Natural Resource Partners L.P. Declares Fourth Quarter 2023 Distributions

Rhea-AI Summary

Natural Resource Partners L.P. (NYSE: NRP) declared a Q4 2023 distribution of $0.75 per common unit and a distribution on NRP’s 12.0% Class A Convertible Preferred Units totaling $2.15 million. The company is a diversified natural resource company that owns, manages and leases a portfolio of properties in the United States. NRP also provided withholding information for foreign investors.

Insights

Financial Analyst

The declaration of a quarterly distribution of $0.75 per common unit by Natural Resource Partners L.P. (NRP) is a significant event for unitholders and potential investors. This distribution indicates a return on investment that can be factored into yield calculations, affecting the attractiveness of NRP's units. The distribution aligns with the company's history of providing periodic returns to its unitholders, which is a critical factor in assessing the stability and reliability of income streams from such investments.

Moreover, the announcement of a distribution on the 12.0% Class A Convertible Preferred Units totaling $2.15 million highlights a commitment to preferred unitholders, who typically have priority over common unitholders regarding distributions. This could influence the perceived risk profile of these securities. The distribution amount reflects the company's operational performance and its ability to generate sufficient cash flow to cover these obligations.

The implications for stakeholders include potential impacts on unit prices around the ex-dividend date, as distributions often lead to adjustments in unit prices. Long-term implications may involve the sustainability of such distributions, which is contingent upon the company's continued performance and profitability, especially in the volatile natural resource sector.

Tax Specialist

The withholding information for foreign investors provided by NRP is a critical piece of data that affects the net income received by these unitholders. The requirement for brokers and nominees to withhold 100% of the distributions to non-U.S. investors as effectively connected income (ECI) suggests that the company's operations generate income that is closely tied to U.S. activities.

This withholding at the highest applicable rate plus ten percent represents a significant tax burden for foreign investors and could influence their investment decisions. It is essential for stakeholders to understand the tax implications of their investments in NRP, as these can materially impact the actual returns after taxes. The company's compliance with Treasury Regulations underscores its adherence to tax laws, which is an important consideration for maintaining investor confidence.

Market Research Analyst

Understanding the context within which NRP operates is crucial for evaluating the potential impact of the distribution announcement. As a diversified natural resource company with a portfolio that includes coal, industrial minerals and other resources, NRP's ability to maintain distributions is closely tied to the performance of these commodities in the market.

The mention of an equity investment in Sisecam Wyoming LLC, a low-cost producer of soda ash, adds another layer of interest. This investment could provide a stable income source and potential growth opportunities, given the wide range of industrial applications for soda ash and the global market dynamics influencing its demand and price.

Investors should consider the broader economic trends, such as energy transition and environmental policies, that could impact the demand for natural resources. These factors can influence NRP's future performance and, consequently, its ability to sustain or increase distributions to unitholders.

HOUSTON--(BUSINESS WIRE)-- Natural Resource Partners L.P. (NYSE: NRP) today announced that the board of directors of its general partner declared a fourth quarter 2023 distribution of $0.75 per common unit for NRP. The distribution will be paid on February 27, 2024 to unitholders of record on February 20, 2024.

The board also declared a fourth quarter distribution on NRP’s 12.0% Class A Convertible Preferred Units totaling $2.15 million.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash.

Withholding Information for Foreign Investors

Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of NRP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, NRP's distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the sum of the highest applicable rate plus ten percent (10%).

For additional information please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the partnership’s website at http://www.nrplp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240207713273/en/

Tiffany Sammis

713-751-7515

tsammis@nrplp.com

Source: Natural Resource Partners L.P.

FAQ

What is the declared Q4 2023 distribution for NRP?

The declared Q4 2023 distribution for NRP is $0.75 per common unit and a distribution on NRP’s 12.0% Class A Convertible Preferred Units totaling $2.15 million.

Where is Natural Resource Partners L.P. headquartered?

Natural Resource Partners L.P. is headquartered in Houston, TX.

What does NRP specialize in?

NRP is a diversified natural resource company that owns, manages, and leases a portfolio of properties in the United States.

What is the withholding information provided for foreign investors?

NRP provided qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors. Brokers and nominees should treat NRP's distributions to non-U.S. investors as being subject to federal income tax withholding.