurchased and retired an aggregate of 300,000 warrants with an exercise price of $34.00 for approximately $11.4 million in cash. On October 26, 2023, the Partnership executed another negotiated transaction with holders of the warrants pursuant to which the Partnership repurchased and retired an aggregate of 350,000 warrants with an exercise price of $34.00 for approximately $11.1 million in cash. Following these transactions, 1.54 million warrants with an exercise price of $34.00 remain outstanding. As a result of these repurchases, warrant holders' interest on the Partnership's Statement of Partners' Capital decreased by $9.7 million during the month of October 2023. 

 

 

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following review of operations for the three and nine month periods ended September 30, 2023 and 2022 should be read in conjunction with our Consolidated Financial Statements and the Notes to Consolidated Financial Statements included in this Form 10-Q and with the Consolidated Financial Statements, Notes to Consolidated Financial Statements and Management’s Discussion and Analysis included in the Natural Resource Partners L.P. Annual Report on Form 10-K for the year ended December 31, 2022.

 

As used herein, unless the context otherwise requires: "we," "our," "us" and the "Partnership" refer to Natural Resource Partners L.P. and, where the context requires, our subsidiaries. References to "NRP" and "Natural Resource Partners" refer to Natural Resource Partners L.P. only, and not to NRP (Operating) LLC or any of Natural Resource Partners L.P.’s subsidiaries. References to "Opco" refer to NRP (Operating) LLC, a wholly owned subsidiary of NRP, and its subsidiaries. NRP Finance Corporation ("NRP Finance") is a wholly owned subsidiary of NRP and was a co-issuer with NRP on the 9.125% senior notes due 2025 (the "2025 Senior Notes").

 

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

 

Statements included in this 10-Q may constitute forward-looking statements. In addition, we and our representatives may from time to time make other oral or written statements which are also forward-looking statements. Such forward-looking statements include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on our common and preferred units; our business strategy; our liquidity and access to capital and financing sources; our financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by our lessees; Sisecam Wyoming LLC’s ("Sisecam Wyoming's") trona mining and soda ash refinery operations; distributions from our soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving us, and of scheduled or potential regulatory or legal changes; and global and U.S. economic conditions.

 

These forward-looking statements speak only as of the date hereof and are made based upon our current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. You should not put undue reliance on any forward-looking statements. See "Item 1A. Risk Factors" included in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2022 for important factors that could cause our actual results of operations or our actual financial condition to differ.

 

NON-GAAP FINANCIAL MEASURES

 

Adjusted EBITDA

 

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. For a description of Opco's debt agreements, see Note 9. Debt, Net in the Notes to Consolidated Financial Statements included herein as well as in "Item 8. Financial Statements and Supplementary Data—Note 11. Debt, Net" in our Annual Report on Form 10-K for the year ended December 31, 2022. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

 

Distributable Cash Flow

 

Distributable cash flow ("DCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, DCF presented below is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

 

Free Cash Flow

 

Free cash flow ("FCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. FCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. FCF may not be calculated the same for us as for other companies. FCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

 

Leverage Ratio

 

Leverage ratio represents the outstanding principal of our debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. We believe that leverage ratio is a useful measure to management and investors to evaluate and monitor our indebtedness relative to our ability to generate income to service such debt and in understanding trends in our overall financial condition. Leverage ratio may not be calculated the same for us as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios. 

 

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Introduction

 

The following discussion and analysis presents management's view of our business, financial condition and overall performance. Our discussion and analysis consists of the following subjects:

•    Executive Overview

•    Results of Operations

•    Liquidity and Capital Resources

•    Off-Balance Sheet Transactions

•    Related Party Transactions

•    Summary of Critical Accounting Estimates

•    Recent Accounting Standards

 

Executive Overview

 

We are a diversified natural resource company engaged principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and own a non-controlling 49% interest in Sisecam Wyoming, a trona ore mining and soda ash production business. Our common units trade on the New York Stock Exchange under the symbol "NRP." Our business is organized into two operating segments:

 

Mineral Rights—consists of approximately 13 million acres of mineral interests and other subsurface rights across the United States. If combined in a single tract, our ownership would cover roughly 20,000 square miles. Our ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. We are working to strategically redefine our business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of our 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining and soda ash production business located in the Green River Basin of Wyoming. Sisecam Wyoming mines the trona and processes it into soda ash that is sold both domestically and internationally into the glass and chemicals industries.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment.

 

Our financial results by segment for the nine months ended September 30, 2023 are as follows:

 

   

Operating Segments

                  

(In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

Revenues and other income

   $ 218,213     $ 58,633     $ —     $ 276,846  

Net income (loss)

   $ 182,400     $ 58,408     $ (27,353 )   $ 213,455  

Adjusted EBITDA (1)

   $ 194,987     $ 65,915     $ (17,157 )   $ 243,745  
                                 

Cash flow provided by (used in) continuing operations

                                

Operating activities

   $ 189,836     $ 65,901     $ (22,545 )   $ 233,192  

Investing activities

   $ 2,791     $ —     $ (10 )   $ 2,781  

Financing activities

   $ (583 )   $ —     $ (256,070 )   $ (256,653 )

Distributable cash flow (1)

   $ 192,627     $ 65,901     $ (22,555 )   $ 235,973  

Free cash flow (1)

   $ 191,666     $ 65,901     $ (22,555 )   $ 235,012  
         

(1)

See "—Results of Operations" below for reconciliations to the most comparable GAAP financial measures.

 

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Current Results/Market Commentary

 

Financial Results and Quarterly Distributions

 

We generated $233.2 million of operating cash flow and $235.0 million of free cash flow during the nine months ended September 30, 2023, and ended the quarter with $45.4 million of liquidity consisting of $18.4 million of cash and cash equivalents and $27.0 million of borrowing capacity under our Opco Credit Facility. As of September 30, 2023 our leverage ratio was 0.7 x.

 

In May 2023, we declared and paid a cash distribution of $0.75 per common unit of NRP with respect to the first quarter of 2023 as well as a $6.1 million cash distribution on the preferred units with respect to the first quarter of 2023. In August 2023, we declared and paid a cash distribution of $0.75 per common unit of NRP with respect to the second quarter of 2023 as well as a $3.7 million cash distribution on the preferred units with respect to the second quarter of 2023. Future distributions on our common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs. 

 

In February 2023, we received a notice from holders of the Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 47,499 Class A Preferred Units. We chose to redeem the preferred units for $47.5 million in cash rather than issuing common units. In May 2023, we received a notice from holders of our Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 35,834 Class A Preferred Units. We chose to redeem the preferred units for $35.8 million in cash rather than issuing common units. In June 2023, we executed a negotiated transaction with holders of our Class A Preferred Units pursuant to which we repurchased and retired an aggregate of 45,000 Class A Preferred Units for $45.0 million in cash. In August 2023, we executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which we repurchased and retired an aggregate of 35,000 Class A Preferred Units for $35.0 million in cash. In September 2023, we executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which we repurchased and retired an aggregate of 15,001 Class A Preferred Units for $15.0 million in cash. Of the originally issued 250,000 Class A Preferred Units, 71,666 Class A Preferred Units remain outstanding as of September 30, 2023. In connection with these repurchases and effective September 2023, Blackstone no longer holds any Class A Preferred Units and as such, all rights of Blackstone thereof have ceased with respect to the Class A Preferred Units and Blackstone's board designee resigned from the board of the Partnership's general partner.

 

In September 2023, we negotiated a transaction with holders of the warrants to purchase common units (the "warrants") pursuant to which we repurchased and retired an aggregate of 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for approximately $33.6 million in cash. In October 2023, we executed two negotiated transactions with holders of the warrants pursuant to which we repurchased and retired an aggregate of 650,000 warrants with an exercise price of $34.00 for approximately $22.5 million in cash. Following these transactions, 1.54 million warrants with an exercise price of $34.00 remain outstanding. 

 

Mineral Rights Business Segment

 

Revenues and other income in the first nine months of 2023 decreased $29.7 million, or 12%, as compared to the prior year period primarily due to decreased metallurgical coal sales prices and decreased revenues from oil and gas royalties and certain carbon neutral initiative transactions entered into in 2022. Cash provided by operating activities and free cash flow decreased $4.6 million and $3.9 million, respectively, compared to the prior year period primarily due to the lower revenues during the first nine months of 2023 as compared to the prior year period. 

 

Metallurgical coal prices improved, and thermal coal prices remained relatively flat during the third quarter of 2023. Both metallurgical and thermal coal prices were above historical norms but below the record highs seen in 2022. We expect continued price support for coal as limited access to capital, labor shortages and inflationary pressures limit operators' ability to increase production.

 

We continue to explore carbon neutral revenue opportunities across our large asset portfolio, including the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy.

 

Soda Ash Business Segment

 

Revenues and other income in the first nine months of 2023increased $14.6 million, or 33%, as compared to the prior year period primarily due to higher sales prices driven by strong demand in domestic and international markets, partially offset by lower soda ash production and sales volumes. Cash provided by operating activities and free cash flow in the first nine months of 2023increased $32.0 million as compared to the prior year period due to higher distributions received from Sisecam Wyoming in 2023 stemming from Sisecam Wyoming's strong operating performance in the first half of the year.

 

International soda ash prices were significantly lower in the third quarter compared to the first half of the year primarily due to new supply from China. We believe lower international prices will persist throughout the remainder of the year and into next year as the market absorbs the additional supply. Sisecam Wyoming’s domestic soda ash sales prices are expected to remain above the spot market for the rest of this year as a result of negotiated 2023 domestic sales contracts entered into at the end of 2022. As domestic sales contracts for 2024 begin to be negotiated, we believe contracted sales prices will be set at lower levels as the market contends with recessionary headwinds and new supply entering the export markets.

 

Results of Operations

 

Third Quarter of 2023 and 2022 Compared

 

Revenues and Other Income

 

The following table includes our revenues and other income by operating segment:

 

    For the Three Months Ended September 30,           Percentage  

Operating Segment (In thousands)

  

2023

    

2022

    

Decrease

    

Change

  

Mineral Rights

   $ 73,966     $ 87,702     $ (13,736 )     (16 )%

Soda Ash

     12,401       14,556       (2,155 )     (15 )%

Total

   $ 86,367     $ 102,258     $ (15,891 )     (16 )%

 

The changes in revenues and other income are discussed for each of the operating segments below:

 

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Mineral Rights

 

The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income:

 

    For the Three Months Ended September 30,    

Increase

    

Percentage

  

(In thousands, except per ton data)

  

2023

    

2022

    

(Decrease)

    

Change

  

Coal sales volumes (tons)

                                

Appalachia

                                

Northern

     284       440       (156 )     (35 )%

Central

     3,429       3,503       (74 )     (2 )%

Southern

     741       498       243       49 %

Total Appalachia

     4,454       4,441       13       0 %

Illinois Basin

     2,541       3,490       (949 )     (27 )%

Northern Powder River Basin

     1,364       835       529       63 %

Gulf Coast

     479       188       291       155 %

Total coal sales volumes

     8,838       8,954       (116 )     (1 )%
                                 

Coal royalty revenue per ton

                                

Appalachia

                                

Northern

   $ 5.54     $ 6.74     $ (1.20 )     (18 )%

Central

     8.20       9.04       (0.84 )     (9 )%

Southern

     11.88       9.78       2.10       21 %

Illinois Basin

     3.98       2.57       1.41       55 %

Northern Powder River Basin

     4.86       4.56       0.30       7 %

Gulf Coast

     0.69       0.59       0.10       17 %

Combined average coal royalty revenue per ton

     6.29       5.85       0.44       8 %
                                 

Coal royalty revenues

                                

Appalachia

                                

Northern

   $ 1,573     $ 2,965     $ (1,392 )     (47 )%

Central

     28,111       31,680       (3,569 )     (11 )%

Southern

     8,806       4,872       3,934       81 %

Total Appalachia

     38,490       39,517       (1,027 )     (3 )%

Illinois Basin

     10,108       8,967       1,141       13 %

Northern Powder River Basin

     6,627       3,805       2,822       74 %

Gulf Coast

     330       111       219       197 %

Unadjusted coal royalty revenues

     55,555       52,400       3,155       6 %

Coal royalty adjustment for minimum leases

     (11 )     (19 )     8       42 %

Total coal royalty revenues

   $ 55,544     $ 52,381     $ 3,163       6 %
                                 

Other revenues

                                

Production lease minimum revenues

   $ 850     $ 1,885     $ (1,035 )     (55 )%

Minimum lease straight-line revenues

     4,464       4,778       (314 )     (7 )%

Carbon neutral initiative revenues

     681       8,600       (7,919 )     (92 )%

Wheelage revenues

     2,385       2,977       (592 )     (20 )%

Property tax revenues

     1,770       1,360       410       30 %

Coal overriding royalty revenues

     827       1,367       (540 )     (40 )%

Lease amendment revenues

     623       759       (136 )     (18 )%

Aggregates royalty revenues

     736       884       (148 )     (17 )%

Oil and gas royalty revenues

     324       6,170       (5,846 )     (95 )%

Other revenues

     329       218       111       51 %

Total other revenues

   $ 12,989     $ 28,998     $ (16,009 )     (55 )%

Royalty and other mineral rights

   $ 68,533     $ 81,379     $ (12,846 )     (16 )%

Transportation and processing services revenues

     4,579       5,969       (1,390 )     (23 )%

Gain on asset sales and disposals

     854       354       500       141 %

Total Mineral Rights segment revenues and other income

   $ 73,966     $ 87,702     $ (13,736 )     (16 )%

 

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Coal Royalty Revenues

 

Approximately 60% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal during the three months ended September 30, 2023. Total coal royalty revenues increased $3.2 million as compared to the prior year quarter. The discussion by region is as follows:

 

•

Appalachia: Coal royalty revenues decreased $1.0 million primarily due to decreased metallurgical coal sales prices during the three months ended September 30, 2023, as compared to the prior year quarter.
 

•

Illinois Basin: Coal royalty revenues increased $1.1 million primarily due to increased sales prices during the three months ended September 30, 2023, as compared to the prior year quarter.
 

•

Northern Powder River Basin: Coal royalty revenues increased $2.8 million primarily due to increased sales volumes during the three months ended September 30, 2023, as compared to the prior year quarter as our lessee mined more on our property during the third quarter of 2023 as compared to the third quarter of 2022 in accordance with its mine plan.

 

Other Revenues

 

Total other revenues decreased $16.0 million during the three months ended September 30, 2023, as compared to the prior year quarter primarily due a $7.9 million decrease in carbon neutral initiative revenues and a $5.8 million decrease in oil and gas royalty revenues. Carbon neutral initiative revenues recognized during the three months ended September 30, 2023 primarily related to the sale of forest carbon offset credits and carbon neutral initiative revenues recognized during the three months ended September 30, 2022 primarily related to carbon neutral transactions that included subsurface CO2 storage and geothermal energy production. Oil and gas royalty revenues decreased during the three months ended September 30, 2023 primarily as a result of decreased natural gas production and prices as compared to the prior year quarter.

 

Soda Ash

 

Revenues and other income related to our Soda Ash segment decreased $2.2 million as compared to the prior year quarter primarily due to lower international sales prices and an increased sales mix into the lower priced international market in the three months ended September 30, 2023 as compared to the prior year period.

 

Operating and Other Expenses

 

The following table presents the significant categories of our consolidated operating and other expenses:

 

   

For the Three Months Ended September 30,

    

Increase

    

Percentage

  

(In thousands)

  

2023

    

2022

    

(Decrease)

    

Change

  

Operating expenses

                                

Operating and maintenance expenses

   $ 8,358     $ 7,898     $ 460       6 %

Depreciation, depletion and amortization

     4,594       6,850       (2,256 )     (33 )%

General and administrative expenses

     5,669       4,518       1,151       25 %

Asset impairments

     63       812       (749 )     (92 )%

Total operating expenses

   $ 18,684     $ 20,078     $ (1,394 )     (7 )%
                                 

Other expenses, net

                                

Interest expense, net

   $ 3,837     $ 5,141     $ (1,304 )     (25 )%

Loss on extinguishment of debt

     —       2,484       (2,484 )     (100 )%

Total other expenses, net

   $ 3,837     $ 7,625     $ (3,788 )     (50 )%

 

Total operating expenses decreased $1.4 million as compared to the prior year quarter primarily due a decrease in depreciation, depletion and amortization driven by lower Illinois Basin coal sales volumes during the three months ended September 30, 2023 as compared to the prior year quarter.

 

Total other expenses, net decreased $3.8 million as a result of the loss on extinguishment of debt recognized in 2022 related to the partial retirement of the 2025 Senior Notes during the third quarter of 2022 in addition a decrease in interest expense, net primarily due to less debt outstanding as compared to the prior year quarter.

