What changed in NATURAL RESOURCE PARTNERS LP's 10-K — 2022 vs 2023
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Paragraph-level year-over-year comparison of NATURAL RESOURCE PARTNERS LP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+214 added−209 removedSource: 10-K (2024-03-07) vs 10-K (2023-03-03)
Top changes in NATURAL RESOURCE PARTNERS LP's 2023 10-K
214 paragraphs added · 209 removed · 153 edited across 4 sections
- Item 1A. Risk Factors+154 / −133 · 114 edited
- Item 7. Management's Discussion & Analysis+58 / −74 · 37 edited
- Item 3. Legal Proceedings+1 / −1 · 1 edited
- Item 5. Market for Registrant's Common Equity+1 / −1 · 1 edited
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
114 edited+40 added−19 removed344 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
114 edited+40 added−19 removed344 unchanged
2022 filing
2023 filing
Biggest changeThe remainder of our thermal coal is located in Montana, the Gulf Coast and Appalachia. 2 Table of Contents Coal Production Information The following tables present the type of coal sales volumes by major coal region for the years ended December 31, 2022, 2021 and 2020: For the Year Ended December 31, 2022 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 1,166 530 1,696 Central 1,186 12,460 13,646 Southern 93 1,691 1,784 Total Appalachia Basin 2,445 14,681 17,126 Illinois Basin 11,135 — 11,135 Northern Powder River Basin 4,288 — 4,288 Gulf Coast 385 — 385 Total 18,253 14,681 32,934 For the Year Ended December 31, 2021 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 718 617 1,335 Central 1,140 11,139 12,279 Southern 119 1,452 1,571 Total Appalachia Basin 1,977 13,208 15,185 Illinois Basin 9,388 — 9,388 Northern Powder River Basin 3,151 — 3,151 Gulf Coast 55 — 55 Total 14,571 13,208 27,779 For the Year Ended December 31, 2020 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 267 380 647 Central 1,157 8,954 10,111 Southern 143 746 889 Total Appalachia Basin 1,567 10,080 11,647 Illinois Basin 3,381 — 3,381 Northern Powder River Basin 1,738 — 1,738 Total 6,686 10,080 16,766 Major Coal Producing Properties The following table provides a summary of our significant coal royalty properties for 2022 and is followed by additional information for each property: Region Property/Lease Name Operator(s) Coal Type Appalachia Basin Northern Carter Roag Metinvest Met Central Alpha-CAPP (VA) Alpha Metallurgical Resources Inc.
Biggest changeThe remainder of our thermal coal is located in Montana, the Gulf Coast and Appalachia. 3 Table of Contents Coal Production Information The following tables present the type of coal sales volumes by major coal region for the years ended December 31, 2023, 2022 and 2021: For the Year Ended December 31, 2023 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 794 351 1,145 Central 1,418 12,509 13,927 Southern — 2,670 2,670 Total Appalachia Basin 2,212 15,530 17,742 Illinois Basin 8,119 — 8,119 Northern Powder River Basin 4,589 — 4,589 Gulf Coast 1,477 — 1,477 Total 16,397 15,530 31,927 For the Year Ended December 31, 2022 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 1,166 530 1,696 Central 1,186 12,460 13,646 Southern 93 1,691 1,784 Total Appalachia Basin 2,445 14,681 17,126 Illinois Basin 11,135 — 11,135 Northern Powder River Basin 4,288 — 4,288 Gulf Coast 385 — 385 Total 18,253 14,681 32,934 For the Year Ended December 31, 2021 Type of Coal (Tons in thousands) Thermal Metallurgical Total Appalachia Basin Northern 718 617 1,335 Central 1,140 11,139 12,279 Southern 119 1,452 1,571 Total Appalachia Basin 1,977 13,208 15,185 Illinois Basin 9,388 — 9,388 Northern Powder River Basin 3,151 — 3,151 Gulf Coast 55 55 Total 14,571 13,208 27,779 Major Coal Producing Properties The following table provides a summary of our significant coal royalty properties for 2023 and is followed by additional information for each property: Region Property/Lease Name Operator(s) Coal Type Appalachia Basin Central Alpha-CAPP (VA) Alpha Metallurgical Resources Inc.
In addition to the royalty obligations, this lease is subject to minimum payments, which reflect amounts we are entitled to receive even if no mining activity occurs during the period. Minimum payments are credited against future royalties that are earned as minerals are produced and the lessee is time limited on the period available for recouping minimum payments.
In addition to the royalty obligations, this lease is subject to minimum payments, which reflect amounts we are entitled to receive even if no mining activity occurs during the period. Minimum payments are credited against future royalties that are earned as minerals are produced and the lessee is time limited on the period available for recouping minimum payments.
Corporate Governance Matters Our Code of Business Conduct and Ethics, our Disclosure Controls and Procedures Policy and our Corporate Governance Guidelines adopted by our Board of Directors, as well as the charter for our Audit Committee are available on our website at www.nrplp.com.
Corporate Governance Matters Our Code of Business Conduct and Ethics, our Disclosure Controls and Procedures Policy and our Corporate Governance Guidelines adopted by the Board of Directors, as well as the charter for our Audit Committee are available on our website at www.nrplp.com.
The prices our lessees receive for their coal depend upon factors beyond their or our control, including: • the supply of and demand for domestic and foreign coal; • domestic and foreign governmental regulations and taxes; • changes in fuel consumption patterns of electric power generators; • the price and availability of alternative fuels, especially natural gas; • global economic conditions, including the strength of the U.S. dollar relative to other currencies; • global and domestic demand for steel; • tariff rates on imports and trade disputes, particularly involving the United States and China; • the availability of, proximity to and capacity of transportation networks and facilities; • global or national health concerns, including the outbreak of pandemic or contagious disease, such as the ongoing COVID-19 pandemic; • weather conditions; and • the effect of worldwide energy conservation measures.
The prices our lessees receive for their coal depend upon factors beyond their or our control, including: • the supply of and demand for domestic and foreign coal; • domestic and foreign governmental regulations and taxes; • changes in fuel consumption patterns of electric power generators; • the price and availability of alternative fuels, especially natural gas; • global economic conditions, including the strength of the U.S. dollar relative to other currencies; • global and domestic demand for steel; • tariff rates on imports and trade disputes, particularly involving the United States and China; • the availability of, proximity to and capacity of transportation networks and facilities; • global or national health concerns, including the outbreak of pandemic or contagious disease, such as the COVID-19 pandemic; • weather conditions; and • the effect of worldwide energy conservation measures.
We make available free of charge on or through our Internet website our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.
We make available free of charge on or through our website our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.
Environmental Protection Agency ("EPA") revised the CSAPR to require additional emissions reductions of NOx from power plants in twelve states. Further, in April 2022, EPA published a proposed rule to build on the CSAPR by imposing Federal Implementation Plans on over 20 states to implement the 2015 National Ambient Air Quality Standards (NAAQS) for ozone.
Environmental Protection Agency ("EPA") revised the CSAPR to require additional emissions reductions of NOx from power plants in twelve states. Further, in April 2022, EPA published a proposed rule to build on the CSAPR by imposing Federal Implementation Plans on over 20 states to implement the National Ambient Air Quality Standards ("NAAQS") for ozone.
Any undiscovered reporting errors could result in a loss of royalty revenues and errors identified in subsequent periods could lead to accounting disputes as well as disputes with our lessees. Risks Related to Our Structure Unitholders may not be able to remove our general partner even if they wish to do so. Our general partner manages and operates NRP.
Any undiscovered reporting errors could result in a loss of royalty revenues and errors identified in subsequent periods could lead to accounting disputes as well as disputes with our lessees. Risks Related to Our Structure Unitholders may not be able to remove our general partner even if they wish to do so. Our managing general partner manages and operates NRP.
The offset credits were issued to us by the California Air Resources Board under its cap-and-trade program and represent 1.1 million metric tons of carbon sequestered in approximately 39,000 acres of our forestland in West Virginia. Carbon Sequestration.
The offset credits were issued to us by the California Air Resources Board under its cap-and-trade program and represent 1.1 million metric tons of carbon sequestered in approximately 39,000 acres of our forestland in West Virginia.
While Sisecam Wyoming is currently evaluating whether and when to pursue one or more initiatives that could offset this decline as well as provide additional soda ash production above current rates, there is no guarantee that any such initiatives or investments will be executed successfully, in a timely manner, or if at all to enable Sisecam Wyoming to maintain its current rates of production. 19 Table of Contents Fluctuations in transportation costs and the availability or reliability of transportation could reduce the production of coal, soda ash and other minerals from our properties.
While Sisecam Wyoming is currently evaluating whether and when to pursue one or more initiatives that could offset this decline as well as provide additional soda ash production above current rates, there is no guarantee that any such initiatives or investments will be executed successfully, in a timely manner, or if at all to enable Sisecam Wyoming to maintain its current rates of production. 20 Table of Contents Fluctuations in transportation costs and the availability or reliability of transportation could reduce the production of coal, soda ash and other minerals from our properties.
