Q2 2025 Natural Resource Partners LP Earnings Call

Conference call.

All lines have been placed on mute to prevent any background noise.

Speaker #1: Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP second quarter 2025 earnings conference call.

After the Speakers' remarks, there will be a question and answer session.

Kathleen: Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP Q2 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one again. Thank you. I would now like to turn the call over to Tiffany Sammis, Investor Relations. Please go ahead.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

And if you would like to withdraw your question press the star one again.

Thank you I would now like to turn the call over to Tiffany Sammis Investor Relations. Please go ahead.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad.

Thank you good morning, and welcome to the natural resource partners second quarter 2025 conference call.

Today's call is being webcast and a replay will be available on our website.

Speaker #1: And if you would like withdraw your question, press the star one again. Thank you. I would now like to turn the call over to Tiffany Sammis, Investor Relations.

Joining me today are Craig Nunez, President and Chief operating Officer, Chris <unk>, Chief Financial Officer, and Kevin Craig Executive Vice President.

Speaker #1: Please go ahead.

Speaker #3: Thank you. Good morning and welcome to the Natural Resource Partners second quarter 2025 conference call. Today's call is being webcast and a replay will be available on our website.

Tiffany Sammis: Thank you. Good morning and welcome to the Natural Resource Partners Q2 2025 conference call. Today's call is being webcast, and a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer; Christopher Zolas, Chief Financial Officer; and Kevin Craig, Executive Vice President. Some of our comments today may include forward-looking statements reflecting Natural Resource Partners LP's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Natural Resource Partners LP's Form 10-K and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures.

Some of our comments today may include forward looking statements, reflecting <unk> views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward looking statements.

Speaker #3: Joining me today are Craig Nunez, President and Chief Operating Officer; Chris Zolas, Chief Financial Officer; and Kevin Craig, Executive Vice President. Some of our comments today may include forward-looking statements reflecting NRP's views about future events.

These risks are discussed in <unk> Form 10-K, and other securities and Exchange Commission filings, we undertake no obligation to revise or update publicly any forward looking statements for any reason.

Speaker #3: These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in NRP's Form 10-K and other securities and exchange commissioned filings.

Our comments today also include non-GAAP financial measures additional details and reconciliation to the most directly comparable GAAP measures are included in our second quarter press release, which can be found on our website.

Speaker #3: We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP measures are included in our second quarter press release, which can be found on our website.

I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular coal lessee or detailed market fundamentals.

Now I would like to turn the call over to Craig Nunez, Our president and Chief operating Chief operating Officer.

Tiffany Sammis: Additional details and reconciliations to the most directly comparable GAAP measures are included in our second quarter press release, which can be found on our website. I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular coal lessee or detailed market fundamentals. Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer.

Thank you Tiffany and good morning, everyone.

<unk> generated $46 million of free cash flow in the second quarter of 2025.

Speaker #3: I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular coal E or detailed market fundamentals.

$203 million of free cash flow over the last 12 months.

Speaker #3: Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer.

This was achieved while the prices for our three key commodities metallurgical coal thermal coal and soda ash.

Speaker #4: Thank you, Tiffany. And good morning, everyone. NRP generated $46 million of free cash flow in the second quarter of 2025. And $203 million of free cash flow over the last 12 months.

Craig Nunez: Thank you, Tiffany, and good morning, everyone. Natural Resource Partners LP generated $46 million of free cash flow in the second quarter of 2025 and $203 million of free cash flow over the last 12 months. This was achieved while the prices for our three key commodities, metallurgical coal, thermal coal, and soda ash, traded at or near our estimates of operators' costs of production. With prices for coal and soda ash trading at cyclical lows and many operators struggling to remain profitable, we are quite pleased with the partnership's ability to generate robust levels of free cash flow. The goal of our deleveraging strategy, established 10 years ago, was to achieve a cost and capital structure that would allow us to generate substantial cash flow and earn competitive rates of profit throughout commodity price cycles. We believe the partnership's performance is evidence of success in that regard.