 

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Adjusted EBITDA (Non-GAAP Financial Measure)

 

The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment:

 

   

Operating Segments

                  

For the Three Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Net income (loss)

   $ 61,009     $ 12,348     $ (9,511 )   $ 63,846  

Less: equity earnings from unconsolidated investment

     —       (12,401 )     —       (12,401 )

Add: total distributions from unconsolidated investment

     —       23,010       —       23,010  

Add: interest expense, net

     —       —       3,837       3,837  

Add: depreciation, depletion and amortization

     4,589       —       5       4,594  

Add: asset impairments

     63       —       —       63  

Adjusted EBITDA

   $ 65,661     $ 22,957     $ (5,669 )   $ 82,949  
                                 

September 30, 2022

                                

Net income (loss)

   $ 72,173     $ 14,525     $ (12,143 )   $ 74,555  

Less: equity earnings from unconsolidated investment

     —       (14,556 )     —       (14,556 )

Add: total distributions from unconsolidated investment

     —       10,339       —       10,339  

Add: interest expense, net

     —       —       5,141       5,141  

Add: loss on extinguishment of debt

     —       —       2,484       2,484  

Add: depreciation, depletion and amortization

     6,850       —       —       6,850  

Add: asset impairments

     812       —       —       812  

Adjusted EBITDA

   $ 79,835     $ 10,308     $ (4,518 )   $ 85,625  

 

Net income decreased $10.7 million as compared to the prior year quarter primarily due to the decrease in revenues and other income, partially offset by the decrease in operating and other expenses, net, both discussed above. Adjusted EBITDA decreased $2.7 million as compared to the prior year quarter primarily due to a $14.2 million decrease in Adjusted EBITDA within our Mineral Rights segment primarily as a result of lower revenues and other income as discussed above. This decrease was partially offset by a $12.6 million increase in Adjusted EBITDA within our Soda Ash segment due to a higher distribution received from Sisecam Wyoming driven by their strong operating performance in the first half of 2023.

 

Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures)

 

The following table presents the three major categories of the statement of cash flows by business segment:

 

   

Operating Segments

                  

For the Three Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Cash flow provided by (used in)

                                

Operating activities

   $ 60,938     $ 22,958     $ (4,954 )   $ 78,942  

Investing activities

     1,477       —       —       1,477  

Financing activities

     —       —       (72,738 )     (72,738 )
                                 

September 30, 2022

                                

Cash flow provided by (used in)

                                

Operating activities

   $ 75,948     $ 10,309     $ (3,761 )   $ 82,496  

Investing activities

     928       —       (59 )     869  

Financing activities

     —       —       (81,784 )     (81,784 )

 

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The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF:

 

   

Operating Segments

                  

For the Three Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Net cash provided by (used in) operating activities

   $ 60,938     $ 22,958     $ (4,954 )   $ 78,942  

Add: proceeds from asset sales and disposals

     855       —       —       855  

Add: return of long-term contract receivable

     622       —       —       622  

Less: maintenance capital expenditures

     —       —       —       —  

Distributable cash flow

   $ 62,415     $ 22,958     $ (4,954 )   $ 80,419  

Less: proceeds from asset sales and disposals

     (855 )     —       —       (855 )

Free cash flow

   $ 61,560     $ 22,958     $ (4,954 )   $ 79,564  
                                 

September 30, 2022

                                

Net cash provided by (used in) operating activities

   $ 75,948     $ 10,309     $ (3,761 )   $ 82,496  

Add: proceeds from asset sales and disposals

     353       —       —       353  

Add: return of long-term contract receivable

     575       —       —       575  

Less: maintenance capital expenditures

     —       —       (59 )     (59 )

Distributable cash flow

   $ 76,876     $ 10,309     $ (3,820 )   $ 83,365  

Less: proceeds from asset sales and disposals

     (353 )     —       —       (353 )

Free cash flow

   $ 76,523     $ 10,309     $ (3,820 )   $ 83,012  

 

Operating cash flow, DCF and FCF decreased $3.6 million, $2.9 million and $3.4 million, respectively, as compared to the prior year quarter primarily due to a decrease in cash flow within our Mineral Rights segment, partially offset by an increase in cash flow within our Soda Ash segment. The discussion by segment is as follows:

 

•

Mineral Rights Segment
 

◦

Operating cash flow, DCF and FCF decreased $15.0 million, $14.5 million and $15.0 million, respectively, primarily driven by cash received from certain carbon neutral initiatives entered into in the third quarter of 2022 and lower natural gas production and prices in the third quarter of 2023 as compared to the prior year quarter. 
 

•

Soda Ash Segment
 

◦

Operating cash flow, DCF and FCF increased $12.6 million as compared to the prior year quarter primarily due to a higher distribution received from Sisecam Wyoming driven by Sisecam Wyoming's strong operating performance in the first half of 2023.

     

First Nine Months of 2023 and 2022 Compared

 

Revenues and Other Income

 

The following table includes our revenues and other income by operating segment:

 

      For the Nine Months Ended September 30,     Increase     Percentage  

Operating Segment (In thousands)

  

2023

    

2022

    

(Decrease)

    

Change

  

Mineral Rights

   $ 218,213     $ 247,871     $ (29,658 )     (12 )%

Soda Ash

     58,633       44,036       14,597       33 %

Total

   $ 276,846     $ 291,907     $ (15,061 )     (5 )%

 

The changes in revenues and other income are discussed for each of the operating segments below:

 

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Mineral Rights

 

The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income:

 

   

For the Nine Months Ended September 30,

    

Increase

    

Percentage

  

(In thousands, except per ton data)

  

2023

    

2022

    

(Decrease)

    

Change

  

Coal sales volumes (tons)

                                

Appalachia

                                

Northern

     1,053       1,260       (207 )     (16 )%

Central

     10,390       10,238       152       1 %

Southern

     2,016       1,171       845       72 %

Total Appalachia

     13,459       12,669       790       6 %

Illinois Basin

     5,482       8,395       (2,913 )     (35 )%

Northern Powder River Basin

     3,330       2,772       558       20 %

Gulf Coast

     676       324       352       109 %

Total coal sales volumes

     22,947       24,160       (1,213 )     (5 )%
                                 

Coal royalty revenue per ton

                                

Appalachia

                                

Northern

   $ 7.59     $ 9.48     $ (1.89 )     (20 )%

Central

     8.89       10.85       (1.96 )     (18 )%

Southern

     12.41       14.28       (1.87 )     (13 )%

Illinois Basin

     3.63       2.30       1.33       58 %

Northern Powder River Basin

     4.74       4.24       0.50       12 %

Gulf Coast

     0.68       0.58       0.10       17 %

Combined average coal royalty revenue per ton

     7.04       7.08       (0.04 )     (1 )%
                                 

Coal royalty revenues

                                

Appalachia

                                

Northern

   $ 7,991     $ 11,946     $ (3,955 )     (33 )%

Central

     92,362       111,121       (18,759 )     (17 )%

Southern

     25,024       16,725       8,299       50 %

Total Appalachia

     125,377       139,792       (14,415 )     (10 )%

Illinois Basin

     19,924       19,331       593       3 %

Northern Powder River Basin

     15,768       11,751       4,017       34 %

Gulf Coast

     461       187       274       147 %

Unadjusted coal royalty revenues

     161,530       171,061       (9,531 )     (6 )%

Coal royalty adjustment for minimum leases

     (3 )     (286 )     283       99 %

Total coal royalty revenues

   $ 161,527     $ 170,775     $ (9,248 )     (5 )%
                                 

Other revenues

                                

Production lease minimum revenues

   $ 2,025     $ 3,542     $ (1,517 )     (43 )%

Minimum lease straight-line revenues

     13,414       14,235       (821 )     (6 )%

Carbon neutral initiative revenues

     2,914       8,600       (5,686 )     (66 )%

Wheelage revenues

     9,538       11,073       (1,535 )     (14 )%

Property tax revenues

     4,710       4,527       183       4 %

Coal overriding royalty revenues

     1,165       2,307       (1,142 )     (50 )%

Lease amendment revenues

     2,322       2,450       (128 )     (5 )%

Aggregates royalty revenues

     2,175       2,691       (516 )     (19 )%

Oil and gas royalty revenues

     5,126       10,890       (5,764 )     (53 )%

Other revenues

     895       705       190       27 %

Total other revenues

   $ 44,284     $ 61,020     $ (16,736 )     (27 )%

Royalty and other mineral rights

   $ 205,811     $ 231,795     $ (25,984 )     (11 )%

Transportation and processing services revenues

     11,447       15,377       (3,930 )     (26 )%

Gain on asset sales and disposals

     955       699       256       37 %

Total Mineral Rights segment revenues and other income

   $ 218,213     $ 247,871     $ (29,658 )     (12 )%

 

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Coal Royalty Revenues

 

Approximately 70% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal during the nine months ended September 30, 2023. Total coal royalty revenues decreased $9.2 million as compared to the prior year period. The discussion by region is as follows:

 

•

Appalachia: Coal royalty revenues decreased $14.4 million primarily due to decreased metallurgical coal sales prices during the nine months ended September 30, 2023, as compared to the prior year period.
 

•

Illinois Basin: Coal royalty revenues increased $0.6 million during the nine months ended September 30, 2023, as compared to the prior year period primarily due to higher coal sales prices, partially offset by lower coal sales volumes as compared to the prior year period.
 

•

Northern Powder River Basin: Coal royalty revenues increased $4.0 million primarily due to increased sales volumes during the nine months ended September 30, 2023, as compared to the prior year period as our lessee mined more on our property during the first nine months of 2023 as compared to the first nine months of 2022 in accordance with its mine plan.

 

Other Revenues

 

Total other revenues decreased $16.7 million during the nine months ended September 30, 2023, as compared to the prior year period primarily due a $5.8 million decrease in oil and gas royalty revenues and a $5.7 million decrease in carbon neutral initiative revenues. Oil and gas royalty revenues decreased during the nine months ended September 30, 2023 primarily as a result of decreased natural gas production and prices as compared to the prior year period. Carbon neutral initiative revenues recognized during the nine months ended September 30, 2023 primarily related to subsurface CO2 storage and forest carbon offset credits. Carbon neutral initiative revenues recognized during the nine months ended September 30, 2022 primarily related to subsurface CO2 storage and geothermal energy transactions.

 

Transportation and Processing Services Revenues

 

Transportation and processing services revenues decreased $3.9 million during the nine months ended September 30, 2023, as compared to the prior year period primarily due to a temporary relocation of certain production off of NRP's coal reserves. The fee per ton associated with the transportation and processing of the non-NRP coal is less than the fee per ton associated with the transportation and processing of NRP coal. 

 

Soda Ash

 

Revenues and other income related to our Soda Ash segment increased $14.6 million during the nine months ended September 30, 2023 as compared to the prior year period primarily due to higher sales prices driven by strong demand in domestic and international markets, partially offset by lower soda ash production and sales volumes.

 

Operating and Other Expenses

 

The following table presents the significant categories of our consolidated operating and other expenses:

 

   

For the Nine Months Ended September 30,

    

Increase

    

Percentage

  

(In thousands)

  

2023

    

2022

    

(Decrease)

    

Change

  

Operating expenses

                                

Operating and maintenance expenses

   $ 23,451     $ 25,989     $ (2,538 )     (10 )%

Depreciation, depletion and amortization

     12,469       16,565       (4,096 )     (25 )%

General and administrative expenses

     17,157       14,037       3,120       22 %

Asset impairments

     132       874       (742 )     (85 )%

Total operating expenses

   $ 53,209     $ 57,465     $ (4,256 )     (7 )%
                                 

Other expenses, net

                                

Interest expense, net

   $ 10,182     $ 22,636     $ (12,454 )     (55 )%

Loss on extinguishment of debt

     —       6,532       (6,532 )     (100 )%

Total other expenses, net

   $ 10,182     $ 29,168     $ (18,986 )     (65 )%

 

Total operating expenses decreased $4.3 million primarily due to a $4.1 million decrease in depreciation, depletion and amortization and a $2.5 million decrease in operating and maintenance expenses, partially offset by a $3.1 million increase in general and administrative expenses. The decrease in depreciation, depletion and amortization was primarily driven by lower Illinois Basin coal sales volumes as compared to the prior year period. The decrease in operating and maintenance expenses was primarily driven by lower overriding royalty expense from an agreement with WPPLP in the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022. This overriding royalty expense is fully offset by coal royalty revenue we receive from this property. The increase in general and administrative expenses was primarily due to increased incentive compensation expense as compared to theprior year period. 

 

Total other expenses, net decreased $19.0 million as a result of less debt outstanding as compared to the prior year period, in addition to the loss on extinguishment of debt recognized in 2022 related to the partial retirement of the 2025 Senior Notes during the second and third quarters of 2022.

 

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Adjusted EBITDA (Non-GAAP Financial Measure)

 

The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment:

 

   

Operating Segments

                  

For the Nine Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Net income (loss)

   $ 182,400     $ 58,408     $ (27,353 )   $ 213,455  

Less: equity earnings from unconsolidated investment

     —       (58,633 )     —       (58,633 )

Add: total distributions from unconsolidated investment

     —       66,140       —       66,140  

Add: interest expense, net

     —       —       10,182       10,182  

Add: depreciation, depletion and amortization

     12,455       —       14       12,469  

Add: asset impairments

     132       —       —       132  

Adjusted EBITDA

   $ 194,987     $ 65,915     $ (17,157 )   $ 243,745  
                                 

September 30, 2022

                                

Net income (loss)

   $ 204,548     $ 43,931     $ (43,205 )   $ 205,274  

Less: equity earnings from unconsolidated investment

     —       (44,036 )     —       (44,036 )

Add: total distributions from unconsolidated investment

     —       34,055       —       34,055  

Add: interest expense, net

     —       —       22,636       22,636  

Add: loss on extinguishment of debt

     —       —       6,532       6,532  

Add: depreciation, depletion and amortization

     16,565       —       —       16,565  

Add: asset impairments

     874       —       —       874  

Adjusted EBITDA

   $ 221,987     $ 33,950     $ (14,037 )   $ 241,900  

 

Net income increased $8.2 million during the first nine months of 2023 as compared to the prior year period primarily due to the decrease in operating and other expenses, net, partially offset by the decrease in revenues and other income, both discussed above. Adjusted EBITDA decreased $1.8 million as compared to the prior year period primarily due to a $27.0 million decrease in Adjusted EBITDA within our Mineral Rights segment as a result of lower revenues and other income as discussed above and a $3.1 million decrease in Adjusted EBITDA within our Corporate and Financing segment as a result of the increase in general and administrative expenses as discussed above. These decreases in Adjusted EBITDA were partially offset by a $32.0 million increase in Adjusted EBITDA within our Soda Ash segment due to higher distributions received from Sisecam Wyoming driven by Sisecam Wyoming's strong operating performance in the first nine months of 2023.

 

Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures)

 

The following table presents the three major categories of the statement of cash flows by business segment:

 

   

Operating Segments

                  

For the Nine Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Cash flow provided by (used in)

                                

Operating activities

   $ 189,836     $ 65,901     $ (22,545 )   $ 233,192  

Investing activities

     2,791       —       (10 )     2,781  

Financing activities

     (583 )     —       (256,070 )     (256,653 )
                                 

September 30, 2022

                                

Cash flow provided by (used in)

                                

Operating activities

   $ 194,475     $ 33,934     $ (30,459 )   $ 197,950  

Investing activities

     1,837       —       (59 )     1,778  

Financing activities

     (614 )     —       (273,697 )     (274,311 )

 

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The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF:

 

   

Operating Segments

                  

For the Nine Months Ended (In thousands)

  

Mineral Rights

    

Soda Ash

    

Corporate and Financing

    

Total

  

September 30, 2023

                                

Net cash provided by (used in) operating activities

   $ 189,836     $ 65,901     $ (22,545 )   $ 233,192  

Add: proceeds from asset sales and disposals

     961       —       —       961  

Add: return of long-term contract receivable

     1,830       —       —       1,830  

Less: maintenance capital expenditures

     —       —       (10 )     (10 )

Distributable cash flow

   $ 192,627     $ 65,901     $ (22,555 )   $ 235,973  

Less: proceeds from asset sales and disposals

     (961 )     —       —       (961 )

Free cash flow

   $ 191,666     $ 65,901     $ (22,555 )   $ 235,012  
                                 

September 30, 2022

                                

Net cash provided by (used in) operating activities

   $ 194,475     $ 33,934     $ (30,459 )   $ 197,950  

Add: proceeds from asset sales and disposals

     699       —       —       699  

Add: return of long-term contract receivable

     1,138       —       —       1,138  

Less: maintenance capital expenditures

     —       —       (59 )     (59 )

Distributable cash flow

   $ 196,312     $ 33,934     $ (30,518 )   $ 199,728  

Less: proceeds from asset sales and disposals

     (699 )     —       —       (699 )

Free cash flow

   $ 195,613     $ 33,934     $ (30,518 )   $ 199,029  

 

Operating cash flow, DCF and FCF increased $35.2 million, $36.2 million and $36.0 million, respectively, as compared to the prior year period due to increased cash flow within our Soda Ash and Corporate and Financing segments, partially offset by decreased cash flow within our Mineral Rights segment. The discussion by segment is as follows:

 

•

Mineral Rights Segment
 

◦

Operating cash flow, DCF and FCF decreased $4.6 million, $3.7 million and $3.9 million, respectively, primarily due to lower revenues and other income in the nine months ended September 30, 2023 as compared to the prior year period primarily due to decreased metallurgical coal sales prices and decreased revenues from oil and gas royalties and certain carbon neutral initiative transactions entered into in 2022.
 

•

Soda Ash Segment
 

◦

Operating cash flow, DCF and FCF increased $32.0 million as compared to the prior year period primarily due to higher distributions received from Sisecam Wyoming driven by Sisecam Wyoming's strong operating performance in the first half of 2023.
 

