Q4 2025 Natural Resource Partners LP Earnings Call
Speaker #1: Hello everyone. Thank you for joining us, and welcome to the Natural Resource Partners LP 4th Quarter 2025 earnings call. After today's prepared remarks, we will host a question-and-answer session.
Operator: Hello, everyone. Thank you for joining us. Welcome to the Natural Resource Partners LP Q4 2025 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Tiffany Sammis, Investor Relations. Please go ahead.
Operator: Hello, everyone. Thank you for joining us. Welcome to the Natural Resource Partners LP Q4 2025 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Tiffany Sammis, Investor Relations. Please go ahead.
Speaker #1: If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to Tiffany Sammis, Investor Relations.
Speaker #1: Please go ahead.
Speaker #2: Thank you. Good morning and welcome to the NATURAL RESOURCE PARTNERS 4th 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, welcome to the Natural Resource Partners Q4 2025 Conference Call. Today's call is being webcast, a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer, Chris Zolis, 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 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 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.
Tiffany Sammis: Thank you. Good morning, welcome to the Natural Resource Partners Q4 2025 Conference Call. Today's call is being webcast, a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer, Chris Zolis, 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 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 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.
Speaker #2: 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.
Speaker #2: 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 Commission filings.
Speaker #2: We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-gap financial measures. Additional details and reconciliations to the most directly comparable gap measures are included in our 4th Quarter press release, which can be found on our website.
Tiffany Sammis: Additional details and reconciliations to the most directly comparable GAAP measures are included in our Q4 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.
Tiffany Sammis: Additional details and reconciliations to the most directly comparable GAAP measures are included in our Q4 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.
Speaker #2: I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular COLSE or detailed market fundamentals.
Speaker #2: Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer.
Speaker #3: So thank you, Tiffany, and good morning, everyone. NRP generated $46 million of free cash flow in the fourth quarter and $169 million of free cash flow in the full year 2025.
Craig Nunez: Thank you, Tiffany. Good morning, everyone. NRP generated $46 million of free cash flow in Q4 and $169 million of free cash flow in the full year 2025. All three of our key commodities, metallurgical coal, thermal coal, and soda ash, continue to struggle with sales prices that are near or below our estimates of operators' marginal costs of production. Metallurgical and thermal sales prices are at cyclically low levels, and soda ash prices are at generational lows. We do not yet see any catalysts on the horizon that are likely to change this outlook in the foreseeable future. In 2025, softening global economic activity and subdued demand for steel weighed on metallurgical coal pricing, while low natural gas prices and mild weather pressured thermal coal.
Craig Nunez: Thank you, Tiffany. Good morning, everyone. NRP generated $46 million of free cash flow in Q4 and $169 million of free cash flow in the full year 2025. All three of our key commodities, metallurgical coal, thermal coal, and soda ash, continue to struggle with sales prices that are near or below our estimates of operators' marginal costs of production. Metallurgical and thermal sales prices are at cyclically low levels, and soda ash prices are at generational lows. We do not yet see any catalysts on the horizon that are likely to change this outlook in the foreseeable future. In 2025, softening global economic activity and subdued demand for steel weighed on metallurgical coal pricing, while low natural gas prices and mild weather pressured thermal coal.
Speaker #3: All three of our key commodities—metallurgical coal, thermal coal, and soda ash—continue to struggle with sales prices that are near or below our estimates of operators' marginal costs of production.
Speaker #3: Metallurgical and thermal sales prices are at cyclically low levels, and soda ash prices are at generational lows. We do not yet see any catalysts on the horizon, that are likely to change this outlook in the foreseeable future.
Speaker #3: In 2025, softening global economic activity and subdued demand for steel weighed on metallurgical coal pricing. While low natural gas prices and mild weather pressured thermal coal.
Speaker #3: While cinnamon toured thermal coal is benefiting from the projected rise in electricity demand from data centers, we have yet to see any material market improvement.
Craig Nunez: While sentiment toward thermal coal is benefiting from the projected rise in electricity demand from data centers, we have yet to see any material market improvement. Until we see clear evidence of a structural market shift, we remain disciplined in managing the partnership under the assumption that demand for North American thermal coal remains in long-term secular decline. As we said over the course of last year, 2025 was a very challenging time for the global soda ash industry. We believe 2026 will be worse. While we were early to warn about the potential for excess capacity hitting the market, the extent and potential duration of the downturn is exceeding even our expectations. International prices are currently below the cost of production for most producers. We believe supply rationalization is not a question of if, but when.