At or near our estimates of operators cost of production.

With prices for coal and soda ash trading at cyclical lows and many operators struggling to remain profitable. We are quite pleased with the partnership's ability to generate robust levels of free cash flow.

Speaker #4: This was achieved while the prices for our three key commodities, metallurgical coal, thermal coal, and soda ash, traded at or near our estimates of operators' costs of production.

Youll have our deleveraging strategy established 10 years ago was to achieve a cost and capital structure that would allow us to generate substantial cash flow and our competitive rates or profit throughout commodity price cycles.

Speaker #4: With prices for coal and soda ash trading at cyclical lows, and many operators struggling to remain profitable, we are quite pleased with the partnership's ability to generate robust levels of free cash flow.

We believe the partnerships performance is evidence of success in that regard.

While previous commodity price declines posed risks in RP solvency.

Speaker #4: The goal of our deleveraging strategy, established 10 years ago, was to achieve a cost and capital structure that would allow us to generate substantial cash flow and earn competitive rates of profit throughout commodity price cycles.

This new found financial strength has allowed us to continue making steady progress on our deleveraging strategy through this downturn.

Based on our current free cash flow run rate, we are on track to pay off substantially all that by the middle of next year and being positioned to substantially increase unitholder distributions starting next August.

Speaker #4: We believe the partnership's performance is evidence of success in that regard. While previous commodity price declines posed risks to NRP's solvency, this newfound financial strength has allowed us to continue making steady progress on our deleveraging strategy, through this downturn.

Craig Nunez: While previous commodity price declines posed risks to Natural Resource Partners LP's solvency, this newfound financial strength has allowed us to continue making steady progress on our deleveraging strategy through this downturn. Based on our current free cash flow run rate, we are on track to pay off substantially all debt by the middle of next year and be in a position to substantially increase unitholder distributions starting next August. Metallurgical and thermal coal markets remain under pressure due to soft demand for steel, cheap natural gas, and relatively high coal inventories. We believe many operators are operating at razor-thin margins, selling coal at or near their cost of production, while some operators are likely underwater at these prices.

Metallurgical and thermal coal markets remain under pressure due to soft demand for steel cheap natural gas and relatively high coal inventories we.

Speaker #4: Based on our current free cash flow run rate, we are on track to pay off substantially all debt by the middle of next year, and be in a position to substantially increase unit holder distributions starting next August.

We believe many operators are operating at razor thin margins selling coal at or near their cost of production. While some operators are likely underwater at these prices.

Speaker #4: Metallurgical and thermal coal markets remain under pressure due to soft demand for steel, cheap natural gas, and relatively high coal inventories. We believe many operators are operating at razor-thin margins, selling coal at or near their cost of production.

We would not be surprised to see supply rationalization emerge across the industry in the coming quarters.

<unk> has been in the coal royalty business, a long time, and we are veterans of commodity price cycles. The current environment has the classic hallmarks of a coal market downturn excess supply soft demand and lack of identifiable catalysts to turn in the market around that.

Speaker #4: While some operators are likely underwater at these prices. We would not be surprised to see supply rationalization emerge across the industry in the coming quarters.

Craig Nunez: We would not be surprised to see supply rationalization emerge across the industry in the coming quarters. Natural Resource Partners LP has been in the coal royalty business a long time, and we are veterans of commodity price cycles. The current environment has the classic hallmarks of a coal market downturn: excess supply, soft demand, and lack of identifiable catalysts to turn the market around. There is one aspect of the current environment that is different from what we have observed in the past. Namely, we believe many operators across the U.S. are in better financial shape than in previous downturns. They tend to have more conservative capital structures, better cost structures, and limited near-term reclamation and pension liabilities.

There is one aspect of the current environment that is different from what we have observed in the past, namely we believe many operators across the U S are in better financial shape than in previous downturns.