•

Corporate and Financing Segment 
 

◦

Operating cash flow, DCF and FCF increased $7.9 million, $8.0 million and $8.0 million, respectively, primarily due to lower cash paid for interest as a result of the retirement of the 2025 Senior Notes in 2022.

  

Liquidity and Capital Resources

 

Current Liquidity

 

As of September 30, 2023, we had total liquidity of $45.4 million, consisting of $18.4 million of cash and cash equivalents and $27.0 million of borrowing capacity under our Opco Credit Facility. We have debt service obligations, including approximately $20 million of principal repayments on Opco’s senior notes, throughout the remainder of 2023. The following table calculates our leverage ratio as of September 30, 2023: 

 

   

For the Three Months Ended

          

(In thousands)

  

December 31, 2022

    

March 31, 2023

    

June 30, 2023

    

September 30, 2023

    

Last 12 Months

  

Net income

   $ 63,218     $ 79,275     $ 70,334     $ 63,846     $ 276,673  

Less: equity earnings from unconsolidated investment

     (15,759 )     (19,254 )     (26,978 )     (12,401 )     (74,392 )

Add: total distributions from unconsolidated investment

     10,780       10,780       32,350       23,010       76,920  

Add: interest expense, net

     3,638       2,853       3,492       3,837       13,820  

Add: loss on extinguishment of debt

     3,933       —       —       —       3,933  

Add: depreciation, depletion and amortization

     5,954       4,083       3,792       4,594       18,423  

Add: asset impairments

     3,583       —       69       63       3,715  

Adjusted EBITDA

   $ 75,347     $ 77,737     $ 83,059     $ 82,949     $ 319,092  
                                         

Debt—at September 30, 2023

                                   $ 208,059  
                                         

Leverage Ratio

                                  

0.7 x

  

 

28
Table of Contents

 

Cash Flows

 

Cash flows provided by operating activities increased $35.2 million, from $198.0 million in the nine months ended September 30, 2022 to $233.2 million in the nine months ended September 30, 2023, due to increased cash flow within our Soda Ash and Corporate and Financing segments, partially offset by decreased cash flow within our Mineral Rights segment, all discussed above.

 

Cash used in financing activities decreased $17.7 million, from $274.3 million used in the nine months ended September 30, 2022 to $256.7 million used in the nine months ended September 30, 2023, primarily due to the following:

 

•

$215.0 million of borrowings on the Opco Credit Facility in 2023;
  •

$178.6 million of cash used to retire a portion of the 2025 Senior Notes in 2022;
  •

$19.3 million of cash used to redeem the preferred units paid-in-kind during the first quarter of 2022; 
 

•

$6.2 million of decreased cash used for other items, net primarily due to the premiums paid related to the repayment of the 2025 Senior Notes during the nine months ended September 30, 2022; and
 

•

$2.8 million of decreased cash used for preferred unit distributions as a result of the redemption of preferred units in 2023.

 

These decreases in cash flow used were partially offset by the following:

  •

$178.3 million of cash used to redeem the preferred units in 2023; 
  • $157.0 million of cash used to repay a portion of the Opco Credit Facility in 2023;
  • $35.4 million of increased cash distributions to common unitholders and the general partner as a result of increasing our quarterly cash distribution to $0.75/unit beginning in the second quarter of 2022 in addition to the special distribution paid in the first quarter of 2023; and
 

•

$33.6 million of cash used to settle the warrants in the third quarter of 2023. 

 

Capital Resources and Obligations

 

Debt, Net

 

We had the following debt outstanding as of September 30, 2023 and December 31, 2022:

 

   

September 30,

    

December 31,

  

(In thousands)

  

2023

    

2022

  

Current portion of long-term debt, net

   $ 36,780     $ 39,076  

Long-term debt, net

     170,735       129,205  

Total debt, net

   $ 207,515     $ 168,281  

 

We have been and continue to be in compliance with the terms of the financial covenants contained in our debt agreements. For additional information regarding our debt and the agreements governing our debt, including the covenants contained therein, see Note 9. Debt, Net to the Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

 

Off-Balance Sheet Transactions

 

We do not have any off-balance sheet arrangements with unconsolidated entities or related parties and accordingly, there are no off-balance sheet risks to our liquidity and capital resources from unconsolidated entities.

 

Related Party Transactions

 

The information required set forth under Note 11. Related Party Transactions to the Consolidated Financial Statements is incorporated herein by reference.

 

Summary of Critical Accounting Estimates

 

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America requires management to make certain estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. There have been no significant changes to our critical accounting estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

 

Recent Accounting Standards

 

We do not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial statements.

 

29
Table of Contents

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are exposed to market risk, which includes adverse changes in commodity prices and interest rates as discussed below:

 

Commodity Price Risk

 

Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing commodity prices. Historically, coal prices have been volatile, with prices fluctuating widely, and are likely to continue to be volatile. Depressed prices in the future would have a negative impact on our future financial results. In particular, substantially lower prices would significantly reduce revenues and could potentially trigger an impairment of our coal properties or a violation of certain financial debt covenants. Because substantially all our reserves are coal, changes in coal prices have a more significant impact on our financial results. 

 

We are dependent upon the effective marketing of the coal mined by our lessees. Our lessees sell the coal under various long-term and short-term contracts as well as on the spot market. Current conditions in the coal industry may make it difficult for our lessees to extend existing contracts or enter into supply contracts with terms of one year or more. Our lessees' failure to negotiate long-term contracts could adversely affect the stability and profitability of our lessees' operations and adversely affect our future financial results. If more coal is sold on the spot market, coal royalty revenues may become more volatile due to fluctuations in spot coal prices. 

 

The market price of soda ash and energy costs directly affects the profitability of Sisecam Wyoming's operations. If the market price for soda ash declines, Sisecam Wyoming's sales revenues will decrease. Historically, the global market and, to a lesser extent, the domestic market for soda ash have been volatile and are likely to remain volatile in the future. 

 

Interest Rate Risk

 

Our exposure to changes in interest rates results from our borrowings under the Opco Credit Facility, which is subject to variably interest rates based upon SOFR. At September 30, 2023, we had $128.0 million in borrowings outstanding under the Opco Credit Facility. If interest rates were to increase by 1%, annual interest expense would increase approximately $1.3 million, assuming the same principal amount remained outstanding during the year.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

NRP carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of NRP management, including the Chief Executive Officer and Chief Financial Officer of the general partner of the general partner of NRP. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective in providing reasonable assurance that (a) the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (b) such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in the Partnership’s Internal Control Over Financial Reporting

 

There were no material changes in the Partnership’s internal control over financial reporting during the first nine months of 2023 that materially affected, or were reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

 

30
Table of Contents

 

PART II

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, we are involved in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, we believe these ordinary course matters will not have a material effect on our financial position, liquidity or operations.

 

ITEM 1A. RISK FACTORS

 

During the period covered by this report, there were no material changes from the risk factors previously disclosed in Natural Resource Partners L.P.’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None. 

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit

Number

  

Description

3.1

  

Fifth Amended and Restated Agreement of Limited Partnership of Natural Resource Partners L.P., dated as of March 2, 2017 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on March 6, 2017).

3.2

  

Fifth Amended and Restated Agreement of Limited Partnership of NRP (GP) LP, dated as of December 16, 2011 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on December 16, 2011).

3.3

  

Fifth Amended and Restated Limited Liability Company Agreement of GP Natural Resource Partners LLC, dated as of October 31, 2013 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on October 31, 2013).

3.4

  

Certificate of Limited Partnership of Natural Resource Partners L.P. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed April 19, 2002, File No. 333-86582).
10.1   Sixth Amendment to the Third Amended and Restated Credit Agreement, dated as of May 11, 2023, by and among NRP (Operating) LLC, the lenders party thereto and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on May 15, 2023). 

10.2

   New Lender Agreement, dated as of May 11, 2023, by and among NRP (Operating) LLC, Zions Bancorporation, N.A. dba Amegy Bank, and Gulf Capital Bank (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed on May 15, 2023). 
31.1*   Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley.
31.2*   Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley.
32.1**   Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2**   Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.

101.INS*

  

Inline XBRL Instance Document

101.SCH*

  

Inline XBRL Taxonomy Extension Schema Document

101.CAL*

  

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

  

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

  

Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE*

  

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*

  

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101)
     

*

  

Filed herewith

**

  

Furnished herewith

 

31
Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned and thereunto duly authorized.

 

 

NATURAL RESOURCE PARTNERS L.P.
 

By:

NRP (GP) LP, its general partner
 

By:

GP NATURAL RESOURCE
   

PARTNERS LLC, its general partner
     

Date: November 3, 2023

By:

 /s/ Corbin J. Robertson, Jr.
   

Corbin J. Robertson, Jr.
   

Chairman of the Board and
   

Chief Executive Officer
   

(Principal Executive Officer)
     

 

Date: November 3, 2023

By:

/s/ Christopher J. Zolas
   

Christopher J. Zolas
   

Chief Financial Officer
   

(Principal Financial and Accounting Officer)

   

32

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

I, Corbin J. Robertson, Jr., certify that: 

 

1

I have reviewed this report on Form 10-Q of Natural Resource Partners L.P.

 

2

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

   

By:

 /s/ Corbin J. Robertson, Jr.
 

Corbin J. Robertson, Jr.
 

Chief Executive Officer
   

Date:

November 3, 2023

 

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

I, Christopher J. Zolas, certify that:

 

 

1

I have reviewed this report on Form 10-Q of Natural Resource Partners L.P.

 

2

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

   

By:

 /s/ Christopher J. Zolas
  Christopher J. Zolas
 

Chief Financial Officer
   

Date:

November 3, 2023

 

 

Exhibit 32.1

 

 

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

OF GP NATURAL RESOURCE PARTNERS LLC

PURSUANT TO 18 U.S.C. § 1350

 

In connection with the accompanying report on Form 10-Q for the quarter ended September 30, 2023 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Corbin J. Robertson, Jr., Chief Executive Officer of GP Natural Resource Partners LLC, the general partner of the general partner of Natural Resource Partners L.P. (the “Company”), hereby certify, to my knowledge, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:

 /s/ Corbin J. Robertson, Jr.
 

Corbin J. Robertson, Jr.
 

Chief Executive Officer
   

Date:

November 3, 2023

  

 

Exhibit 32.2

 

 

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

OF GP NATURAL RESOURCE PARTNERS LLC

PURSUANT TO 18 U.S.C. § 1350

 

In connection with the accompanying report on Form 10-Q for the quarter ended September 30, 2023 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher J. Zolas, Chief Financial Officer of GP Natural Resource Partners LLC, the general partner of the general partner of Natural Resource Partners L.P. (the “Company”), hereby certify, to my knowledge, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:

 /s/ Christopher J. Zolas
 

Christopher J. Zolas
 

Chief Financial Officer
   

Date:

November 3, 2023

   

 
v3.23.3
Document And Entity Information - shares
 9 Months Ended
Sep. 30, 2023
Oct. 30, 2023
Document Information [Line Items]    
Entity Central Index Key 0001171486  
Entity Registrant Name NATURAL RESOURCE PARTNERS LP  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-31465  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 35-2164875  
Entity Address, Address Line One 1415 Louisiana Street, Suite 3325  
Entity Address, City or Town Houston  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 77002  
City Area Code 713  
Local Phone Number 751-7507  
Title of 12(b) Security Common Units representing limited partner interests  
Trading Symbol NRP  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   12,634,642
v3.23.3
Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 18,411 $ 39,091
Accounts receivable, net 38,569 42,701
Other current assets, net 2,570 1,822
Total current assets 59,550 83,614
Land 24,008 24,008
Mineral rights, net 400,548 412,312
Intangible assets, net 14,014 14,713
Equity in unconsolidated investment 282,491 306,470
Long-term contract receivable, net 26,997 28,946
Other long-term assets, net 7,601 7,068
Total assets 815,209 877,131
Current liabilities    
Accounts payable 1,143 1,992
Accrued liabilities 6,511 11,916
Accrued interest 1,224 989
Current portion of deferred revenue 6,399 6,256
Current portion of long-term debt, net 36,780 39,076
Total current liabilities 52,057 60,229
Deferred revenue 35,076 40,181
Long-term debt, net 170,735 129,205
Other non-current liabilities 6,833 5,472
Total liabilities 264,701 235,087
Commitments and contingencies (see Note 13)
Class A Convertible Preferred Units (71,666 and 250,000 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at September 30, 2023 and December 31, 2022) (See Note 3) 47,181 164,587
Partners’ capital    
Common unitholders’ interest (12,634,642 and 12,505,996 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively) 461,043 404,799
General partner’s interest 7,196 5,977
Warrant holders’ interest 32,843 47,964
Accumulated other comprehensive income 2,245 18,717
Total partners’ capital 503,327 477,457
Total liabilities and partners' capital $ 815,209 $ 877,131
v3.23.3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Temporary Equity, shares issued (in shares) 71,666 250,000
Temporary Equity, shares outstanding (in shares) 71,666 250,000
Temporary Equity, par value (in dollars per share) $ 1,000 $ 1,000
Temporary Equity, liquidation (in dollars per share) $ 1,850 $ 1,850
Common unitholders interest, issued (in shares) 12,634,642 12,505,996
Common unitholders interest, outstanding (in shares) 12,634,642 12,505,996
v3.23.3
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues and other income        
Equity in earnings of Sisecam Wyoming $ 12,401 $ 14,556 $ 58,633 $ 44,036
Gain on asset sales and disposals 854 354 955 699
Total revenues and other income 86,367 102,258 276,846 291,907
Operating expenses        
Operating and maintenance expenses 8,358 7,898 23,451 25,989
Depreciation, depletion and amortization 4,594 6,850 12,469 16,565
General and administrative expenses 5,669 4,518 17,157 14,037
Asset impairments 63 812 132 874
Total operating expenses 18,684 20,078 53,209 57,465
Income from operations 67,683 82,180 223,637 234,442
Other expenses, net        
Interest expense, net (3,837) (5,141) (10,182) (22,636)
Loss on extinguishment of debt 0 (2,484) 0 (6,532)
Total other expenses, net (3,837) (7,625) (10,182) (29,168)
Net income 63,846 [1] 74,555 213,455 205,274
Less: income attributable to preferred unitholders (2,936) (7,500) (14,568) (22,500)
Less: redemption of preferred units (17,083) 0 (60,929) 0
Net income attributable to common unitholders and the general partner 43,827 67,055 137,958 182,774
Net income attributable to common unitholders 42,951 65,714 135,199 179,119
Net income attributable to the general partner $ 876 $ 1,341 $ 2,759 $ 3,655
Net income per common unit (see Note 5)        
Basic (in dollars per share) $ 3.4 $ 5.25 $ 10.72 $ 14.36
Diluted (in dollars per share) $ 2.91 $ 3.71 $ 8.88 $ 10.24
Net income $ 63,846 [1] $ 74,555 $ 213,455 $ 205,274
Comprehensive income (loss) from unconsolidated investment and other 2,200 289 (16,472) (1,179)
Comprehensive income 66,046 74,844 196,983 204,095
Mineral Rights Segment [Member]        
Operating expenses        
Depreciation, depletion and amortization 4,100 6,400 11,600 15,500
Royalty and Other Mineral Rights [Member] | Mineral Rights Segment [Member]        
Revenues and other income        
Revenues 68,533 81,379 205,811 231,795
Transportation and Processing Services [Member] | Mineral Rights Segment [Member]        
Revenues and other income        
Revenues [2] $ 4,579 $ 5,969 $ 11,447 $ 15,377
[1] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[2] Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $3.9 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively and $9.5 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining transportation and processing services revenues of $0.6 million and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1.9 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 15. Financing Transaction for more information.
v3.23.3
Consolidated Statements of Partners' Capital (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Limited Partner [Member]
General Partner [Member]
Warrant Holder [Member]
AOCI Attributable to Parent [Member]
Balance (in shares) at Dec. 31, 2021   12,351      
Balance at Dec. 31, 2021 $ 256,024 $ 203,062 $ 1,787 $ 47,964 $ 3,211
Net income [1] 63,899 62,621 1,278 0 0
Distributions to common unitholders and the general partner (5,672) (5,559) (113)    
Distributions to preferred unitholders (7,758) $ (7,603) (155)    
Issuance of unit-based awards (in shares)   155      
Unit-based awards amortization and vesting, net (1,754) $ (1,754)      
Capital contribution 112   112    
Comprehensive income (loss) from unconsolidated investment and other 2,545       2,545
Balance (in shares) at Mar. 31, 2022   12,506      
Balance at Mar. 31, 2022 307,396 $ 250,767 2,909 47,964 5,756
Balance (in shares) at Dec. 31, 2021   12,351      
Balance at Dec. 31, 2021 256,024 $ 203,062 1,787 47,964 3,211
Net income 205,274        
Comprehensive income (loss) from unconsolidated investment and other (1,179)        
Balance (in shares) at Sep. 30, 2022   12,506      
Balance at Sep. 30, 2022 413,382 $ 358,332 5,054 47,964 2,032
Balance (in shares) at Mar. 31, 2022   12,506      
Balance at Mar. 31, 2022 307,396 $ 250,767 2,909 47,964 5,756
Net income [1] 66,820 65,484 1,336    
Distributions to common unitholders and the general partner (9,570) (9,379) (191)    
Distributions to preferred unitholders (7,500) (7,350) (150)    
Unit-based awards amortization and vesting, net 1,231 $ 1,231      
Comprehensive income (loss) from unconsolidated investment and other (4,013)       (4,013)
Balance (in shares) at Jun. 30, 2022   12,506      
Balance at Jun. 30, 2022 354,364 $ 300,753 3,904 47,964 1,743
Net income 74,555 73,064 1,491    
Distributions to common unitholders and the general partner (9,571) (9,380) (191)    
Distributions to preferred unitholders (7,500) (7,350) (150)    
Unit-based awards amortization and vesting, net 1,245 $ 1,245      
Comprehensive income (loss) from unconsolidated investment and other 289       289
Balance (in shares) at Sep. 30, 2022   12,506      
Balance at Sep. 30, 2022 413,382 $ 358,332 5,054 47,964 2,032
Balance (in shares) at Dec. 31, 2022   12,506      
Balance at Dec. 31, 2022 477,457 $ 404,799 5,977 47,964 18,717
Net income [2] 79,275 77,690 1,585    
Redemption of preferred units (16,228) (15,904) (324)    
Distributions to common unitholders and the general partner (40,900) (40,082) (818)    
Distributions to preferred unitholders (8,086) $ (7,924) (162)    
Issuance of unit-based awards (in shares)   129      
Unit-based awards amortization and vesting, net (1,178) $ (1,178)      
Capital contribution 142   142    
Comprehensive income (loss) from unconsolidated investment and other (19,583)       (19,583)
Balance (in shares) at Mar. 31, 2023   12,635      
Balance at Mar. 31, 2023 470,899 $ 417,401 6,400 47,964 (866)
Balance (in shares) at Dec. 31, 2022   12,506      
Balance at Dec. 31, 2022 477,457 $ 404,799 5,977 47,964 18,717
Net income 213,455        
Comprehensive income (loss) from unconsolidated investment and other (16,472)        
Balance (in shares) at Sep. 30, 2023   12,635      
Balance at Sep. 30, 2023 503,327 $ 461,043 7,196 32,843 2,245
Balance (in shares) at Mar. 31, 2023   12,635      
Balance at Mar. 31, 2023 470,899 $ 417,401 6,400 47,964 (866)
Net income [3] 70,334 68,927 1,407    
Redemption of preferred units (27,618) (27,065) (553)    
Distributions to common unitholders and the general partner (9,669) (9,476) (193)    
Distributions to preferred unitholders (7,396) (7,248) (148)    
Unit-based awards amortization and vesting, net 2,299 $ 2,299      
Comprehensive income (loss) from unconsolidated investment and other 911       911
Balance (in shares) at Jun. 30, 2023   12,635      
Balance at Jun. 30, 2023 499,760 $ 444,838 6,913 47,964 45
Net income [4] 63,846 62,569 1,277    
Redemption of preferred units (17,083) (16,741) (342)    
Distributions to common unitholders and the general partner (9,669) (9,475) (194)    
Distributions to preferred unitholders (4,437) (4,349) (88)    
Unit-based awards amortization and vesting, net 2,318 2,318      
Comprehensive income (loss) from unconsolidated investment and other 2,200       2,200
Warrant settlement (33,608) $ (18,117) (370) (15,121)  
Balance (in shares) at Sep. 30, 2023   12,635      
Balance at Sep. 30, 2023 $ 503,327 $ 461,043 $ 7,196 $ 32,843 $ 2,245
[1] Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.
[2] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[3] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[4] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
v3.23.3
Consolidated Statements of Partners' Capital (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Allocation to unitholders $ 2,936 $ 5,000 $ 6,700 $ 7,500 $ 7,500 $ 7,500
Limited Partner [Member]            
Allocation to unitholders 2,900 4,900 6,500 7,400 7,400 7,400
General Partner [Member]            
Allocation to unitholders $ 100 $ 100 $ 100 $ 200 $ 200 $ 200
v3.23.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities    
Net income $ 213,455 $ 205,274
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 12,469 16,565
Distributions from unconsolidated investment 66,140 34,055
Equity earnings from unconsolidated investment (58,633) (44,036)
Gain on asset sales and disposals (955) (699)
Loss on extinguishment of debt 0 6,532
Asset impairments 132 874
Bad debt expense 813 641
Unit-based compensation expense 7,903 4,216
Amortization of debt issuance costs and other 1,043 1,887
Change in operating assets and liabilities:    
Accounts receivable 4,090 (10,118)
Accounts payable (850) 223
Accrued liabilities (6,288) (4,831)
Accrued interest 235 3,014
Deferred revenue (4,963) (17,094)
Other items, net (1,399) 1,447
Net cash provided by operating activities 233,192 197,950
Cash flows from investing activities    
Proceeds from asset sales and disposals 961 699
Return of long-term contract receivable 1,830 1,138
Capital expenditures (10) (59)
Net cash provided by investing activities 2,781 1,778
Cash flows from financing activities    
Debt borrowings 215,034 0
Debt repayments (176,061) (197,665)
Redemption of preferred units (178,334) 0
Redemption of preferred units paid-in-kind 0 (19,321)
Warrant settlement (33,608) 0
Other items, net (3,527) (9,754)
Net cash used in financing activities (256,653) (274,311)
Net decrease in cash and cash equivalents (20,680) (74,583)
Cash and cash equivalents at beginning of period 39,091 135,520
Cash and cash equivalents at end of period 18,411 60,937
Supplemental cash flow information:    
Cash paid for interest 9,484 18,501
Common Unitholders And General Partner [Member]    
Cash flows from financing activities    
Distributions to unitholders (60,238) (24,813)
Preferred Partner [Member]    
Cash flows from financing activities    
Distributions to unitholders $ (19,919) $ (22,758)
v3.23.3
Note 1 - Basis of Presentation
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]

