Natural Resource Partners L.P.

Natural Resource Partners reported second-quarter 2026 net income of $25 million, operating cash flow of $41 million, and free cash flow of $42 million. In the Mineral Rights segment, net income was $36 million and operating/free cash flow was $45 million; compared with the prior-year quarter, Mineral Rights net income fell $3 million, while operating cash flow and free cash flow each declined $1 million. The soda ash segment’s net income decreased $7 million year over year, and operating/free cash flow each declined $5 million. The company declared a second-quarter distribution of $0.75 per common unit, also paid the first-quarter distribution of $0.75 per common unit in May, and expects to significantly increase unitholder distributions for the next quarterly distribution to be paid in November. Management also said the bank revolver has been fully repaid and that $14 million of OpCo senior notes remains, with a scheduled payment due in December.

Craig Nunez struck a confident but cautious tone, emphasizing that NRP is generating strong cash flow despite “noise” from geopolitics, shipping disruptions, and tariffs. He highlighted the durability of the Mineral Rights business as a dependable cash generator and said the company is “almost debt-free.” On soda ash, he was notably cautious, saying global supply still exceeds demand and that domestic prices are likely to come under pressure as 2027 contracts are negotiated.

Chris Zolas said second-quarter net income was $25 million, operating cash flow was $41 million, and free cash flow was $42 million. He broke out Mineral Rights at $36 million of net income and $45 million of operating/free cash flow, with year-over-year pressure from higher DD&A tied to revised mine plans, partly offset by higher metallurgical and thermal volumes and pricing. He also noted soda ash was weaker because of oversupply and lower prices, and said NRP did not receive a Sisecam Wyoming distribution in Q2 versus $5 million a year ago; he added that lower debt reduced interest expense and that the company now has only $14 million of OpCo senior notes remaining.

There were no analyst questions on the call. The only follow-up addressed by management was the distribution outlook and balance-sheet cleanup: the company said it expects a significant increase in the next quarterly distribution in November after paying down the revolver and reducing debt to $14 million. Management also reiterated that soda ash distributions from Sisecam Wyoming are not expected to resume until demand improves and there is a significant supply response.