NATURAL RESOURCE PARTNERS LP 10-Q

nrp20250630_10q.htm Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-31465 NATURAL RESOURCE PARTNERS LP (Exact name of registrant as specified in its charter) Delaware 35-2164875 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1415 Louisiana Street, Suite 3325 Houston , Texas 77002 (Address of principal executive offices) (Zip Code) ( 713 ) 751-7507 (Registrant ’ s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Units representing limited partner interests NRP New York Stock Exchange Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of "accelerated filer", "large accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐ APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Table of Contents NATURAL RESOURCE PARTNERS, L.P. TABLE OF CONTENTS Page Part I. Financial Information Item 1. Consolidated Financial Statements Consolidated Balance Sheets 1 Consolidated Statements of Comprehensive Income 2 Consolidated Statements of Partners ’ Capital 3 Consolidated Statements of Cash Flows 4 Notes to Consolidated Financial Statements 5 Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3. Quantitative and Qualitative Disclosures About Market Risk 30 Item 4. Controls and Procedures 30 Part II. Other Information Item 1. Legal Proceedings 31 Item 1A. Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 31 Signatures 32 i Table of Contents PART I. FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS NATURAL RESOURCE PARTNERS L.P. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (In thousands, except unit data) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 30,344 $ 30,444 Accounts receivable, net 29,048 31,469 Other current assets, net 1,329 1,961 Total current assets $ 60,721 $ 63,874 Land 24,008 24,008 Mineral rights, net 373,717 379,638 Intangible assets, net 12,381 12,924 Equity in unconsolidated investment 258,498 257,355 Long-term contract receivable, net 21,973 23,480 Other long-term assets, net 10,668 11,628 Total assets $ 761,966 $ 772,907 LIABILITIES AND CAPITAL Current liabilities Accounts payable $ 930 $ 909 Accrued liabilities 7,649 12,121 Accrued interest 169 302 Current portion of deferred revenue 4,667 4,341 Current portion of long-term debt, net 14,228 14,192 Total current liabilities $ 27,643 $ 31,865 Deferred revenue 51,275 55,814 Long-term debt, net 87,112 127,876 Other non-current liabilities 5,491 6,244 Total liabilities $ 171,521 $ 221,799 Commitments and contingencies (see Note 13) Partners’ capital Common unitholders’ interest ( 13,138,097 and 13,049,123 units issued and outstanding at June 30, 2025 and December 31, 2024, respectively) $ 579,773 $ 543,231 General partner’s interest 10,496 9,547 Accumulated other comprehensive income (loss) 176 ( 1,670 ) Total partners’ capital $ 590,445 $ 551,108 Total liabilities and partners' capital $ 761,966 $ 772,907 The accompanying notes are an integral part of these consolidated financial statements. 1 Table of Contents NATURAL RESOURCE PARTNERS L.P. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands, except per unit data) 2025 2024 2025 2024 Revenues and other income Royalty and other mineral rights $ 44,295 $ 54,591 $ 95,555 $ 121,963 Transportation and processing services 2,551 2,661 6,972 6,088 Equity in earnings of Sisecam Wyoming 2,526 3,645 7,136 9,095 Gain on asset sales and disposals 729 4,643 976 4,808 Total revenues and other income $ 50,101 $ 65,540 $ 110,639 $ 141,954 Operating expenses Operating and maintenance expenses $ 4,159 $ 5,872 $ 10,935 $ 11,605 Depreciation, depletion and amortization 3,754 3,324 7,743 7,978 General and administrative expenses 5,597 5,931 12,429 12,258 Asset impairments — — 20 — Total operating expenses $ 13,510 $ 15,127 $ 31,127 $ 31,841 Income from operations $ 36,591 $ 50,413 $ 79,512 $ 110,113 Interest expense, net $ ( 2,380 ) $ ( 4,349 ) $ ( 5,048 ) $ ( 7,836 ) Net income $ 34,211 $ 46,064 $ 74,464 $ 102,277 Less: income attributable to preferred unitholders — ( 1,443 ) — ( 3,593 ) Less: redemption of preferred units — ( 13,666 ) — ( 13,666 ) Net income attributable to common unitholders and the general partner $ 34,211 $ 30,955 $ 74,464 $ 85,018 Net income attributable to common unitholders $ 33,527 $ 30,336 $ 72,975 $ 83,318 Net income attributable to the general partner 684 619 1,489 1,700 Net income per common unit (see Note 5) Basic $ 2.55 $ 2.33 $ 5.56 $ 6.44 Diluted 2.52 2.29 5.49 6.17 Net income $ 34,211 $ 46,064 $ 74,464 $ 102,277 Comprehensive income (loss) from unconsolidated investment and other ( 414 ) 1,239 1,846 2,084 Comprehensive income $ 33,797 $ 47,303 $ 76,310 $ 104,361 The accompanying notes are an integral part of these consolidated financial statements. 2 Table of Contents NATURAL RESOURCE PARTNERS L.P. CONSOLIDATED STATEMENTS OF PARTNERS ’ CAPITAL (Unaudited) Accumulated Other Total Common Unitholders General Comprehensive Partners' (In thousands) Units Amounts Partner Income (Loss) Capital Balance at December 31, 2024 13,049 $ 543,231 $ 9,547 $ ( 1,670 ) $ 551,108 Net income — 39,448 805 — 40,253 Distributions to common unitholders and the general partner — ( 25,750 ) ( 526 ) — ( 26,276 ) Issuance of unit-based awards 89 — — — — Unit-based awards amortization and vesting, net — ( 3,175 ) — — ( 3,175 ) Capital contribution — — 187 — 187 Comprehensive income from unconsolidated investment and other — — — 2,260 2,260 Balance at March 31, 2025 13,138 $ 553,754 $ 10,013 $ 590 $ 564,357 Net income — 33,527 684 — $ 34,211 Distributions to common unitholders and the general partner — ( 9,854 ) ( 201 ) — ( 10,055 ) Unit-based awards amortization and vesting — 2,346 — — 2,346 Comprehensive loss from unconsolidated investment and other — — — ( 414 ) ( 414 ) Balance at June 30, 2025 13,138 $ 579,773 $ 10,496 $ 176 $ 590,445 Accumulated Other Total Common Unitholders General Warrant Comprehensive Partners' (In thousands) Units Amounts Partner Holders Loss Capital Balance at December 31, 2023 12,635 $ 503,076 $ 8,005 $ 23,095 $ ( 3,122 ) $ 531,054 Net income (1) — 55,089 1,124 — — 56,213 Distributions to common unitholders and the general partner — ( 41,342 ) ( 844 ) — — ( 42,186 ) Distributions to preferred unitholders — ( 2,107 ) ( 43 ) — — ( 2,150 ) Issuance of unit-based awards 126 — — — — — Unit-based awards amortization and vesting, net — ( 3,971 ) — — — ( 3,971 ) Capital contribution — — 227 — — 227 Warrant settlements 199 ( 36,650 ) ( 748 ) ( 18,291 ) — ( 55,689 ) Comprehensive income from unconsolidated investment and other — — — — 845 845 Balance at March 31, 2024 12,960 $ 474,095 $ 7,721 $ 4,804 $ ( 2,277 ) $ 484,343 Net income (2) — 45,142 922 — — 46,064 Redemption of preferred units — ( 13,393 ) ( 273 ) — — ( 13,666 ) Distributions to common unitholders and the general partner — ( 9,787 ) ( 200 ) — — ( 9,987 ) Distributions to preferred unitholders — ( 2,590 ) ( 53 ) — — ( 2,643 ) Unit-based awards amortization and vesting — 2,502 — — — 2,502 Capital contribution — — 555 — — 555 Warrant settlements 89 ( 5,092 ) ( 104 ) ( 4,804 ) — ( 10,000 ) Comprehensive income from unconsolidated investment and other — — — — 1,239 1,239 Balance at June 30, 2024 13,049 $ 490,877 $ 8,568 $ — $ ( 1,038 ) $ 498,407 (1) Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner. (2) Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner. The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents NATURAL RESOURCE PARTNERS L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, (In thousands) 2025 2024 Cash flows from operating activities Net income $ 74,464 $ 102,277 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 7,743 7,978 Distributions from unconsolidated investment 7,840 21,794 Equity earnings from unconsolidated investment ( 7,136 ) ( 9,095 ) Gain on asset sales and disposals ( 976 ) ( 4,808 ) Asset impairments 20 — Bad debt expense ( 869 ) ( 520 ) Unit-based compensation expense 5,379 5,876 Amortization of debt issuance costs and other ( 449 ) ( 948 ) Change in operating assets and liabilities: Accounts receivable 3,461 12,351 Accounts payable 20 49 Accrued liabilities ( 5,694 ) ( 6,309 ) Accrued interest ( 134 ) ( 265 ) Deferred revenue ( 4,213 ) 1,927 Other items, net 547 ( 2,179 ) Net cash provided by operating activities $ 80,003 $ 128,128 Cash flows from investing activities Proceeds from asset sales and disposals $ 977 $ 4,808 Return of long-term contract receivable 1,414 1,306 Net cash provided by investing activities $ 2,391 $ 6,114 Cash flows from financing activities Debt borrowings $ 33,700 $ 129,850 Debt repayments ( 74,500 ) ( 74,696 ) Distributions to common unitholders and the general partner ( 36,331 ) ( 52,173 ) Distributions to preferred unitholders — ( 4,793 ) Redemption of preferred units — ( 40,000 ) Warrant settlements (see Note 3) — ( 65,689 ) Other items, net ( 5,363 ) ( 6,390 ) Net cash used in financing activities $ ( 82,494 ) $ ( 113,891 ) Net increase (decrease) in cash and cash equivalents $ ( 100 ) $ 20,351 Cash and cash equivalents at beginning of period 30,444 11,989 Cash and cash equivalents at end of period $ 30,344 $ 32,340 Supplemental cash flow information: Cash paid for interest $ 5,096 $ 7,666 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation Nature of Business Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and owns a non-controlling 49 % interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The Partnership is organized into two operating segments further described in Note 6. Segment Information . The Partnership’s operations are conducted through, and its operating assets are owned by, its subsidiaries. The Partnership owns its subsidiaries through one wholly owned operating company, NRP (Operating) LLC ("Opco"). As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context. Principles of Consolidation and Reporting The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10 - 01 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2024 and notes thereto included in the Partnership's Annual Report on Form 10 -K, which was filed with the SEC on February 28, 2025. Reclassifications have been made to prior year amounts in the Consolidated Financial Statements to conform with current year presentation. These reclassifications had no impact on previously reported total assets, total liabilities, partners' capital, net income, or cash flows from operating, investing or financing activities. Recently Issued Accounting Standard In November 2024, the FASB issued ASU 2024 - 03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures ("ASU 2024 - 03" ). ASU 2024 - 03 is intended to improve disclosures about a public business entity's expenses and provide more detailed information to investors about the types of expenses in commonly presented expense captions. The guidance is effective for annual periods beginning after December 15, 2026 and quarterly periods beginning after December 31, 2027 and can be adopted prospectively to financial statements issued for reporting periods after the effective date or retrospectively to all prior periods presented in the financial statements. NRP does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. 