1.    Basis of Presentation

 

Nature of Business

 

Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The Partnership is organized into two operating segments further described in Note 6. Segment Information. The Partnership’s operations are conducted through, and its operating assets are owned by, its subsidiaries. The Partnership owns its subsidiaries through one wholly owned operating company, NRP (Operating) LLC ("Opco"). As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context.

 

Principles of Consolidation and Reporting

 

The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2022 and notes thereto included in the Partnership's Annual Report on Form 10-K, which was filed with the SEC on March 3, 2023. Reclassifications have been made to prior year amounts in the Consolidated Financial Statements to conform with current year presentation. These reclassifications had no impact on previously reported total assets, total liabilities, partners' capital, net income, or cash flows from operating, investing or financing activities.

 

Recently Adopted Accounting Standard

 

On January 1, 2023, NRP adopted Accounting Standards Update ("ASU") 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The ASU includes targeted improvements to earnings per share, which the Partnership adopted on a modified retrospective basis. The adoption of this ASU did not have a material impact on the Partnership’s Consolidated Financial Statements. See Note 5. Net Income Per Common Unit for the calculations of our basic and diluted net income per common unit. See Note 3. Class A Convertible Preferred Units and Warrants for disclosures related to our convertible preferred units and warrants.

 
v3.23.3
Note 2 - Revenues From Contracts With Customers
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

2.    Revenues from Contracts with Customers

 

The following table presents the Partnership's Mineral Rights segment revenues by major source:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Coal royalty revenues

 $55,544  $52,381  $161,527  $170,775 

Production lease minimum revenues

  850   1,885   2,025   3,542 

Minimum lease straight-line revenues

  4,464   4,778   13,414   14,235 

Carbon neutral initiative revenues

  681   8,600   2,914   8,600 

Property tax revenues

  1,770   1,360   4,710   4,527 

Wheelage revenues

  2,385   2,977   9,538   11,073 

Coal overriding royalty revenues

  827   1,367   1,165   2,307 

Lease amendment revenues

  623   759   2,322   2,450 

Aggregates royalty revenues

  736   884   2,175   2,691 

Oil and gas royalty revenues

  324   6,170   5,126   10,890 

Other revenues

  329   218   895   705 

Royalty and other mineral rights revenues

 $68,533  $81,379  $205,811  $231,795 

Transportation and processing services revenues (1)

  4,579   5,969   11,447   15,377 

Total Mineral Rights segment revenues

 $73,112  $87,348  $217,258  $247,172 
     
(1)

Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $3.9 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively and $9.5 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining transportation and processing services revenues of $0.6 million and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1.9 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 15. Financing Transaction for more information.

 

The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Receivables

        

Accounts receivable, net

 $34,775  $39,004 

Other current assets, net (1)

  2,382   — 

Other long-term assets, net (2)

  —   75 
         

Contract liabilities

        

Current portion of deferred revenue

 $6,399  $6,256 

Deferred revenue

  35,076   40,181 
     
(1)

Other current assets, net includes short-term notes receivables from contracts with customers.

(2)

Other long-term assets, net includes long-term lease amendment fee receivables from contracts with customers.

 

The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue:

 

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2023

  

2022

 

Balance at beginning of period (current and non-current)

 $46,437  $61,862 

Increase due to minimums and lease amendment fees

  11,525   11,309 

Recognition of previously deferred revenue

  (16,487)  (28,403)

Balance at end of period (current and non-current)

 $41,475  $44,768 

 

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty leases are as follows as of  September 30, 2023 (in thousands):

 

Lease Term (1)

 

Weighted Average Remaining Years

  

Annual Minimum Payments

 

0 - 5 years

  1.7  $19,867 

5 - 10 years

  4.8   10,417 

10+ years

  12.0   27,129 

Total

  7.2  $57,413 
     
(1)

Lease term does not include renewal periods.

 
v3.23.3
Note 3 - Class A Convertible Preferred Units and Warrants
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Preferred Stock [Text Block]

3.      Class A Convertible Preferred Units and Warrants

 

On March 2, 2017, NRP issued $250 million of Class A Convertible Preferred Units representing limited partner interests in NRP (the "preferred units") to certain entities controlled by funds affiliated with The Blackstone Group Inc. (collectively referred to as "Blackstone") and certain affiliates of GoldenTree Asset Management LP (collectively referred to as "GoldenTree") (together the "preferred purchasers") pursuant to a Preferred Unit and Warrant Purchase Agreement. NRP issued 250,000 preferred units to the preferred purchasers at a price of $1,000 per preferred unit (the "per unit purchase price"), less a 2.5% structuring and origination fee. The preferred units entitle the preferred purchasers to receive cumulative distributions at a rate of 12% of the purchase price per year, up to one half of which NRP may pay in additional preferred units (such additional preferred units, the "PIK units"). The preferred units have a perpetual term, unless converted or redeemed as described below.

 

NRP also issued two tranches of warrants (the "warrants") to purchase common units to the preferred purchasers (warrants to purchase 1.75 million common units with a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00). The warrants may be exercised by the holders thereof at any time before the eighth anniversary of the closing date. Upon exercise of the warrants, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis.

 

After March 2, 2022 and prior to March 2, 2025, the holders of the preferred units may elect to convert up to 33% of the outstanding preferred units in any 12-month period into common units if the volume weighted average trading price of our common units (the "VWAP") for the 30 trading days immediately prior to date notice is provided is greater than $51.00. In such case, the number of common units to be issued upon conversion would be equal to the per unit purchase price plus the value of any accrued and unpaid distributions divided by an amount equal to a 7.5% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion. Rather than have the preferred units convert to common units in accordance with the provisions of this paragraph, NRP would have the option to elect to redeem the preferred units proposed to be converted for cash at a price equal to the per unit purchase price plus the value of any accrued and unpaid distributions.

 

On or after March 2, 2025, the holders of the preferred units may elect to convert the preferred units to common units at a conversion rate equal to the Liquidation Value divided by an amount equal to a 10% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion. The “liquidation value” will be an amount equal to the greater of: (1) (a) the per unit purchase price multiplied by (i) prior to March 2, 2020, 1.50, (ii) on or after March 2, 2020 and prior to March 2, 2021, 1.70 and (iii) on or after March 2, 2021, 1.85, less (b)(i) all preferred unit distributions previously made by NRP and (ii) all cash payments previously made in respect of redemption of any PIK units; and (2) the per unit purchase price plus the value of all accrued and unpaid distributions.

 

To the extent the holders of the preferred units have not elected to convert their preferred units before March 2, 2029, NRP has the right to force conversion of the preferred units at a price equal to the liquidation value divided by an amount equal to a 10% discount to the VWAP for the 30 trading days immediately prior to the notice of conversion.

 

In addition, NRP has the ability to redeem at any time (subject to compliance with its debt agreements) all or any portion of the preferred units and any outstanding PIK units for cash. The redemption price for each outstanding PIK unit is $1,000 plus the value of any accrued and unpaid distributions per PIK unit. The redemption price for each preferred unit is the liquidation value divided by the number of outstanding preferred units. The preferred units are redeemable at the option of the preferred purchasers only upon a change in control.

 

The terms of the preferred units contain certain restrictions on NRP's ability to pay distributions on its common units. To the extent that either (i) NRP's consolidated Leverage Ratio, as defined in the Partnership's Fifth Amended and Restated Partnership Agreement dated March 2, 2017 (the "restated partnership agreement"), is greater than 3.25x, or (ii) the ratio of NRP's Distributable Cash Flow (as defined in the Restated Partnership Agreement) to cash distributions made or proposed to be made is less than 1.2x (in each case, with respect to the most recently completed four-quarter period), NRP may not increase the quarterly distribution above $0.45 per quarter without the approval of the holders of a majority of the outstanding preferred units. In addition, if at any time after January 1, 2022, any PIK units are outstanding, NRP may not make distributions on its common units until it has redeemed all PIK units for cash.

 

The holders of the preferred units have the right to vote with holders of NRP’s common units on an as-converted basis and have other customary approval rights with respect to changes of the terms of the preferred units. In addition, Blackstone has certain approval rights over certain matters as identified in the restated partnership agreement. GoldenTree also has more limited approval rights that will expand once Blackstone's ownership goes below the minimum preferred unit threshold (as defined below). These approval rights are not transferrable without NRP's consent. In addition, the approval rights held by Blackstone and GoldenTree will terminate at such time that Blackstone (together with their affiliates) or GoldenTree (together with their affiliates), as applicable, no longer own at least 20% of the total number of preferred units issued on the closing date, together with all PIK units that have been issued but not redeemed (the "minimum preferred unit threshold").

 

At the closing, pursuant to the Board Representation and Observation Rights Agreement, the Preferred Purchasers received certain board appointment and observation rights, and Blackstone appointed one director and one observer to the Board of Directors.

 

NRP also entered into a registration rights agreement (the "preferred unit and warrant registration rights agreement") with the preferred purchasers, pursuant to which NRP is required to file (i) a shelf registration statement to register the common units issuable upon exercise of the warrants and to cause such registration statement to become effective not later than 90 days following the closing date and (ii) a shelf registration statement to register the common units issuable upon conversion of the preferred units and to cause such registration statement to become effective not later than the earlier of the fifth anniversary of the closing date or 90 days following the first issuance of any common units upon conversion of preferred units (the "registration deadlines"). In addition, the preferred unit and warrant registration rights agreement gives the preferred purchasers piggyback registration and demand underwritten offering rights under certain circumstances. The shelf registration statement to register the common units issuable upon exercise of the warrants became effective on April 20, 2017. If the shelf registration statement to register the common units issuable upon conversion of the preferred units is not effective by the applicable registration deadline, NRP will be required to pay the preferred purchasers liquidated damages in the amounts and upon the term set forth in the preferred unit and warrant registration rights agreement.

 

Accounting for the Preferred Units and Warrants

 

Classification

 

The preferred units are accounted for as temporary equity on NRP's Consolidated Balance Sheets due to certain contingent redemption rights that may be exercised at the election of preferred purchasers. The warrants are accounted for as equity on NRP's Consolidated Balance Sheets.

 

Initial Measurement

 

The net transaction price was allocated to the preferred units and warrants based on their relative fair values at inception date. NRP allocated the transaction issuance costs to the preferred units and warrants primarily on a pro-rata basis based on their relative inception date allocated values.

 

Subsequent Measurement

 

Preferred Units

 

Subsequent adjustment of the preferred units will not occur until NRP has determined that the conversion or redemption of all or a portion of the preferred units is probable of occurring. Once conversion or redemption becomes probable of occurring, the carrying amount of the preferred units will be accreted to their redemption value over the period from the date the feature is probable of occurring to the date the preferred units can first be converted or redeemed. 

 

In  February 2023, the Partnership received a notice from holders of the Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 47,499 Class A Preferred Units. The Partnership chose to redeem the preferred units for $47.5 million in cash rather than issuing common units. In May 2023, the Partnership received a notice from holders of the Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 35,834 Class A Preferred Units. The Partnership chose to redeem the preferred units for $35.8 million in cash rather than issuing common units. In June 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 45,000 Class A Preferred Units for $45.0 million in cash. In August 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 35,000 Class A Preferred Units for $35.0 million in cash. In September 2023, the Partnership executed a negotiated transaction with holders of the Class A Preferred Units pursuant to which it repurchased and retired an aggregate of 15,001 Class A Preferred Units for $15.0 million in cash. Of the originally issued 250,000 Class A Preferred Units, 71,666 Class A Preferred Units remain outstanding as of September 30, 2023. Following these repurchases, the Subject units were retired and are no longer outstanding, and all rights of Blackstone thereof have ceased with respect to the subject units, therefore, Blackstone's board designee resigned from the board of the Partnership's general partner.

