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    Neil Patel • Sawgrass Beach

    Neil Patel's questions to Natural Resource Partners LP (NRP) leadership

    Neil Patel's questions to Natural Resource Partners LP (NRP) leadership • Q3 2024

    Question

    Neil Patel asked about the company's philosophy on repurchasing common units, given the high free cash flow yield, and noted that language in the new credit agreement seemed to provide more flexibility for such actions.

    Answer

    Craig Nunez, President and Chief Operating Officer, affirmed that NRP would consider unit repurchases if they traded at a material discount to intrinsic value. He also confirmed that a key reason for the new credit agreement was to 'loosen up some of the handcuffs' from when NRP was less creditworthy, making it easier to execute actions like unit repurchases in the future.

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    Neil Patel's questions to Natural Resource Partners LP (NRP) leadership • Q3 2024

    Question

    Neil Patel from Sawgrass Beach asked about the company's philosophy on repurchasing common units, given the attractive free cash flow yield and recent changes to the credit agreement that might provide more flexibility.

    Answer

    Craig Nunez, President and Chief Operating Officer, confirmed that the company would consider repurchasing units if they traded at a material discount to intrinsic value. He clarified that the analyst's '15% yield' referred to the free cash flow yield, not the distribution yield. Nunez also affirmed that a key reason for amending the credit facility was to 'loosen up some of the handcuffs' from when NRP was less creditworthy, making future actions like unit repurchases easier.

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