NATURAL RESOURCE PARTNERS LP Fair Value Disclosure
Fair Value of Financial Assets and Liabilities
The Partnership’s financial assets and liabilities consist of cash and cash equivalents, accounts receivables, a contract receivable, accounts payables and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents, accounts receivables and accounts payables 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:
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| Carrying | Estimated | Carrying | Estimated | |||||||||||||||||
| (In thousands) | Fair Value Hierarchy Level | Value | Fair Value | Value | Fair Value | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Contract receivable, net (current and long-term) (1) | 3 | $ | 23,480 | $ | 20,792 | $ | 26,321 | $ | 22,776 | |||||||||||
| Debt: | ||||||||||||||||||||
| Opco Senior Notes (2) | 3 | $ | 14,198 | $ | 14,018 | $ | 28,384 | $ | 27,498 | |||||||||||
| Opco Credit Facility (3) | 3 | 18,884 | 18,884 | 113,684 | 113,684 | |||||||||||||||
| (1) | The fair value of the Partnership's contract receivable was determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at December 31, 2025 and 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 this debt at any time without penalty. |
Fair Value of Non-Financial Assets
The Partnership discloses or recognizes its non-financial assets, such as impairments of coal and aggregates properties at fair value on a nonrecurring basis. Refer to Note 9. Mineral Rights, Net for additional information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 7, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 6, 2017 | |
| 2015 | Mar 11, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.