5 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 2. Revenues from Contracts with Customers The following table presents the Partnership's Mineral Rights segment revenues from contracts with customers by major source: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Coal royalty revenues $ 31,543 $ 39,685 $ 67,041 $ 86,503 Production lease minimum revenues 123 412 2,848 1,336 Minimum lease straight-line revenues 4,050 4,126 8,100 8,297 Oil and gas royalty revenues 1,981 1,999 4,425 5,639 Carbon neutral revenues 290 2,200 885 4,361 Property tax revenues 1,519 1,545 3,156 3,437 Wheelage revenues 2,543 2,338 4,281 5,010 Coal overriding royalty revenues 456 668 1,336 1,837 Lease amendment revenues 656 712 1,311 1,414 Aggregates royalty revenues 906 730 1,759 1,502 Other revenues 228 176 413 829 Royalty and other mineral rights revenues $ 44,295 $ 54,591 $ 95,555 $ 120,165 Transportation and processing services revenues 2,029 2,085 5,914 4,921 Total Mineral Rights segment revenues from contracts with customers $ 46,324 $ 56,676 $ 101,469 $ 125,086 The following table details the Partnership's Mineral Rights segment contract assets and liabilities resulting from contracts with customers: June 30, December 31, (In thousands) 2025 2024 Contract assets Accounts receivable, net $ 24,852 $ 27,358 Other current assets, net 545 — Other long-term assets, net 1,855 2,352 Contract liabilities Accounts payable $ 330 $ 125 Current portion of deferred revenue 4,667 4,341 Deferred revenue 51,275 55,814 The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue resulting from contracts with customers: For the Six Months Ended June 30, (In thousands) 2025 2024 Balance at beginning of period (current and non-current) $ 60,155 $ 42,955 Increase due to minimums and lease amendment fees 7,836 11,151 Recognition of previously deferred revenue ( 12,049 ) ( 9,224 ) Balance at end of period (current and non-current) $ 55,942 $ 44,882 The Partnership's non-cancellable annual minimum payments due under the lease terms of its coal and aggregates royalty contracts with customers are as follows as of June 30, 2025 (in thousands): Lease Term (1) Weighted Average Remaining Years Annual Minimum Payments 0 - 5 years 2.0 $ 13,249 5 - 10 years 4.8 16,922 10+ years 10.8 26,309 Total 6.9 $ 56,480 ( 1 ) Lease term does not include renewal periods. 6 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 3. Class A Convertible Preferred Units and Warrants During the three and six months ended June 30, 2024, the Partnership executed a negotiated transaction with the holders of the Class A Convertible Preferred Units (the "preferred units") pursuant to which the Partnership repurchased an aggregate of 40,000 preferred units for $ 40.0 million in cash. In 2024, all remaining preferred units were redeemed and none of the Partnership's preferred units remained outstanding as of June 30, 2025 and December 31, 2024 . During the three and six months ended June 30, 2024, the Partnership settled a total of 320,335 and 1,540,000 warrants to purchase common units ("warrants") with a strike price of $ 34.00 . These warrants were settled on a net basis for a total of $ 65.7 million in cash and 287,826 common units. In 2024, all remaining warrants were settled and none of the Partnership's warrants remained outstanding as of June 30, 2025 and December 31, 2024 . 4. Common and Preferred Unit Distributions The Partnership makes cash distributions to common unitholders and made cash distributions to preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes common unit distributions on the date the distribution is declared. In 2024, the Partnership recognized preferred unit distributions on the date the distribution was declared. Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2 % of such distributions. Income available to common unitholders and the general partner was reduced by $ 1.4 million and $ 3.6 million in preferred unit distributions that accumulated during the three and six months ended June 30, 2024 , respectively. Income available to common unitholders and the general partner was also reduced by $ 13.7 million during the three and six months ended June 30, 2024, which represents the difference between the fair value of the consideration paid upon redemption of the preferred units and the carrying value of the preferred units. The following table shows the cash distributions declared and paid to common and preferred unitholders during the six months ended June 30, 2025 and 2024 , respectively: Common Units Preferred Units Month Paid Period Covered by Distribution Distribution per Unit Total Distribution (1) (In thousands) Distribution per Unit Total Distribution (In thousands) 2025 February October 1 - December 31, 2024 $ 0.75 $ 10,055 $ — $ — March (2) Special Distribution 1.21 16,221 — — May January 1 - March 31, 2025 0.75 10,055 — — 2024 February October 1 - December 31, 2023 $ 0.75 $ 9,918 $ 30.00 $ 2,150 March (3) Special Distribution 2.44 32,268 — — May January 1 - March 31, 2024 0.75 9,987 30.00 2,150 May (4) April 1 - May 8, 2024 — — 12.33 493 ( 1 ) Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest. ( 2 ) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2024. ( 3 ) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2023. ( 4 ) Relates to accrued distribution paid upon the redemption of 40,000 units in May 2024. 7 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 5. Net Income Per Common Unit In 2025, basic net income per common unit is computed by dividing net income, after considering the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's unvested unit-based awards if the inclusion of these items is dilutive. In 2024, basic net income per common unit is computed by dividing net income, after considering income attributable to preferred unitholders, the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units, and the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's preferred units, warrants, and unvested unit-based awards if the inclusion of these items is dilutive. The dilutive effect of the preferred units in 2024 was calculated using the if-converted method. Under the if-converted method, the preferred units were assumed to be converted at the beginning of the period, and the resulting common units were included in the denominator of the diluted net income per unit calculation for the period being presented. Distributions declared in the period and undeclared distributions on the preferred units that accumulated during the period were added back to the numerator for purposes of the if-converted calculation. The calculation of diluted net income for the three months ended June 30, 2024 did not include the assumed conversion of the remaining preferred units as the inclusion of these units would be anti-dilutive. The calculation of diluted net income per common unit for the six months ended June 30, 2024 included the assumed conversion of the preferred units that remained outstanding during the respective period. The calculation of diluted net income for the three and six months ended June 30, 2024 does not include the assumed conversion of the preferred units that were redeemed during the three and six months ended June 30, 2024 as the inclusion of these units would be anti-dilutive. The dilutive effect of the warrants in 2024 was calculated using the treasury stock method, which assumed that the proceeds from the exercise of these instruments were used to purchase common units at the average market price for the period. The calculation of diluted net income per common unit for the three and six months ended June 30, 2024 included the net settlement of the warrants for the period during which they were outstanding. The following table reconciles the numerator and denominator of the basic and diluted net income per common unit computations and calculates basic and diluted net income per common unit: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands, except per unit data) 2025 2024 2025 2024 Basic net income per common unit Net income attributable to common unitholders $ 33,527 $ 30,336 $ 72,975 $ 83,318 Weighted average common units—basic 13,138 13,032 13,118 12,932 Basic net income per common unit $ 2.55 $ 2.33 $ 5.56 $ 6.44 Diluted net income per common unit Weighted average common units—basic 13,138 13,032 13,118 12,932 Plus: dilutive effect of preferred units — — — 563 Plus: dilutive effect of warrants — 35 — 278 Plus: dilutive effect of unvested unit-based awards 153 200 180 233 Weighted average common units—diluted 13,291 13,267 13,298 14,006 Net income $ 34,211 $ 46,064 $ 74,464 $ 102,277 Less: income attributable to preferred unitholders — ( 1,443 ) — ( 493 ) Less: redemption of preferred units — ( 13,666 ) — ( 13,666 ) Diluted net income attributable to common unitholders and the general partner $ 34,211 $ 30,955 $ 74,464 $ 88,118 Less: diluted net income attributable to the general partner ( 684 ) ( 619 ) ( 1,489 ) ( 1,762 ) Diluted net income attributable to common unitholders $ 33,527 $ 30,336 $ 72,975 $ 86,356 Diluted net income per common unit $ 2.52 $ 2.29 $ 5.49 $ 6.17 8 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 6. Segment Information The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments: Mineral Rights —consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity, and basic building materials, as well as opportunities for carbon sequestration and renewable energy. Soda Ash —consists of the Partnership's 49 % non-controlling equity interest in Sisecam Wyoming, one of the world's lowest-cost producers of soda ash, an essential ingredient for the manufacturing of glass, detergents, solar panels, and batteries for electric vehicles. Operations are managed by NRP's partner, Sisecam Chemicals Wyoming, LLC, and NRP realizes cash flow when distributions are paid to it. Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP’s Chief Operating Decision Makers (“CODMs”) are its Chief Executive Officer and President and Chief Operating Officer. They evaluate the Partnership’s performance through a review of the segments’ net income and free cash flow as compared to budget and utilize this information to assess the segments’ performance and allocate resources. NRP does not conduct operations on any of its assets or directly engage in any type of industrial activity. Instead, it leases its mineral and other rights to companies that conduct operations on its properties in exchange for paying royalties and other fees to the Partnership. Operating expenses, capital costs and other liabilities arising out of production activities are borne entirely by NRP's lessees. In the case of its soda ash investment, operations are managed by NRP's partner, Sisecam Chemicals Wyoming LLC. NRP has determined its significant segment expenses to be its employee related expenses, including compensation (salaries, benefits and bonus) and long-term incentive compensation as well as interest expense and property tax expense. The Partnership is responsible for paying property taxes on the properties it owns. Typically, NRP's lessees are contractually responsible for reimbursing the Partnership for property taxes on the leased properties and this reimbursement amount is included within the Mineral Rights segment revenues. Reclassifications have been made to prior year amounts to conform with current year presentation. 9 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) The following tables summarize certain financial information for each of the Partnership's business segments: Operating Segments (In thousands) Mineral Rights Soda Ash Corporate and Financing Total For the Three Months Ended June 30, 2025 Revenues $ 46,846 $ — $ — $ 46,846 Equity in earnings of Sisecam Wyoming — 2,526 — 2,526 Gain on asset sales and disposals 729 — — 729 Total revenues and other income $ 47,575 $ 2,526 $ — $ 50,101 Less: Compensation (salaries, benefits and bonus) $ 1,683 $ — $ 1,847 $ 3,530 Long-term incentive compensation (1) 458 — 2,237 2,695 Property taxes 1,767 — — 1,767 Depreciation, depletion and amortization 3,748 — 6 3,754 Interest expense, net (2) — — 2,380 2,380 Other segment items (3) 228 24 1,512 1,764 Net income (loss) $ 39,691 $ 2,502 $ ( 7,982 ) $ 34,211 For the Three Months Ended June 30, 2024 Revenues $ 57,252 $ — $ — $ 57,252 Equity in earnings of Sisecam Wyoming — 3,645 — 3,645 Gain on asset sales and disposals 4,643 — — 4,643 Total revenues and other income $ 61,895 $ 3,645 $ — $ 65,540 Less: Compensation (salaries, benefits and bonus) $ 1,802 $ — $ 1,808 $ 3,610 Long-term incentive compensation (4) 410 — 2,479 2,889 Property taxes 1,738 — — 1,738 Depreciation, depletion and amortization 3,320 — 4 3,324 Interest expense, net (2) — — 4,349 4,349 Other segment items (3) 1,896 26 1,644 3,566 Net income (loss) $ 52,729 $ 3,619 $ ( 10,284 ) $ 46,064 ( 1 ) Long-term incentive compensation for the three months ended June 30, 2025 includes ( 1 ) Mineral Rights segment: $ 0.3 million of equity compensation and $ 0.1 million of cash compensation; ( 2 ) Corporate & Financing segment: $ 2.2 million of equity compensation and $ 0.1 million of cash compensation. ( 2 ) Included in interest expense, net was $ 0.2 million and $ 0.1 million of interest income for the three months ended June 30, 2025 and 2024 , respectively. ( 3 ) Other segment items in the Mineral Rights segment primarily include: insurance, legal, overriding royalty expense, processing and transportation expense, information technology, shared facility services, rent, professional fees and bad debt expense. Other segment items in the Soda Ash segment primarily include professional fees. Other segment items in the Corporate and Financing segment primarily include: insurance, legal, information technology, shared facility services, rent and professional fees. ( 4 ) Long-term incentive compensation for the three months ended June 30, 2024 includes ( 1 ) Mineral Rights segment: $ 0.4 million of equity compensation and $ 0.05 million of cash compensation; ( 2 ) Corporate & Financing segment: $ 2.4 million of equity compensation and $ 0.1 million of cash compensation. 10 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) Operating Segments (In thousands) Mineral Rights Soda Ash Corporate and Financing Total For the Six Months Ended June 30, 2025 Revenues $ 102,527 $ — $ — $ 102,527 Equity in earnings of Sisecam Wyoming — 7,136 — 7,136 Gain on asset sales and disposals 976 — — 976 Total revenues and other income $ 103,503 $ 7,136 $ — $ 110,639 Less: Compensation (salaries, benefits and bonus) $ 3,621 $ — $ 3,956 $ 7,577 Long-term incentive compensation (1) 922 — 4,498 5,420 Property taxes 3,559 — — 3,559 Depreciation, depletion and amortization 7,733 — 10 7,743 Asset impairments 20 — — 20 Interest expense, net (2) — — 5,048 5,048 Other segment items (3) 2,749 84 3,975 6,808 Net income (loss) $ 84,899 $ 7,052 $ ( 17,487 ) $ 74,464 As of June 30, 2025 Total assets $ 497,971 $ 258,498 $ 5,497 $ 761,966 For the Six Months Ended June 30, 2024 Revenues $ 128,051 $ — $ — $ 128,051 Equity in earnings of Sisecam Wyoming — 9,095 — 9,095 Gain on asset sales and disposals 4,808 — — 4,808 Total revenues and other income $ 132,859 $ 9,095 $ — $ 141,954 Less: Compensation (salaries, benefits and bonus) $ 3,778 $ — $ 3,533 $ 7,311 Long-term incentive compensation (4) 915 — 4,889 5,804 Property taxes 3,905 — — 3,905 Depreciation, depletion and amortization 7,969 — 9 7,978 Interest expense, net (2) — — 7,836 7,836 Other segment items (3) 2,919 88 3,836 6,843 Net income (loss) $ 113,373 $ 9,007 $ ( 20,103 ) $ 102,277 As of December 31, 2024 Total assets $ 509,127 $ 257,355 $ 6,425 $ 772,907 ( 1 ) Long-term incentive compensation for the six months ended June 30, 2025 includes ( 1 ) Mineral Rights segment: $ 0.6 million of equity compensation and $ 0.3 million of cash compensation; ( 2 ) Corporate & Financing segment: $ 4.3 million of equity compensation and $ 0.2 million of cash compensation. ( 2 ) Included in interest expense, net was $ 0.5 million and $ 0.1 million of interest income for the six months ended June 30, 2025 and 2024, respectively. ( 3 ) Other segment items in the Mineral Rights segment primarily include: insurance, legal, overriding royalty expense, processing and transportation expense, information technology, shared facility services, rent, professional fees and bad debt expense. Other segment items in the Soda Ash segment primarily include professional fees. Other segment items in the Corporate and Financing segment primarily include: insurance, legal, information technology, shared facility services, rent and professional fees. ( 4 ) Long-term incentive compensation for the six months ended June 30, 2024 includes ( 1 ) Mineral Rights segment: $ 0.7 million of equity compensation and $ 0.2 million of cash compensation; ( 2 ) Corporate & Financing segment: $ 4.7 million of equity compensation and $ 0.2 million of cash compensation. 11 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 7. Equity Investment The Partnership accounts for its 49 % investment in Sisecam Wyoming using the equity method of accounting. Activity related to this investment is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Balance at beginning of period $ 261,286 $ 268,634 $ 257,355 $ 276,549 Income allocation to NRP’s equity interests (1) 3,652 4,757 9,416 11,403 Amortization of basis difference ( 1,126 ) ( 1,111 ) ( 2,279 ) ( 2,307 ) Other comprehensive income (loss) ( 414 ) 1,239 1,846 2,084 Distributions ( 4,900 ) ( 7,584 ) ( 7,840 ) ( 21,794 ) Balance at end of period $ 258,498 $ 265,935 $ 258,498 $ 265,935 ( 1 ) Amounts reclassified into income out of accumulated other comprehensive loss were $ 0.0 million and $ 1.4 million for the three months ended June 30, 2025 and 2024 , respectively and $ 1.3 million and $ 3.0 million for the six months ended June 30, 2025 and 2024, respectively. The following table represents summarized financial information for Sisecam Wyoming as derived from their respective unaudited financial statements for the three and six months ended June 30, 2025 and 2024 : For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Net sales $ 136,598 $ 146,979 $ 289,907 $ 277,410 Gross profit 15,170 17,475 34,203 38,608 Net income 7,452 9,709 19,216 23,272 8. Mineral Rights, Net The Partnership’s mineral rights consist of the following: June 30, 2025 December 31, 2024 (In thousands) Carrying Value Accumulated Depletion Net Book Value Carrying Value Accumulated Depletion Net Book Value Coal properties $ 653,808 $ ( 297,928 ) $ 355,880 $ 660,961 $ ( 299,404 ) $ 361,557 Aggregates properties 8,655 ( 4,214 ) 4,441 8,655 ( 4,065 ) 4,590 Oil and gas royalty properties 12,354 ( 10,488 ) 1,866 12,354 ( 10,394 ) 1,960 Other 13,142 ( 1,612 ) 11,530 13,143 ( 1,612 ) 11,531 Total mineral rights, net $ 687,959 $ ( 314,242 ) $ 373,717 $ 695,113 $ ( 315,475 ) $ 379,638 Depletion expense related to the Partnership’s mineral rights is included in depreciation, depletion and amortization on its Consolidated Statements of Comprehensive Income and totaled $ 3.5 million and $ 3.1 million for the three months ended June 30, 2025 and 2024 , respectively and $ 7.2 million and $ 7.4 million for the six months ended June 30, 2025 and 2024, respectively. The Partnership has developed procedures to evaluate its long-lived assets for possible impairment periodically or whenever events or changes in circumstances indicate an asset's net book value may not be recoverable. Potential events or circumstances include, but are not limited to, specific events such as a reduction in economically recoverable minerals or production ceasing on a property for an extended period. This analysis is based on historic, current and future performance and considers both quantitative and qualitative information. As a result of the Partnership's analyses, NRP recorded an immaterial impairment expense during the six months ended June 30, 2025 . 