Unlike the holders of common stock in a corporation, unitholders have only limited voting rights on matters affecting our business. Unitholders have no right to elect the general partner or the directors of the general partner on an annual or any other basis.
Unlike the holders of common stock in a corporation, unitholders have only limited voting rights on matters affecting our business. Unitholders have no right to elect the general partner or the Board of Directors on an annual or any other basis.
The occurrence of any of these events or conditions could have a material adverse effect on our business and results of operations. 17 Table of Contents The adoption of climate change legislation and regulations restricting emissions of greenhouse gases and other hazardous air pollutants have resulted in changes in fuel consumption patterns by electric power generators and a corresponding decrease in coal production by our lessees and reduced coal-related revenues.
The occurrence of any of these events or conditions could have a material adverse effect on our business and results of operations. 18 Table of Contents The adoption of climate change legislation and regulations restricting emissions of greenhouse gases and other hazardous air pollutants have resulted in changes in fuel consumption patterns by electric power generators and a corresponding decrease in coal production by our lessees and reduced coal-related revenues.
You are urged to consult with your own tax advisor with respect to the status of regulatory or administrative developments and proposals and their potential effect on your investment in our units. 22 Table of Contents Certain U.S. federal income tax preferences currently available with respect to coal exploration and development may be eliminated as a result of future legislation.
You are urged to consult with your own tax advisor with respect to the status of regulatory or administrative developments and proposals and their potential effect on your investment in our units. 23 Table of Contents Certain U.S. federal income tax preferences currently available with respect to coal exploration and development may be eliminated as a result of future legislation.
As a result of these provisions, the price at which the common units will trade may be lower because of the absence or reduction of a takeover premium in the trading price. 20 Table of Contents The preferred units are senior in right of distributions and liquidation and upon conversion, would result in the issuance of additional common units in the future, which could result in substantial dilution of our common unitholders ’ ownership interests.
As a result of these provisions, the price at which the common units will trade may be lower because of the absence or reduction of a takeover premium in the trading price. 21 Table of Contents The preferred units are senior in right of distributions and liquidation and upon conversion, would result in the issuance of additional common units in the future, which could result in substantial dilution of our common unitholders ’ ownership interests.
Our business is increasingly dependent on information technologies and services. Threats to information technology systems associated with cybersecurity risks and cyber incidents or attacks continue to grow.
Our business is increasingly dependent on information and operational technologies and services. Threats to information technology systems associated with cybersecurity risks and cyber incidents or attacks continue to grow.
Future impairment analyses could result in additional downward adjustments to the carrying value of our assets. 16 Table of Contents Prices for soda ash are volatile. Any substantial or extended decline in soda ash prices could have an adverse effect on Sisecam Wyoming ’ s ability to continue to make distributions to its members and on our results of operations.
Future impairment analyses could result in additional downward adjustments to the carrying value of our assets. 17 Table of Contents Prices for soda ash are volatile. Any substantial or extended decline in soda ash prices could have an adverse effect on Sisecam Wyoming ’ s ability to continue to make distributions to its members and on our results of operations.
It also could affect the timing of these tax benefits or the amount of gain from the sale of common units and could have a negative impact on the value of our common units or result in audit adjustments to our unitholders' tax returns. 24 Table of Contents We have adopted certain valuation methodologies in determining a unitholder ’ s allocations of income, gain, loss and deduction.
It also could affect the timing of these tax benefits or the amount of gain from the sale of common units and could have a negative impact on the value of our common units or result in audit adjustments to our unitholders' tax returns. 25 Table of Contents We have adopted certain valuation methodologies in determining a unitholder ’ s allocations of income, gain, loss and deduction.
Our principal executive office is located at 1415 Louisiana Street, Suite 3325, Houston, Texas 77002 and our telephone number is (713) 751-7507. 1 Table of Contents Segment and Geographic Information The amount of 2022 revenues and other income from our two operating segments is shown below. For additional business segment information, please see " Item 7.
Our principal executive office is located at 1415 Louisiana Street, Suite 3325, Houston, Texas 77002 and our telephone number is (713) 751-7507. 1 Table of Contents Segment and Geographic Information The amount of 2023 revenues and other income from our two operating segments is shown below. For additional business segment information, please see " Item 7.
Furthermore, there is no restriction in our partnership agreement on the ability of the general partner of our general partner from transferring its general partnership interest in our general partner to a third party.
Furthermore, there is no restriction in our partnership agreement on the ability of the managing general partner from transferring its general partnership interest in our general partner to a third party.
If, as a result of any such audit adjustment, we are required to make payments of taxes, penalties and interest, our cash available for distribution to our unitholders might be substantially reduced. 23 Table of Contents Tax gain or loss on the disposition of our common units could be more or less than expected.
If, as a result of any such audit adjustment, we are required to make payments of taxes, penalties and interest, our cash available for distribution to our unitholders might be substantially reduced. 24 Table of Contents Tax gain or loss on the disposition of our common units could be more or less than expected.
Our unitholders' share of our portfolio income may be taxable to them even though they receive other losses from our activities. • We may engage in transactions to reduce our indebtedness and manage our liquidity that generate taxable income (including income and gain from the sale of properties and cancellation of indebtedness income) allocable to our unitholders, and income tax liabilities arising therefrom may exceed any distributions made with respect to their units. • If the IRS contests the U.S. federal income tax positions we take, the market for our units may be adversely impacted and the cost of any IRS contest will reduce our cash available for distribution to our unitholders. • If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced. • Tax gain or loss on the disposition of our common units could be more or less than expected. • Our unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. • Tax-exempt entities face unique tax issues from owning our units that may result in adverse tax consequences to them. • Non-U.S. unitholders will be subject to U.S. federal income taxes and withholding with respect to their income and gain from owning our units. • We will treat each purchaser of our common units as having the same tax benefits without regard to the actual common units purchased.
Our unitholders' share of our portfolio income may be taxable to them even though they receive other losses from our activities. • We may engage in transactions to reduce our indebtedness and manage our liquidity that generate taxable income (including income and gain from the sale of properties and cancellation of indebtedness income) allocable to our unitholders, and income tax liabilities arising therefrom may exceed any distributions made with respect to their units. • If the IRS contests the U.S. federal income tax positions we take, the market for our units may be adversely impacted and the cost of any IRS contest will reduce our cash available for distribution to our unitholders. • If the IRS makes audit adjustments to our income tax returns, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced. • Tax gain or loss on the disposition of our common units could be more or less than expected. • Our unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. • Tax-exempt entities face unique tax issues from owning our units that may result in adverse tax consequences to them. • Non-U.S. unitholders will be subject to U.S. federal income taxes and withholding with respect to their income and gain from owning our units. • We will treat each purchaser of our common units as having the same tax benefits without regard to the actual common units purchased.
Copies of our annual report, our Code of Business Conduct and Ethics, our Disclosure Controls and Procedures Policy, our Corporate Governance Guidelines and our committee charters will be made available upon written request to our principal executive office at 1415 Louisiana St., Suite 3325, Houston, Texas 77002. 14 Table of Contents ITEM 1A.
Copies of our annual report, our Code of Business Conduct and Ethics, our Disclosure Controls and Procedures Policy, our Corporate Governance Guidelines and our committee charters will be made available upon written request to our principal executive office at 1415 Louisiana St., Suite 3325, Houston, Texas 77002. 15 Table of Contents ITEM 1A.
All of the soda ash produced is shipped by rail or truck from the Green River Basin facility. For the year ended December 31, 2022, Sisecam Wyoming shipped over 90% of its soda ash to its customers initially via a single rail line owned and controlled by Union Pacific Railroad Company ("Union Pacific").
All of the soda ash produced is shipped by rail or truck from the Green River Basin facility. For the year ended December 31, 2023, Sisecam Wyoming shipped over 90% of its soda ash to its customers initially via a single rail line owned and controlled by Union Pacific Railroad Company ("Union Pacific").
We may also issue at any time an unlimited number of equity securities ranking junior or senior to the common units (including additional preferred units) without common unitholder approval (subject to applicable NYSE rules). In addition, we may issue additional common units upon the exercise of the outstanding warrants held by Blackstone and GoldenTree.
We may also issue at any time an unlimited number of equity securities ranking junior or senior to the common units (including additional preferred units) without common unitholder approval (subject to applicable NYSE rules). In addition, we may issue additional common units upon the exercise of the outstanding warrants held by Blackstone.
Below is a map of our Oak Grove property: 5 Table of Contents Illinois Basin Williamson. The Williamson property is located in Franklin and Williamson Counties, Illinois. This property is under leases to Williamson Energy, a subsidiary of Foresight Energy Resources LLC ("Foresight"). The current leases expire in 2026 and 2033 and will automatically renew unless otherwise notified.
Below is a map of our Oak Grove property: 6 Table of Contents Illinois Basin Williamson. The Williamson property is located in Franklin and Williamson Counties, Illinois. This property is under leases to Williamson Energy, a subsidiary of Foresight Energy Resources LLC ("Foresight"). The current leases expire in 2026 and 2033 and will automatically renew unless otherwise notified.