Craig Nunez: While sentiment toward thermal coal is benefiting from the projected rise in electricity demand from data centers, we have yet to see any material market improvement. Until we see clear evidence of a structural market shift, we remain disciplined in managing the partnership under the assumption that demand for North American thermal coal remains in long-term secular decline. As we said over the course of last year, 2025 was a very challenging time for the global soda ash industry. We believe 2026 will be worse. While we were early to warn about the potential for excess capacity hitting the market, the extent and potential duration of the downturn is exceeding even our expectations. International prices are currently below the cost of production for most producers. We believe supply rationalization is not a question of if, but when.
Speaker #3: Until we see clear evidence of a structural market shift, we remain disciplined in managing the partnership under the assumption that demand for North American thermal coal remains in long-term secular decline.
Speaker #3: As we said over the course of last year, 2025 was a very challenging time for the global soda ash industry. We believe 2026 will be worse.
Speaker #3: While we were early to warn about the potential for excess capacity hitting the market, the extent and potential duration of the downturn is exceeding even our expectations.
Speaker #3: International prices are currently below the cost of production for most producers. We believe supply rationalization is not a question of if, but when. However, we also believe rebalancing global supply and demand will take time, and we expect it could be several years before a healthy bid returns to the market and prices return to historical levels.
Craig Nunez: However, we also believe rebalancing global supply and demand will take time. We expect it could be several years before a healthy bid returns to the market and prices return to historical levels. We anticipate further pressure on Sisecam Wyoming's financial performance. We have not received distributions from the joint venture for the last 2 quarters. We do not expect distributions to resume for the foreseeable future. Our managing partner is retaining cash to support investments in safety, operational integrity, and to shore up the capital structure. Additionally, earlier this month, we agreed with our partner to invest capital in the venture to reduce outstanding amounts under its bank credit facility and better position it to compete in the current environment.
Craig Nunez: However, we also believe rebalancing global supply and demand will take time. We expect it could be several years before a healthy bid returns to the market and prices return to historical levels. We anticipate further pressure on Sisecam Wyoming's financial performance. We have not received distributions from the joint venture for the last 2 quarters. We do not expect distributions to resume for the foreseeable future. Our managing partner is retaining cash to support investments in safety, operational integrity, and to shore up the capital structure. Additionally, earlier this month, we agreed with our partner to invest capital in the venture to reduce outstanding amounts under its bank credit facility and better position it to compete in the current environment.
Speaker #3: We anticipate further pressure on Shishajam, Wyoming's financial performance. We have not received distributions from the Joint Venture for the last two quarters, and we do not expect distributions to resume for the foreseeable future.
Speaker #3: Our managing partner is retaining cash to support investments in safety, operational integrity, and to shore up the capital structure. Additionally, earlier this month, we agreed with our partner to invest capital in the venture to reduce outstanding amounts under its bank credit facility and better position it to compete in the current environment.
Speaker #3: NRP's share of this investment is 39 million dollars, and we evaluated it as we would any other capital allocation decision, with the goal of maximizing NRP's intrinsic value per unit.
Craig Nunez: NRP share of this investment is $39 million, and we evaluated it as we would any other capital allocation decision, with the goal of maximizing NRP's intrinsic value per unit. Regarding carbon-neutral initiatives, leasing interest for underground carbon sequestration remains lackluster as political, regulatory, and market uncertainties pose significant hurdles for developers contemplating large capital investments for these types of projects. We continue to work on multiple geothermal, solar, and lithium opportunities, and we are making small-scale progress on several initiatives, but have nothing material to report. In conclusion, coal prices remain at cyclical lows, and global soda ash prices are at generational lows. Our coal lessees are operating at or near their cost of production, and our soda ash investment, one of the world's lowest-cost producers, is managing through what may be the worst bear market in its 60-plus year history.
Craig Nunez: NRP share of this investment is $39 million, and we evaluated it as we would any other capital allocation decision, with the goal of maximizing NRP's intrinsic value per unit. Regarding carbon-neutral initiatives, leasing interest for underground carbon sequestration remains lackluster as political, regulatory, and market uncertainties pose significant hurdles for developers contemplating large capital investments for these types of projects. We continue to work on multiple geothermal, solar, and lithium opportunities, and we are making small-scale progress on several initiatives, but have nothing material to report. In conclusion, coal prices remain at cyclical lows, and global soda ash prices are at generational lows. Our coal lessees are operating at or near their cost of production, and our soda ash investment, one of the world's lowest-cost producers, is managing through what may be the worst bear market in its 60-plus year history.
