Natural Resource Partners L.P. Declares Fourth Quarter 2024 Distribution

Rhea-AI Summary

Natural Resource Partners (NYSE: NRP) has declared a fourth quarter 2024 distribution of $0.75 per common unit, payable on February 25, 2025, to unitholders of record on February 18, 2025. The distribution decision is based on multiple factors including profitability, cash flow, debt obligations, market conditions, estimated unitholder tax liability, and necessary cash reserves.

NRP is a Houston-based master partnership that manages diverse natural resource properties across the United States, including coal, industrial minerals, and rights for carbon sequestration and renewable energy activities. The company also holds an equity stake in Sisecam Wyoming , a leading low-cost soda ash producer.

Positive

• Maintains consistent quarterly distribution of $0.75 per unit
• Diversified portfolio across multiple natural resource sectors
• Strategic investment in low-cost soda ash producer Sisecam Wyoming

Negative

• None.

Insights

Financial Analyst

The declared quarterly distribution of $0.75 per unit represents a significant commitment to unitholder returns, particularly noteworthy in the natural resources sector where cash flow stability can be challenging. NRP's strategic positioning as a diversified master partnership (MLP) with exposure to traditional resources like coal and industrial minerals, alongside emerging opportunities in carbon sequestration and renewable energy, provides a balanced approach to sustainable distributions.

The partnership's equity stake in Sisecam Wyoming , one of the world's lowest-cost soda ash producers, adds a important competitive advantage, helping to stabilize cash flows and support distribution reliability. The board's comprehensive evaluation process for distribution decisions, encompassing factors from profitability to market conditions and tax implications, demonstrates a prudent approach to capital allocation.

For investors, the MLP structure offers notable tax advantages through pass-through taxation, though the withholding requirements for foreign investors (100% of distributions subject to withholding) highlight the complexity of international investment in U.S. MLPs. The distribution announcement, coupled with the company's diversified portfolio strategy, positions NRP as an interesting option for income-focused investors seeking exposure to both traditional and emerging aspects of the natural resources sector.

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 2024 distribution of $0.75 per common unit for NRP. The distribution will be paid on February 25, 2025 to unitholders of record on February 18, 2025. Future distributions on NRP's common units will be determined on a quarterly basis by the board of directors. The board of directors considers numerous factors each quarter in determining cash distributions including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability, and the level of cash reserves that the board determines is necessary for future operating and capital needs.

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/20250205685203/en/

Tiffany Sammis, 713-751-7515

tsammis@nrplp.com

Source: Natural Resource Partners L.P.

FAQ

What is Natural Resource Partners' Q4 2024 distribution amount?

Natural Resource Partners (NRP) declared a Q4 2024 distribution of $0.75 per common unit.

When will NRP's Q4 2024 distribution be paid?

The distribution will be paid on February 25, 2025, to unitholders of record as of February 18, 2025.

What factors determine NRP's quarterly distribution amounts?

NRP's board considers profitability, cash flow, debt service obligations, market conditions, estimated unitholder tax liability, and necessary cash reserves for operating and capital needs.

What are Natural Resource Partners' main business segments?

NRP manages properties including coal, industrial minerals, rights for carbon sequestration and renewable energy activities, and holds an equity investment in Sisecam Wyoming , a soda ash producer.

What is the tax withholding rate for NRP's non-U.S. investors?

Non-U.S. investors are subject to federal income tax withholding at a rate equal to the highest applicable rate plus 10% on 100% of the distribution.