12 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 9. Debt, Net The Partnership's debt consists of the following: June 30, December 31, (In thousands) 2025 2024 Opco Credit Facility $ 72,884 $ 113,684 Opco Senior Notes 5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026 $ 22,841 $ 22,841 5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026 5,822 5,822 Total Opco Senior Notes $ 28,663 $ 28,663 Total debt at face value $ 101,547 $ 142,347 Net unamortized debt issuance costs ( 207 ) ( 279 ) Total debt, net $ 101,340 $ 142,068 Less: current portion of long-term debt ( 14,228 ) ( 14,192 ) Total long-term debt, net $ 87,112 $ 127,876 Opco Debt All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of June 30, 2025 and December 31, 2024 , Opco was in compliance with the terms of the financial covenants contained in its debt agreements. Opco Credit Facility In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $ 130.0 million to $ 155.0 million, with the ability to expand such commitments to $ 200.0 million with the addition of future commitments. In February 2024, the Partnership exercised its option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $ 30.0 million from $ 155.0 million to $ 185.0 million and subsequently by $ 15.0 million from $ 185.0 million to $ 200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In connection with the initial increase, a new lender joined the lending group with a commitment of $ 30.0 million. In October 2024, NRP entered into the Seventh Amendment to the Opco Credit Facility which extended the maturity from August 2027 to October 2029. The Seventh Amendment also removed reference to the preferred units and warrants, which are no longer outstanding, and includes modifications to Opco's ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain: • A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x. As of June 30, 2025 , this rati o was 0.5x; an d • an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0. As of June 30, 2025 , this ratio was 14.2x. As of December 31, 2024 , the Partnership had $ 113.7 million in borrowings outstanding under the Opco Credit Facility and $ 86.3 million of available borrowing capacity. During the six months ended June 30, 2025 , the Partnership borrowed $ 33.7 million and repaid $ 74.5 million, resulting in $ 72.9 million in borrowings outstanding under the Opco Credit Facility and $ 127.1 million of available borrowing capacity as of June 30, 2025 . During the six months ended June 30, 2024 , the Partnership borrowed $ 129.9 million and repaid $ 58.0 million on the Opco Credit Facility. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three months ended June 30, 2025 and 2024 was 7.93 % and 8.92 %, respectively. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the six months ended June 30, 2025 and 2024 was 7.93 % and 8.93 %, respectively. The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $ 296.1 million and $ 302.8 million classified as mineral rights, net and other long-term assets, net and $ 22.0 million and $ 23.5 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 , respectively. Opco Senior Notes Opco issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of June 30, 2025 , the 5.03% and 5.18% Opco Senior Notes remain outstanding. These Opco Senior Notes have principal due annually in December and interest due semi-annually in June and December. As of both June 30, 2025 and December 31, 2024 , the Opco Senior Notes had cumulative principal balances of $ 28.7 million. Opco made mandatory principal payments of $ 0.0 million and $ 16.7 during the six months ended June 30, 2025 and 2024 , respectively. These Opco Senior Notes will be fully repaid in December 2026. 13 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 10. Fair Value Measurements Fair Value of Financial Assets and Liabilities The Partnership’s financial assets and liabilities consist of cash and cash equivalents, a contract receivable and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its contract receivable and debt. The following table shows the carrying value and estimated fair value of the Partnership's contract receivable and debt: June 30, 2025 December 31, 2024 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Level Value Fair Value Value Fair Value Assets: Contract receivable, net (current and long-term) (1) 3 $ 24,929 $ 21,965 $ 26,321 $ 22,776 Debt: Opco Senior Notes (2) 3 $ 28,456 $ 27,891 $ 28,384 $ 27,498 Opco Credit Facility (3) 3 72,884 72,884 113,684 113,684 ( 1 ) The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15 % at June 30, 2025 and December 31, 2024 . ( 2 ) The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility. ( 3 ) The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty. 11. Related Party Transactions Affiliates of our General Partner The Partnership’s general partner does not receive any management fee or other compensation for its management of NRP. However, in accordance with the partnership agreement, the general partner and its affiliates are reimbursed for services provided to the Partnership and for expenses incurred on the Partnership’s behalf. Employees of Quintana Minerals Corporation ("QMC") and Western Pocahontas Properties Limited Partnership ("WPPLP"), affiliates of the Partnership, provide their services to manage the Partnership's business. QMC and WPPLP charge the Partnership the portion of their employee salary and benefits costs related to their employee services provided to NRP. These QMC and WPPLP employee management service costs are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP also reimburses overhead costs incurred by its affiliates, and other related parties, to manage the Partnership's business. These overhead costs include certain rent, information technology, administration of employee benefits and other corporate services incurred by or on behalf of the Partnership’s general partner and its affiliates and are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. Related party general and administrative expenses included on the Partnership's Consolidated Statement of Comprehensive Income are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2025 2024 2025 2024 Operating and maintenance expenses $ 1,515 $ 1,703 $ 3,308 $ 3,469 General and administrative expenses 1,313 1,297 2,882 2,821 The Partnership had accounts payable to related parties of $ 0.4 million and $ 0.6 million on its Consolidated Balance Sheets at June 30, 2025 and December 31, 2024, respectively. The Partnership had other current assets of $ 0.1 and $ 0.2 million on its Consolidated Balance Sheets related to a prepaid expense at June 30, 2025 and December 31, 2024 , respectively. As a result of its office lease with WPPLP, the Partnership has a right-of-use asset and lease liability of $ 3.4 million included in other long-term assets, net and other non-current liabilities, respectively on its Consolidated Balance Sheets at both June 30, 2025 and December 31, 2024 . During the three months ended June 30, 2025 and 2024 , the Partnership recognized $ 0.1 million and $ 0.01 million in operating and maintenance expenses, respectively, on its Consolidated Statements of Comprehensive Income related to an overriding royalty agreement with WPPLP. These amounts were $ 0.2 million and $ 0.04 million during the six months ended June 30, 2025 and 2024, respectively. The Partnership had $ 0.1 million in accounts payable on its Consolidated Balance Sheets at June 30, 2025 related to this agreement as well as $ 1.1 million and $ 0.5 million of other long-term assets, net on its Consolidated Balance Sheets related to a prepaid royalty for this agreement at June 30, 2025 and December 31, 2024, respectively. 14 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 12. Major Customers Revenues from customers that exceeded 10 percent of total revenues for any of the periods presented below are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Revenues Percent Revenues Percent Revenues Percent Revenues Percent Alpha Metallurgical Resources, Inc. (1) $ 13,184 28 % $ 17,887 31 % $ 26,360 26 % $ 38,789 30 % Foresight Energy Resources LLC ("Foresight") (1) $ 9,796 21 % $ 9,736 17 % $ 26,256 26 % $ 22,582 18 % Alabama Kanu Holdings, LLC (1) (2) $ 5,284 11 % $ 7,452 13 % $ 8,543 8 % $ 14,201 11 % ( 1 ) Revenues from Alpha Metallurgical Resources, Inc. Foresight and Alabama Kanu Holdings, LLC are included within the Partnership's Mineral Rights segment. ( 2 ) Alabama Kanu Holdings, LLC purchased Hatfield Metallurgical Holdings, LLC in August 2024. 13. Commitments and Contingencies NRP is involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, Partnership management believes these ordinary course matters will not have a material effect on the Partnership’s financial position, liquidity or operations. 