Speaker #3: Regarding carbon neutral initiatives, leasing interest for underground carbon sequestration remains lackluster, as political, regulatory, and market uncertainties pose significant hurdles for developers contemplating large capital investments for these types of projects.
Speaker #3: We continue to work on multiple geothermal, solar, and lithium opportunities, and we are making small-scale progress on several initiatives, but have nothing material to report.
Speaker #3: In conclusion, coal prices remain at cyclical lows, and global soda ash prices are at generational lows. Our COLSEs are operating at or near their costs of production, and our soda ash investment, one of the world's lowest cost producers, is managing through what may be the worst bear market in its 60-plus year history.
Speaker #3: Despite this, NRP continues to generate robust free cash flow and make progress toward our goal of retiring all outstanding debt. We retired 109 million dollars of debt in 2025 and finished the year with 33 million dollars of debt and no other financial obligations outstanding.
Craig Nunez: Despite this, NRP continues to generate robust free cash flow and make progress toward our goal of retiring all outstanding debt. We retired $109 million of debt in 2025 and finished the year with $33 million of debt and no other financial obligations outstanding. Our timeline has been to retire all debt and significantly increase unitholder distributions in August of this year. Although we've cautioned that extended bear markets for all three of our key commodities would increase the likelihood that some event would occur that could push that timing back. The $39 million investment in Shoshone, Wyoming, is one such event, and will push the distribution increase we had expected to occur in August back to a subsequent quarter. I'll turn it over now to Chris for more details.
Craig Nunez: Despite this, NRP continues to generate robust free cash flow and make progress toward our goal of retiring all outstanding debt. We retired $109 million of debt in 2025 and finished the year with $33 million of debt and no other financial obligations outstanding. Our timeline has been to retire all debt and significantly increase unitholder distributions in August of this year. Although we've cautioned that extended bear markets for all three of our key commodities would increase the likelihood that some event would occur that could push that timing back. The $39 million investment in Shoshone, Wyoming, is one such event, and will push the distribution increase we had expected to occur in August back to a subsequent quarter. I'll turn it over now to Chris for more details.
Speaker #3: Our timeline has been to retire all debt and significantly increase unit holder distributions in August of this year, although we've cautioned that extended bear markets for all three of our key commodities would increase the likelihood that some event would occur that could push that timing back.
Speaker #3: The 39 million dollar investment in Shishajam, Wyoming is one such event and will push the distribution increase we had expected to occur in August back to a subsequent quarter.
Speaker #3: I'll turn it over now to Chris for more details.
Speaker #4: Thank you, Craig. In the 4th Quarter of 2025, NRP generated 31 million of net income, 45 million of operating cash flow, and 46 million of free cash flow.
Christopher Zolas: Thank you, Craig. In the Q4 of 2025, NRP generated $31 million of net income, $45 million of operating cash flow, and $46 million of free cash flow. For the full year 2025, NRP generated $136 million of net income, $166 million of operating cash flow, and $169 million of free cash flow. Of these consolidated amounts, our Mineral Rights segment generated $40 million of net income, $49 million of operating cash flow, and $50 million of free cash flow in the Q4, and $166 million of net income, $182 million of operating cash flow, and $185 million of free cash flow in the full year of 2025.
Christopher Zolas: Thank you, Craig. In the Q4 of 2025, NRP generated $31 million of net income, $45 million of operating cash flow, and $46 million of free cash flow. For the full year 2025, NRP generated $136 million of net income, $166 million of operating cash flow, and $169 million of free cash flow. Of these consolidated amounts, our Mineral Rights segment generated $40 million of net income, $49 million of operating cash flow, and $50 million of free cash flow in the Q4, and $166 million of net income, $182 million of operating cash flow, and $185 million of free cash flow in the full year of 2025.
Speaker #4: For the full year 2025, NRP generated 136 million of net income, 166 million of operating cash flow, and 169 million of free cash flow.
Speaker #4: Of these consolidated amounts, our mineral rights segment generated 40 million of net income, 49 million of operating cash flow, and 50 million of free cash flow in the 4th Quarter.