Also beginning January 1, 2024, Foresight may at any time elect to offer to sell the Macoupin assets to us for $1.00. If we accept Foresight’s offer, we will assume all liabilities associated with the Macoupin mine. If we do not accept Foresight’s offer, Foresight may proceed to permanently seal the Macoupin mine and conduct all reclamation activities.
Also beginning January 1, 2027, Foresight may at any time elect to offer to sell the Macoupin assets to us for $1.00. If we accept Foresight’s offer, we will assume all liabilities associated with the Macoupin mine. If we do not accept Foresight’s offer, Foresight may proceed to permanently seal the Macoupin mine and conduct all reclamation activities.
Competitive pressures could make it more difficult for Sisecam Wyoming to retain its existing customers and attract new customers, and could also intensify the negative impact of factors that decrease demand for soda ash in the markets it serves, such as adverse economic conditions, weather, higher fuel costs and taxes or other governmental or regulatory actions that directly or indirectly increase the cost or limit the use of soda ash. 10 Table of Contents Title to Property We owned substantially all of our coal and aggregates mineral rights in fee as of December 31, 2022.
Competitive pressures could make it more difficult for Sisecam Wyoming to retain its existing customers and attract new customers, and could also intensify the negative impact of factors that decrease demand for soda ash in the markets it serves, such as adverse economic conditions, weather, higher fuel costs and taxes or other governmental or regulatory actions that directly or indirectly increase the cost or limit the use of soda ash. 11 Table of Contents Title to Property We owned substantially all of our coal and aggregates mineral rights in fee as of December 31, 2023.
RISK FACTORS SUMMARY We are subject to a variety of risks and uncertainties, including risks related to our business, risks related to our indebtedness, risks related to our common stock and certain general risks, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
RISK FACTORS SUMMARY We are subject to a variety of risks and uncertainties, including risks related to our business, risks related to our indebtedness, risks related to our common units and certain general risks, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
The current lease with Alpha expires at the end of 2023 and will automatically renew unless otherwise notified. We receive payments based on the greater of a percentage of the sale price or fixed royalty per ton of coal mined and sold.
The current lease with Alpha expires at the end of 2028 and will automatically renew unless otherwise notified. We receive payments based on the greater of a percentage of the sale price or fixed royalty per ton of coal mined and sold.
Coal is shipped via the Norfolk Southern railroad to export metallurgical customers. 4 Table of Contents Appalachia Basin — Southern Appalachia Oak Grove . The Oak Grove property is located in Jefferson County, Alabama. We currently lease this property to a subsidiary of Hatfield Metallurgical Coal Holdings, LLC ("Hatfield Metallurgical").
Coal is shipped via the Norfolk Southern railroad to export metallurgical customers. 5 Table of Contents Appalachia Basin — Southern Appalachia Oak Grove . The Oak Grove property is located in Jefferson County, Alabama. We currently lease this property to a subsidiary of Hatfield Metallurgical Coal Holdings, LLC ("Hatfield Metallurgical").
Beginning January 1, 2024, we may at any time elect to cause Foresight to transfer the Macoupin mine and all associated equipment and permits to us for no consideration. If we make this election, we will assume all liabilities associated with the Macoupin mine.
Beginning January 1, 2027, we may at any time elect to cause Foresight to transfer the Macoupin mine and all associated equipment and permits to us for no consideration. If we make this election, we will assume all liabilities associated with the Macoupin mine.
In addition, the impact of the Sisecam Chemical Resources' exit from ANSAC and Sisecam Wyoming’s transition to the utilization of Sisecam Group’s global distribution network for some of its export operations beginning 2021 could affect prices received for export sales.
In addition, the impact of the Sisecam Chemicals Resources' exit from ANSAC and Sisecam Wyoming’s transition to the utilization of Sisecam Group’s global distribution network for some of its export operations beginning 2021 could affect prices received for export sales.
While the timing and likelihood of additional cash flows being realized from these activities is uncertain, we believe our large ownership footprint throughout the United States will provide additional opportunities to create value in this regard and position us as a key beneficiary of the transitional energy economy with minimal capital investment.
While the timing and likelihood of additional cash flows being realized from these activities is uncertain, we believe our large ownership footprint throughout the United States provides additional opportunities to create value in this regard and position us as a key beneficiary of the transitional energy economy with minimal capital investment.
For the year ended December 31, 2022, Sisecam Wyoming shipped over 90% of its soda ash from the Green River facility on a single rail line owned and controlled by Union Pacific.
For the year ended December 31, 2023, Sisecam Wyoming shipped over 90% of its soda ash from the Green River facility on a single rail line owned and controlled by Union Pacific.
Production at the Foresight Macoupin mine was temporarily ceased in March 2020. Foresight is no longer obligated to make royalty, transportation fee, or quarterly minimum payments to us under the Macoupin coal mining lease and transportation agreements. Foresight will pay an annual Macoupin fee of $2.0 million to NRP each year through 2023.
Production at the Foresight Macoupin mine was temporarily ceased in March 2020. Foresight is no longer obligated to make royalty, transportation fee, or quarterly minimum payments to us under the Macoupin coal mining lease and transportation agreements. Foresight will instead pay an annual Macoupin fee of $2.0 million to NRP each year through 2026.
In December 2021, the parent of the 51% owner of Sisecam Wyoming (formerly Ciner Wyoming) sold 60% of its interest to Sisecam Chemicals USA Inc., a wholly owned subsidiary of Türkiye Şişe ve Cam Fabrikalari A.Ş.
In December 2021, the parent of the 51% owner of Sisecam Wyoming sold 60% of its interest to Sisecam Chemicals USA Inc., a wholly owned subsidiary of Türkiye Şişe ve Cam Fabrikalari A.Ş.
In addition, we are exposed to operating risks that we do not experience in the royalty business through our soda ash joint venture and through our ownership of certain coal transportation assets. • Sisecam Wyoming’s deca stockpiles will substantially deplete by 2024, and its production rates will decline approximately 200,000 short tons per year if Sisecam Wyoming does not make further investments or otherwise execute on one or more initiatives to prevent such decline. • Fluctuations in transportation costs and the availability or reliability of transportation could reduce the production of coal, soda ash and other minerals from our properties. • Our lessees could satisfy obligations to their customers with minerals from properties other than ours, depriving us of the ability to receive amounts in excess of minimum royalty payments. • A lessee may incorrectly report royalty revenues, which might not be identified by our lessee audit process or our mine inspection process or, if identified, might be identified in a subsequent period.
In addition, we are exposed to operating risks that we do not experience in the royalty business through our soda ash joint venture and through our ownership of certain coal transportation assets. • Sisecam Wyoming's deca stockpiles will substantially deplete by 2024, and its production rates will decline if Sisecam Wyoming does not make further investments or otherwise execute on one or more initiatives to prevent such decline. • Fluctuations in transportation costs and the availability or reliability of transportation could reduce the production of coal, soda ash and other minerals from our properties. • Our lessees could satisfy obligations to their customers with minerals from properties other than ours, depriving us of the ability to receive amounts in excess of minimum royalty payments. • A lessee may incorrectly report royalty revenues, which might not be identified by our lessee audit process or our mine inspection process or, if identified, might be identified in a subsequent period.
Sisecam Wyoming has yearly and multiyear contracts for a portion of its ocean freight with vessel owners and carriers securing capacity and reducing market risk fluctuation. 9 Table of Contents Customers .
Sisecam Wyoming has yearly and multiyear contracts for a portion of its ocean freight with vessel owners and carriers securing capacity and reducing market risk fluctuation. 10 Table of Contents Customers .
Sisecam Wyoming has a perpetual right to continue operating under these leases and license as long as it maintains continuous mining operations and intends to continue renewing the leases and license as has been historical practice. Expansion Project.
Sisecam Wyoming has a perpetual right to continue operating under these leases and license as long as it maintains continuous mining operations and intends to continue renewing the leases and license as has been historical practice.
To the extent possible under these rules, our general partner may elect to either pay the taxes (including any applicable penalties and interest) directly to the IRS or, if we are eligible, issue a revised information statement to each unitholder and former unitholder with respect to an audited and adjusted return.
To the extent possible, our general partner may elect to either pay the taxes (including any applicable penalties and interest) directly to the IRS or, if we are eligible, issue a revised information statement to each unitholder and former unitholder with respect to an audited and adjusted return.
If we do not have sufficient funds, we may be required to refinance all or part of our existing debt, borrow more money, or sell assets or raise equity at unattractive prices, including higher interest rates. We are required to make substantial principal repayments each year in connection with Opco’s senior notes, with approximately $40 million due thereunder during 2023.
If we do not have sufficient funds, we may be required to refinance all or part of our existing debt, borrow more money, or sell assets or raise equity at unattractive prices, including higher interest rates. We are required to make substantial principal repayments each year in connection with Opco’s senior notes, with approximately $31 million due thereunder during 2024.