14. Unit-Based Compensation During the six months ended June 30, 2025 and 2024 , the Partnership granted service, performance and market-based awards under its 2017 Long-Term Incentive Plan. The Partnership's service and performance-based awards are valued using the closing price of NRP's common units as of the grant date while the Partnership's market-based awards are valued using a Monte Carlo simulation. The grant date fair value of the awards granted during the six months ended June 30, 2025 and 2024 was $ 6.8 million and $ 6.7 million, respectively, which included a grant date fair value of $ 2.5 million for the market-based awards valued using a Monte Carlo simulation during both the six months ended June 30, 2025 and 2024 . Total unit-based compensation expense associated with these awards was $ 2.7 million and $ 2.9 million for the three months ended June 30, 2025 and 2024 , respectively, and $ 5.4 million and $ 5.9 million for the six months ended June 30, 2025 and 2024, respectively, and is included in general and administrative expenses and operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. The unamortized cost associated with unvested outstanding awards as of June 30, 2025 was $ 11.5 million, which will be recognized over a weighted average period of 1.8 years. The unamortized cost associated with unvested outstanding awards as of December 31, 2024 was $ 9.5 million. The Partnership paid $ 5.5 million and $ 6.4 million in cash during the six months ended June 30, 2025 and 2024 , respectively, for taxes on the unit-based award settlements during the respective years. These cash payments are included in other items, net under cash flows from financing activities on the Partnership's Consolidated Statements of Cash Flows. A summary of the unit activity in the outstanding grants during 2025 is as follows: (In thousands) Common Units Weighted Average Grant Date Fair Value per Common Unit Outstanding at January 1, 2025 350 $ 60.81 Granted 57 $ 117.98 Fully vested and issued ( 141 ) $ 50.33 Outstanding at June 30, 2025 266 $ 78.68 15 Table of Contents NATURAL RESOURCE PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 15. Credit Losses The Partnership is exposed to credit losses through collection of its short-term trade receivables resulting from contracts with customers and a long-term receivable resulting from a financing transaction with a customer. The Partnership records an allowance for current expected credit losses on these receivables based on the loss-rate method. NRP assessed the likelihood of collection of its receivables utilizing historical loss rates, current market conditions, industry and macroeconomic factors, reasonable and supportable forecasts and facts or circumstances of individual customers and properties. Examples of these facts or circumstances include, but are not limited to, contract disputes or renegotiations with the customer and evaluation of short and long-term economic viability of the contracted property. For its long-term contract receivable, management reverts to the historical loss experience immediately after the reasonable and supportable forecast period ends. As of June 30, 2025 and December 31, 2024 , NRP had the following current expected credit loss (“CECL”) allowance related to its receivables and long-term contract receivable: June 30, 2025 December 31, 2024 (In thousands) Gross CECL Allowance Net Gross CECL Allowance Net Receivables $ 32,456 $ ( 2,795 ) $ 29,661 $ 37,270 $ ( 4,425 ) $ 32,845 Long-term contract receivable 22,761 ( 788 ) 21,973 24,323 ( 843 ) 23,480 Total $ 55,217 $ ( 3,583 ) $ 51,634 $ 61,593 $ ( 5,268 ) $ 56,325 NRP recorded reversals of $ 1.4 million and $ 0.0 million of operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to the change in the CECL allowance during the three months ended June 30, 2025 and 2024 , respectively, and reversals of $ 1.7 million and $ 0.8 million during the six months ended June 30, 2025 and 2024, respectively. NRP has procedures in place to monitor its ongoing credit exposure through timely review of counterparty balances against contract terms and due dates, account and financing receivable reconciliation, bankruptcy monitoring, lessee audits and dispute resolution. The Partnership may employ legal counsel or collection specialists to pursue recovery of defaulted receivables. 16. Subsequent Events The following represents material events that have occurred subsequent to June 30, 2025 through the time of the Partnership’s filing of its Quarterly Report on Form 10 -Q with the SEC: Common Unit Distributions In August 2025, the Board of Directors declared a distribution of $ 0.75 per common unit with respect to the second quarter of 2025 . 16 Table of Contents ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following review of operations for the three and six month periods ended June 30, 2025 and 2024 should be read in conjunction with our Consolidated Financial Statements and the Notes to Consolidated Financial Statements included in this Form 10-Q and with the Consolidated Financial Statements, Notes to Consolidated Financial Statements and Management’s Discussion and Analysis included in the Natural Resource Partners L.P. Annual Report on Form 10-K for the year ended December 31, 2024. As used herein, unless the context otherwise requires: "we," "our," "us" and the "Partnership" refer to Natural Resource Partners L.P. and, where the context requires, our subsidiaries. References to "NRP" and "Natural Resource Partners" refer to Natural Resource Partners L.P. only, and not to NRP (Operating) LLC or any of Natural Resource Partners L.P.’s subsidiaries. References to "Opco" refer to NRP (Operating) LLC, a wholly owned subsidiary of NRP, and its subsidiaries. INFORMATION REGARDING FORWARD-LOOKING STATEMENTS Statements included in this 10-Q may constitute forward-looking statements. In addition, we and our representatives may from time to time make other oral or written statements which are also forward-looking statements. Such forward-looking statements include, among other things, statements regarding: future distributions on our common units; our business strategy; our liquidity and access to capital and financing sources; our financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by our lessees; Sisecam Wyoming LLC’s ("Sisecam Wyoming's") trona mining and soda ash refinery operations; distributions from our soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving us, and of scheduled or potential regulatory or legal changes; and global and U.S. economic conditions. These forward-looking statements speak only as of the date hereof and are made based upon our current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. You should not put undue reliance on any forward-looking statements. See " Item 1A. Risk Factors " included in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2024 for important factors that could cause our actual results of operations or our actual financial condition to differ. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. For a description of Opco's debt agreements, see Note 9. Debt, Net in the Notes to Consolidated Financial Statements included herein as well as in "Item 8. Financial Statements and Supplementary Data—Note 11. Debt, Net" in our Annual Report on Form 10-K for the year ended December 31, 2024. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis. Distributable Cash Flow Distributable cash flow ("DCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, DCF presented below is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt. Free Cash Flow Free cash flow ("FCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. FCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. FCF may not be calculated the same for us as for other companies. FCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt. Leverage Ratio Leverage ratio represents the outstanding principal of our debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. We believe that leverage ratio is a useful measure to management and investors to evaluate and monitor our indebtedness relative to our ability to generate income to service such debt and in understanding trends in our overall financial condition. Leverage ratio may not be calculated the same for us as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios. 17 Table of Contents Introduction The following discussion and analysis presents management's view of our business, financial condition and overall performance. Our discussion and analysis consists of the following subjects: • Executive Overview • Results of Operations • Liquidity and Capital Resources • Off-Balance Sheet Transactions • Related Party Transactions • Summary of Critical Accounting Estimates • Recent Accounting Standards Executive Overview We are a diversified natural resource company engaged principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and own a non-controlling 49% interest in Sisecam Wyoming, a trona ore mining and soda ash production business. Our common units trade on the New York Stock Exchange under the symbol "NRP." Our business is organized into two operating segments: Mineral Rights —consists of approximately 13 million acres of mineral interests and other subsurface rights across the United States. If combined in a single tract, our ownership would cover roughly 20,000 square miles, including 3.5 million acres of underground pore space for the sequestration of carbon dioxide. Our assets provide critical inputs for the manufacturing of steel, electricity, building materials, and components used in the generation of renewable energy. Soda Ash —consists of our 49% non-controlling equity interest in Sisecam Wyoming, one of the world's lowest-cost producers of soda ash, an essential ingredient for the manufacturing of glass, detergents, solar panels, and batteries for electric vehicles. Operations are managed by our partner, Sisecam Chemicals Wyoming LLC, and we realize cash flow when distributions are paid to us. Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment. Our financial results by segment for the six months ended June 30, 2025 are as follows: Operating Segments (In thousands) Mineral Rights Soda Ash Corporate and Financing Total Revenues and other income $ 103,503 $ 7,136 $ — $ 110,639 Net income (loss) $ 84,899 $ 7,052 $ (17,487 ) $ 74,464 Adjusted EBITDA (1) $ 92,652 $ 7,756 $ (12,429 ) $ 87,979 Cash flow provided by (used in) continuing operations Operating activities $ 88,799 $ 7,755 $ (16,551 ) $ 80,003 Investing activities $ 2,391 $ — $ — $ 2,391 Financing activities $ (841 ) $ — $ (81,653 ) $ (82,494 ) Distributable cash flow (1) $ 91,190 $ 7,755 $ (16,551 ) $ 82,394 Free cash flow (1) $ 90,213 $ 7,755 $ (16,551 ) $ 81,417 (1) See "Results of Operations" below for reconciliations to the most comparable GAAP financial measures. 