Speaker #4: NRP has been in the coal royalty business a long time, and we are veterans of commodity price cycles. The current environment has the classic hallmarks of a coal market downturn.

Tend to have more conservative capital structures, better cost structures and limited near term reclamation and pension liabilities. We believe this bodes well for the industry in general, which should have better financial flexibility to manage through this downturn.

Speaker #4: Excess supply, soft demand, and lack of identifiable catalysts to turn the market around. But there is one aspect of the current environment that is different from what we have observed in the past.

Speaker #4: Namely, we believe many operators across the US are in better financial shape than in previous downturns. They tend have more conservative capital structures, better cost structures, and limited near-term reclamation and pension liabilities.

<unk> is generating more free cash flow than in previous cyclical troughs.

This is juan beneficial impact for us from the post Covid inflationary surge.

As the marginal cost of production for cole has risen the breakeven coal sales prices for operators have also increased as a royalty owner, we benefit from higher sales prices without having to bear the risk and burden of our operators higher cost of production.

Speaker #4: We believe this fact bodes well for the industry in general, which should have better financial flexibility to manage through this downturn. NRP is generating more free cash flow than in previous cyclical troughs.

Craig Nunez: We believe this fact bodes well for the industry in general, which should have better financial flexibility to manage through this downturn. Natural Resource Partners LP is generating more free cash flow than in previous cyclical troughs. This is one beneficial impact for us from the post-COVID inflationary surge. As the marginal cost of production for coal has risen, the break-even coal sales prices for operators have also increased. As a royalty owner, we benefit from higher sales prices without having to bear the risk and burden of our operators' higher costs of production. The soda ash market also remains significantly oversupplied, which has driven sales prices below the cost of production for most producers. In some regions, we believe prices are at or below even the variable cost of production.

Speaker #4: This is one beneficial impact for us from the post-COVID inflationary surge. As the marginal cost of production for coal has risen, the break-even coal sales prices for operators have also increased.

The soda ash market also remains significantly oversupplied, which has driven sales prices below the cost of production for most producers and in some regions. We believe prices are at or below even the variable cost of production.

Speaker #4: As a royalty owner, we benefit from higher sales prices without having to bear the risk and burden of our operators' higher costs of production.

While we believe this price environment is unsustainable long term, we have not yet seen meaningful supply rationalizations necessary to rebalance the market.

Speaker #4: The soda ash market also remains significantly oversupplied. Which has driven sales prices below the cost of production for most producers. And in some regions, we believe prices are at or below even the variable cost of production.

It is our view that it will likely take several years for demand to grow <unk> supplied rationalized sufficiently for the market to reach a price equilibrium consistent with historical norms, we expect distributions from <unk> to remain at historically low levels potentially zero for the foreseeable future.

Speaker #4: While we believe this price environment is unsustainable long term, we have not yet seen meaningful supply rationalizations necessary to rebalance the market. It is our view that it will likely take several years for demand to grow and/or supply to rationalize sufficiently for market to reach a price equilibrium consistent historical norms.

Craig Nunez: While we believe this price environment is unsustainable long term, we have not yet seen meaningful supply rationalizations necessary to rebalance the market. It is our view that it will likely take several years for demand to grow and/or supply to rationalize sufficiently for the market to reach a price equilibrium consistent with historical norms. We expect distributions from Sisecam Wyoming to remain at historically low levels, potentially zero, for the foreseeable future. We continue to hold an optimistic view of the long-term fundamentals of the soda ash market in general and about our investment in Sisecam Wyoming in particular, as it benefits from being one of the world's lowest cost producers. We have no significant progress to report on our carbon-neutral initiatives over the last quarter.

We continue to hold an optimistic view of the long term fundamentals of the soda ash market in general and about our investment in <unk> in particular as it benefits from being one of the world's lowest cost producers.