Speaker #4: And 166 million of net income, 182 million of operating cash flow, and 185 million of free cash flow in the full year of 2025.
Speaker #4: When compared to the prior year 4th Quarter, our mineral rights segment net income, operating cash flow, and free cash flow each decreased 13 million.
Christopher Zolas: When compared to the prior year Q4, our Mineral Rights segment net income, operating cash flow, and free cash flow each decreased $13 million. When compared to the full year, our Mineral Rights segment net income declined $41 million, while operating and free cash flow each decreased $60 million. These decreases were primarily due to weaker metallurgical coal markets, resulting in lower sales prices and volumes. Regarding our net thermal coal royalty mix, metallurgical coal made up approximately 70% of our coal royalty revenues and 45% of coal royalty sales volumes for the Q4, and 65% of our coal royalty revenues and 45% of our coal royalty sales volumes for the full year 2025.
Christopher Zolas: When compared to the prior year Q4, our Mineral Rights segment net income, operating cash flow, and free cash flow each decreased $13 million. When compared to the full year, our Mineral Rights segment net income declined $41 million, while operating and free cash flow each decreased $60 million. These decreases were primarily due to weaker metallurgical coal markets, resulting in lower sales prices and volumes. Regarding our net thermal coal royalty mix, metallurgical coal made up approximately 70% of our coal royalty revenues and 45% of coal royalty sales volumes for the Q4, and 65% of our coal royalty revenues and 45% of our coal royalty sales volumes for the full year 2025.
Speaker #4: When compared to the full year, our mineral rights segment net income declined 41 million, while operating and free cash flow each decreased 60 million.
Speaker #4: These decreases were primarily due to weaker metallurgical coal markets resulting in lower sales prices and volumes. Regarding our met thermal coal royalty mix, metallurgical coal made up approximately 70% of our coal royalty revenues and 45% of coal royalty sales volumes for the 4th Quarter, and 65% of our coal royalty revenues and 45% of our coal royalty sales volumes for the full year 2025.
Speaker #4: For our soda ash segment, net income for the fourth quarter and full year of 2025 decreased by $3 million and $15 million, respectively. When compared to the prior year periods, operating and free cash flow for the fourth quarter and full year of 2025 each decreased by $11 million and $31 million, respectively, as compared to the prior year periods.
Christopher Zolas: For our soda ash segment, net income for Q4 and full year of 2025 decreased $3 million and $15 million, respectively, when compared to the prior year periods. Operating and free cash flow for Q4 and full year of 2025 each decreased by $11 million and $31 million, respectively, as compared to the prior year periods. These decreases were primarily due to lower international sales prices, driven by new natural soda ash supply from China, as well as weak glass demand from the construction and automobile markets. We have not received a distribution from Sisecam Wyoming since Q2 of 2025, and do not expect distributions from Sisecam Wyoming to resume until soda ash demand rebounds, or there is a significant supply response to this weakened market, most likely from higher-cost synthetic production.
Christopher Zolas: For our soda ash segment, net income for Q4 and full year of 2025 decreased $3 million and $15 million, respectively, when compared to the prior year periods. Operating and free cash flow for Q4 and full year of 2025 each decreased by $11 million and $31 million, respectively, as compared to the prior year periods. These decreases were primarily due to lower international sales prices, driven by new natural soda ash supply from China, as well as weak glass demand from the construction and automobile markets. We have not received a distribution from Sisecam Wyoming since Q2 of 2025, and do not expect distributions from Sisecam Wyoming to resume until soda ash demand rebounds, or there is a significant supply response to this weakened market, most likely from higher-cost synthetic production.
Speaker #4: These decreases were primarily due to lower international sales prices driven by new natural soda ash supply from China. As well as weak glass demand from the construction and automobile markets.
Speaker #4: We have not received a distribution from Shishajam, Wyoming since the 2nd Quarter of 2025 and do not expect distributions from Shishajam, Wyoming to resume until soda ash demand rebounds or there is a significant supply response to weak to this weakened market.
Speaker #4: Most likely from higher cost synthetic production. Moving to our corporate and financing segment, Q4 2025 net income, operating cash flow, and free cash flow each improved 3 million as compared to the prior year period.