Our operations are conducted through Opco and our operating assets are owned by our subsidiaries. NRP (GP) LP, our general partner, has sole responsibility for conducting our business and for managing our operations.
Our operations are conducted through Opco and our operating assets are owned by our subsidiaries. NRP (GP) LP, our general partner (the "general partner" or "NRP GP"), has sole responsibility for conducting our business and for managing our operations.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may have an adverse effect on our business, financial condition, results of operations, and cash flows. iv Table of Contents PART I As used in this Part I, 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.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may have an adverse effect on our business, financial condition, results of operations, and cash flows. iv Table of Contents PART I As used in this Annual Report on Form 10-K, 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.
In addition, EPA has used its authority to create significant delays in the issuance of new permits and the modification of existing permits, which has led to substantial delays and increased costs for coal operators. Employees and Labor Relations As of December 31, 2022, affiliates of our general partner employed 54 people who directly supported our operations.
In addition, EPA has used its authority to create significant delays in the issuance of new permits and the modification of existing permits, which has led to substantial delays and increased costs for coal operators. Employees and Labor Relations As of December 31, 2023, affiliates of our general partner employed 55 people who directly supported our operations.
Information on our website is not a part of this report. In addition, the SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements and other information filed by us.
Information on our website is not a part of this report. In addition, the SEC maintains a website at www.sec.gov that contains reports, proxy and information statements and other information filed by us.
Because our general partner is a limited partnership, its general partner, GP Natural Resource Partners LLC, conducts its business and operations and the Board of Directors and officers of GP Natural Resource Partners LLC make decisions on our behalf. Robertson Coal Management LLC, a limited liability company wholly owned by Corbin J.
Because our general partner is a limited partnership, its general partner, GP Natural Resource Partners LLC (the "managing general partner"), conducts its business and operations and the board of directors and officers of GP Natural Resource Partners LLC make decisions on our behalf. Robertson Coal Management LLC ("RCM"), a limited liability company indirectly owned by Corbin J.
The Kepler property is located in Wyoming County, West Virginia. Substantially all of the coal sold from this property in 2022 were metallurgical coal. We lease this property to a subsidiary of Alpha. Coal is produced from underground mines and transported by belt or truck to the preparation plant on the property.
The Kepler property is located in Wyoming County, West Virginia. Substantially all of the coal sold from this property in 2023 was metallurgical coal. We lease this property to a subsidiary of Alpha. Coal is produced from underground mines and transported by belt or truck to the preparation plant on the property.
The prices Sisecam Wyoming receives for its soda ash depend on numerous factors beyond Sisecam Wyoming’s control, including the COVID-19 pandemic, worldwide and regional economic and political conditions impacting supply and demand.
The prices Sisecam Wyoming receives for its soda ash depend on numerous factors beyond Sisecam Wyoming’s control, including worldwide and regional economic and political conditions impacting supply and demand.
For a transfer of interests in a publicly traded partnership that is effected through a broker on or after January 1, 2023, the obligation to withhold is imposed on the transferor’s broker. Current and prospective non-U.S. unitholders should consult their tax advisors regarding the impact of these rules on an investment in our common units.
For a transfer of interests in a publicly traded partnership that is effected through a broker, the obligation to withhold is imposed on the transferor’s broker. Current and prospective non-U.S. unitholders should consult their tax advisors regarding the impact of these rules on an investment in our common units.
During 2022, Sisecam Wyoming had no shortfall payments and does not expect to make any such payments in the future. A leased fleet of more than 2,200 hopper cars serve as dedicated modes of shipment to Sisecam Wyoming's domestic and international customers. For exports, soda ash is shipped on unit trains primarily out of Longview, Washington for bulk shipments.
During 2023, Sisecam Wyoming had no shortfall payments and does not expect to make any such payments in the future. A leased fleet of hopper cars serve as dedicated modes of shipment to Sisecam Wyoming's domestic and international customers. For exports, soda ash is shipped on unit trains primarily out of Longview, Washington for bulk shipments.
A long-term asset generally is deemed impaired when the future expected cash flow from its use and disposition is less than its book value. For the year ended December 31, 2022, we recorded impairment charges of approximately $4.5 million related to properties that we believe our current or future lessees are unable to operate profitably.
A long-term asset generally is deemed impaired when the future expected cash flow from its use and disposition is less than its book value. For the year ended December 31, 2023, we recorded impairment charges of approximately $0.6 million related to properties that we believe our current or future lessees are unable to operate profitably.
We also have a significant concentration of revenues with Foresight and its subsidiaries, with total revenues of $65.6 million i n 2022 from all of their mining operations, including transportation and processing services revenues, coal overriding royalty revenues and wheelage revenues. For additional information on significant customers, refer to " Item 8. Financial Statements and Supplementary Data—Note 14.
We also have a significant concentration of revenues with Foresight and its subsidiaries, with total revenues of $60.5 million i n 2023 from all of their mining operations, including transportation and processing services revenues, coal overriding royalty revenues and wheelage revenues. For additional information on significant customers, refer to " Item 8. Financial Statements and Supplementary Data—Note 14.
Appalachia Basin — Central Appalachia Alpha-CAPP (VA). The Alpha-CAPP (VA) property is located in Wise, Dickenson, Russell and Buchanan Counties, Virginia. Substantially all of the tons sold from this property in 2022 were metallurgical coal. We lease this property to subsidiaries of Alpha Metallurgical Resources Inc. ("Alpha") and previously leased it to subsidiaries of Contura Energy, Inc.
The Alpha-CAPP (VA) property is located in Wise, Dickenson, Russell and Buchanan Counties, Virginia. Substantially all of the tons sold from this property in 2023 were metallurgical coal. We lease this property to subsidiaries of Alpha Metallurgical Resources Inc. ("Alpha") and previously leased it to subsidiaries of Contura Energy, Inc.
The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and we collect minimums and throughput fees. We recorded $21.1 million in revenue related to our coal transportation and processing assets during the year ended December 31, 2022 . We also own transportation and processing infrastructure, including loadout and other transportation assets at Foresight's Macoupin mine.
The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and we collect minimums and throughput fees. We recorded $14.9 million in revenue related to our coal transportation and processing assets during the year ended December 31, 2023 . We also own transportation and processing infrastructure, including loadout and other transportation assets at Foresight's Macoupin mine.
If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced.
If the IRS makes audit adjustments to our income tax returns, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced.
A sequestration project requires acreage possessing unique geologic characteristics, close proximity to sources of industrial-scale greenhouse gas emissions, and the appropriate form of legal title that grants the acreage owner the right to sequester emissions in the subsurface.
A sequestration project requires acreage possessing unique geologic characteristics, close proximity to sources of industrial-scale greenhouse gas emissions or direct air capture capability, and the appropriate form of legal title that grants the acreage owner the right to sequester emissions in the subsurface.
Metallurgical coal production comes from a longwall mine and is transported by beltline to a preparation plant. Metallurgical products are then shipped via railroad and barge to both domestic and export customers. The book value of this property was $4.6 million at December 31, 2022.
Metallurgical coal production comes from a longwall mine and is transported by beltline to a preparation plant. Metallurgical products are then shipped via railroad and barge to both domestic and export customers. The book value of this property was $3.5 million at December 31, 2023.
Coal is shipped by rail via either the Union Pacific, Norfolk Southern or Canadian National railroads, or by barges to domestic utilities customers. The book value of this property was $215.8 million at December 31, 2022.
Coal is shipped by rail via either the Union Pacific, Norfolk Southern or Canadian National railroads, or by barges to domestic utilities customers. The book value of this property was $209.3 million at December 31, 2023.
These officers allocate varying percentages of their time to managing our operations. Neither our general partner, GP Natural Resource Partners LLC, nor any of their affiliates receive any management fee or other compensation in connection with the management of our business, but they are entitled to be reimbursed for all direct and indirect expenses incurred on our behalf.
Neither our general partner, GP Natural Resource Partners LLC, nor any of their affiliates receive any management fee or other compensation in connection with the management of our business, but they are entitled to be reimbursed for all direct and indirect expenses incurred on our behalf.
Met Central Elk Creek Ramaco Royalty Company, LLC Met Central Coal Mountain ECP Met Southern Oak Grove Hatfield Metallurgical Coal Holdings, LLC Met Illinois Basin Williamson Foresight Energy Resources LLC Thermal Illinois Basin Hillsboro Foresight Energy Resources LLC Thermal Northern Powder River Basin Western Energy Rosebud Mining, LLC Thermal 3 Table of Contents Appalachia Basin — Northern Appalachia Carter Roag.
Met Central Elk Creek Ramaco Royalty Company, LLC Met Central Coal Mountain ECP Met Southern Oak Grove Hatfield Metallurgical Coal Holdings, LLC Met Illinois Basin Williamson Foresight Energy Resources LLC Thermal Illinois Basin Hillsboro Foresight Energy Resources LLC Thermal Northern Powder River Basin Western Energy Rosebud Mining, LLC Thermal 4 Table of Contents Appalachia Basin — Central Appalachia Alpha-CAPP (VA).