Speaker #4: We expect distributions from Shishajam, Wyoming, to remain at historically low levels potentially zero for the foreseeable future. We continue to hold an optimistic view of the long-term fundamentals of the soda ash market in general, and about our investment in Shishajam, Wyoming in .

We have no significant progress to report on our Cobra carbon neutral initiatives over the last quarter.

The general market for most C&I activities is stagnant as political regulatory and market uncertainties posed significant hurdles for developers contemplating large capital investments for carbon neutral project.

Speaker #4: As it benefits from being one of the world's lowest-cost producers. We have no significant progress to report on our carbon-neutral initiatives over the last quarter.

To summarize the collective market for our three key commodities is as negative as it has ever been despite this the partnership continues to generate robust levels of free cash flow that are being used to pay down debt.

Speaker #4: The general market for most CNI activities is stagnant. As political, regulatory, and market uncertainties pose significant hurdles for developers, contemplating large capital investments for carbon-neutral projects.

Craig Nunez: The general market for most carbon-neutral initiatives activities is stagnant as political, regulatory, and market uncertainties pose significant hurdles for developers contemplating large capital investments for carbon-neutral projects. To summarize, the collective market for our three key commodities is as negative as it's ever been. Despite this, the partnership continues to generate robust levels of free cash flow that are being used to pay down debt. Based on free cash flow run rates currently, we expect to pay off substantially all of our debt in the coming months and be in a position to significantly increase unitholder distributions starting next August. With that, I will turn it over to Chris.

Based on free cash flow run run rates currently we expect to pay off substantially all of our debt in the coming months and be in a position to significantly increase unitholder distributions starting next August.

Speaker #4: To summarize, the collective market for our three key commodities is as negative as it's ever been. Despite this, the partnership continues to generate robust levels of free cash flow that are being used to pay down debt.

With that I will turn it over to Chris.

Thank you Craig.

In the second quarter of 2025, and our P generated $34 million of net income and $46 million of both operating and free cash flow.

Speaker #4: Based on free cash flow run rates currently, we expect to pay off substantially all of our debt in coming months and be in a position to significantly increase unit holder distributions starting next August.

Our mineral rights segment generated $40 million of net income and $46 million of operating and free cash flow.

Speaker #4: With that, I will turn it over to Chris.

When compared to the prior year second quarter, our mineral rights segment net income decreased $13 million, while operating and free cash flow each decreased $11 million.

Speaker #5: Thank you, Craig. In the second quarter 2025, NRP generated $34 million of net income and $46 million of both operating and free cash flow.

Christopher Zolas: Thank you, Craig. In the second quarter of 2025, Natural Resource Partners LP generated $34 million of net income and $46 million of both operating and free cash flow. Our mineral rights segment generated $40 million of net income and $46 million of operating and free cash flow. When compared to the prior year's second quarter, our mineral rights segment net income decreased $13 million, while operating and free cash flow each decreased $11 million. These decreases were primarily due to weaker coal markets resulting in lower metallurgical and thermal coal sales prices. Regarding our second quarter 2025 net thermal coal royalty mix, metallurgical coal made up approximately 70% of our coal royalty revenues and 55% of our coal royalty sales volumes. Our soda ash segment generated $3 million of net income and $5 million of operating free cash flow during the second quarter of 2025.

These decreases were primarily due to weaker coal markets, resulting in lower metallurgical and thermal coal sales prices.

Speaker #5: Our mineral rights segment generated $40 million of net income and $46 million of operating and free cash flow. When compared to the prior year's second quarter, our mineral rights segment net income decreased $13 million, while operating and free cash flow each decreased $11 million.

Regarding our second quarter 2025 met thermal coal royalty mix metallurgical coal made up approximately 70% of our coal royalty revenues and 55% of our coal royalty sales volumes.

Speaker #5: These decreases were primarily due to weaker coal markets resulting in lower metallurgical and thermal coal sales prices. Regarding our second quarter 2025 net thermal coal royalty mix, metallurgical coal made up approximately 70% of our coal royalty revenues, and 55% of our coal yalty sales volumes.

