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    Mark Zand's questions to Natural Resource Partners LP (NRP) leadership

    Mark Zand's questions to Natural Resource Partners LP (NRP) leadership • Q3 2024

    Question

    Mark Zand asked about the remaining constraints on dividend payments, the specific goal for debt reduction, the potential payout policy after deleveraging, and the outlook for the metallurgical coal market.

    Answer

    Craig Nunez, President and Chief Operating Officer, explained that the goal is to practically eliminate the remaining $181 million in debt before considering changes to capital returns. He stated the future distribution policy is not yet set but will prioritize intelligent uses of cash to build intrinsic value. Nunez also noted that while the near-term outlook for NRP's key commodities is weak, the outlook for common equity is the best it has been in nearly a decade due to the impending completion of the deleveraging plan.

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    Mark Zand's questions to Natural Resource Partners LP (NRP) leadership • Q3 2024

    Question

    Mark Zand asked for clarity on the remaining requirements to become unconstrained in paying dividends, the specific debt reduction target, the potential future distribution policy, other possible uses for cash, the current outstanding share count, and the outlook for the metallurgical coal market.

    Answer

    Craig Nunez, President and Chief Operating Officer, explained that the goal is to eliminate or 'practically eliminate' the remaining $181 million in debt before considering alternative uses for free cash flow. He stated that while the target is near-zero debt, no future distribution policy is set, but it will be guided by the most 'intelligent use for the cash.' He confirmed no current plans for new business investments and stated the outstanding share count is roughly 13.3 million. Nunez added that while the near-term outlook for NRP's key commodities is weak due to excess capacity and sluggish demand, the outlook for common equity holders is the best it has been in a decade as the company nears the end of its deleveraging plan.

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