 

Activity related to the preferred units is as follows:

 

  

Units

  

Financial

 

(In thousands, except unit data)

 

Outstanding

  

Position

 

Balance at December 31, 2021

  269,321  $183,908 

Redemption of preferred units paid-in-kind

  (19,321)  (19,321)

Balance at December 31, 2022

  250,000  $164,587 

Redemption of preferred units

  (178,334)  (117,406)

Balance at September 30, 2023

  71,666  $47,181 

 

Warrants

 

Subsequent adjustment of the warrants will not occur until the warrants are exercised, at which time, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis. The net basis will be equal to the difference between the Partnership's common unit price and the strike price of the warrant. Once warrant exercise occurs, the difference between the carrying amount of the warrants and the net settlement amount will be allocated on a pro-rata basis to the common unitholders and general partner.

 

On September 18, 2023 (the "exercise date"), the Partnership negotiated a transaction with holders of the Partnership's warrants pursuant to which the Partnership repurchased and retired an aggregate of 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for approximately $33.6 million in cash. As of September 30, 2023 there were 2.19 million warrants to purchase common units with a strike price of $34.00 outstanding and no warrants to purchase common units with a strike price of $22.81 outstanding. As of December 31, 2022 there were 3.0 million warrants outstanding, which included warrants to purchase 0.75 million common units at a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00. These warrants had a $32.8 million carrying value included in warrant holders' interest within partners' capital on the Partnership's Consolidated Balance Sheets at September 30, 2023 and $48.0 million at December 31, 2022. 

 

Activity related to the warrants is as follows:

 

  

Warrants

  

Financial

 

(In thousands, except warrant data)

 

Outstanding

  

Position

 

Balance at December 31, 2021 and 2022

  3,002,500  $47,964 

Warrant settlement

  (812,500)  (15,121)

Balance at September 30, 2023

  2,190,000  $32,843 

 

Embedded Features

 

Certain embedded features within the preferred unit and warrant purchase agreement are accounted for at fair value and are remeasured each quarter. See Note 10. Fair Value Measurements for further information regarding valuation of these embedded derivatives.

 
v3.23.3
Note 4 - Common and Preferred Unit Distributions
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Partners' Capital Notes Disclosure [Text Block]

4.    Common and Preferred Unit Distributions

 

The Partnership makes cash distributions to common and preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes both common unit and preferred unit distributions on the date the distribution is declared.

 

Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2% of such distributions.

 

Income available to common unitholders and the general partner is reduced by preferred unit distributions that accumulated during the period. NRP reduced net income available to common unitholders and the general partner by $2.9 million and $7.5 million during the three months ended September 30, 2023 and 2022, respectively, and $14.6 million and $22.5 million during the nine months ended September 30, 2023 and 2022, respectively, as a result of accumulated preferred unit distributions earned during the period. Of the $6.7 million in accumulated preferred unit distributions earned during the three months ended March 31, 2023, $0.6 million was paid in February 2023 in connection with the preferred units that were redeemed in February. Of the $5.0 million in accumulated preferred unit distributions earned during the three months ended June 30, 2023, $0.4 million was paid in May 2023 and $0.9 million was paid in June 2023 in connection with the preferred units that were redeemed during those months. Of the $2.9 million in accumulated preferred unit distributions earned during the three months ended September 30, 2023, $0.4 million was paid in August 2023 and $0.4 million was paid in September 2023 in connection with the preferred units that were redeemed during those months. Income available to common unitholders and the general partner is also reduced by the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units. As such, NRP reduced net income available to common unitholders and the general partner by $17.1 million and $60.9 million during the three and nine months ended September 30, 2023, respectively. 

 

The following table shows the cash distributions declared and paid to common and preferred unitholders during the nine months ended September 30, 2023 and 2022, respectively:

 

                   
    

Common Units

  

Preferred Units

 

Month Paid

 

Period Covered by Distribution

 

Distribution per Unit

  

Total Distribution (1) (In thousands)

  

Distribution per Unit

  

Total Distribution (In thousands)

 

2023

                  

February

 

October 1 - December 31, 2022

 $0.75  $9,571  $30.00  $7,500 

February (2)

 

January 1 - February 8, 2023

  —   —   12.33   586 

March (3)

 

Special Distribution

  2.43   31,329   —   — 

May

 

January 1 - March 31, 2023

  0.75   9,669   30.00   6,075 

May (4)

 

April 1 - May 5, 2023

  —   —   11.33   406 

June (5)

 

April 1 - June 2, 2023

  —   —   20.33   915 

August

 

April 1 - June 30, 2023

  0.75   9,669   30.00   3,650 

August (6)

 

June 30 - August 8, 2023

  —   —   12.33   432 

September (7)

 

June 30 - September 12, 2023

  —   —   23.67   355 
                   

2022

                  

February

 

October 1 - December 31, 2021

 $0.45  $5,672  $30.00  $7,500 

February (8)

 

January 1 - February 8, 2022

  —   —   13.35   258 

May

 

January 1 - March 31, 2022

  0.75   9,570   30.00   7,500 

August

 

April 1 - June 30, 2022

  0.75   9,571   30.00   7,500 
     
(1)

Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.

(2)Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
(3)Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
(4)Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
(5)Relates to accrued distribution paid upon the redemption of 45,000 preferred units in June 2023.
(6)Relates to accrued distribution paid upon the redemption of 35,000 preferred units in August 2023. 
(7)Relates to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023.
(8)Relates to accrued distribution paid upon the redemption of 19,321 preferred units paid-in-kind in February 2022.

 
v3.23.3
Note 5 - Net Income Per Common Unit
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Earnings Per Share [Text Block]

5.    Net Income Per Common Unit

 

Basic net income per common unit is computed by dividing net income, after considering income attributable to preferred unitholders, the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units and the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's preferred units, warrants, and unvested unit-based awards if the inclusion of these items is dilutive.

 

The dilutive effect of the preferred units is calculated using the if-converted method. Under the if-converted method, the preferred units are assumed to be converted at the beginning of the period, and the resulting common units are included in the denominator of the diluted net income per unit calculation for the period being presented. Distributions declared in the period and undeclared distributions on the preferred units that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the assumed conversion of the remaining preferred units while it does not include the assumed conversion of the preferred units that were redeemed during the three and nine months ended September 30, 2023 as the inclusion of these units would be anti-dilutive. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2022 includes the assumed conversion of the preferred units.

 

The dilutive effect of the warrants is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to purchase common units at the average market price for the period. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the net settlement of warrants to purchase 2.19 million common units with a strike price of $34.00. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2022 includes the net settlement of warrants to purchase 0.75 million common units at a strike price of $22.81 and the net settlement of warrants to purchase 2.25 million common units with a strike price of $34.00.

 

The following table reconciles the numerator and denominator of the basic and diluted net income per common unit computations and calculates basic and diluted net income per common unit:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands, except per unit data)

 

2023

  

2022

  

2023

  

2022

 

Basic net income per common unit

                

Net income attributable to common unitholders

 $42,951  $65,714  $135,199  $179,119 

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Basic net income per common unit

 $3.40  $5.25  $10.72  $14.36 
                 

Diluted net income per common unit

                

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Plus: dilutive effect of preferred units

  1,104   6,210   2,434   6,210 

Plus: dilutive effect of warrants

  1,492   807   1,296   759 

Plus: dilutive effect of unvested unit-based awards

  240   195   190   204 

Weighted average common units—diluted

  15,471   19,718   16,533   19,649 
                 

Net income

 $63,846  $74,555  $213,455  $205,274 

Less: income attributable to preferred unitholders

  (786)  —   (2,693)  — 

Less: redemption of preferred units

  (17,083)  —   (60,929)  — 

Diluted net income attributable to common unitholders and the general partner

 $45,977  $74,555  $149,833  $205,274 

Less: diluted net income attributable to the general partner

  (920)  (1,491)  (2,997)  (4,105)

Diluted net income attributable to common unitholders

 $45,057  $73,064  $146,836  $201,169 
                 

Diluted net income per common unit

 $2.91  $3.71  $8.88  $10.24 

 
v3.23.3
Note 6 - Segment Information
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

6.    Segment Information

 

The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments:

 

Mineral Rights—consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The Partnership is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally to the glass and chemicals industries.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

The following table summarizes certain financial information for each of the Partnership's business segments:

 

  

Operating Segments

         

(In thousands)

 

Mineral Rights

  

Soda Ash

  

Corporate and Financing

  

Total

 

For the Three Months Ended September 30, 2023

                

Revenues

 $73,112  $12,401  $—  $85,513 

Gain on asset sales and disposals

  854   —   —   854 

Operating and maintenance expenses

  8,305   53   —   8,358 

Depreciation, depletion and amortization

  4,589   —   5   4,594 

General and administrative expenses

  —   —   5,669   5,669 

Asset impairments

  63   —   —   63 

Other expenses, net

  —   —   3,837   3,837 

Net income (loss)

  61,009   12,348   (9,511)  63,846 
                 

For the Three Months Ended September 30, 2022

                

Revenues

 $87,348  $14,556  $—  $101,904 

Gain on asset sales and disposals

  354   —   —   354 

Operating and maintenance expenses

  7,867   31   —   7,898 

Depreciation, depletion and amortization

  6,850   —   —   6,850 

General and administrative expenses

  —   —   4,518   4,518 

Asset impairments

  812   —   —   812 

Other expenses, net

  —   —   7,625   7,625 

Net income (loss)

  72,173   14,525   (12,143)  74,555 
                 

For the Nine Months Ended September 30, 2023

                

Revenues

 $217,258  $58,633  $—  $275,891 

Gain on asset sales and disposals

  955   —   —   955 

Operating and maintenance expenses

  23,226   225   —   23,451 

Depreciation, depletion and amortization

  12,455   —   14   12,469 

General and administrative expenses

  —   —   17,157   17,157 

Asset impairments

  132   —   —   132 

Other expenses, net

  —   —   10,182   10,182 

Net income (loss)

  182,400   58,408   (27,353)  213,455 
                 

For the Nine Months Ended September 30, 2022

                

Revenues

 $247,172  $44,036  $—  $291,208 

Gain on asset sales and disposals

  699   —   —   699 

Operating and maintenance expenses

  25,884   105   —   25,989 

Depreciation, depletion and amortization

  16,565   —   —   16,565 

General and administrative expenses

  —   —   14,037   14,037 

Asset impairments

  874   —   —   874 

Other expenses, net

  —   —   29,168   29,168 

Net income (loss)

  204,548   43,931   (43,205)  205,274 

 
v3.23.3
Note 7 - Equity Investment
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

7.    Equity Investment 

 

The Partnership accounts for its 49% investment in Sisecam Wyoming using the equity method of accounting. Activity related to this investment is as follows: 

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Balance at beginning of period

 $290,900  $280,300  $306,470  $276,004 

Income allocation to NRP’s equity interests (1)

  13,608   15,732   62,184   47,601 

Amortization of basis difference

  (1,207)  (1,176)  (3,551)  (3,565)

Other comprehensive income (loss)

  2,200   289   (16,472)  (1,179)

Distribution

  (23,010)  (10,339)  (66,140)  (34,055)

Balance at end of period

 $282,491  $284,806  $282,491  $284,806 
     
(1)Amounts reclassified into income out of accumulated other comprehensive loss were $0.9 million and $(1.2) million for the three months ended September 30, 2023 and 2022, respectively, and $(17.4) million and $(5.7) million for the nine months ended September 30, 2023 and 2022, respectively. 

 

The following table represents summarized financial information for Sisecam Wyoming as derived from their respective unaudited financial statements for the three and nine months ended September 30, 2023 and 2022:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Net sales

 $180,232  $190,450  $588,725  $542,955 

Gross profit

  34,454   39,679   148,063   119,723 

Net income

  27,772   32,105   126,906   97,144 

 

 
v3.23.3
Note 8 - Mineral Rights, Net
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Mineral Industries Disclosures [Text Block]

8.    Mineral Rights, Net

 

The Partnership’s mineral rights consist of the following:

 

  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Carrying Value

  

Accumulated Depletion

  

Net Book Value

  

Carrying Value

  

Accumulated Depletion

  

Net Book Value

 

Coal properties

 $661,680  $(279,988) $381,692  $661,812  $(269,037) $392,775 

Aggregates properties

  8,655   (3,723)  4,932   8,655   (3,410)  5,245 

Oil and gas royalty properties

  12,354   (9,962)  2,392   12,354   (9,600)  2,754 

Other

  13,144   (1,612)  11,532   13,150   (1,612)  11,538 

Total mineral rights, net

 $695,833  $(295,285) $400,548  $695,971  $(283,659) $412,312 

 

Depletion expense related to the Partnership’s mineral rights is included in depreciation, depletion and amortization on its Consolidated Statements of Comprehensive Income and totaled $4.1 million and $6.4 million for the three months ended September 30, 2023 and 2022, respectively and $11.6 million and $15.5 million for the nine months ended September 30, 2023 and 2022, respectively.

 

The Partnership has developed procedures to evaluate its long-lived assets for possible impairment periodically or whenever events or changes in circumstances indicate an asset's net book value may not be recoverable. Potential events or circumstances include, but are not limited to, specific events such as a reduction in economically recoverable reserves or production ceasing on a property for an extended period. This analysis is based on historic, current and future performance and considers both quantitative and qualitative information. As a result of the Partnership's analyses, NRP recorded immaterial impairment expenses during the three and nine months ended September 30, 2023 and September 30, 2022. 

 
v3.23.3
Note 9 - Debt, Net
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

9.    Debt, Net

 

The Partnership's debt consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Opco Credit Facility

 $128,034  $70,000 

Opco Senior Notes

        

5.55% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023

 $—  $2,366 

4.73% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023

  6,004   6,004 

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  12,684   25,368 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  4,011   8,023 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  45,683   45,683 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  11,643   11,643 

Total Opco Senior Notes

 $80,025  $99,087 

Total debt at face value

 $208,059  $169,087 

Net unamortized debt issuance costs

  (544)  (806)

Total debt, net

 $207,515  $168,281 

Less: current portion of long-term debt

  (36,780)  (39,076)

Total long-term debt, net

 $170,735  $129,205 

 

Opco Debt

 

All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of September 30, 2023 and December 31, 2022, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

 

Opco Credit Facility

 

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. The Sixth Amendment also includes modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

 

•

A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x; provided, and

 

•

an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0.

 

As of December 31, 2022, the Partnership had $70.0 million in borrowings outstanding under the Opco Credit Facility. During the nine months ended September 30, 2023, the Partnership borrowed $215.0 million and repaid $157.0 million, resulting in $128.0 million in borrowings outstanding under the Opco Credit Facility as of September 30, 2023. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2023 was 8.85% and 8.61%, respectively. During the three and nine months ended September 30, 2022, the Partnership did not have any borrowings outstanding under the Opco Credit Facility. The Partnership had $27.0 million and $60.0 million of available borrowing capacity as of September 30, 2023 and December 31, 2022, respectively.

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $321.6 million and $326.4 million classified as mineral rights, net and other long-term assets, net and $27.0 million and $28.9 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022, respectively.

 

Opco Senior Notes   

 

Opco has issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of September 30, 2023 and December 31, 2022, the Opco Senior Notes had cumulative principal balances of $80.0 million and $99.1 million, respectively. Opco made mandatory principal payments of $19.1 million during the nine months ended September 30, 2023 and 2022.

 

The 8.92% Opco Senior Notes also provides that in the event that Opco’s leverage ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the Note Purchase Agreements) exceeds 3.75 to 1.00 at the end of any fiscal quarter, then in addition to all other interest accruing on these notes, additional interest in the amount of 2.00% per annum shall accrue on the notes for the two succeeding quarters and for as long thereafter as the leverage ratio remains above 3.75 to 1.00. Opco has not exceeded the 3.75 to 1.00 ratio at the end of any fiscal quarter through September 30, 2023.

 
v3.23.3
Note 10 - Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

10.    Fair Value Measurements

 

Fair Value of Financial Assets and Liabilities

 

The Partnership’s financial assets and liabilities consist of cash and cash equivalents, a contract receivable and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its debt and contract receivable.

 

The following table shows the carrying value and estimated fair value of the Partnership's debt and contract receivable:

 

      

September 30, 2023

  

December 31, 2022

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $79,481  $75,815  $98,281  $96,060 

Opco Credit Facility (2)

  3   128,034   128,034   70,000   70,000 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $29,570  $24,880  $31,371  $24,833 
     
(1)The fair value of the Opco Senior Notes at September 30, 2023 and December 31, 2022 were estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit facility at September 30, 2023 and December 31, 2022, respectively.
(2)The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty.
(3)The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2023 and December 31, 2022.