Yes.

Our soda ash segment generated $3 million and net income and $5 million of operating free cash flow during the second quarter of 2025.

Net income decreased by $1 million compared to the prior year second quarter, while operating and free cash flow each decreased by $3 million.

These decreases were due to lower sales prices driven by weak glass demand from the construction and <unk> markets and the influx of new natural soda ash supply from China.

Speaker #5: Our soda ash segment generated $3 million of net income and $5 million of operating free cash flow during the second quarter of 2025. Net income decreased by $1 million compared to the prior year's second quarter, while operating and free cash flow each decreased by $3 million.

We expect prices in our distributions received from <unk> to remain at these lower levels until demand rebounds, or there is a significant supply response, most likely from higher cost synthetic production.

Christopher Zolas: Net income decreased by $1 million compared to the prior year's second quarter, while operating and free cash flow each decreased by $3 million. These decreases were due to lower sales prices driven by weak glass demand from the construction and automobile markets and the influx of new natural soda ash supply from China. We expect prices and our distributions received from Sisecam Wyoming to remain at these lower levels until demand rebounds or there is a significant supply response, most likely from higher cost synthetic production. Moving to our corporate and financing segment, Q2 2025 net income, operating cash flow, and free cash flow all improved $2 million as compared to the prior year period due to less debt outstanding resulting in lower interest costs and less cash paid for interest.

Speaker #5: These decreases were due to lower sales prices driven by weak glass demand from the construction and automobile markets. And the influx of new natural soda ash supply from China.

Moving to our corporate and financing segment Q2, 2025, net income operating cash flow and free cash flow, all improved $2 million as compared to the prior year period due to less debt outstanding resulting in lower interest costs and less cash paid for interest.

Speaker #5: We expect prices in our distributions received from Shishajam to remain at these lower levels until demand rebounds or there is a significant supply response most likely from higher cost synthetic production.

Regarding our quarterly distributions and May of 2025, we paid the first quarter distribution of <unk> 75 per common unit and today, we announced the second quarter of 2025 distribution of 75 cents per common unit that will be paid later this month.

Speaker #5: Moving to our corporate and financing segment, Q2 2025 net income, operating cash flow, and free cash flow all improved $2 million as compared to the prior year period due to less debt outstanding resulting in lower interest costs and less cash paid for interest.

And with that I'll turn the call over to Kathleen our operator for questions.

Speaker #5: Regarding our quarterly distributions, in May of 2025, we paid the first quarter distribution of $0.75 per common unit and today we announced a second quarter of 2025 distribution of $0.75 per common unit that will be paid later this month.

Christopher Zolas: Regarding our quarterly distributions, in May of 2025, we paid the first quarter distribution of $0.75 per common unit, and today we announced a second quarter 2025 distribution of $0.75 per common unit that will be paid later this month. With that, I'll turn the call over to Kathleen, our operator, for questions.

Thank you we will now begin the question and answer session. If you have dialed in and we'd like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.

And if you would like to withdraw your question simply press Star one again.

Speaker #5: And with that, I'll turn the call over to Kathleen, our operator, for questions.

If you are called upon to asking your questions and listening via a loudspeaker and your device. Please pick up your handset and ensures that your phone is not on mute when asking your question.

Speaker #1: Thank you. We will now begin the question and answer session. If you have dialed in and would like ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Kathleen: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press the star one again. If you are called upon to ask your question and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, please press star one to join the queue. Your first question comes from the line of David Speer of Nidar Capital Management. Please go ahead.

Again, Please press star one to join the queue.

Speaker #1: And if you would like to withdraw your question, simply press the star one again. If you are called upon to ask your question and listening via loudspeaker on our device, please pick up your handset and ensure that your phone is not on mute.

Your first question comes from the line of David Spier of <unk> Capital Management. Please go ahead.

Hi, how are you guys.