Christopher Zolas: Moving to our corporate and financing segment, Q4 2025 net income, operating cash flow, and free cash flow each improved $3 million as compared to the prior year period. Full year net income improved by $9 million, while operating and free cash flow each improved $8 million as compared to the prior year period. These improvements to corporate and financing segment were due to significantly less debt outstanding, resulting in lower interest costs and less cash paid for interest. We used the free cash flow generated from our business segments in 2025 to repay $109 million of debt. Even including the impact of our planned $39 million capital investment into Sisecam Wyoming, we remain on track to accomplish our deleveraging goal this year.
Christopher Zolas: Moving to our corporate and financing segment, Q4 2025 net income, operating cash flow, and free cash flow each improved $3 million as compared to the prior year period. Full year net income improved by $9 million, while operating and free cash flow each improved $8 million as compared to the prior year period. These improvements to corporate and financing segment were due to significantly less debt outstanding, resulting in lower interest costs and less cash paid for interest. We used the free cash flow generated from our business segments in 2025 to repay $109 million of debt. Even including the impact of our planned $39 million capital investment into Sisecam Wyoming, we remain on track to accomplish our deleveraging goal this year.
Speaker #4: Full year net income improved by 9 million, while operating and free cash flow each improved 8 million as compared to the prior year period.
Speaker #4: These improvements to the Corporate and Financing segment were due to significantly less debt outstanding, resulting in lower interest costs and less cash paid for interest.
Speaker #4: We used the free cash flow generated from our business segments in 2025 to repay 109 million dollars of debt. Even including the impact of our planned 39 million capital investment into Shishajam, Wyoming, we remain on track to accomplish our due leveraging goal this year.
Speaker #4: Regarding our quarterly distributions, in November of 2025, we paid the 3rd Quarter distribution of 75 cents per common unit and in February of this year, we paid a distribution of 75 cents related to the 4th Quarter of 2025.
Christopher Zolas: Regarding our quarterly distributions, in November of 2025, we paid the Q3 distribution of $0.75 per common unit. In February of this year, we paid a distribution of $0.75 related to the Q4 of 2025. In addition, today we announced a special distribution of $0.12 per common unit to help cover unitholder tax liabilities associated with owning NRP's common units in 2025. With that, I'll turn the call over to our operator for questions.
Christopher Zolas: Regarding our quarterly distributions, in November of 2025, we paid the Q3 distribution of $0.75 per common unit. In February of this year, we paid a distribution of $0.75 related to the Q4 of 2025. In addition, today we announced a special distribution of $0.12 per common unit to help cover unitholder tax liabilities associated with owning NRP's common units in 2025. With that, I'll turn the call over to our operator for questions.
Speaker #4: In addition, today we announced a special distribution of 12 cents per common unit to help cover unit holder tax liabilities associated with owning NRP's common units in 2025.
Speaker #4: And with that, I'll turn the call over to our operator for questions.
Speaker #1: We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.
Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when you are asking a question, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from David Spier with Nitor Capital Management. Your line is open. Please go ahead.
Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when you are asking a question, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from David Spier with Nitor Capital Management. Your line is open. Please go ahead.
Speaker #1: To withdraw your question, press star 1 again. Please pick up your handset when you are asking a question and if muted locally, please remember to unmute your device.
Speaker #1: Please stand by while we compile the Q&A roster. Our first question comes from David Spear with NITOR Capital Management. Your line is open. Please go ahead.
Speaker #5: Hi. How are you? Just to better understand the capital contribution to the soda ash JV, is there any way to provide how much bank debt was outstanding and whether the JV is now debt-free following the contribution?
David Spier: Hi, how are you? Just to better understand the capital contribution to the soda ash JV, is there any way to provide how much bank debt was outstanding and whether the JV is now debt-free following the contribution?
David Spier: Hi, how are you? Just to better understand the capital contribution to the soda ash JV, is there any way to provide how much bank debt was outstanding and whether the JV is now debt-free following the contribution?
Speaker #6: The JV is not debt-free. The day JV has $50-plus million of debt remaining after the contribution.
Craig Nunez: The JV is not debt-free. The JV has $50-plus million of debt remaining after the contribution.
Craig Nunez: The JV is not debt-free. The JV has $50-plus million of debt remaining after the contribution.
Speaker #5: So, is there any plan or intention to continue making contributions to pay down the remaining debt? Is that on the table, or?
David Spier: Is there any plans or intention to continue making contributions to pay down the remaining debt? Is that on the table, or?
