NATURAL RESOURCE PARTNERS LP Segments Disclosure

7.    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 approximately 13 million acres of mineral interests and other subsurface rights across the United States. If combined in a single tract, NRP's ownership would cover roughly 20,000 square miles. The Partnership's assets provide critical inputs for the manufacturing of steel, electricity and building materials as well as opportunities for carbon sequestration and renewable energy.

 

Soda Ash—consists of NRP's 49% non-controlling equity interest in Sisecam Wyoming, one of the world's lowest-cost producers of soda ash, an essential ingredient in the manufacturing of glass, solar panels, detergents, and batteries for electric vehicles. Operations are managed by NRP's partner, Sisecam Chemicals Wyoming LLC, and the Partnership 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 (“CODM”) are its Chief Executive Officer and President and Chief Operating Officer. Together, they evaluate the Partnership’s performance monthly 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. 

 

 

The following table summarizes certain financial information for each of the Partnership's business segments:

 

		Operating Segments
(In thousands)		Mineral Rights				Soda Ash				Total Operating Segments				Corporate and Financing				Total
For the Year Ended December 31, 2025
Revenues		$	202,340			$	—			$	202,340			$	—			$	202,340
Equity in earnings of Sisecam Wyoming			—				3,060				3,060				—				3,060
Gain on asset sales and disposals			1,882				—				1,882				—				1,882
Total revenues and other income		$	204,222			$	3,060			$	207,282			$	—			$	207,282
Less:
Compensation (salaries, benefits and bonus)		$	6,949			$	—			$	6,949			$	7,711			$	14,660
Long-term incentive compensation (1)			1,888				—				1,888				9,327				11,215
Property taxes			7,235				—				7,235				—				7,235
Depreciation, depletion and amortization			14,937				—				14,937				18				14,955
Asset impairments			20				—				20				—				20
Interest expense, net (2)			—				—				—				7,984				7,984
Other segment items (3)			7,627				155				7,782				7,064				14,846
Net income (loss)		$	165,566			$	2,905			$	168,471			$	(32,104	)		$	136,367
As of December 31, 2025
Total assets		$	492,672			$	250,244			$	742,916			$	5,449			$	748,365
For the Year Ended December 31, 2024
Revenues		$	245,027			$	—			$	245,027			$	—			$	245,027
Equity in earnings of Sisecam Wyoming			—				18,135				18,135				—				18,135
Gain on asset sales and disposals			4,845				—				4,845				—				4,845
Total revenues and other income		$	249,872			$	18,135			$	268,007			$	—			$	268,007
Less:
Compensation (salaries, benefits and bonus)		$	7,948			$	—			$	7,948			$	8,570			$	16,518
Long-term incentive compensation (4)			1,785				—				1,785				9,466				11,251
Property taxes			7,704				—				7,704				—				7,704
Depreciation, depletion and amortization			15,517				—				15,517				18				15,535
Asset impairments			87				—				87				—				87
Interest expense, net (2)			—				—				—				15,554				15,554
Other segment items (3)			10,428				171				10,599				7,115				17,714
Net income (loss)		$	206,403			$	17,964			$	224,367			$	(40,723	)		$	183,644
As of December 31, 2024
Total assets		$	509,127			$	257,355			$	766,482			$	6,425			$	772,907
For the Year Ended December 31, 2023
Revenues		$	293,656			$	—			$	293,656			$	—			$	293,656
Equity in earnings of Sisecam Wyoming			—				73,397				73,397				—				73,397
Gain on asset sales and disposals			2,956				—				2,956				—				2,956
Total revenues and other income		$	296,612			$	73,397			$	370,009			$	—			$	370,009
Less:
Compensation (salaries, benefits and bonus)		$	8,382			$	—			$	8,382			$	10,204			$	18,586
Long-term incentive compensation (5)			2,022				—				2,022				8,711				10,733
Property taxes			6,758				—				6,758				—				6,758
Depreciation, depletion and amortization			18,471				—				18,471				18				18,489
Asset impairments			556				—				556				—				556
Interest expense, net (2)			—				—				—				14,103				14,103
Other segment items (3)			14,896				257				15,153				7,196				22,349
Net income (loss)		$	245,527			$	73,140			$	318,667			$	(40,232	)		$	278,435

 

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(1)

Long-term incentive compensation for the year ended December 31, 2025 includes (1) Mineral Rights segment: $1.3 million of equity compensation and $0.6 million of cash compensation; (2) Corporate & Financing business segment: $9.0 million of equity compensation and $0.3 million of cash compensation.

(2)	Included in interest expense, net was $0.9 million, $0.7 million and $0.3 million of interest income for the years ended December 31, 2025, 2024 and 2023, 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 business segment primarily include: insurance, legal, information technology, shared facility services, rent and professional fees.
(4)	Long-term incentive compensation for the year ended December 31, 2024 includes (1) Mineral Rights segment: $1.4 million of equity compensation and $0.4 million of cash compensation; (2) Corporate & Financing business segment: $9.1 million of equity compensation and $0.4 million of cash compensation.
(5)	Long-term incentive compensation for the year ended December 31, 2023 includes (1) Mineral Rights segment: $1.4 million of equity compensation and $0.6 million of cash compensation; (2) Corporate & Financing business segment: $8.4 million of equity compensation and $0.3 million of cash compensation.