18 Table of Contents Current Results/Market Commentary Financial Results and Quarterly Distributions We generated $80.0 million of operating cash flow and $81.4 million of free cash flow during the six months ended June 30, 2025, and ended the quarter with $157.5 million of liquidity consisting of $30.3 million of cash and cash equivalents and $127.1 million of available borrowing capacity under our Opco Credit Facility. As of June 30, 2025 our leverage ratio was 0.5 x. In February 2025, we paid a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2024. In March 2025, we paid a special cash distribution of $1.21 per common unit of NRP to help cover unitholder tax liabilities associated with owning NRP's common units in 2024. In May 2025, we paid a cash distribution of $0.75 per common unit of NRP with respect to the first quarter of 2025. Future distributions on our 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 of Directors determines is necessary for future operating and capital needs. Mineral Rights Business Segment Revenues and other income during the six months ended June 30, 2025 decreased $29.4 million, or 22% , as compared to the prior year period. Cash provided by operating activities and free cash flow during the six months ended June 30, 2025 decreased by $37.2 million and $37.1 million, respectively, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal sales prices and volumes as compared to the prior year period. Metallurgical and thermal coal prices remained weak throughout the quarter, and we expect muted pricing for both commodities for the remainder of 2025. Stagnant global steel demand and regulatory uncertainty continue to impact metallurgical coal markets and more than substantial thermal coal inventory levels at domestic power plants continue to stifle domestic thermal markets. We continue to explore carbon neutral revenue opportunities across our mineral and surface assets. While the timing and likelihood of additional cash flows from carbon neutral activities such as the sequestration of carbon dioxide underground and in standing forests, lithium production, and electric generation via renewable energy sources is uncertain, we believe our vast ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by us. Soda Ash Business Segment Revenues and other income during the six months ended June 30, 2025 decreased $2.0 million, or 22%, as compared to the prior year period primarily due to lower sales prices in 2025. Cash provided by operating activities and free cash flow during the six months ended June 30, 2025 each decreased $14.0 million as compared to the prior year period due to lower cash distributions received from Sisecam Wyoming in the first half of 2025. The soda ash market remains significantly oversupplied due to the substantial increase in global capacity in recent years, as well as weakening demand for flat glass due to sluggish global construction activity and decreased demand for new automobiles and solar panels. We believe international soda ash prices are at or below the cost of production for many operators and expect this weak pricing environment to continue for the foreseeable future until high-cost supply is forced out of the market or global soda ash demand growth catches up with supply. We expect distributions from Sisecam Wyoming to remain below historical norms for the foreseeable future. 19 Table of Contents Results of Operations Second Quarter of 2025 and 2024 Compared Revenues and Other Income The following table includes our revenues and other income by operating segment: For the Three Months Ended June 30, Percentage Operating Segment (In thousands) 2025 2024 Decrease Change Mineral Rights $ 47,575 $ 61,895 $ (14,320 ) (23 )% Soda Ash 2,526 3,645 (1,119 ) (31 )% Total $ 50,101 $ 65,540 $ (15,439 ) (24 )% The changes in revenues and other income are discussed for each of the operating segments below: 20 Table of Contents Mineral Rights The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income: For the Three Months Ended June 30, Increase Percentage (In thousands, except per ton data) 2025 2024 (Decrease) Change Coal sales volumes (tons) Appalachia Northern 132 129 3 2 % Central 3,195 3,456 (261 ) (8 )% Southern 548 709 (161 ) (23 )% Total Appalachia 3,875 4,294 (419 ) (10 )% Illinois Basin 1,637 1,342 295 22 % Northern Powder River Basin 426 567 (141 ) (25 )% Gulf Coast 176 435 (259 ) (60 )% Total coal sales volumes 6,114 6,638 (524 ) (8 )% Coal royalty revenue per ton Appalachia Northern $ 1.91 $ 4.74 $ (2.83 ) (60 )% Central 6.41 7.34 (0.93 ) (13 )% Southern 8.53 10.19 (1.66 ) (16 )% Illinois Basin 2.21 2.47 (0.26 ) (11 )% Northern Powder River Basin 5.73 4.99 0.74 15 % Gulf Coast 0.80 0.77 0.03 4 % Combined average coal royalty revenue per ton 5.17 5.98 (0.81 ) (14 )% Coal royalty revenues Appalachia Northern $ 252 $ 612 $ (360 ) (59 )% Central 20,494 25,378 (4,884 ) (19 )% Southern 4,676 7,226 (2,550 ) (35 )% Total Appalachia 25,422 33,216 (7,794 ) (23 )% Illinois Basin 3,610 3,312 298 9 % Northern Powder River Basin 2,443 2,831 (388 ) (14 )% Gulf Coast 140 336 (196 ) (58 )% Unadjusted coal royalty revenues 31,615 39,695 (8,080 ) (20 )% Coal royalty adjustment for minimum leases (72 ) (10 ) (62 ) (620 )% Total coal royalty revenues $ 31,543 $ 39,685 $ (8,142 ) (21 )% Other revenues Production lease minimum revenues $ 123 $ 412 $ (289 ) (70 )% Minimum lease straight-line revenues 4,050 4,126 (76 ) (2 )% Oil and gas royalty revenues 1,981 1,999 (18 ) (1 )% Carbon neutral revenues 290 2,200 (1,910 ) (87 )% Property tax revenues 1,519 1,545 (26 ) (2 )% Wheelage revenues 2,543 2,338 205 9 % Coal overriding royalty revenues 456 668 (212 ) (32 )% Lease amendment revenues 656 712 (56 ) (8 )% Aggregates royalty revenues 906 730 176 24 % Other revenues 228 176 52 30 % Total other revenues $ 12,752 $ 14,906 $ (2,154 ) (14 )% Royalty and other mineral rights $ 44,295 $ 54,591 $ (10,296 ) (19 )% Transportation and processing services revenues 2,551 2,661 (110 ) (4 )% Gain on asset sales and disposals 729 4,643 (3,914 ) (84 )% Total Mineral Rights segment revenues and other income $ 47,575 $ 61,895 $ (14,320 ) (23 )% 21 Table of Contents Coal Royalty Revenues Approximately 70% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal during the three months ended June 30, 2025. Total coal royalty revenues decreased $8.1 million as compared to the prior year quarter primarily due to lower metallurgical coal sales prices and volumes during the three months ended June 30, 2025 as compared to the prior year quarter. Other Revenues Other revenues decreased $2.2 million primarily as a result of a non-recurring carbon neutral transaction in the second quarter of 2024. Gain on Asset Sales and Disposals Gain on asset sales and disposals decreased $3.9 million during the three months ended June 30, 2025 as compared to the prior year quarter primarily as a result of a coal property condemnation in the second quarter of 2024. Soda Ash Revenues and other income related to our Soda Ash segment decreased $1.1 million as compared to the prior year quarter primarily due to lower sales prices in 2025. Interest Expense, Net Interest expense, net, decreased $2.0 million primarily due to lower borrowings outstanding on the Opco Credit Facility during the three months ended June 30, 2025 as compared to the prior year quarter. Adjusted EBITDA (Non-GAAP Financial Measure) The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment: Operating Segments For the Three Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Net income (loss) $ 39,691 $ 2,502 $ (7,982 ) $ 34,211 Less: equity earnings from unconsolidated investment — (2,526 ) — (2,526 ) Add: total distributions from unconsolidated investment — 4,900 — 4,900 Add: interest expense, net — — 2,380 2,380 Add: depreciation, depletion and amortization 3,748 — 6 3,754 Adjusted EBITDA $ 43,439 $ 4,876 $ (5,596 ) $ 42,719 June 30, 2024 Net income (loss) $ 52,729 $ 3,619 $ (10,284 ) $ 46,064 Less: equity earnings from unconsolidated investment — (3,645 ) — (3,645 ) Add: total distributions from unconsolidated investment — 7,584 — 7,584 Add: interest expense, net — — 4,349 4,349 Add: depreciation, depletion and amortization 3,320 — 4 3,324 Adjusted EBITDA $ 56,049 $ 7,558 $ (5,931 ) $ 57,676 Net income decreased $11.9 million as compared to the prior year quarter primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $15.0 million as compared to the prior year quarter primarily due to a $12.6 million decrease in Adjusted EBITDA within our Mineral Rights segment driven by the lower revenues and other income as discussed above in addition to a $2.7 million decrease in Adjusted EBITDA within our Soda Ash segment driven by a lower cash distribution received from Sisecam Wyoming in the second quarter of 2025. 