Production comes from underground room and pillar and surface mines and is trucked to one of two preparation plants. Coal is shipped via the CSX and Norfolk Southern railroads to utility and metallurgical customers. The book value of this property was $47.2 million at December 31, 2022. Below is a map of our Alpha-CAPP (VA) property: Elk Creek.
Production comes from underground room and pillar and surface mines and is trucked to one of two preparation plants. Coal is shipped via the CSX and Norfolk Southern railroads to domestic and export metallurgical customers. The book value of this property was $46.3 million at December 31, 2023. Below is a map of our Alpha-CAPP (VA) property: Elk Creek.
Sisecam Wyoming anticipates that its current deca stockpiles will be exhausted by 2024 and that production rates will decline approximately 200,000 short tons per year if that production capacity is not replaced. Shipping and Logistics. For the year ended December 31, 2022, Sisecam Wyoming assisted the majority of its domestic customers in arranging their freight services.
Sisecam Wyoming anticipates that its current deca stockpiles will be exhausted by 2024 and that production rates will decline if that production capacity is not replaced. Shipping and Logistics. For the year ended December 31, 2023, Sisecam Wyoming assisted the majority of its domestic customers in arranging their freight services.
Sisecam Wyoming pays royalties to the State of Wyoming, the U.S. Bureau of Land Management and Sweetwater Royalties LLC, a subsidiary of Sweetwater Trona OpCo LLC and the successor in interest to the license with the Rock Springs Royalty Company LLC, an affiliate of Occidental Petroleum Corporation (formerly an affiliate of Anadarko Petroleum Corporation).
Bureau of Land Management and Sweetwater Royalties LLC, a subsidiary of Sweetwater Trona OpCo LLC and the successor in interest to the license with the Rock Springs Royalty Company LLC, an affiliate of Occidental Petroleum Corporation (formerly an affiliate of Anadarko Petroleum Corporation).
Challenges in the coal mining industry have led to significant consolidation activity. We own significant interests in several of Alpha's mining operations, which accounted for approximately 26% of our total revenues in 2022. We also own significant interests in all of Foresight’s mining operations, which accounted for approximately 17% of our total revenues in 2022.
Challenges in the coal mining industry have led to significant consolidation activity. We own significant interests in several of Alpha's mining operations, which accounted for approximately 23% of our total revenues in 2023. We also own significant interests in all of Foresight’s mining operations, which accounted for approximately 16% of our total revenues in 2023.
We lease this property to a subsidiary of Rosebud Mining, LLC. Thermal coal is produced by surface dragline mining methods. Coal is transported by either truck or beltline to the Colstrip generation station located at the mine mouth.
The Western Energy property is located in Rosebud and Treasure Counties, Montana. We lease this property to a subsidiary of Rosebud Mining, LLC. Thermal coal is produced by surface dragline mining methods. Coal is transported by either truck or beltline to the Colstrip generation station located at the mine mouth.
Debt, Net ." Our leverage and debt service obligations may adversely affect our financial condition, results of operations and business prospects. As of December 31, 2022, we and our subsidiaries had approximately $169.1 million of total indebtedness.
Debt, Net ." Our leverage and debt service obligations may adversely affect our financial condition, results of operations and business prospects. As of December 31, 2023, we and our subsidiaries had approximately $155.5 million of total indebtedness.
The book value of this property was $40.2 million at December 31, 2022. Below is a map of our Williamson property: 6 Table of Contents Hillsboro. The Hillsboro property is located in Montgomery and Bond Counties, Illinois. This property is under lease to Hillsboro Energy, a subsidiary of Foresight.
The book value of this property was $37.0 million at December 31, 2023. Below is a map of our Williamson property: 7 Table of Contents Hillsboro. The Hillsboro property is located in Montgomery and Bond Counties, Illinois. This property is under lease to Hillsboro Energy, a subsidiary of Foresight.
We appoint three of the seven members of the Board of Managers of Sisecam Wyoming and have certain limited negative controls relating to the company. Significant Customers We have a significant concentration of revenues from Alpha, with total revenues of $102.4 million in 2022 from several different mining operations, including wheelage revenues.
We appoint three of the seven members of the Board of Managers of Sisecam Wyoming and have certain limited negative controls relating to the company. Significant Customers We have a significant concentration of revenues from Alpha, with total revenues of $86.1 million in 2023 from several different mining operations, including wheelage revenues and coal overriding royalty revenues.
In addition, Foresight may determine at any time to recommence operations at the Macoupin mine, at which time we and Foresight will negotiate in good faith to enter into new coal mining lease and transportation agreements. 7 Table of Contents Northern Powder River Basin Western Energy. The Western Energy property is located in Rosebud and Treasure Counties, Montana.
In addition, Foresight may determine at any time to recommence operations at the Macoupin mine, at which time we and Foresight will negotiate in good faith to enter into new coal mining lease and transportation agreements applicable to the Macoupin mine. 8 Table of Contents Northern Powder River Basin Western Energy.
On February 19, 2021, the United States officially rejoined the Paris Climate Agreement per President Biden’s order signed January 20.
In 2019, President Trump withdrew from the Paris Climate Agreement. On February 19, 2021, the United States officially rejoined the Paris Climate Agreement per President Biden’s order signed January 20.
In the exercise of their applicable consent rights and/or board rights, conflicts of interest could arise between us and our general partner on the one hand, and Blackstone or GoldenTree on the other hand. 21 Table of Contents The control of our general partner may be transferred to a third party without unitholder consent.
In addition, GoldenTree also has certain limited consent rights. In the exercise of their applicable consent rights, conflicts of interest could arise between us and our general partner on the one hand, and GoldenTree on the other hand. 22 Table of Contents The control of our general partner may be transferred to a third party without unitholder consent.
Sisecam Wyoming continues to remain focused on evaluating capacity expansion opportunities. As a minority interest owner in Sisecam Wyoming, we do not operate and are not involved in the day-to-day operation of the trona ore mine or soda ash production plant. Our partner, Sisecam Resources, manages the mining and plant operations.
As a minority interest owner in Sisecam Wyoming, we do not operate and are not involved in the day-to-day operation of the trona ore mine or soda ash production plant. Our partner, SCW, manages the mining and plant operations.
One example is the Net Zero Banking Alliance, a group of over 100 banks worldwide representing over 40% of global banking assets who are committed to aligning their investment portfolios with net zero emissions by 2050. The impact of such efforts may adversely affect our ability to raise capital.
One example is the Net Zero Banking Alliance, a group of over 100 banks worldwide representing over 40% of global banking assets who are committed to aligning their investment portfolios with net zero emissions by 2050.
"Deca," short for sodium carbonate decahydrate, is one part soda ash and ten parts water. Solar evaporation causes deca to crystallize and precipitate to the bottom of the four main surface ponds at the Green River Basin facility.
Deca Rehydration . The evaporation stage of trona ore processing produces a precipitate and natural by-product called deca. "Deca," short for sodium carbonate decahydrate, is one part soda ash and ten parts water. Solar evaporation causes deca to crystallize and precipitate to the bottom of the four main surface ponds at the Green River Basin facility.
Although we utilize various procedures and controls to mitigate our exposure to such risks, cybersecurity attacks and other cyber events are evolving, unpredictable, and sometimes difficult to detect, and could lead to unauthorized access to sensitive information or render data or systems unusable.
Although we utilize various procedures and controls to mitigate our exposure to such risks, cybersecurity attacks and other cyber events are evolving, unpredictable, and sometimes difficult to detect, and could lead to unauthorized access to sensitive information or render data or systems unusable. In addition, the frequency and magnitude of cyber-attacks is increasing and attackers have become more sophisticated.
Carbon Neutral Initiatives We continue to identify alternative revenue sources across our large portfolio of land and mineral assets. The types of opportunities include the sequestration of carbon dioxide ("CO 2 ") underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy.
Carbon Neutral Initiatives We continue to explore and identify alternative carbon neutral revenue sources across our large portfolio of surface, mineral, and timber assets, including the permanent sequestration of carbon dioxide ("CO 2 ") underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy, as well as lithium production.
On March 17, 2021, in line with President Biden’s Executive Order 13990, EPA asked the D.C. Circuit to vacate and remand the “significant contribution” final rule. On April 5, 2021, the D.C. Circuit vacated and remanded the January 2021 final rule. President Obama also announced an emission reduction agreement with China’s President Xi Jinping in November 2014.
On March 17, 2021, in line with President Biden’s Executive Order 13990, EPA asked the D.C. Circuit to vacate and remand the “significant contribution” final rule. On April 5, 2021, the D.C. Circuit vacated and remanded the January 2021 final rule.
The National Pollutant Discharge Elimination System (NPDES) program under Section 402 of the statute is administered by the states or EPA and regulates the concentrations of pollutants in discharges of waste and storm water from a mine site.