David Spier: Is there any plans or intention to continue making contributions to pay down the remaining debt? Is that on the table, or?
Speaker #6: We do not have that. That's not our plan right now. What I will say is that this is a very difficult soda ash market.
Craig Nunez: We do not have that. That's not our plan right now. What I will say is that, you know, this is a very difficult soda ash market. You know, we were early, and we were right on the downturn, but we've been wrong on the extent, the depth and the duration of the downturn now that we're in it. If things get worse, there could be situations where we would elect to put more capital into the soda ash venture. That's always a possibility, but that's not what we're planning at the moment.
Craig Nunez: We do not have that. That's not our plan right now. What I will say is that, you know, this is a very difficult soda ash market. You know, we were early, and we were right on the downturn, but we've been wrong on the extent, the depth and the duration of the downturn now that we're in it. If things get worse, there could be situations where we would elect to put more capital into the soda ash venture. That's always a possibility, but that's not what we're planning at the moment.
Speaker #6: We were early and we were right on the downturn. But we've been wrong on the extent the depth and the duration of the downturn now that we're in it.
Speaker #6: If things get worse, there could be situations where we would elect to put more capital into the soda ash venture. That's always a possibility.
Speaker #6: But that's not what we're planning at the moment.
Speaker #5: And was this just last week? Was this a requirement or is it your election and option?
[Analyst] (Nitor Capital Management): Just, lastly, was this a requirement or was it, you know, your election and option?
David Spier: Just, lastly, was this a requirement or was it, you know, your election and option?
Speaker #6: It was our election.
Craig Nunez: It was our election.
Craig Nunez: It was our election.
Speaker #5: Got it. Okay. I appreciate the caller. Thank you.
[Analyst] (Nitor Capital Management): Got it. Okay. I appreciate the call. Thank you.
David Spier: Got it. Okay. I appreciate the call. Thank you.
Speaker #6: You bet. Thanks.
Craig Nunez: You bet. Thanks.
Craig Nunez: You bet. Thanks.
Speaker #1: Our next question comes from Dan Adler. Your line is open. Please go ahead. Please unmute yourself locally so we can hear your question.
Operator: Our next question comes from Dan Adler. Your line is open. Please go ahead. Please unmute yourself locally so we can hear your question.
Operator: Our next question comes from Dan Adler. Your line is open. Please go ahead. Please unmute yourself locally so we can hear your question.
Philip Kramer: My question was related to the capital investment as well. I lowered my hand, but not in time.
[Analyst]: My question was related to the capital investment as well. I lowered my hand, but not in time.
Speaker #7: My question was related to the capital investment as well. I lowered my hand, but not in time.
Speaker #1: Thank you.
Operator: Thank you.
Operator: Thank you.
Speaker #7: Thanks.
Philip Kramer: Thanks.
[Analyst]: Thanks.
Speaker #1: Our next question comes from Philip Kramer with BATS Wireless, your line is open. Please go ahead.
Operator: Our next question comes from Philip Kramer with BATS Wireless. Your line is open. Please go ahead.
Operator: Our next question comes from Philip Kramer with BATS Wireless. Your line is open. Please go ahead.
Philip Kramer: Yes. Congratulations on the foresight and great moves by significantly de-leveraging the partnership over the last years. Do you anticipate that we'll be in a position to substantially increase distributions in the May quarter?
Speaker #7: Yes. Congratulations on the foresight and great moves by significantly de-leveraging the partnership over the last years. Do you anticipate that we'll be in a position to substantially increase distributions in the make order?
Phillip Kramer: Yes. Congratulations on the foresight and great moves by significantly de-leveraging the partnership over the last years. Do you anticipate that we'll be in a position to substantially increase distributions in the May quarter?
Speaker #6: No, not in May. If you do the math, you take our run rates that we're generating in free cash, you take into account the 39 million dollar distribution or contribution we're making to the Shishajam, Wyoming joint venture, the timing would say it's probably in November.
Craig Nunez: No, not in May. If you do the math, you take our run rates that we're generating in free cash. You take into account the $39 million distribution or contribution we're making to the Sisecam Wyoming joint venture. The timing, we'd say, is probably in November.
Craig Nunez: No, not in May. If you do the math, you take our run rates that we're generating in free cash. You take into account the $39 million distribution or contribution we're making to the Sisecam Wyoming joint venture. The timing, we'd say, is probably in November.
Speaker #5: Thanks for the clarification.