22 Table of Contents Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures) The following table presents the three major categories of the statement of cash flows by business segment: Operating Segments For the Three Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Cash flow provided by (used in) Operating activities $ 45,576 $ 4,875 $ (4,872 ) $ 45,579 Investing activities 1,444 — — 1,444 Financing activities — — (47,555 ) (47,555 ) June 30, 2024 Cash flow provided by (used in) Operating activities $ 56,234 $ 7,557 $ (7,162 ) $ 56,629 Investing activities 5,302 — — 5,302 Financing activities — — (40,581 ) (40,581 ) The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF: Operating Segments For the Three Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Net cash provided by (used in) operating activities $ 45,576 $ 4,875 $ (4,872 ) $ 45,579 Add: proceeds from asset sales and disposals 730 — — 730 Add: return of long-term contract receivable 714 — — 714 Distributable cash flow $ 47,020 $ 4,875 $ (4,872 ) $ 47,023 Less: proceeds from asset sales and disposals (730 ) — — (730 ) Free cash flow $ 46,290 $ 4,875 $ (4,872 ) $ 46,293 June 30, 2024 Net cash provided by (used in) operating activities $ 56,234 $ 7,557 $ (7,162 ) $ 56,629 Add: proceeds from asset sales and disposals 4,643 — — 4,643 Add: return of long-term contract receivable 659 — — 659 Distributable cash flow $ 61,536 $ 7,557 $ (7,162 ) $ 61,931 Less: proceeds from asset sales and disposals (4,643 ) — — (4,643 ) Free cash flow $ 56,893 $ 7,557 $ (7,162 ) $ 57,288 Operating cash flow, DCF and FCF decreased $11.1 million, $14.9 million and $11.0 million, respectively, as compared to the prior year quarter. The discussion by segment is as follows: • Mineral Rights Segment ◦ Operating cash flow, DCF and FCF decreased $10.7 million, $14.5 million and $10.6 million, respectively, primarily due to lower metallurgical coal sales prices and volumes as compared to the prior year quarter. DCF was also impacted by a $3.9 million decrease in proceeds from asset sales resulting from a coal property condemnation in the second quarter of 2024. • Soda Ash Segment ◦ Operating cash flow, DCF and FCF each decreased $2.7 million as compared to the prior year quarter primarily due to a lower cash distribution received from Sisecam Wyoming in the second quarter of 2025. • Corporate and Financing Segment ◦ Operating cash flow, DCF and FCF each improved by $2.3 million as compared to the prior year quarter primarily due to lower cash paid for interest in the second quarter of 2025. 23 Table of Contents First Six Months of 2025 and 2024 Compared Revenues and Other Income The following table includes our revenues and other income by operating segment: For the Six Months Ended June 30, Percentage Operating Segment (In thousands) 2025 2024 Decrease Change Mineral Rights $ 103,503 $ 132,859 $ (29,356 ) (22 )% Soda Ash 7,136 9,095 (1,959 ) (22 )% Total $ 110,639 $ 141,954 $ (31,315 ) (22 )% The changes in revenues and other income are discussed for each of the operating segments below: 24 Table of Contents Mineral Rights The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income: For the Six Months Ended June 30, Increase Percentage (In thousands, except per ton data) 2025 2024 (Decrease) Change Coal sales volumes (tons) Appalachia Northern 256 246 10 4 % Central 6,501 7,170 (669 ) (9 )% Southern 844 1,279 (435 ) (34 )% Total Appalachia 7,601 8,695 (1,094 ) (13 )% Illinois Basin 4,979 3,375 1,604 48 % Northern Powder River Basin 1,342 1,516 (174 ) (11 )% Gulf Coast 413 700 (287 ) (41 )% Total coal sales volumes 14,335 14,286 49 0 % Coal royalty revenue per ton Appalachia Northern $ 1.70 $ 3.37 $ (1.67 ) (50 )% Central 6.29 7.72 (1.43 ) (19 )% Southern 8.76 10.81 (2.05 ) (19 )% Illinois Basin 2.36 2.53 (0.17 ) (7 )% Northern Powder River Basin 4.93 4.90 0.03 1 % Gulf Coast 0.78 0.77 0.01 1 % Combined average coal royalty revenue per ton 4.70 6.06 (1.36 ) (22 )% Coal royalty revenues Appalachia Northern $ 435 $ 830 $ (395 ) (48 )% Central 40,920 55,370 (14,450 ) (26 )% Southern 7,394 13,828 (6,434 ) (47 )% Total Appalachia 48,749 70,028 (21,279 ) (30 )% Illinois Basin 11,751 8,523 3,228 38 % Northern Powder River Basin 6,612 7,430 (818 ) (11 )% Gulf Coast 324 536 (212 ) (40 )% Unadjusted coal royalty revenues 67,436 86,517 (19,081 ) (22 )% Coal royalty adjustment for minimum leases (395 ) (14 ) (381 ) (2,721 )% Total coal royalty revenues $ 67,041 $ 86,503 $ (19,462 ) (22 )% Other revenues Production lease minimum revenues $ 2,848 $ 1,336 $ 1,512 113 % Minimum lease straight-line revenues 8,100 8,297 (197 ) (2 )% Oil and gas royalty revenues 4,425 5,639 (1,214 ) (22 )% Carbon neutral revenues 885 4,361 (3,476 ) (80 )% Property tax revenues 3,156 3,437 (281 ) (8 )% Wheelage revenues 4,281 5,010 (729 ) (15 )% Coal overriding royalty revenues 1,336 1,837 (501 ) (27 )% Lease amendment revenues 1,311 1,414 (103 ) (7 )% Aggregates royalty revenues 1,759 1,502 257 17 % Other revenues 413 2,627 (2,214 ) (84 )% Total other revenues $ 28,514 $ 35,460 $ (6,946 ) (20 )% Royalty and other mineral rights $ 95,555 $ 121,963 $ (26,408 ) (22 )% Transportation and processing services revenues 6,972 6,088 884 15 % Gain on asset sales and disposals 976 4,808 (3,832 ) (80 )% Total Mineral Rights segment revenues and other income $ 103,503 $ 132,859 $ (29,356 ) (22 )% 25 Table of Contents Coal Royalty Revenues Approximately 60% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal during the six months ended June 30, 2025. Total coal royalty revenues decreased $19.5 million as compared to the prior year period primarily due to lower metallurgical coal sales prices and volumes during the six months ended June 30, 2025, as compared to the prior year period. Other Revenues Other revenues decreased $6.9 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to a $3.5 million decrease in carbon neutral revenues primarily as a result of a non-recurring carbon neutral transaction in the second quarter of 2024, in addition to a $2.2 million decrease in other revenues. Gain on Asset Sales and Disposals Gain on asset sales and disposals decreased $3.8 million during the six months ended June 30, 2025 as compared to the prior year period primarily as a result of a coal property condemnation in the second quarter of 2024. Soda Ash Revenues and other income related to our Soda Ash segment decreased $2.0 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to lower sales prices in 2025. Interest Expense, Net Interest expense, net, decreased $2.8 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to lower borrowings outstanding on the Opco Credit Facility during the six months ended June 30, 2025. Adjusted EBITDA (Non-GAAP Financial Measure) The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment: Operating Segments For the Six Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Net income (loss) $ 84,899 $ 7,052 $ (17,487 ) $ 74,464 Less: equity earnings from unconsolidated investment — (7,136 ) — (7,136 ) Add: total distributions from unconsolidated investment — 7,840 — 7,840 Add: interest expense, net — — 5,048 5,048 Add: depreciation, depletion and amortization 7,733 — 10 7,743 Add: asset impairments 20 — — 20 Adjusted EBITDA $ 92,652 $ 7,756 $ (12,429 ) $ 87,979 June 30, 2024 Net income (loss) $ 113,373 $ 9,007 $ (20,103 ) $ 102,277 Less: equity earnings from unconsolidated investment — (9,095 ) — (9,095 ) Add: total distributions from unconsolidated investment — 21,794 — 21,794 Add: interest expense, net — — 7,836 7,836 Add: depreciation, depletion and amortization 7,969 — 9 7,978 Adjusted EBITDA $ 121,342 $ 21,706 $ (12,258 ) $ 130,790 Net income decreased $27.8 million as compared to the prior year period primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $42.8 million as compared to the prior year period primarily due to a $28.7 million decrease in Adjusted EBITDA within our Mineral Rights segment driven by the lower revenues and other income as discussed above in addition to a $14.0 million decrease in Adjusted EBITDA within our Soda Ash segment driven by lower cash distributions received from Sisecam Wyoming in the first half of 2025. 26 Table of Contents Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures) The following table presents the three major categories of the statement of cash flows by business segment: Operating Segments For the Six Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Cash flow provided by (used in) Operating activities $ 88,799 $ 7,755 $ (16,551 ) $ 80,003 Investing activities 2,391 — — 2,391 Financing activities (841 ) — (81,653 ) (82,494 ) June 30, 2024 Cash flow provided by (used in) Operating activities $ 125,983 $ 21,705 $ (19,560 ) $ 128,128 Investing activities 6,114 — — 6,114 Financing activities (1,086 ) — (112,805 ) (113,891 ) The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF: Operating Segments For the Six Months Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total June 30, 2025 Net cash provided by (used in) operating activities $ 88,799 $ 7,755 $ (16,551 ) $ 80,003 Add: proceeds from asset sales and disposals 977 — — 977 Add: return of long-term contract receivable 1,414 — — 1,414 Distributable cash flow $ 91,190 $ 7,755 $ (16,551 ) $ 82,394 Less: proceeds from asset sales and disposals (977 ) — — (977 ) Free cash flow $ 90,213 $ 7,755 $ (16,551 ) $ 81,417 June 30, 2024 Net cash provided by (used in) operating activities $ 125,983 $ 21,705 $ (19,560 ) $ 128,128 Add: proceeds from asset sales and disposals 4,808 — — 4,808 Add: return of long-term contract receivable 1,306 — — 1,306 Distributable cash flow $ 132,097 $ 21,705 $ (19,560 ) $ 134,242 Less: proceeds from asset sales and disposals (4,808 ) — — (4,808 ) Free cash flow $ 127,289 $ 21,705 $ (19,560 ) $ 129,434 Operating cash flow, DCF and FCF decreased $48.1 million, $51.8 million and $48.0 million, respectively, as compared to the prior year period. The discussion by segment is as follows: • Mineral Rights Segment ◦ Operating cash flow, DCF and FCF decreased $37.2 million, $40.9 million and $37.1 million, respectively, primarily due to lower metallurgical coal sales prices and volumes as compared to the prior year period. DCF was also impacted by the $3.8 million decrease in proceeds from asset sales resulting from a coal property condemnation in the second quarter of 2024. • Soda Ash Segment ◦ Operating cash flow, DCF and FCF each decreased $14.0 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to lower cash distributions received from Sisecam Wyoming in the first half of 2025. • Corporate and Financing Segment ◦ Operating cash flow, DCF and FCF each decreased $3.0 million primarily due to lower cash paid for interest during the six months ended June 30, 2025 as compared to the prior year period. 