 

NRP has embedded derivatives in the preferred units related to certain conversion options, redemption features and the change of control provision that are accounted for separately from the preferred units as assets and liabilities at fair value on the Partnership's Consolidated Balance Sheets. Level 3 valuation of the embedded derivatives are based on numerous factors including the likelihood of the event occurring. The embedded derivatives are revalued quarterly and changes in their fair value would be recorded in other expenses, net on the Partnership's Consolidated Statements of Comprehensive Income. The embedded derivatives had zero value as of September 30, 2023 and December 31, 2022.
v3.23.3
Note 11 - Related Party Transactions
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

11.    Related Party Transactions

 

Affiliates of our General Partner

 

The Partnership’s general partner does not receive any management fee or other compensation for its management of NRP. However, in accordance with the partnership agreement, the general partner and its affiliates are reimbursed for services provided to the Partnership and for expenses incurred on the Partnership’s behalf. Employees of Quintana Minerals Corporation ("QMC") and Western Pocahontas Properties Limited Partnership ("WPPLP"), affiliates of the Partnership, provide their services to manage the Partnership's business. QMC and WPPLP charge the Partnership the portion of their employee salary and benefits costs related to their employee services provided to NRP. These QMC and WPPLP employee management service costs are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP also reimburses overhead costs incurred by its affiliates, including Quintana Infrastructure Development ("QID"), to manage the Partnership's business. These overhead costs include certain rent, information technology, administration of employee benefits and other corporate services incurred by or on behalf of the Partnership’s general partner and its affiliates and are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Direct general and administrative expenses charged to the Partnership by QMC, WPPLP and QID are included on the Partnership's Consolidated Statement of Comprehensive Income as follows:

 

  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Operating and maintenance expenses

 $1,663  $1,687  $5,094  $5,044 

General and administrative expenses

  1,287   1,195   3,860   3,660 

 

The Partnership had accounts payable to QMC of $0.4 million on its Consolidated Balance Sheets at both  September 30, 2023 and December 31, 2022, and $0.3 million and $1.0 million of accounts payable to WPPLP at September 30, 2023 and December 31, 2022, respectively.

 

During the three months ended September 30, 2023 and 2022, the Partnership recognized $1.1 million and $2.2 million, respectively, in operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to an overriding royalty agreement with WPPLP. These amounts were $5.1 million and $6.5 million during the nine months ended September 30, 2023 and 2022, respectively. 

 
v3.23.3
Note 12 - Major Customers
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

12.    Major Customers 

 

Revenues from customers that exceeded 10 percent of total revenues for any of the periods presented below are as follows:

 

  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 
  

2023

  

2022

  

2023

  

2022

 

(In thousands)

 

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

 

Alpha Metallurgical Resources, Inc. (1)

 $17,219   20% $21,000   21% $61,122   22% $81,638   28%

Foresight Energy Resources LLC ("Foresight") (1)

 $18,600   22% $19,334   19% $43,453   16% $47,081   16%
     

(1)

Revenues from Alpha Metallurgical Resources, Inc. and Foresight are included within the Partnership's Mineral Rights segment.

 
v3.23.3
Note 13 - Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

13.    Commitments and Contingencies

 

NRP is involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, Partnership management believes these ordinary course matters will not have a material effect on the Partnership’s financial position, liquidity or operations.
v3.23.3
Note 14 - Unit-Based Compensation
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

14.    Unit-Based Compensation

 

During the nine months ended September 30, 2023, the Partnership granted service, performance and market-based awards under its 2017 Long-Term Incentive Plan and during the nine months ended September 30, 2022, the Partnership granted service-based awards. The Partnership's service and performance-based awards are valued using the closing price of NRP's common units as of the grant date while the Partnership's market-based awards are valued using a Monte Carlo simulation. The grant date fair value of these awards granted during nine months ended September 30, 2023 and 2022 was $16.0 million and $7.9 million, respectively. Total unit-based compensation expense associated with these awards was $2.7 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, and $7.9 million and $4.2 million for the nine months ended September 30, 2023 and 2022, respectively, and is included in general and administrative expenses and operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. The unamortized cost associated with unvested outstanding awards as of September 30, 2023 is $15.8 million, which is to be recognized over a weighted average period of 2.1 years. The unamortized cost associated with unvested outstanding awards as of  December 31, 2022 was $6.3 million.

 

A summary of the unit activity in the outstanding grants during 2023 is as follows:

 

(In thousands)

 

Common Units

  

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2023

  386  $28.96 

Granted

  281  $56.84 

Fully vested and issued

  (184) $26.30 

Outstanding at September 30, 2023

  483  $46.21 

 
v3.23.3
Note 15 - Financing Transaction
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Financing Receivables [Text Block]

15.    Financing Transaction

 

The Partnership owns rail loadout and associated infrastructure at the Sugar Camp mine in the Illinois Basin operated by a subsidiary of Foresight. The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and is accounted for as a financing transaction (the "Sugar Camp lease"). The Sugar Camp lease expires in 2032 with renewal options for up to 80 additional years. Minimum payments are $5.0 million per year through the end of the lease term. The Partnership is also entitled to variable payments in the form of throughput fees based on the amount of coal transported and processed utilizing the Partnership's assets. In the event the Sugar Camp lease is renewed beyond 2032, payments become a fixed ten thousand dollars per year for the remainder of the renewed term.
v3.23.3
Note 16 - Credit Losses
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Credit Loss, Financial Instrument [Text Block]

16.    Credit Losses

 

The Partnership is exposed to credit losses through collection of its short-term trade receivables resulting from contracts with customers and a long-term receivable resulting from a financing transaction with a customer. The Partnership records an allowance for current expected credit losses on these receivables based on the loss-rate method. NRP assessed the likelihood of collection of its receivables utilizing historical loss rates, current market conditions, industry and macroeconomic factors, reasonable and supportable forecasts and facts or circumstances of individual customers and properties. Examples of these facts or circumstances include, but are not limited to, contract disputes or renegotiations with the customer and evaluation of short and long-term economic viability of the contracted property. For its long-term contract receivable, management reverts to the historical loss experience immediately after the reasonable and supportable forecast period ends.

 

As of September 30, 2023 and December 31, 2022, NRP had the following current expected credit loss (“CECL”) allowance related to its receivables and long-term contract receivable:

 

  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Gross

  

CECL Allowance

  

Net

  

Gross

  

CECL Allowance

  

Net

 

Receivables

 $46,294  $(5,343) $40,951  $47,237  $(4,461) $42,776 

Long-term contract receivable

  27,965   (968)  26,997   29,984   (1,038)  28,946 

Total

 $74,259  $(6,311) $67,948  $77,221  $(5,499) $71,722 

 

NRP recorded $1.6 million and $0.0 million of operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to the change in the CECL allowance during the three months ended September 30, 2023 and 2022, respectively and $0.8 million and $0.6 million during the nine months ended September 30, 2023 and 2022, respectively. 

 

NRP has procedures in place to monitor its ongoing credit exposure through timely review of counterparty balances against contract terms and due dates, account and financing receivable reconciliation, bankruptcy monitoring, lessee audits and dispute resolution. The Partnership may employ legal counsel or collection specialists to pursue recovery of defaulted receivables.
v3.23.3
Note 17 - Subsequent Events
 9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Subsequent Events [Text Block]

17.    Subsequent Events

 

The following represents material events that have occurred subsequent to September 30, 2023 through the time of the Partnership’s filing of its Quarterly Report on Form 10-Q with the SEC:

 

Common Unit and Preferred Unit Distributions

 

In November 2023, the Board of Directors declared a distribution of $0.75 per common unit with respect to the third quarter of 2023. The Board of Directors also declared a $2.15 million cash distribution on NRP's outstanding preferred units with respect to the third quarter of 2023.

 

Warrant Repurchases

 

On October 6, 2023, the Partnership executed a negotiated transaction with holders of the warrants pursuant to which the Partnership repurchased and retired an aggregate of 300,000 warrants with an exercise price of $34.00 for approximately $11.4 million in cash. On October 26, 2023, the Partnership executed another negotiated transaction with holders of the warrants pursuant to which the Partnership repurchased and retired an aggregate of 350,000 warrants with an exercise price of $34.00 for approximately $11.1 million in cash. Following these transactions, 1.54 million warrants with an exercise price of $34.00 remain outstanding. As a result of these repurchases, warrant holders' interest on the Partnership's Statement of Partners' Capital decreased by $9.7 million during the month of October 2023. 

 

 
v3.23.3
Insider Trading Arrangements
 9 Months Ended
Sep. 30, 2023
Insider Trading Arr Line Items  
Material Terms of Trading Arrangement [Text Block]

ITEM 5. OTHER INFORMATION

 

None.
Rule 10b5-1 Arrangement Adopted [Flag] false
Non-Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
v3.23.3
Note 2 - Revenues From Contracts With Customers (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Disaggregation of Revenue [Table Text Block]
  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Coal royalty revenues

 $55,544  $52,381  $161,527  $170,775 

Production lease minimum revenues

  850   1,885   2,025   3,542 

Minimum lease straight-line revenues

  4,464   4,778   13,414   14,235 

Carbon neutral initiative revenues

  681   8,600   2,914   8,600 

Property tax revenues

  1,770   1,360   4,710   4,527 

Wheelage revenues

  2,385   2,977   9,538   11,073 

Coal overriding royalty revenues

  827   1,367   1,165   2,307 

Lease amendment revenues

  623   759   2,322   2,450 

Aggregates royalty revenues

  736   884   2,175   2,691 

Oil and gas royalty revenues

  324   6,170   5,126   10,890 

Other revenues

  329   218   895   705 

Royalty and other mineral rights revenues

 $68,533  $81,379  $205,811  $231,795 

Transportation and processing services revenues (1)

  4,579   5,969   11,447   15,377 

Total Mineral Rights segment revenues

 $73,112  $87,348  $217,258  $247,172 
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]
  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Receivables

        

Accounts receivable, net

 $34,775  $39,004 

Other current assets, net (1)

  2,382   — 

Other long-term assets, net (2)

  —   75 
         

Contract liabilities

        

Current portion of deferred revenue

 $6,399  $6,256 

Deferred revenue

  35,076   40,181 
  

For the Nine Months Ended September 30,

 

(In thousands)

 

2023

  

2022

 

Balance at beginning of period (current and non-current)

 $46,437  $61,862 

Increase due to minimums and lease amendment fees

  11,525   11,309 

Recognition of previously deferred revenue

  (16,487)  (28,403)

Balance at end of period (current and non-current)

 $41,475  $44,768 
Lessor, Operating Lease, Payment to be Received, Maturity [Table Text Block]

Lease Term (1)

 

Weighted Average Remaining Years

  

Annual Minimum Payments

 

0 - 5 years

  1.7  $19,867 

5 - 10 years

  4.8   10,417 

10+ years

  12.0   27,129 

Total

  7.2  $57,413 
v3.23.3
Note 3 - Class A Convertible Preferred Units and Warrants (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedule of Preferred Units [Table Text Block]
  

Units

  

Financial

 

(In thousands, except unit data)

 

Outstanding

  

Position

 

Balance at December 31, 2021

  269,321  $183,908 

Redemption of preferred units paid-in-kind

  (19,321)  (19,321)

Balance at December 31, 2022

  250,000  $164,587 

Redemption of preferred units

  (178,334)  (117,406)

Balance at September 30, 2023

  71,666  $47,181 
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
  

Warrants

  

Financial

 

(In thousands, except warrant data)

 

Outstanding

  

Position

 

Balance at December 31, 2021 and 2022

  3,002,500  $47,964 

Warrant settlement

  (812,500)  (15,121)

Balance at September 30, 2023

  2,190,000  $32,843 
v3.23.3
Note 4 - Common and Preferred Unit Distributions (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Distributions Made to Limited Partner, by Distribution [Table Text Block]
                   
    

Common Units

  

Preferred Units

 

Month Paid

 

Period Covered by Distribution

 

Distribution per Unit

  

Total Distribution (1) (In thousands)

  

Distribution per Unit

  

Total Distribution (In thousands)

 

2023

                  

February

 

October 1 - December 31, 2022

 $0.75  $9,571  $30.00  $7,500 

February (2)

 

January 1 - February 8, 2023

  —   —   12.33   586 

March (3)

 

Special Distribution

  2.43   31,329   —   — 

May

 

January 1 - March 31, 2023

  0.75   9,669   30.00   6,075 

May (4)

 

April 1 - May 5, 2023

  —   —   11.33   406 

June (5)

 

April 1 - June 2, 2023

  —   —   20.33   915 

August

 

April 1 - June 30, 2023

  0.75   9,669   30.00   3,650 

August (6)

 

June 30 - August 8, 2023

  —   —   12.33   432 

September (7)

 

June 30 - September 12, 2023

  —   —   23.67   355 
                   

2022

                  

February

 

October 1 - December 31, 2021

 $0.45  $5,672  $30.00  $7,500 

February (8)

 

January 1 - February 8, 2022

  —   —   13.35   258 

May

 

January 1 - March 31, 2022

  0.75   9,570   30.00   7,500 

August

 

April 1 - June 30, 2022

  0.75   9,571   30.00   7,500 
v3.23.3
Note 5 - Net Income Per Common Unit (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands, except per unit data)

 

2023

  

2022

  

2023

  

2022

 

Basic net income per common unit

                

Net income attributable to common unitholders

 $42,951  $65,714  $135,199  $179,119 

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Basic net income per common unit

 $3.40  $5.25  $10.72  $14.36 
                 

Diluted net income per common unit

                

Weighted average common units—basic

  12,635   12,506   12,613   12,476 

Plus: dilutive effect of preferred units

  1,104   6,210   2,434   6,210 

Plus: dilutive effect of warrants

  1,492   807   1,296   759 

Plus: dilutive effect of unvested unit-based awards

  240   195   190   204 

Weighted average common units—diluted

  15,471   19,718   16,533   19,649 
                 

Net income

 $63,846  $74,555  $213,455  $205,274 

Less: income attributable to preferred unitholders

  (786)  —   (2,693)  — 

Less: redemption of preferred units

  (17,083)  —   (60,929)  — 

Diluted net income attributable to common unitholders and the general partner

 $45,977  $74,555  $149,833  $205,274 

Less: diluted net income attributable to the general partner

  (920)  (1,491)  (2,997)  (4,105)

Diluted net income attributable to common unitholders

 $45,057  $73,064  $146,836  $201,169 
                 

Diluted net income per common unit

 $2.91  $3.71  $8.88  $10.24 
v3.23.3
Note 6 - Segment Information (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
  

Operating Segments

         

(In thousands)

 

Mineral Rights

  

Soda Ash

  

Corporate and Financing

  

Total

 

For the Three Months Ended September 30, 2023

                

Revenues

 $73,112  $12,401  $—  $85,513 

Gain on asset sales and disposals

  854   —   —   854 

Operating and maintenance expenses

  8,305   53   —   8,358 

Depreciation, depletion and amortization

  4,589   —   5   4,594 

General and administrative expenses

  —   —   5,669   5,669 

Asset impairments

  63   —   —   63 

Other expenses, net

  —   —   3,837   3,837 

Net income (loss)

  61,009   12,348   (9,511)  63,846 
                 

For the Three Months Ended September 30, 2022

                

Revenues

 $87,348  $14,556  $—  $101,904 

Gain on asset sales and disposals

  354   —   —   354 

Operating and maintenance expenses

  7,867   31   —   7,898 

Depreciation, depletion and amortization

  6,850   —   —   6,850 

General and administrative expenses

  —   —   4,518   4,518 

Asset impairments

  812   —   —   812 

Other expenses, net

  —   —   7,625   7,625 

Net income (loss)

  72,173   14,525   (12,143)  74,555 
                 

For the Nine Months Ended September 30, 2023

                

Revenues

 $217,258  $58,633  $—  $275,891 

Gain on asset sales and disposals

  955   —   —   955 

Operating and maintenance expenses

  23,226   225   —   23,451 

Depreciation, depletion and amortization

  12,455   —   14   12,469 

General and administrative expenses

  —   —   17,157   17,157 

Asset impairments

  132   —   —   132 

Other expenses, net

  —   —   10,182   10,182 

Net income (loss)

  182,400   58,408   (27,353)  213,455 
                 

For the Nine Months Ended September 30, 2022

                

Revenues

 $247,172  $44,036  $—  $291,208 

Gain on asset sales and disposals

  699   —   —   699 

Operating and maintenance expenses

  25,884   105   —   25,989 

Depreciation, depletion and amortization

  16,565   —   —   16,565 

General and administrative expenses

  —   —   14,037   14,037 

Asset impairments

  874   —   —   874 

Other expenses, net

  —   —   29,168   29,168 

Net income (loss)

  204,548   43,931   (43,205)  205,274 
v3.23.3
Note 7 - Equity Investment (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Equity Method Investments [Table Text Block]
  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Balance at beginning of period

 $290,900  $280,300  $306,470  $276,004 

Income allocation to NRP’s equity interests (1)

  13,608   15,732   62,184   47,601 

Amortization of basis difference

  (1,207)  (1,176)  (3,551)  (3,565)

Other comprehensive income (loss)

  2,200   289   (16,472)  (1,179)

Distribution

  (23,010)  (10,339)  (66,140)  (34,055)

Balance at end of period

 $282,491  $284,806  $282,491  $284,806 
  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Net sales

 $180,232  $190,450  $588,725  $542,955 

Gross profit

  34,454   39,679   148,063   119,723 

Net income

  27,772   32,105   126,906   97,144 
v3.23.3
Note 8 - Mineral Rights, Net (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Mineral Properties Disclosure [Table Text Block]
  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Carrying Value

  

Accumulated Depletion

  

Net Book Value

  

Carrying Value

  

Accumulated Depletion

  

Net Book Value

 

Coal properties

 $661,680  $(279,988) $381,692  $661,812  $(269,037) $392,775 

Aggregates properties

  8,655   (3,723)  4,932   8,655   (3,410)  5,245 

Oil and gas royalty properties

  12,354   (9,962)  2,392   12,354   (9,600)  2,754 

Other

  13,144   (1,612)  11,532   13,150   (1,612)  11,538 

Total mineral rights, net

 $695,833  $(295,285) $400,548  $695,971  $(283,659) $412,312 
v3.23.3
Note 9 - Debt, Net (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedule of Long-Term Debt Instruments [Table Text Block]
  