Philip Kramer: Thanks for the clarification.
Phillip Kramer: Thanks for the clarification.
Speaker #6: You bet. I want to say what we've said before, though, in prior calls, and that is that the longer the bear market continues for all three of our key commodities, the greater the likelihood something happens that pushes that timing back.
Craig Nunez: You bet. I want to say what we've said before, though, in prior calls, and that is that, you know, the longer the bear market continues for all three of our key commodities, the greater the likelihood something happens that pushes that timing back. Right now, that's what the timing looks like.
Craig Nunez: You bet. I want to say what we've said before, though, in prior calls, and that is that, you know, the longer the bear market continues for all three of our key commodities, the greater the likelihood something happens that pushes that timing back. Right now, that's what the timing looks like.
Speaker #6: But right now, that's what the timing looks like.
Speaker #1: If you would like to ask a question, please press star 1 on your telephone keypad. Our next question comes from Alberto Vidia with Fruit Tree Capital, your line is open.
Operator: If you would like to ask a question, please press star one on your telephone keypad. Our next question comes from Alberto Padilla with Fruit Tree Capital. Your line is open. Please go ahead.
Operator: If you would like to ask a question, please press star one on your telephone keypad. Our next question comes from Alberto Padilla with Fruit Tree Capital. Your line is open. Please go ahead.
Speaker #1: Please go ahead.
Speaker #8: Good morning. So I good morning. I attended the Bureau of Land Management's sales auction of mineral rights. For a tool of warrior's minds. And I was just curious why you guys weren't didn't bid.
Alberto Padilla: Good morning. Good morning. I attended the Bureau of Land Management sale auction of mineral rights for two of Warrior's mines, and I was just curious why you guys didn't bid. Thank you.
Alberto Padilla: Good morning. Good morning. I attended the Bureau of Land Management sale auction of mineral rights for two of Warrior's mines, and I was just curious why you guys didn't bid. Thank you.
Speaker #8: Thank you.
Craig Nunez: Good, good question. Let me just tell you that the opportunities to acquire passive interests in natural resource assets at attractive prices, which are what we try to do, does not come along often. Auctions are typically not places where you come away with attractive opportunities, and for mineral type assets. You're not likely to see us participate in auctions. Furthermore, I'll tell you, we are still on our path to delever, and our goal is to essentially pay off all of our debt and then focus primarily on returning capital to unitholders and to form distributions. Those are the reasons we weren't there.
Craig Nunez: Good, good question. Let me just tell you that the opportunities to acquire passive interests in natural resource assets at attractive prices, which are what we try to do, does not come along often. Auctions are typically not places where you come away with attractive opportunities, and for mineral type assets. You're not likely to see us participate in auctions. Furthermore, I'll tell you, we are still on our path to delever, and our goal is to essentially pay off all of our debt and then focus primarily on returning capital to unitholders and to form distributions. Those are the reasons we weren't there.
Speaker #6: Good question. Let me just tell you that the opportunities to acquire passive interest in natural resource assets at attractive prices, which are what we try to do, do not come along often.
Speaker #6: Auctions are typically not places where you come away with attractive opportunities. And for mineral-type assets. So you're not likely to see us participate in auctions.
Speaker #6: Furthermore, I'll tell you, we are still on our path to de-lever. And our goal is to essentially pay off all of our debt and then focus primarily on returning capital to unit holders and perform a distributions.
Speaker #6: So those are the reasons we weren't there.
Speaker #8: Thanks a lot.
Alberto Padilla: Thanks a lot.
Alberto Padilla: Thanks a lot.
Speaker #6: You bet.
Craig Nunez: You bet.
Craig Nunez: You bet.
Speaker #1: There are no further questions at this time. I will now turn the call back to Craig Nunez for closing remarks.
Operator: There are no further questions at this time. I will now turn the call back to Craig Nunez for closing remarks.
Operator: There are no further questions at this time. I will now turn the call back to Craig Nunez for closing remarks.
Speaker #6: Thank you, operator. And thank you, everyone, for participating in this call. And thank you all of you for your support of NRP. And have a good day.
Craig Nunez: Thank you, operator, and thank you everyone for participating in this call. Thank you, all of you, for your support of NRP, and have a good day.
Craig Nunez: Thank you, operator, and thank you everyone for participating in this call. Thank you, all of you, for your support of NRP, and have a good day.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.