The Clean Water Act and analogous state laws and regulations create two permitting programs for mining operations. The National Pollutant Discharge Elimination System ("NPDES") program under Section 402 of the statute is administered by the states or EPA and regulates the concentrations of pollutants in discharges of waste and storm water from a mine site.
Production by some of our lessees may not be economic if prices decline further or remain at current levels.
Coal prices continue to be volatile and prices could decline substantially from current levels. Production by some of our lessees may not be economic if prices decline further or remain at current levels.
Pursuant to the Bipartisan Budget Act of 2015, for tax years beginning after December 31, 2017, if the IRS makes audit adjustments to our income tax returns, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us.
If the IRS makes audit adjustments to our income tax returns, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustments directly from us.
In addition, our debt agreements and our partnership agreement place restrictions on our ability to pay, and in some cases raise, the quarterly distribution under certain circumstances. • Our leverage and debt service obligations may adversely affect our financial condition, results of operations and business prospects. • The ongoing COVID-19 pandemic has adversely affected our business, and the ultimate effect on our financial condition, results of operations, and ability to make cash distributions to unitholders will depend on future developments, which are highly uncertain and cannot be predicted. • Prices for both metallurgical and thermal coal are volatile and depend on a number of factors beyond our control.
In addition, our debt agreements and our partnership agreement place restrictions on our ability to pay, and in some cases raise, the quarterly distribution under certain circumstances. • Our leverage and debt service obligations may adversely affect our financial condition, results of operations and business prospects. • Global pandemics, including the COVID-19 pandemic, have in the past and may continue to adversely affect our business. • Prices for both metallurgical and thermal coal are volatile and depend on a number of factors beyond our control.
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Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
1 edited+0 added−0 removed1 unchanged
Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
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2022 filing
2023 filing
Biggest changeMINE SAFETY DISCLOSURES None. 26 Table of Contents PART II
Biggest changeMINE SAFETY DISCLOSURES None. 27 Table of Contents PART II
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
1 edited+0 added−0 removed1 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
1 edited+0 added−0 removed1 unchanged
2022 filing
2023 filing
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES NRP Common Units Our common units are listed and traded on the NYSE under the symbol "NRP." As of February 16, 2023 , there were approximately 11 ,000 b eneficial and registered holders of our common units.
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES NRP Common Units Our common units are listed and traded on the NYSE under the symbol "NRP." As of February 22, 2024 , there were approximately 10,250 b eneficial and registered holders of our common units.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
37 edited+21 added−37 removed39 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
37 edited+21 added−37 removed39 unchanged
2022 filing
2023 filing
Biggest changeDistributable Cash Flow ("DCF"), Free Cash Flow ("FCF") and Cash Flow Cushion (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 Year Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total December 31, 2022 Cash flow provided by (used in) continuing operations Operating activities $ 262,807 $ 44,672 $ (40,641 ) $ 266,838 Investing activities 2,806 — (118 ) 2,688 Financing activities (614 ) — (365,341 ) (365,955 ) December 31, 2021 Cash flow provided by (used in) continuing operations Operating activities $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Investing activities 2,412 — — 2,412 Financing activities (1,132 ) — (87,354 ) (88,486 ) 34 Table of Contents The following tables reconcile net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF, FCF and cash flow cushion: Operating Segments For the Year Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total December 31, 2022 Net cash provided by (used in) operating activities of continuing operations $ 262,807 $ 44,672 $ (40,641 ) $ 266,838 Add: proceeds from asset sales and disposals 1,083 — — 1,083 Add: return of long-term contract receivable 1,723 — — 1,723 Less: maintenance capital expenditures — — (118 ) (118 ) Distributable cash flow $ 265,613 $ 44,672 $ (40,759 ) $ 269,526 Less: proceeds from asset sales and disposals (1,083 ) — — (1,083 ) Free cash flow $ 264,530 $ 44,672 $ (40,759 ) $ 268,443 Less: mandatory Opco debt repayments (39,396 ) Less: preferred unit distributions and redemption of PIK units (49,579 ) Less: common unit distributions (34,384 ) Cash flow cushion $ 145,084 Operating Segments For the Year Ended (In thousands) Mineral Rights Soda Ash Corporate and Financing Total December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Add: proceeds from asset sales and disposals 249 — — 249 Add: return of long-term contract receivable 2,163 — — 2,163 Distributable cash flow $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Less: proceeds from asset sales and disposals (249 ) — — (249 ) Less: acquisition costs (1,000 ) — — (1,000 ) Free cash flow $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 Less: mandatory Opco debt repayments (39,396 ) Less: preferred unit distributions (15,571 ) Less: common unit distributions (22,645 ) Less: warrant cash settlement (9,183 ) Cash flow cushion $ 36,172 Cash provided by operating activities, DCF and FCF increased $145.0 million, $145.3 million and $145.5 million, respectively, primarily due to the following: • Mineral Rights Segment: Cash provided by operating activities, DCF and FCF increased $103.0 million, $103.4 million and $103.5 million, respectively primarily due to the segment's increase in revenues and other income as discussed above. • Soda Ash Segment: Cash provided by operating activities, DCF and FCF increased $33.6 million as a result of higher cash distributions received from Sisecam Wyoming in 2022 as compared to the prior year as discussed above. • Corporate and Financing Segment: Cash used by operating activities decreased $8.5 million and DCF and FCF increased $8.4 million primarily due to lower cash paid for interest in 2022 as a result of the repayments of our 2025 Senior Notes during the year.
Biggest changeDistributable 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 Corporate and For the Year Ended (In thousands) Mineral Rights Soda Ash Financing Total December 31, 2023 Cash flow provided by (used in) Operating activities $ 259,983 $ 81,207 $ (30,212 ) $ 310,978 Investing activities 5,426 — (10 ) 5,416 Financing activities (583 ) — (342,913 ) (343,496 ) December 31, 2022 Cash flow provided by (used in) Operating activities $ 262,807 $ 44,672 $ (40,641 ) $ 266,838 Investing activities 2,806 — (118 ) 2,688 Financing activities (614 ) — (365,341 ) (365,955 ) 35 Table of Contents The following tables reconcile net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF: Operating Segments Corporate and For the Year Ended (In thousands) Mineral Rights Soda Ash Financing Total December 31, 2023 Net cash provided by (used in) operating activities $ 259,983 $ 81,207 $ (30,212 ) $ 310,978 Add: proceeds from asset sales and disposals 2,963 — — 2,963 Add: return of long-term contract receivable 2,463 — — 2,463 Less: maintenance capital expenditures — — (10 ) (10 ) Distributable cash flow $ 265,409 $ 81,207 $ (30,222 ) $ 316,394 Less: proceeds from asset sales and disposals (2,963 ) — — (2,963 ) Free cash flow $ 262,446 $ 81,207 $ (30,222 ) $ 313,431 Operating Segments Corporate and For the Year Ended (In thousands) Mineral Rights Soda Ash Financing Total December 31, 2022 Net cash provided by (used in) operating activities $ 262,807 $ 44,672 $ (40,641 ) $ 266,838 Add: proceeds from asset sales and disposals 1,083 — — 1,083 Add: return of long-term contract receivable 1,723 — — 1,723 Less: maintenance capital expenditures — — (118 ) (118 ) Distributable cash flow $ 265,613 $ 44,672 $ (40,759 ) $ 269,526 Less: proceeds from asset sales and disposals (1,083 ) — — (1,083 ) Free cash flow $ 264,530 $ 44,672 $ (40,759 ) $ 268,443 Cash provided by operating activities, DCF and FCF increased $44.1 million, $46.9 million and $45.0 million, respectively from 2022 to 2023.
The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs.
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.
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. 28 Table of Contents 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 LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business.
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. 29 Table of Contents 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 LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business.
Certain Relationships and Related Transactions, and Director Independence " in this Annual Report on Form 10-K and is incorporated by reference herein. 37 Table of Contents Summary of Critical Accounting Estimates Preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.
Certain Relationships and Related Transactions, and Director Independence " in this Annual Report on Form 10-K and is incorporated by reference herein. 38 Table of Contents Summary of Critical Accounting Estimates Preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.
Our discussion and analysis consists of the following subjects: • Executive Overview • Results of Operations • Liquidity and Capital Resources • Inflation • Environmental Regulation • Related Party Transactions • Summary of Critical Accounting Estimates • Recent Accounting Standards As used in this Item 7, 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.
Our discussion and analysis consist of the following subjects: • Executive Overview • Results of Operations • Liquidity and Capital Resources • Inflation • Environmental Regulation • Related Party Transactions • Summary of Critical Accounting Estimates • Recent Accounting Standards As used in this Item 7, 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.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Introduction The following discussion and analysis presents management’s view of our business, financial condition and overall performance and should be read in conjunction with our consolidated financial statements and footnotes included elsewhere in this filing.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Introduction The following discussion and analysis present management’s view of our business, financial condition and overall performance and should be read in conjunction with our consolidated financial statements and footnotes included elsewhere in this filing.
