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    NATURAL RESOURCE PARTNERS (NRP)

    NRP Q4 2024: Warns 2025 Challenging as Coal & Soda Ash Prices Slump

    Reported on Jun 22, 2025 (Before Market Open)
    Pre-Earnings Price$99.00Last close (Feb 27, 2025)
    Post-Earnings Price$101.91Open (Feb 28, 2025)
    Price Change
    $2.91(+2.94%)
    • Solid deleveraging and strong cash generation: The company generated $251 million in free cash flow in 2024, redeemed all preferred units, and reduced its debt to $142 million, positioning it for improved distribution capacity as debt is paid down.
    • Enhanced financial flexibility: The expansion of its credit facility by $45 million to $200 million and the extension of its maturity date to 2029 provide NRP with greater liquidity to navigate market challenges and support future growth.
    • Resilient core operating segments: Despite a tough market environment, particularly in coal and soda ash, the Mineral Rights segment maintained robust net income and cash flow performance, underscoring the business' underlying strength even in adverse conditions.
    • Weak Commodity Prices: Coal prices have declined significantly—with metallurgical and thermal coal prices dropping by 50% last year and no near-term rebound expected—posing ongoing pressure on revenue and cash flow.
    • Challenging Soda Ash Market: The oversupplied soda ash market has led to a 60% decline in prices and reduced cash distributions, negatively impacting margins and earnings.
    • Difficult 2025 Outlook: Management noted that 2025 is shaping up to be a difficult year for their key commodities, implying continued pressure on financial performance due to sustained weak demand and market conditions.

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