Natural Resource Partners reports strong cash flow and plans to boost distributions following debt repayment and reduced leverage.
Natural Resource Partners (NYSE:NRP) reported second-quarter net income of $25 million, with operating cash flow at $41 million and free cash flow reaching $42 million. The mineral rights segment drove performance, generating $45 million in cash flow despite weaker soda ash results due to oversupply and lower demand.
Over the trailing 12 months, NRP produced $163 million in free cash flow before accounting for a $39 million investment in its soda ash business. The company repaid its credit facility in July, leaving only a $14 million senior-notes payment due in December. Management signaled plans for a substantial distribution increase in November.
Soda ash markets face pressure from global oversupply and softer flat-glass demand, leading to price declines and the loss of a $5 million distribution from Sisecam Wyoming. Domestic prices are expected to weaken further as 2027 contracts are negotiated, though potential capacity closures could help rebalance supply.