September 30,

  

December 31,

 

(In thousands)

 

2023

  

2022

 

Opco Credit Facility

 $128,034  $70,000 

Opco Senior Notes

        

5.55% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023

 $—  $2,366 

4.73% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023

  6,004   6,004 

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  12,684   25,368 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

  4,011   8,023 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  45,683   45,683 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  11,643   11,643 

Total Opco Senior Notes

 $80,025  $99,087 

Total debt at face value

 $208,059  $169,087 

Net unamortized debt issuance costs

  (544)  (806)

Total debt, net

 $207,515  $168,281 

Less: current portion of long-term debt

  (36,780)  (39,076)

Total long-term debt, net

 $170,735  $129,205 
v3.23.3
Note 10 - Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Fair Value Option, Disclosures [Table Text Block]
      

September 30, 2023

  

December 31, 2022

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $79,481  $75,815  $98,281  $96,060 

Opco Credit Facility (2)

  3   128,034   128,034   70,000   70,000 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $29,570  $24,880  $31,371  $24,833 
v3.23.3
Note 11 - Related Party Transactions (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]
  For the Three Months Ended September 30,  For the Nine Months Ended September 30, 

(In thousands)

 

2023

  

2022

  

2023

  

2022

 

Operating and maintenance expenses

 $1,663  $1,687  $5,094  $5,044 

General and administrative expenses

  1,287   1,195   3,860   3,660 
v3.23.3
Note 12 - Major Customers (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 
  

2023

  

2022

  

2023

  

2022

 

(In thousands)

 

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

  

Revenues

  

Percent

 

Alpha Metallurgical Resources, Inc. (1)

 $17,219   20% $21,000   21% $61,122   22% $81,638   28%

Foresight Energy Resources LLC ("Foresight") (1)

 $18,600   22% $19,334   19% $43,453   16% $47,081   16%
v3.23.3
Note 14 - Unit-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Share-Based Payment Arrangement, Activity [Table Text Block]

(In thousands)

 

Common Units

  

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2023

  386  $28.96 

Granted

  281  $56.84 

Fully vested and issued

  (184) $26.30 

Outstanding at September 30, 2023

  483  $46.21 
v3.23.3
Note 16 - Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2023
Notes Tables  
Accounts Receivable, Allowance for Credit Loss [Table Text Block]
  

September 30, 2023

  

December 31, 2022

 

(In thousands)

 

Gross

  

CECL Allowance

  

Net

  

Gross

  

CECL Allowance

  

Net

 

