Download PDF

1. Company Snapshot

1.a. Company Description

Natural Resource Partners L.P., through its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States.It operates through two segments, Mineral Rights and Soda Ash.The company owns interests in coal, soda ash, trona, and other natural resources.


Its coal reserves are primarily located in Appalachia, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties are located in the United States; oil and gas properties located in Louisiana; timber assets located in West Virginia; and trona ore mining operation and soda ash refinery are located in the Green River Basin, Wyoming.The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties.NRP (GP) LP serves as the general partner of the company.


Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on NRP

Natural Resource Partners L.P.'s recent performance was driven by its robust free cash flow and aggressive debt reduction strategy. The company's Q3 2025 earnings report showed $41.095 million in operating cash flow and $41.823 million in free cash flow. With a debt-free goal within sight, NRP is poised to unlock significant distribution upside by mid-2026. Reiterate as a strong buy, citing a fortress balance sheet and imminent potential for higher unitholder distributions. A $0.75 per common unit distribution was declared for Q3 2025.

1.c. Company Highlights

2. Natural Resource Partners L.P. Faces Challenges in 2025

Natural Resource Partners L.P. reported a net income of $31 million, operating cash flow of $45 million, and free cash flow of $46 million for the full year 2025. The company's earnings per share (EPS) came out at $3.71, significantly beating estimates of -$0.02. The company's Mineral Rights segment generated $166 million of net income, $182 million of operating cash flow, and $185 million of free cash flow in 2025. The company's revenue growth is expected to be 5.6% next year, according to analysts' estimates.

Publication Date: Mar -08

📋 Highlights
  • Free Cash Flow:: Generated $46M in Q4 2025 and $169M annually, driven by Mineral Rights segment.
  • Commodity Struggles:: Metallurgical/thermal coal and soda ash prices near/below marginal costs, with soda ash at generational lows.
  • Debt Reduction:: Retired $109M in 2025 debt, ending the year with $33M outstanding and no financial obligations.
  • Sisecam Wyoming Investment:: $39M investment delayed debt retirement and unitholder distribution increases.
  • Segment Performance:: Mineral Rights delivered $50M Q4 FCF ($185M annual) despite soda ash segment challenges from China supply and weak demand.

Segment Performance

The Mineral Rights segment was the bright spot for the company, with strong cash flow generation. However, the soda ash segment faced challenges due to lower international sales prices driven by new natural soda ash supply from China and weak glass demand from the construction and automobile markets. Metallurgical and thermal coal sales prices are at cyclically low levels, and soda ash prices are at generational lows, making it challenging for the company to improve its profitability.

Cash Flow and Debt Repayment

The company generated $46 million of free cash flow in the fourth quarter and $169 million for the full year. It retired $109 million of debt in 2025 and finished the year with $33 million of debt and no other financial obligations outstanding. The timeline for retiring all debt and significantly increasing unitholder distributions has been pushed back due to the $39 million investment in Sisecam Wyoming.

Valuation Metrics

Looking at the valuation metrics, the company's P/E Ratio is 11.57, P/B Ratio is 2.52, and EV/EBITDA is 9.81. The company's ROIC is 20.02%, and ROE is 22.94%, indicating strong profitability. The Free Cash Flow Yield is 10.64%, which is attractive. These metrics suggest that the company's stock is reasonably valued, but the challenging market conditions may continue to weigh on its performance.

Outlook

The company does not see any catalyst to change the outlook in the foreseeable future, with the global economic activity and subdued demand for steel weighing on metallurgical coal pricing. The thermal coal market is benefiting from the rise in electricity demand from data centers, but the company has yet to see any material market improvement. The global soda ash industry faced a challenging 2025, and the company expects 2026 to be worse, with international prices below the cost of production for most producers.

3. NewsRoom

Card image cap

NRP Q4 Earnings Decline Y/Y on Weak Coal, Soda Ash Prices

Mar -10

Source:

Card image cap

Natural Resource Partners L.P. 2025 Tax Information

Mar -05

Source: globenewswire.com

Card image cap

Natural Resource Partners L.P. 2025 Form 10-K Now Available

Mar -04

Source: globenewswire.com

Card image cap

Citigroup Inc. Has $10.22 Million Position in Natural Resource Partners LP $NRP

Mar -01

Source: defenseworld.net

Card image cap

Natural Resource Partners L.P. Common Units (NRP) Q4 2025 Earnings Call Transcript

Feb -27

Source: seekingalpha.com

Card image cap

Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2025 Results and Announces Special Distribution

Feb -27

Source: globenewswire.com

Card image cap

Natural Resource Partners L.P. Schedules Fourth Quarter and Full Year 2025 Earnings Conference Call

Feb -25

Source: globenewswire.com

Card image cap

NRP Stock Jumps 19.5% in 3 Months: Should You Stay Invested?

Feb -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Coal, Royalty and Other

Expected Growth: 4.5%

Growing demand for electricity and industrial production drives coal segment growth. Royalty segment benefits from increasing oil and gas production. Diversified construction aggregates and oil and gas operations in the Other segment support overall growth.

Soda Ash

Expected Growth: 4.5%

Growing demand for glass and detergents, increasing adoption of eco-friendly products, and rising construction activities drive the soda ash market growth.

7. Detailed Products

Coal Royalty Interests

Natural Resource Partners L.P. owns and manages coal royalty interests in the United States, providing a steady stream of revenue from coal production.

Oil and Gas Interests

The company holds interests in oil and gas properties, providing a diversified revenue stream from hydrocarbon production.

Agricultural Lands

Natural Resource Partners L.P. owns and manages agricultural lands, leasing them to farmers and ranchers, generating rental income.

Hardwood Timber

The company owns and manages hardwood timberlands, harvesting and selling timber to wood products manufacturers.

Mineral Interests

Natural Resource Partners L.P. holds interests in mineral properties, generating revenue from mineral production and sales.

Real Estate

The company owns and manages commercial and industrial properties, leasing them to tenants, generating rental income.

8. Natural Resource Partners L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Natural Resource Partners L.P. is medium due to the availability of alternative energy sources, but the company's diversified portfolio of natural resources reduces the impact.

Bargaining Power Of Customers

The bargaining power of customers is low for Natural Resource Partners L.P. as the company's products are essential for various industries, giving customers limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Natural Resource Partners L.P. as the company relies on various suppliers for its operations, but its diversified portfolio and long-term contracts mitigate the impact.

Threat Of New Entrants

The threat of new entrants is low for Natural Resource Partners L.P. due to the high barriers to entry in the natural resources industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Natural Resource Partners L.P. due to the competitive nature of the natural resources industry, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.15%
Debt Cost 6.23%
Equity Weight 78.85%
Equity Cost 6.23%
WACC 6.23%
Leverage 26.82%

11. Quality Control: Natural Resource Partners L.P. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Natural Resource Partners

A-Score: 6.9/10

Value: 6.0

Growth: 5.6

Quality: 9.6

Yield: 9.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Dorian LPG

A-Score: 6.7/10

Value: 5.7

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Alliance Resource Partners

A-Score: 6.6/10

Value: 7.4

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.2

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
SunCoke Energy

A-Score: 5.4/10

Value: 8.2

Growth: 5.0

Quality: 3.8

Yield: 9.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Ramaco Resources

A-Score: 5.4/10

Value: 7.0

Growth: 7.3

Quality: 3.2

Yield: 5.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

118.41$

Current Price

118.41$

Potential

-0.00%

Expected Cash-Flows