Speaker #1: When asking your question. Again, please press star one to join the queue. Your first question comes from the line of David Spear of NITRE Capital Management.

Good morning.

Good morning, given all the weakness in the different areas, whether it be coal or soda ash.

Yes at the point at which you guys get to debt free.

Are there any realistic opportunities to pick up additional royalty assets or.

Speaker #1: Please go ahead.

Soda ash assets I mean, just it seems like given the weakness you're seeing.

Speaker #6: Hi. How are you guys?

Speaker 6: Hi, how are you guys?

Speaker #4: Good morning.

Craig Nunez: Good morning.

Speaker #6: Morning. Given all the weakness in the different areas, whether it be coal or soda ash, at the point at which you guys get to debt-free, you ow are there any realistic portunities to pick up additional royalty assets or, you know, soda ash assets?

Speaker 6: Morning. Given all the weakness in the different areas, whether it be coal or soda ash, at the point at which you guys get to debt-free, are there any realistic opportunities to pick up additional royalty assets or soda ash assets? It seems like given the weakness you are seeing, that could be a possibility. Let us just talk about first the mineral rights market, the market for mineral rights around the country. It is a very fragmented market with many different owners that own many different types of mineral interests. It is not a very well-organized market. So transactions have to be done on a one-off type basis. So there are always possibilities to find those types of investments. But generally speaking, there is not very much trading activity that takes place in those. So it is not something that is very common.

And that could be a possibility.

Yeah.

The let's just talk about first the mineral rights market the market for mineral rights around the country, it's a very fragmented market.

With many different owners that own many different types of mineral interest is not a very well organized market.

Speaker #6: I mean, just, you know, it seems like given the weakness you're seeing, and that could be a possibility.

So.

Transactions have to be done on a one off type basis. So there is always possibilities to find those types of investments, but generally speaking there's not very much trading activity that takes place in those so it's not something that's very common.

Speaker #4: The let's just talk about first the mineral rights, market, the market for mineral rights around the country. It's a very fragmented market. With many different owners that own many different types of mineral interests, it's not a very well-organized market.

But is that something that was off the table given the.

Speaker #4: So, transactions have to be done on a one-off type basis. So there's always possibilities to, find those types of of investments. But, generally speaking, there's not very much trading activity that takes place in those.

The priority to Delever and then once.

That has been paid off then you could possibly look at some acquisitions on an unlevered basis.

I'll tell you I'll tell you the once that we achieved.

Speaker #4: So it's not something that's very common.

What we think of as a.

Our version of a fortress balance sheet, our three priorities for cash are going to be number one unit holder distributions number two unit repurchases at material discounts to our estimates of intrinsic value number three opportunistic investments as you speak of where we can acquire assets that fall within our circle of confidence I guess I would say.

Speaker #6: But is that something that was off the table given the, you know, the priority of deleveraging and then once, you off? Then you could possibly look at some acquisitions on an unleveraged is?

Craig Nunez: That's something that was off the table given the priority of delever. Once that's been paid off, then you could possibly look at some acquisitions on an on-lever basis.

Speaker #6: ow, debt has been paid

Speaker 6: I'll tell you that once we achieve what we think of as our version of a fortress balance sheet, our three priorities for cash are going to be number one, unitholder distributions; number two, unit repurchases at material discounts to our estimates of intrinsic value; number three, opportunistic investments, as you speak of, where we can acquire assets that fall within our circle of competence, I guess I'd say, at bargain prices.

Speaker #4: 'll tell you that, once that we achieve what, Well, I'll tell you, what we think of as a, our version of a fortress balance sheet, our three priorities for cash are going to be, number one, unit holder distributions.

At bargain prices.

Got it I appreciate that and then.

Carbon neutral.

Speaker #4: Number two, unit repurchases at material discounts or estimates of intrinsic value. Number three, opportunistic investments, as you speak of, you know, where we can acquire assets that fall within our circle of competence.