Receivables

 $46,294  $(5,343) $40,951  $47,237  $(4,461) $42,776 

Long-term contract receivable

  27,965   (968)  26,997   29,984   (1,038)  28,946 

Total

 $74,259  $(6,311) $67,948  $77,221  $(5,499) $71,722 
v3.23.3
Note 1 - Basis of Presentation (Details Textual)
 9 Months Ended
Sep. 30, 2023
Number of Operating Segments 2
Number of Wholly Owned Operating Companies 1
Sisecam Wyoming [Member]  
Equity Method Investment, Ownership Percentage 49.00%
v3.23.3
Note 2 - Revenues From Contracts With Customers (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue from Contract with Customer, Excluding Assessed Tax $ 68,533 $ 81,379 $ 205,811 $ 231,795
Mineral Rights Segment [Member] | Transportation and Processing Services [Member]        
Revenue from Contract with Customer, Excluding Assessed Tax 3,900 4,900 9,500 12,900
Sales-type Lease, Revenue $ 600 $ 1,100 $ 1,900 $ 2,500
v3.23.3
Note 2 - Revenues From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue from contract with customers $ 68,533 $ 81,379 $ 205,811 $ 231,795
Mineral Rights Segment [Member] | Operating Segments [Member]        
Revenues 73,112 87,348 217,258 247,172
Coal Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 55,544 52,381 161,527 170,775
Production Lease Minimum Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 850 1,885 2,025 3,542
Minimum Lease Straight-line Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 4,464 4,778 13,414 14,235
Carbon Neutral Initiatives [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 681 8,600 2,914 8,600
Property Tax Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 1,770 1,360 4,710 4,527
Wheelage Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 2,385 2,977 9,538 11,073
Coal Overriding Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 827 1,367 1,165 2,307
Lease Amendment Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 623 759 2,322 2,450
Aggregates Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 736 884 2,175 2,691
Oil and Gas Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 324 6,170 5,126 10,890
Other Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 329 218 895 705
Transportation and Processing Services [Member] | Mineral Rights Segment [Member]        
Revenues [1] $ 4,579 $ 5,969 $ 11,447 $ 15,377
[1] Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $3.9 million and $4.9 million for the three months ended September 30, 2023 and 2022, respectively and $9.5 million and $12.9 million for the nine months ended September 30, 2023 and 2022, respectively. The remaining transportation and processing services revenues of $0.6 million and $1.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1.9 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 15. Financing Transaction for more information.
v3.23.3
Note 2 - Revenue From Contracts With Customers - Assets and Liabilities (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Current portion of deferred revenue $ 6,399   $ 6,256
Deferred revenue 35,076   40,181
Balance 46,437 $ 61,862  
Increase due to minimums and lease amendment fees 11,525 11,309  
Recognition of previously deferred revenue (16,487) (28,403)  
Balance 41,475 $ 44,768  
Coal Royalty Revenues [Member]      
Current portion of deferred revenue 6,399   6,256
Deferred revenue 35,076   40,181
Coal Royalty Revenues [Member] | Accounts Receivable [Member]      
Contract with customer, current 34,775   39,004
Coal Royalty Revenues [Member] | Other Current Assets [Member]      
Contract with customer, current [1] 2,382   0
Coal Royalty Revenues [Member] | Other Noncurrent Assets [Member]      
Contract with customer, noncurrent [2] $ 0   $ 75
[1] Other current assets, net includes short-term notes receivables from contracts with customers.
[2] Other long-term assets, net includes long-term lease amendment fee receivables from contracts with customers.
v3.23.3
Note 2 - Revenue From Contracts With Customers - Operating Lease Payments Receivable (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Weighted average remaining years (Year) 7 years 2 months 12 days
Annual minimum payments $ 57,413 [1]
Lease Term, 0 to 5 Years [Member]  
Weighted average remaining years (Year) 1 year 8 months 12 days
Annual minimum payments $ 19,867 [1]
Lease Term, 5 to 10 Years [Member]  
Weighted average remaining years (Year) 4 years 9 months 18 days
Annual minimum payments $ 10,417 [1]
Lease Term, Greater Than 10 Years [Member]  
Weighted average remaining years (Year) 12 years
Annual minimum payments $ 27,129 [1]
[1] Lease term does not include renewal periods.
v3.23.3
Note 3 - Class A Convertible Preferred Units and Warrants (Details Textual)
$ / shares in Units, $ in Thousands
 1 Months Ended 9 Months Ended
Mar. 02, 2017
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
$ / shares
shares
Aug. 31, 2023
USD ($)
shares
Jun. 30, 2023
USD ($)
shares
May 31, 2023
USD ($)
shares
Feb. 28, 2023
USD ($)
shares
Sep. 30, 2023
USD ($)
$ / shares
shares
Sep. 18, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Sep. 30, 2022
$ / shares
shares
Temporary Equity, Par or Stated Value Per Share (in dollars per share) | $ / shares   $ 1,000         $ 1,000   $ 1,000  
Preferred Units, Number of Redeemed Units (in shares)   (15,001) (35,000) (45,000) (35,834) (47,499) (178,334)      
Warrants and Rights Outstanding | $   $ 32,843         $ 32,843   $ 47,964  
Class of Warrant or Right, Outstanding (in shares)   2,190,000         2,190,000   3,002,500  
Warrants at 22.81 Strike Price [Member]                    
Class of Warrant or Right Warrants, Issued (in shares) 1,750,000                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares $ 22.81                  
Warrants at 22.81 Strike Price [Member] | Warrant Holder [Member]                    
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares   $ 22.81         $ 22.81 $ 22.81 $ 22.81 $ 22.81
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)   0         0 752,500 750,000 750,000
Warrants at 34.00 Strike Price [Member]                    
Class of Warrant or Right Warrants, Issued (in shares) 2,250,000                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares $ 34                  
Warrants at 34.00 Strike Price [Member] | Warrant Holder [Member]                    
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares   $ 34         $ 34 $ 34 $ 34 $ 34
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)   2,190,000         2,190,000 60,000 2,250,000 2,250,000
Warrants and Rights Outstanding | $               $ 33,600    
Warrants to Purchase Common Units [Member]                    
Class of Warrant or Right, Outstanding (in shares)                 3,000,000  
Warrants to Purchase Common Units [Member] | Warrant Holders’ Interest [Member]                    
Warrants and Rights Outstanding | $   $ 32,800         $ 32,800   $ 48,000  
Class A Convertible Preferred Units [Member]                    
Preferred Units, Issued (in shares) 250,000                  
Temporary Equity, Par or Stated Value Per Share (in dollars per share) | $ / shares $ 1,000                  
Preferred Units Origination Fee Percent 2.50%                  
Preferred Stock, Dividend Rate, Percentage 12.00%                  
Convertible Preferred Units Maximum Redeemed Units Percent 33.00%                  
Convertible Preferred Units, Redemption Price, Minimum (in dollars per share) | $ / shares $ 51                  
Debt Instrument Covenants Consolidated Leverage Ratio Minimum 3.25                  
Debt Instrument Covenants Distributable Cash Flow Ratio Maximum 1.2                  
Partners' Capital, Distribution Amount Per Share (in dollars per share) | $ / shares $ 0.45                  
Preferred Units Preferred Purchaser Approval Rights Ownership Threshold 20.00%                  
Preferred Units, Number of Redeemed Units (in shares)   (15,001) (35,000) (45,000) (35,834) (47,499)        
Preferred Units, Value of Redeemed Units | $   $ 15,000 $ 35,000 $ 45,000 $ 35,800 $ 47,500        
Preferred Units, Outstanding (in shares)   71,666         71,666      
Class A Convertible Preferred Units [Member] | Debt Instrument, Redemption, Period One [Member]                    
Convertible Preferred Units Conversion to Common Units Discount Percentage 7.50%                  
Convertible Preferred Units Purchase Price Multiplier 1.5                  
Class A Convertible Preferred Units [Member] | Debt Instrument, Redemption, Period Three [Member]                    
Convertible Preferred Units Conversion to Common Units Discount Percentage 10.00%                  
Convertible Preferred Units Purchase Price Multiplier 1.85                  
Class A Convertible Preferred Units [Member] | Debt Instrument, Redemption, Period Two [Member]                    
Convertible Preferred Units Purchase Price Multiplier 1.7                  
Preferred Stock [Member]                    
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants, Total | $ $ 250,000                  
v3.23.3
Note 3 - Class A Convertible Preferred Units and Warrants - Preferred Units Activity (Details) - USD ($)
$ in Thousands
 1 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Aug. 31, 2023
Jun. 30, 2023
May 31, 2023
Feb. 28, 2023
Feb. 28, 2022
Sep. 30, 2023
Dec. 31, 2022
Beginning balance, units outstanding (in shares)             250,000  
Beginning balance, financial position             $ 164,587  
Redemption of preferred units paid-in-kind, units outstanding (in shares)           (19,321)    
Redemption of preferred units, units outstanding (in shares) (15,001) (35,000) (45,000) (35,834) (47,499)   (178,334)  
Redemption of preferred units, financial position             $ (117,406)  
Ending balance, units outstanding (in shares) 71,666           71,666 250,000
Ending balance, financial position $ 47,181           $ 47,181 $ 164,587
Preferred Partner [Member] | Preferred Stock [Member]                
Beginning balance, units outstanding (in shares)             250,000 269,321
Beginning balance, financial position             $ 164,587 $ 183,908
Redemption of preferred units paid-in-kind, units outstanding (in shares)               (19,321)
Redemption of preferred units paid-in-kind, financial position               $ (19,321)
Ending balance, units outstanding (in shares) 71,666           71,666 250,000
Ending balance, financial position $ 47,181           $ 47,181 $ 164,587
v3.23.3
Note 3 - Class A Convertible Preferred Units and Warrants - Warrants Activity (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
shares
Balance (in shares) | shares 3,002,500
Balance | $ $ 47,964
Warrant settlement (in shares) | shares (812,500)
Warrant settlement | $ $ (15,121)
Balance (in shares) | shares 2,190,000
Balance | $ $ 32,843
v3.23.3
Note 4 - Common and Preferred Unit Distributions (Details Textual) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2023
Aug. 31, 2023
Jun. 30, 2023
May 31, 2023
Feb. 28, 2023
Feb. 28, 2022
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Allocation to unitholders             $ 2,936 $ 5,000 $ 6,700 $ 7,500 $ 7,500 $ 7,500 $ 14,568 $ 22,500
Preferred Stock Redemption Premium             17,083     (0)     $ 60,929 (0)
Preferred Units, Number of Redeemed Units (in shares) (15,001) (35,000) (45,000) (35,834) (47,499)               (178,334)  
Distribution Made to Limited Partner, Unit Redemption (in shares)           (19,321)                
Feb 2023 Redeemed Units [Member] | Preferred Partner [Member] | Preferred Stock [Member]                            
Dividends, Preferred Stock, Cash         $ 600                  
May 2023 Redeemed Units [Member] | Preferred Partner [Member] | Preferred Stock [Member]                            
Dividends, Preferred Stock, Cash       $ 400                    
June 2023 Redeemed Units [Member] | Preferred Partner [Member] | Preferred Stock [Member]                            
Dividends, Preferred Stock, Cash     $ 900                      
August 2023 Redeemed Units [Member] | Preferred Partner [Member] | Preferred Stock [Member]                            
Dividends, Preferred Stock, Cash   $ 400                        
September 2023 Redeemed Units [Member] | Preferred Partner [Member] | Preferred Stock [Member]                            
Dividends, Preferred Stock, Cash $ 400                          
Common Unitholders And General Partner [Member]                            
Allocation to unitholders             $ (2,900) $ (5,000) $ (6,700) $ (7,500)     $ (14,600) $ (22,500)
Partner, General [Member]                            
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest                         2.00%  
v3.23.3
Note 4 - Common and Preferred Unit Distributions - Distributions Made to Partners (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Sep. 30, 2023
Aug. 31, 2023
Jun. 30, 2023
May 31, 2023
Mar. 31, 2023
 [1]
Feb. 28, 2023
Aug. 31, 2022
May 31, 2022
Feb. 28, 2022
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Distributions, common units                   $ 9,669 $ 9,669 $ 40,900 $ 9,571 $ 9,570 $ 5,672
Preferred Partner [Member] | Preferred Stock [Member]                              
Distribution per unit, common units (in dollars per share)   $ 30   $ 30 $ 0 $ 30 $ 30 $ 30 $ 30            
Distribution, preferred stock   $ 3,650   $ 6,075 $ 0 $ 7,500 $ 7,500 $ 7,500 $ 7,500            
Preferred Partner [Member] | Preferred Stock [Member] | Feb 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [2]           $ 12.33                  
Distribution, preferred stock [2]           $ 586                  
Preferred Partner [Member] | Preferred Stock [Member] | May 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [3]       $ 11.33                      
Distribution, preferred stock [3]       $ 406                      
Preferred Partner [Member] | Preferred Stock [Member] | June 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [4]     $ 20.33                        
Distribution, preferred stock [4]     $ 915                        
Preferred Partner [Member] | Preferred Stock [Member] | August 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share)   $ 12.33                          
Distribution, preferred stock   $ 432                          
Preferred Partner [Member] | Preferred Stock [Member] | September 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) $ 23.67                            
Distribution, preferred stock $ 355                            
Preferred Partner [Member] | Preferred Stock [Member] | February 2022 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share)                 $ 13.35            
Distribution, preferred stock                 $ 258            
Common Unitholders, General Partner [Member]                              
Distribution per unit, common units (in dollars per share)       $ 0.75 $ 2.43 $ 0.75 $ 0.75 $ 0.75 $ 0.45            
Distributions, common units       $ 9,669 [5] $ 31,329 [5] $ 9,571 [5] $ 9,571 $ 9,570 $ 5,672 [5]            
Common Unitholders, General Partner [Member] | Feb 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [2]           $ 0                  
Distributions, common units [2],[5]           $ 0                  
Common Unitholders, General Partner [Member] | May 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [3]       $ 0                      
Distributions, common units [3],[5]       $ 0                      
Common Unitholders, General Partner [Member] | June 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [4]     $ 0                        
Distributions, common units [4],[5]     $ 0                        
Common Unitholders, General Partner [Member] | August 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [6]   $ 0                          
Distributions, common units       $ 0                      
Common Unitholders, General Partner [Member] | September 2023 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [7] $ 0                            
Distributions, common units $ 0                            
Common Unitholders, General Partner [Member] | February 2022 Redeemed Units [Member]                              
Distribution per unit, common units (in dollars per share) [8]                 $ 0            
Distributions, common units [5]                 $ 0            
[1] Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
[2] Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
[3] Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
[4] Relates to accrued distribution paid upon the redemption of 45,000 preferred units in June 2023.
[5] Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.
[6] Relates to accrued distribution paid upon the redemption of 35,000 preferred units in August 2023.
[7] Relates to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023.
[8] Relates to accrued distribution paid upon the redemption of 19,321 preferred units paid-in-kind in February 2022.
v3.23.3
Note 5 - Net Income Per Common Unit (Details Textual) - $ / shares
Sep. 30, 2023
Sep. 18, 2023
Dec. 31, 2022
Sep. 30, 2022
Mar. 02, 2017
Warrants at 34.00 Strike Price [Member]          
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)         $ 34
Warrants at 22.81 Strike Price [Member]          
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)         $ 22.81
Warrant Holder [Member] | Warrants at 34.00 Strike Price [Member]          
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 2,190,000 60,000 2,250,000 2,250,000  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) $ 34 $ 34 $ 34 $ 34  
Warrant Holder [Member] | Warrants at 22.81 Strike Price [Member]          
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 0 752,500 750,000 750,000  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) $ 22.81 $ 22.81 $ 22.81 $ 22.81  
v3.23.3
Note 5 - Net Income Per Common Unit - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
 [2]
Mar. 31, 2023
 [3]
Sep. 30, 2022
Jun. 30, 2022
 [4]
Mar. 31, 2022
 [4]
Sep. 30, 2023
Sep. 30, 2022
Net income attributable to common unitholders $ 42,951     $ 65,714     $ 135,199 $ 179,119
Weighted average common units—basic (in shares) 12,635     12,506     12,613 12,476
Basic net income per common unit (in dollars per share) $ 3.4     $ 5.25     $ 10.72 $ 14.36
Plus: dilutive effect of preferred units (in shares) 1,104     6,210     2,434 6,210
Plus: dilutive effect of warrants (in shares) 1,492     807     1,296 759
Plus: dilutive effect of unvested unit-based awards (in shares) 240     195     190 204
Weighted average common units—diluted (in shares) 15,471     19,718     16,533 19,649
Net income $ 63,846 [1] $ 70,334 $ 79,275 $ 74,555 $ 66,820 $ 63,899 $ 213,455 $ 205,274
Less: income attributable to preferred unitholders (786)     0     (2,693) 0
Less: redemption of preferred units (17,083)     0     (60,929) 0
Diluted net income attributable to common unitholders and the general partner 45,977     74,555     149,833 205,274
Less: diluted net income attributable to the general partner (920)     (1,491)     (2,997) (4,105)
Diluted net income attributable to common unitholders $ 45,057     $ 73,064     $ 146,836 $ 201,169
Diluted net income per common unit (in dollars per share) $ 2.91     $ 3.71     $ 8.88 $ 10.24
[1] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[2] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[3] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[4] Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.
v3.23.3
Note 6 - Segment Information (Details Textual)
 9 Months Ended
Sep. 30, 2023
Number of Operating Segments 2
Sisecam Wyoming [Member]  
Equity Method Investment, Ownership Percentage 49.00%
v3.23.3
Note 6 - Segment Information - Information By Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues $ 85,513 $ 101,904 $ 275,891 $ 291,208
Gain on asset sales and disposals 854 354 955 699
Operating and maintenance expenses 8,358 7,898 23,451 25,989
Depreciation, depletion and amortization 4,594 6,850 12,469 16,565
General and administrative expenses 5,669 4,518 17,157 14,037
Asset impairments 63 812 132 874
Other expenses, net 3,837 7,625 10,182 29,168
Net income (loss) 63,846 74,555 213,455 205,274
Corporate, Non-Segment [Member]        
Revenues 0 0 0 0
Gain on asset sales and disposals 0 0 0 0
Operating and maintenance expenses 0 0 0 0
Depreciation, depletion and amortization 5 0 14 0
General and administrative expenses 5,669 4,518 17,157 14,037
Asset impairments 0 0 0 0
Other expenses, net 3,837 7,625 10,182 29,168
Net income (loss) (9,511) (12,143) (27,353) (43,205)
Mineral Rights Segment [Member]        
Depreciation, depletion and amortization 4,100 6,400 11,600 15,500
Mineral Rights Segment [Member] | Operating Segments [Member]        
Revenues 73,112 87,348 217,258 247,172
Gain on asset sales and disposals 854 354 955 699
Operating and maintenance expenses 8,305 7,867 23,226 25,884
Depreciation, depletion and amortization 4,589 6,850 12,455 16,565
General and administrative expenses 0 0 0 0
Asset impairments 63 812 132 874
Other expenses, net 0 0 0 0
Net income (loss) 61,009 72,173 182,400 204,548
Soda Ash Segment [Member] | Operating Segments [Member]        
Revenues 12,401 14,556 58,633 44,036
Gain on asset sales and disposals 0 0 0 0
Operating and maintenance expenses 53 31 225 105
Depreciation, depletion and amortization 0 0 0 0
General and administrative expenses 0 0 0 0
Asset impairments 0 0 0 0
Other expenses, net 0 0 0 0
Net income (loss) $ 12,348 $ 14,525 $ 58,408 $ 43,931
v3.23.3
Note 7 - Equity Investment (Details Textual) - Sisecam Wyoming [Member] - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Equity Method Investment, Ownership Percentage 49.00%   49.00%  
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) $ 0.9 $ (1.2) $ (17.4) $ (5.7)
v3.23.3
Note 7 - Equity Investment - Investment Activity (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Beginning Balance     $ 306,470       $ 306,470  
Ending Balance $ 282,491           282,491  
Net income 63,846 [1] $ 70,334 [2] 79,275 [3] $ 74,555 $ 66,820 [4] $ 63,899 [4] 213,455 $ 205,274
Sisecam Wyoming [Member]                
Net sales 180,232     190,450     588,725 542,955
Gross profit 34,454     39,679     148,063 119,723
Net income 27,772     32,105     126,906 97,144
Sisecam Wyoming [Member]                
Beginning Balance 290,900   $ 306,470 280,300   $ 276,004 306,470 276,004
Income allocation to NRP’s equity interests (1) [5] 13,608     15,732     62,184 47,601
Amortization of basis difference (1,207)     (1,176)     (3,551) (3,565)
Other comprehensive income (loss) 2,200     289     (16,472) (1,179)
Distribution (23,010)     (10,339)     (66,140) (34,055)
Ending Balance $ 282,491 $ 290,900   $ 284,806 $ 280,300   $ 282,491 $ 284,806
[1] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[2] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[3] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[4] Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.
[5] Amounts reclassified into income out of accumulated other comprehensive loss were $2.3 million and $(3.0) million for the three months ended June 30, 2023 and 2022, respectively, and $(18.3) million and $(4.7) million for the six months ended June 30, 2023 and 2022, respectively.
v3.23.3
Note 8 - Mineral Rights, Net (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Depreciation, Depletion and Amortization $ 4,594 $ 6,850 $ 12,469 $ 16,565
Mineral Rights Segment [Member]        
Depreciation, Depletion and Amortization $ 4,100 $ 6,400 $ 11,600 $ 15,500
v3.23.3
Note 8 - Mineral Rights, Net - Composition of Mineral Rights (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Mineral Properties, carrying value $ 695,833 $ 695,971
Mineral Properties, accumulated depletion (295,285) (283,659)
Mineral Properties, net book value 400,548 412,312
Coal Properties [Member]    
Mineral Properties, carrying value 661,680 661,812
Mineral Properties, accumulated depletion (279,988) (269,037)
Mineral Properties, net book value 381,692 392,775
Aggregates Properties [Member]    
Mineral Properties, carrying value 8,655 8,655
Mineral Properties, accumulated depletion (3,723) (3,410)
Mineral Properties, net book value 4,932 5,245
Oil and Gas Royalty Properties [Member]    
Mineral Properties, carrying value 12,354 12,354
Mineral Properties, accumulated depletion (9,962) (9,600)
Mineral Properties, net book value 2,392 2,754
Other [Member]    
Mineral Properties, carrying value 13,144 13,150
Mineral Properties, accumulated depletion (1,612) (1,612)
Mineral Properties, net book value $ 11,532 $ 11,538
v3.23.3
Note 9 - Debt, Net (Details Textual)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
May 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Aug. 30, 2022
USD ($)
Nontrade Receivables, Noncurrent $ 26,997 $ 26,997     $ 28,946  
Long-Term Debt, Gross 208,059 208,059     169,087  
Opco [Member] | Floating Rate Revolving Credit Facility Due August 2027 [Member]            
Line of Credit Facility, Remaining Borrowing Capacity 27,000 27,000   $ 155,000 60,000 $ 130,000
Line of Credit Facility, Maximum Borrowing Capacity, Addition of Future Commitments       $ 200,000    
Ratio of EBITDA To Consolidated Fixed Charges       3.5    
Long-Term Line of Credit $ 128,000 128,000     70,000  
Proceeds from Lines of Credit   215,000        
Repayments of Lines of Credit   $ 157,000        
Long-Term Debt, Weighted Average Interest Rate, over Time 8.85% 8.61%        
Nontrade Receivables, Noncurrent $ 27,000 $ 27,000     28,900  
Long-Term Debt, Gross 128,034 128,034     70,000  
Opco [Member] | Floating Rate Revolving Credit Facility Due August 2027 [Member] | Other Noncurrent Assets [Member]            
Debt Instrument, Collateral Amount 321,600 321,600     326,400  
Opco [Member] | Senior Notes [Member]            
Long-Term Debt, Gross $ 80,000 80,000     $ 99,100  
Repayments of Debt   $ 19,100 $ 19,100      
Opco [Member] | The Eight Point Nine Two Senior Notes Due March Two Zero Two Four [Member]            
Debt Instrument, Interest Rate, Stated Percentage 8.92% 8.92%        
Partnership Leverage Ratio, Maximum 3.75 3.75        
Debt Instrument, Additional Variable Interest Rate 2.00% 2.00%        
v3.23.3
Note 9 - Debt, Net - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Debt instrument, carrying value $ 208,059 $ 169,087
Net unamortized debt issuance costs (544) (806)
Total debt, net 207,515 168,281
Less: current portion of long-term debt (36,780) (39,076)
Total long-term debt, net 170,735 129,205
Opco Senior Notes [Member]    
Debt instrument, carrying value 80,025 99,087
Opco Senior Notes [Member] | Five Point Five Five Percent Senior Note Due June Two Zero Two Three [Member]    
Debt instrument, carrying value 0 2,366
Opco Senior Notes [Member] | Four Point Seven Three Percent Senior Note Due December Two Zero Two Three [Member]    
Debt instrument, carrying value 6,004 6,004
Opco Senior Notes [Member] | Five Point Eight Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, carrying value 12,684 25,368
Opco Senior Notes [Member] | Eight Point Nine Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, carrying value 4,011 8,023
Opco Senior Notes [Member] | Five Point Zero Three Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, carrying value 45,683 45,683
Opco Senior Notes [Member] | Five Point One Eight Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, carrying value 11,643 11,643
Opco [Member] | Floating Rate Revolving Credit Facility Due August 2027 [Member]    
Debt instrument, carrying value $ 128,034 $ 70,000
v3.23.3
Note 9 - Debt, Net - Schedule of Long-term Debt (Details) (Parentheticals) - Opco Senior Notes [Member]
Sep. 30, 2023
Dec. 31, 2022
Five Point Five Five Percent Senior Note Due June Two Zero Two Three [Member]    
Debt instrument, interest rate   5.55%
Four Point Seven Three Percent Senior Note Due December Two Zero Two Three [Member]    
Debt instrument, interest rate 4.73% 4.73%
Five Point Eight Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, interest rate 5.82% 5.82%
Eight Point Nine Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, interest rate 8.92% 8.92%
Five Point Zero Three Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, interest rate 5.03% 5.03%
Five Point One Eight Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, interest rate 5.18% 5.18%
v3.23.3
Note 10 - Fair Value Measurements (Details Textual) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Discount Rate 15.00% 15.00%
Embedded Derivative, Fair Value of Embedded Derivative Liability $ 0 $ 0
v3.23.3
Note 10 - Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Reported Value Measurement [Member]    
Contract receivable, net (current and long-term) [1] $ 29,570 $ 31,371
Estimate of Fair Value Measurement [Member]    
Contract receivable, net (current and long-term) [1] 24,880 24,833
Opco Senior Notes [Member] | Reported Value Measurement [Member]    
Long term debt, fair value [2] 79,481 98,281
Opco Senior Notes [Member] | Estimate of Fair Value Measurement [Member]    
Long term debt, fair value [2] 75,815 96,060
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Reported Value Measurement [Member]    
Long term debt, fair value [3] 128,034 70,000
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Estimate of Fair Value Measurement [Member]    
Long term debt, fair value [3] $ 128,034 $ 70,000
[1] The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at June 30, 2023 and December 31, 2022.
[2] The fair value of the Opco Senior Notes at June 30, 2023 and December 31, 2022 were estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit facility at June 30, 2023 and December 31, 2022, respectively.
[3] The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty.
v3.23.3
Note 11 - Related Party Transactions (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Accounts Payable, Current $ 1,143   $ 1,143   $ 1,992
Operating Costs and Expenses 8,358 $ 7,898 23,451 $ 25,989  
Quintana Minerals Corp [Member] | Affiliated Entity [Member]          
Accounts Payable, Current 400   400   400
Western Pocahontas Properties Limited Partnership [Member] | Affiliated Entity [Member]          
Accounts Payable, Current 300   300   $ 1,000
Operating Costs and Expenses $ 1,100 $ 2,200 $ 5,100 $ 6,500  
v3.23.3
Note 11 - Related Party Transactions - General Partner Affiliates (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Operating Costs and Expenses $ 8,358 $ 7,898 $ 23,451 $ 25,989
QMC and WPPLP and QID [Member] | Affiliated Entity [Member]        
Operating Costs and Expenses 1,663 1,687 5,094 5,044
General and administrative expenses $ 1,287 $ 1,195 $ 3,860 $ 3,660
v3.23.3
Note 12 - Major Customers - Concentration Risk (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Alpha Metallurgical Resources [Member]        
Net sales [1] $ 17,219 $ 21,000 $ 61,122 $ 81,638
Alpha Metallurgical Resources [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]        
Revenue, percent (1) [1] 20.00% 21.00% 22.00% 28.00%
Foresight Energy Resources [Member]        
Net sales [1] $ 18,600 $ 19,334 $ 43,453 $ 47,081
Foresight Energy Resources [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]        
Revenue, percent (1) [1] 22.00% 19.00% 16.00% 16.00%
[1] Revenues from Alpha Metallurgical Resources, Inc. and Foresight are included within the Partnership's Mineral Rights segment.
v3.23.3
Note 14 - Unit-Based Compensation (Details Textual) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value     $ 16.0 $ 7.9  
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 15.8   $ 15.8   $ 6.3
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)     2 years 1 month 6 days    
General and Administrative Expenses and Operating and Maintenance Expense [Member]          
Share-Based Payment Arrangement, Expense $ 2.7 $ 1.4 $ 7.9 $ 4.2  
v3.23.3
Note 14 - Unit-Based Compensation - Share-based Compensation Activity (Details)
shares in Thousands
 9 Months Ended
Sep. 30, 2023
$ / shares
shares
Outstanding (in shares) | shares 386
Outstanding (in dollars per share) | $ / shares $ 28.96
Granted (in shares) | shares 281
Granted (in dollars per share) | $ / shares $ 56.84
Fully vested and issued (in shares) | shares (184)
Fully vested and issued (in dollars per share) | $ / shares $ 26.3
Outstanding (in shares) | shares 483
Outstanding (in dollars per share) | $ / shares $ 46.21
v3.23.3
Note 15 - Financing Transaction (Details Textual) - Sugar Camp Mine [Member] - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2032
Lessor, Operating Lease, Renewal Term (Year) 80 years  
Proceeds from Annual Minimum Lease Payments $ 5,000,000  
Forecast [Member]    
Operating Lease, Lease Income   $ 10,000
v3.23.3
Note 16 - Credit Losses (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Financing Receivable, Credit Loss, Expense (Reversal) $ 1,600 $ 0 $ 800 $ 600
v3.23.3
Note 16 - Credit Losses - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Receivables $ 46,294 $ 47,237
Receivables (5,343) (4,461)
Receivables 40,951 42,776
Long-term contract receivable 27,965 29,984
Long-term contract receivable (968) (1,038)
Long-term contract receivable 26,997 28,946
Total 74,259 77,221
Total (6,311) (5,499)
Total $ 67,948 $ 71,722
v3.23.3
Note 17 - Subsequent Events (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended
Oct. 31, 2023
Oct. 26, 2023
Oct. 06, 2023
Nov. 30, 2023
Sep. 30, 2023
Sep. 18, 2023
Dec. 31, 2022
Sep. 30, 2022
Mar. 02, 2017
Warrants at 34.00 Strike Price [Member]                  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)                 $ 34
Warrants at 34.00 Strike Price [Member] | Warrant Holder [Member]                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)         2,190,000 60,000 2,250,000 2,250,000  
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)         $ 34 $ 34 $ 34 $ 34  
Subsequent Event [Member]                  
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in dollars per share)       $ 0.75          
Dividends, Preferred Stock, Cash       $ 2,150          
Subsequent Event [Member] | Warrants at 34.00 Strike Price [Member] | Warrant Holder [Member]                  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) 1,540,000 350,000 300,000            
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) $ 34 $ 34 $ 34            
Proceeds from Warrant Exercises $ 9,700 $ 11,100 $ 11,400            
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