For discussion of our Cash Flows comparing 2021 to 2020, refer to our 2021 Annual Report on Form 10-K filed March 15, 2022 under Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
For discussion of our Cash Flows comparing 2022 to 2021, refer to our 2022 Annual Report on Form 10-K filed March 3, 2023 under Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
For discussion of our Results of Operations comparing 2021 to 2020, refer to our 2021 Annual Report on Form 10-K filed March 15, 2022 under Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations .
For discussion of our Results of Operations comparing 2022 to 2021, refer to our 2022 Annual Report on Form 10-K filed March 3, 2023 under Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations .
In February 2023, the Board of Directors declared a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2022 as well as a $7.5 million cash distribution on the preferred units with respect to the fourth quarter of 2022.
In February 2024, the Board of Directors declared a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2023 as well as a $2.15 million cash distribution on the preferred units with respect to the fourth quarter of 2023.
Additionally, NRP has announced it will pay a one-time, special cash distribution of $2.43 in March 2023 to help cover unitholder tax liabilities for 2022. Future distributions on our common and preferred units will be determined on a quarterly basis by the Board of Directors.
Additionally, NRP has announced it will pay special cash distribution of $2.44 in March 2024 to help cover unitholder tax liabilities associated with owning NRP's common units in 2023. Future distributions on our common and preferred units will be determined on a quarterly basis by the Board of Directors.
" 36 Table of Contents Capital Resources and Obligations Debt, Net We had the following debt outstanding as of December 31, 2022 and 2021: December 31, (In thousands) 2022 2021 Current portion of long-term debt, net $ 39,076 $ 39,102 Long-term debt, net 129,205 394,443 Total debt, net $ 168,281 $ 433,545 We have been and continue to be in compliance with the terms of the financial covenants contained in our debt agreements.
" 37 Table of Contents Capital Resources and Obligations Debt, Net We had the following debt outstanding as of December 31, 2023 and 2022: December 31, (In thousands) 2023 2022 Current portion of long-term debt, net $ 30,785 $ 39,076 Long-term debt, net 124,273 129,205 Total debt, net $ 155,058 $ 168,281 We have been and continue to be in compliance with the terms of the financial covenants contained in our debt agreements.
Debt Obligations The following table reflects our long-term, non-cancelable debt obligations as of December 31, 2022: Payments Due by Period Debt Obligations (In thousands) Total 2023 2024 2025 2026 2027 Thereafter NRP: Debt principal payments $ — $ — $ — $ — $ — $ — $ — Debt interest payments — — — — — — — Opco: Debt principal payments (including current maturities) (1) 169,087 39,396 31,028 14,332 14,331 70,000 — Debt interest payments (2) 9,794 4,895 2,724 1,450 725 — — Total $ 178,881 $ 44,291 $ 33,752 $ 15,782 $ 15,056 $ 70,000 $ — (1) The amounts indicated in the table include principal due on Opco’s senior notes and credit facility.
Debt Obligations The following table reflects our long-term, non-cancelable debt obligations as of December 31, 2023: Payments Due by Period Debt Obligations (In thousands) Total 2024 2025 2026 2027 2028 Thereafter Opco: Debt principal payments (including current maturities) (1) $ 155,525 $ 31,028 $ 14,332 $ 14,331 $ 95,834 $ - $ — Debt interest payments (2) 4,899 2,724 1,450 725 — — — Total $ 160,424 $ 33,752 $ 15,782 $ 15,056 $ 95,834 $ — $ — (1) The amounts indicated in the table include principal due on Opco’s senior notes and credit facility.
Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments.
NRP Finance Corporation ("NRP Finance") is a wholly owned subsidiary of NRP and was a co-issuer with NRP on the 9.125% senior notes due 2025 (the "2025 Senior Notes"). 28 Table of Contents 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, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments.
" 35 Table of Contents Liquidity and Capital Resources Current Liquidity As of December 31, 2022, we had total liquidity of $99.1 million, consisting of $39.1 million of cash and cash equivalents and $60 million in borrowing capacity under our Opco Credit Facility.
" 36 Table of Contents Liquidity and Capital Resources Current Liquidity As of December 31, 2023, we had total liquidity of $71.2 million, consisting of $12.0 million of cash and cash equivalents and $59.2 million in borrowing capacity under our Opco Credit Facility.
Total other expenses, net decreas ed $2.1 million pri marily due to a $12.6 million decrease in interest expense, net as a result of less debt outstanding as compared to the prior year, partially offset by a $10.5 million loss on early extinguishment of debt related to the premiums and fees incurrent and write-off of debt issuance costs associated with the retirement of the 2025 Senior Notes during the year ended December 31, 2022. 33 Table of Contents 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 Corporate and For the Year Ended (In thousands) Mineral Rights Soda Ash Financing Total December 31, 2022 Net income (loss) $ 267,448 $ 59,635 $ (58,591 ) $ 268,492 Less: equity earnings from unconsolidated investment — (59,795 ) — (59,795 ) Add: total distributions from unconsolidated investment — 44,835 — 44,835 Add: interest expense, net — — 26,274 26,274 Add: loss on extinguishment of debt — — 10,465 10,465 Add: depreciation, depletion and amortization 22,519 — — 22,519 Add: asset impairments 4,457 — — 4,457 Adjusted EBITDA $ 294,424 $ 44,675 $ (21,852 ) $ 317,247 December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Less: equity earnings from unconsolidated investment — (21,871 ) — (21,871 ) Add: total distributions from unconsolidated investment — 11,270 — 11,270 Add: interest expense, net 24 — 38,852 38,876 Add: depreciation, depletion and amortization 19,075 — — 19,075 Add: asset impairments 5,102 — — 5,102 Adjusted EBITDA $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 Net income increased $159.6 million primarily due to the increases in revenues and other income, partially offset by increased operating expenses, both as discussed above.
Total other expenses, net decreas ed $22.6 million pri marily due to a $12.2 million decrease in interest expense, net as a result of less debt outstanding during 2023 as compared to the prior year, and a $10.5 million decrease related to the loss on early extinguishment of debt related to the retirement of the 2025 Senior Notes during the year ended December 31, 2022. 34 Table of Contents 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 Corporate and For the Year Ended (In thousands) Mineral Rights Soda Ash Financing Total December 31, 2023 Net income (loss) $ 245,527 $ 73,140 $ (40,232 ) $ 278,435 Less: equity earnings from unconsolidated investment — (73,397 ) — (73,397 ) Add: total distributions from unconsolidated investment — 81,478 — 81,478 Add: interest expense, net — — 14,103 14,103 Add: depreciation, depletion and amortization 18,471 — 18 18,489 Add: asset impairments 556 — — 556 Adjusted EBITDA $ 264,554 $ 81,221 $ (26,111 ) $ 319,664 December 31, 2022 Net income (loss) $ 267,448 $ 59,635 $ (58,591 ) $ 268,492 Less: equity earnings from unconsolidated investment — (59,795 ) — (59,795 ) Add: total distributions from unconsolidated investment — 44,835 — 44,835 Add: interest expense, net — — 26,274 26,274 Add: loss on extinguishment of debt — — 10,465 10,465 Add: depreciation, depletion and amortization 22,519 — — 22,519 Add: asset impairments 4,457 — — 4,457 Adjusted EBITDA $ 294,424 $ 44,675 $ (21,852 ) $ 317,247 Net income increased $9.9 million primarily due to the decrease in operating and other expenses, net, partially offset by the decrease in revenues and other income, both discussed above.
This overriding royalty expense is fully offset by coal royalty revenue we receive from this property. • A $4.5 million increase in general and administrative expenses primarily due to increased incentive compensation expense incurred during 2022 as a result of the Partnership's improved performance as compared to the prior year. • A $3.4 million increase in depreciation, depletion and amortization expense primarily as a result of higher Illinois Basin coal royalty sales volumes during the year ended December 31, 2022, as compared to the prior year.
This overriding royalty expense is fully offset by coal royalty revenue we receive from this property. • A $3.9 million decrease in asset impairments as compared to the prior year. • A $4.0 million decrease in depreciation, depletion and amortization expense primarily driven by lower Illinois Basin coal royalty sales volumes during the year ended December 31, 2023, as compared to the prior year.
Operating and Other Expenses The following table presents the significant categories of our consolidated operating and other expenses: For the Year Ended December 31, Increase Percentage (In thousands) 2022 2021 (Decrease) Change Operating expenses Operating and maintenance expenses $ 34,903 $ 27,049 $ 7,854 29 % Depreciation, depletion and amortization 22,519 19,075 3,444 18 % General and administrative expenses 21,852 17,360 4,492 26 % Asset impairments 4,457 5,102 (645 ) (13 )% Total operating expenses $ 83,731 $ 68,586 $ 15,145 22 % Other expenses, net Interest expense, net $ 26,274 $ 38,876 $ (12,602 ) (32 )% Loss on extinguishment of debt 10,465 — 10,465 100 % Total other expenses, net $ 36,739 $ 38,876 $ (2,137 ) (5 )% Total operating expenses increased $15.1 million primarily due to the following: • A $7.9 million increase in operating and maintenance expenses primarily as a result of higher overriding royalty expense from an agreement with WPPLP in 2022 as compared to 2021.