Is there any other are there any other opportunities across your land whether it be.

Or it's some other type of mineral or commodity.

That's not really there right now that might be a possibility in the future.

Speaker #4: I guess I'd say at bargain prices. Mm-hmm.

Speaker #6: Got it. All right. Appreciate that. and then, outside of , you know, carbon neutral, you know, initiatives, is there any other, you know, are there any other opportunities across your land, whether it be, you know, rare earths or some other type of mineral or commodity, that's not really there right now that, ou know, might be a possibility in the ure?

Craig Nunez: Got it. All right, I appreciate that. Outside of the carbon-neutral initiatives, are there any other opportunities across your land, whether it be rare earths or some other type of mineral or commodity that is not really there right now that might be a possibility in the future?

I believe the answer to that question is yes, but I do not know, but the answer to that question is yes.

We like to think that we own through our vast footprint.

Literally thousands if not hundreds of thousands of call options on greatness.

Areas that may have value at some point in time, and a different economic environment or in a different.

Speaker #4: I believe the answer to question is yes, but I do not know that the answer to that question is yes. we like to think that we own through our vast footprint, literally thousands, if not hundreds of thousands of coal options on greatness.

Speaker 6: I believe the answer to that question is yes, but I do not know that the answer to that question is yes. We like to think that we own through our vast footprint literally thousands, if not hundreds of thousands of coal options on greatness, areas that may have value at some point in time in a different economic environment or in a different when a new mineral is found or a new deposit is found. I cannot say right now that there is anything we are looking at specifically.

A new mineral is found or a new deposit of.

Is found.

But I cannot say right now that there is.

Anything we're looking at specifically.

Got it okay alright appreciate it guys. Thank you so much.

You bet.

Your next question comes from the line of John <unk> of Aegis companies. Please go ahead.

Hey, guys. Thanks for taking my call.

Sure.

Hi.

Quarters ago.

About sort of when you guys are thinking about sort of the next phase of capital returns I know you mentioned that that doesn't need to go to zero necessarily but youre going to focus on the highest cost I think it's been like that was like in Q3 last year.

Craig Nunez: Got it. Okay. All right, I appreciate it, guys. Thank you so much.

Speaker 6: You bet.

Kathleen: Your next question comes from the line of John Mason of Aegis Companies. Please go ahead.

So are you guys thinking basically like the Opco credit facility do you want to get to zero or how are you guys thinking about it in terms of the timing yes.

Craig Nunez: Hey, guys. Thanks for taking my call.

Speaker 6: Sure.

Craig Nunez: I asked a couple of quarters ago about when you guys are thinking about the next phase of capital returns. I know you mentioned that the debt doesn't need to go to zero necessarily, but you're going to focus on the highest cost debt. I think that was in Q3 last year. Are you guys thinking basically the OpCo credit facility you want to get to zero, or how are you guys thinking about it in terms of the timing?

Yes.

Okay, Alright, that's very helpful. Thank you.

Sure. Thank you.

And that concludes our Q&A session I will now turn the conference back over to Craig Nunez for closing remarks.

Thank you very much.

Speaker 6: Yes. Yes.

Thank you all of you for participating in our call.

Craig Nunez: Okay. All right, that's very helpful. Thank you.

We look forward to talking to you next week or next quarter and we thank you for supporting and RP.

Speaker 6: Sure. Thank you.

Okay.

Ladies and gentlemen that concludes today's call. Thank you everyone for joining you may now disconnect.

Kathleen: That concludes our Q&A session. I will now turn the conference back over to Craig Nunez for closing remarks.

Craig Nunez: Thank you very much. Thank you all of you for participating in our call. We look forward to talking to you next week or next quarter, and we thank you for supporting Natural Resource Partners LP.

Kathleen: Ladies and gentlemen, that concludes today's call. Thank you, everyone, for joining. You may now disconnect.

Tiffany Sammis: Please wait. The conference will begin shortly.