27 Table of Contents Liquidity and Capital Resources Current Liquidity As of June 30, 2025, we had total liquidity of $157.5 million, consisting of $30.3 million of cash and cash equivalents and $127.1 million of borrowing capacity under our Opco Credit Facility. We have debt service obligations, including $14.3 million of principal repayments on Opco’s senior notes, throughout the remainder of 2025. The following table calculates our leverage ratio as of June 30, 2025: For the Three Months Ended (In thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Last 12 Months Net income $ 38,595 $ 42,772 $ 40,253 $ 34,211 $ 155,831 Less: equity earnings from unconsolidated investment (8,109 ) (931 ) (4,610 ) (2,526 ) (16,176 ) Add: total distributions from unconsolidated investment 6,320 10,667 2,940 4,900 24,827 Add: interest expense, net 4,194 3,524 2,668 2,380 12,766 Add: depreciation, depletion and amortization 4,730 2,827 3,989 3,754 15,300 Add: asset impairments 87 — 20 — 107 Adjusted EBITDA $ 45,817 $ 58,859 $ 45,260 $ 42,719 $ 192,655 Debt—at June 30, 2025 $ 101,547 Leverage Ratio 0.5 x Cash Flows Cash flows provided by operating activities decreased $48.1 million, from $128.1 million in the six months ended June 30, 2024 to $80.0 million in the six months ended June 30, 2025, primarily due to decreased cash flow within our Mineral Rights and Soda Ash segments, as discussed above, partially offset by lower cash paid for interest by our Corporate and Financing segment. Cash flows provided by investing activities decreased $3.7 million primarily related to a coal property condemnation in the second quarter of 2024. Cash flows used in financing activities decreased $31.4 million, from $113.9 million used in the six months ended June 30, 2024 to $82.5 million used in the six months ended June 30, 2025 due to the following: • $65.7 million cash used for the warrant settlements during the six months ended June 30, 2024; • $40.0 million cash paid for the redemption of preferred units during the six months ended June 30, 2024; • $15.8 million decreased common unit distributions primarily as a result of a lower special distribution paid during the three months ended June 30, 2025 as compared to the prior year period; • $4.8 million cash used for preferred unit distributions during the six months ended June 30, 2024; and • $1.0 million decreased cash used for other items, net in 2025 as compared to 2024. These decreases in cash flow used were partially offset by $96.2 million of decreased debt borrowings during the six months ended June 30, 2025 as compared to the prior year period. 28 Table of Contents Capital Resources and Obligations Debt, Net We had the following debt outstanding as of June 30, 2025 and December 31, 2024: June 30, December 31, (In thousands) 2025 2024 Current portion of long-term debt, net $ 14,228 $ 14,192 Long-term debt, net 87,112 127,876 Total debt, net $ 101,340 $ 142,068 We have been and continue to be in compliance with the terms of the financial covenants contained in our debt agreements. For additional information regarding our debt and the agreements governing our debt, including the covenants contained therein, see Note 9. Debt, Net to the Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q. Off-Balance Sheet Transactions We do not have any off-balance sheet arrangements with unconsolidated entities or related parties and accordingly, there are no off-balance sheet risks to our liquidity and capital resources from unconsolidated entities. Related Party Transactions The information required set forth under Note 11. Related Party Transactions to the Consolidated Financial Statements is incorporated herein by reference. Summary of Critical Accounting Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America requires management to make certain estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. There have been no significant changes to our critical accounting estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024. Recently Issued Accounting Standard In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures ("ASU 2024-03"). ASU 2024-03 is intended to improve disclosures about a public business entity's expenses and provide more detailed information to investors about the types of expenses in commonly presented expense captions. The guidance is effective for annual periods beginning after December 15, 2026 and quarterly periods beginning after December 31, 2027 and can be adopted prospectively to financial statements issued for reporting periods after the effective date or retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. 29 Table of Contents ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risk, which includes adverse changes in commodity prices and interest rates as discussed below: Commodity Price Risk Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing commodity prices. Historically, coal prices have been volatile, with prices fluctuating widely, and are likely to continue to be volatile. Depressed prices in the future would have a negative impact on our future financial results. In particular, substantially lower prices would significantly reduce revenues and could potentially trigger an impairment of our coal properties or a violation of certain financial debt covenants. Because substantially all our reserves are coal, changes in coal prices have a more significant impact on our financial results. We are dependent upon the effective marketing of the coal mined by our lessees. Our lessees sell the coal under various long-term and short-term contracts as well as on the spot market. Current conditions in the coal industry may make it difficult for our lessees to extend existing contracts or enter into supply contracts with terms of one year or more. Our lessees' failure to negotiate long-term contracts could adversely affect the stability and profitability of our lessees' operations and adversely affect our future financial results. If more coal is sold on the spot market, coal royalty revenues may become more volatile due to fluctuations in spot coal prices. The market price of soda ash and energy costs directly affects the profitability of Sisecam Wyoming's operations. If the market price for soda ash declines, Sisecam Wyoming's sales revenues will decrease. Historically, the global market and, to a lesser extent, the domestic market for soda ash have been volatile and are likely to remain volatile in the future. Interest Rate Risk Our exposure to changes in interest rates results from our borrowings under the Opco Credit Facility, which is subject to variably interest rates based upon SOFR. At June 30, 2025, we had $72.9 million in borrowings outstanding under the Opco Credit Facility. If interest rates were to increase by 1%, annual interest expense would increase approximately $0.7 million, assuming the same principal amount remained outstanding during the year. ITEM 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures NRP carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of NRP management, including the Chief Executive Officer and Chief Financial Officer of the general partner of the general partner of NRP. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective in providing reasonable assurance that (a) the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (b) such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Changes in the Partnership ’ s Internal Control Over Financial Reporting There were no material changes in the Partnership’s internal control over financial reporting during the first six months of 2025 that materially affected, or were reasonably likely to materially affect, the Partnership’s internal control over financial reporting. 30 Table of Contents PART II ITEM 1. LEGAL PROCEEDINGS From time to time, we are involved in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, we believe these ordinary course matters will not have a material effect on our financial position, liquidity or operations. ITEM 1A. RISK FACTORS During the period covered by this report, there were no material changes from the risk factors previously disclosed in Natural Resource Partners L.P.’s Annual Report on Form 10-K for the year ended December 31, 2024. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. MINE SAFETY DISCLOSURES None. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS Exhibit Number Description 3.1 Fifth Amended and Restated Agreement of Limited Partnership of Natural Resource Partners L.P., dated as of March 2, 2017 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on March 6, 2017). 3.2 Fifth Amended and Restated Agreement of Limited Partnership of NRP (GP) LP, dated as of December 16, 2011 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on December 16, 2011). 3.3 Fifth Amended and Restated Limited Liability Company Agreement of GP Natural Resource Partners LLC, dated as of October 31, 2013 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on October 31, 2013). 3.4 Certificate of Limited Partnership of Natural Resource Partners L.P. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed April 19, 2002, File No. 333-86582). 31.1* Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley. 31.2* Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley. 32.1** Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350. 32.2** Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350. 101.INS* Inline XBRL Instance Document 101.SCH* Inline XBRL Taxonomy Extension Schema Document 101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB* Inline XBRL Taxonomy Extension Labels Linkbase Document 101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document 104* Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) * Filed herewith ** Furnished herewith 31 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned and thereunto duly authorized. NATURAL RESOURCE PARTNERS L.P. By: NRP (GP) LP, its general partner By: GP NATURAL RESOURCE PARTNERS LLC, its general partner Date: August 6, 2025 By: /s/ Corbin J. Robertson, Jr. Corbin J. Robertson, Jr. Chairman of the Board and Chief Executive Officer (Principal Executive Officer) Date: August 6, 2025 By: /s/ Christopher J. Zolas Christopher J. Zolas Chief Financial Officer (Principal Financial and Accounting Officer) 32