Operating and Other Expenses The following table presents the significant categories of our consolidated operating and other expenses: For the Year Ended December 31, Increase Percentage (In thousands) 2023 2022 (Decrease) Change Operating expenses Operating and maintenance expenses $ 32,315 $ 34,903 $ (2,588 ) (7 )% Depreciation, depletion and amortization 18,489 22,519 (4,030 ) (18 )% General and administrative expenses 26,111 21,852 4,259 19 % Asset impairments 556 4,457 (3,901 ) (88 )% Total operating expenses $ 77,471 $ 83,731 $ (6,260 ) (7 )% Other expenses, net Interest expense, net $ 14,103 $ 26,274 $ (12,171 ) (46 )% Loss on extinguishment of debt — 10,465 (10,465 ) (100 )% Total other expenses, net $ 14,103 $ 36,739 $ (22,636 ) (62 )% Total operating expenses decreased $6.3 million primarily due to the following: • A $2.6 million decrease in operating and maintenance expenses primarily as a result of lower overriding royalty expense from an agreement with Western Pocahontas Properties Limited Partnership ("WPPLP") in 2023 as compared to 2022.
NRP Finance Corporation ("NRP Finance") is a wholly owned subsidiary of NRP and was a co-issuer with NRP on the 9.125% senior notes due 2025 (the "2025 Senior Notes"). 27 Table of Contents Non-GAAP Financial Measures Distributable Cash Flow Distributable cash flow ("DCF") represents net cash provided by (used in) operating activities of continuing operations 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 receivables, less maintenance capital expenditures.
Distributable Cash Flow Distributable cash flow ("DCF") represents net cash provided by (used in) operating activities of continuing operations 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 receivables, less maintenance capital expenditures.
The discussion by region is as follows: • Appalachia : Coal royalty revenues increased $88.6 million primarily due to increased coal sales prices and volumes during the year ended December 31, 2022, as compared to the prior year. • Illinois Basin : Coal royalty revenues increased $7.9 million primarily due to higher sales volumes and increased sales prices during the year ended December 31, 2022 as compared during the prior year.
The discussion by region is as follows: • Appalachia : Coal royalty revenues decreased $14.8 million primarily due to decreased metallurgical coal sales prices during the year ended December 31, 2023, as compared to the prior year. • Illinois Basin : Coal royalty revenues increased $1.5 million primarily due to higher thermal coal sales prices, partially offset by lower coal sales volumes as compared to the prior year. • Northern Powder River Basin : Coal royalty revenues increased $3.2 million due to increased sales volumes and higher coal sales prices during the year ended December 31, 2023, as compared to the prior year.
In February 2023, we received a notice from holders of our Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 47,499 Class A Preferred Units.
As of December 31, 2023 our leverage ratio was 0.5x. In 2023, we received notices from holders of the Class A Convertible Preferred Units representing limited partner interests in NRP (the "preferred units") exercising their right to either convert or redeem, at our election, an aggregate of 83,333 preferred units.
Cash provided by operating activities and free cash flow during the year ended December 31, 2022 increased $33.6 million as compared to the prior year period due to Sisecam Wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021.
Cash provided by operating activities and free cash flow during the year ended December 31, 2023 increased $36.5 million as compared to the prior year period due to higher distributions received from Sisecam Wyoming in 2023 stemming from Sisecam Wyoming's strong operating performance in the first half of the year.
Cash flows used in financing activities increased $277.5 million, from $88.5 million in the year ended December 31, 2021 to $366.0 million in the year ended December 31, 2022 primarily due to the following: • $300.0 million of cash used to retire all of our 2025 Senior Notes in 2022; • $19.6 million of cash used to redeem the preferred units paid-in-kind during the first quarter of 2022; • $14.4 million of increased cash used for preferred unit distributions as a result of paying all of our preferred unit distributions in cash in 2022 as compared to a portion in kind in 2021; • $11.9 million of increased cash used for other items, net, which primarily related to the premiums paid related to the repayment of the 2025 Senior Notes in 2022; and • $11.7 million of increased cash used for distributions to common unitholders and the general partner as a result of increasing our common unit distributions to $0.75/unit beginning in the second quarter of 2022.
Cash flows used in financing activities decreased $22.5 million, from $366.0 million used during the year ended December 31, 2022 to $343.5 million used during the year ended December 31, 2023 primarily due to the following: • $300.0 million of cash used to retire the 2025 Senior Notes in 2022; • $178.8 million o f increased borrowings on the Opco Credit Facility in 2023; • $19.3 million of cash used to redeem the preferred units paid-in-kind in 2022; • $9.1 million of decreased cash used for other items, net primarily due to the premiums paid related to the retirement of the 2025 Senior Notes in 2022; and • $8.2 million of decreased cash used for preferred unit distributions as a result of the preferred unit redemptions in 2023.
Other Revenues Other revenues decreased $1.1 million during the year ended December 31, 2022 as compared to the prior year primarily due to the following: • An $8.4 million d ecrease in production lease minimum revenues primarily due to the lease amendment with Foresight whereas transportation and processing revenues were based on the recognition of a fixed amount in 2021. • A $5.2 million decreas e in carbon neutral initiative revenues as compared to the prior year.
Other Revenues Other revenues decreased $19.3 million during the year ended December 31, 2023 as compared to the prior year primarily due to the following: • An $8.8 million d ecrease in oil and gas revenues primarily as a result of decreased natural gas prices as compared to the prior year; • A $5.6 million decreas e in carbon neutral initiative revenues as compared to the prior year.
Soda Ash Business Segment Revenues and other income during the year ended December 31, 2022 were higher by $37.9 million compared to the prior year period primarily as a result of increased international sales prices.
Soda Ash Business Segment Revenues and other income during the year ended December 31, 2023 were higher by $13.6 million, or 23%, as compared to the prior year primarily due to higher sales prices driven by strong demand domestically, partially offset by lower soda ash production and sales volumes.
The following table calculates our leverage ratio: (In thousands) For the Year Ended December 31, 2022 Adjusted EBITDA $ 317,247 Debt—at December 31, 2022 $ 169,087 Leverage Ratio 0.5x Cash Flows Year Ended December 31, 2022 and 2021 Compared Cash flows provided by operating activities increased $145.0 million, from $121.8 million in the year ended December 31, 2021 to $266.8 million in the year ended December 31, 2022 primarily related to increased revenues and other income within our Mineral Rights segment, higher cash distributions received from Sisecam Wyoming, and less cash paid for interest as compared to the prior year, all as discussed above.
The following table calculates our leverage ratio: (In thousands) For the Year Ended December 31, 2023 Adjusted EBITDA $ 319,664 Debt—at December 31, 2023 $ 155,525 Leverage Ratio 0.5x Cash Flows Year Ended December 31, 2023 and 2022 Compared Cash flows provided by operating activities increased $44.1 million, from $266.8 million during the year ended December 31, 2022 to $311.0 million during the year ended December 31, 2023 due to increased cash flow within our Soda Ash and Corporate and Financing segments, partially offset by decreased cash flow within our Mineral Rights segment, all discussed above.
Revenues recognized in 2022 related to carbon neutral transactions that included subsurface CO 2 storage and geothermal while revenues recognized in 2021 related to forest CO 2 sequestration revenues.
Carbon neutral initiative revenues recognized in 2023 primarily related to subsurface CO 2 storage and forest offset credits.
Adjusted EBITDA increased $155.9 million primarily due to a $126.8 million increase in Adjusted EBITDA within our Mineral Rights segment as a result of higher revenues and other income during the year ended December 31, 2022 as discussed above and a $33.6 million increase in Adjusted EBITDA within our Soda Ash segment as a result of higher cash distributions received from Sisecam Wyoming during the year ended December 31, 2022 as compared to the prior year due to Sisecam Wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021.
Adjusted EBITDA increased $2.4 million primarily due to a $36.5 million increase in Adjusted EBITDA within our Soda Ash segment as a result of higher cash distributions received from Sisecam Wyoming during the year ended December 31, 2023 as compared to the prior year due to Sisecam Wyoming's strong operating performance in the first half of 2023.
Strong international sales at Sisecam Wyoming for the year ended December 31, 2022, more than offset input cost inflation, supply chain difficulties, and softening demand in the second half of the year due to China's Zero-Covid policy and concerns of slowing economic growth. 30 Table of Contents Results of Operations Year Ended December 31, 2022 and 2021 Compared Revenues and Other Income The following table includes our revenues and other income by operating segment: For the Year Ended December 31, Percentage Operating Segment (In thousands) 2022 2021 Increase Change Mineral Rights $ 329,167 $ 194,493 $ 134,674 69 % Soda Ash 59,795 21,871 37,924 173 % Total $ 388,962 $ 216,364 $ 172,598 80 % 31 Table of Contents The changes in revenues and other income are discussed for each of the operating segments below: 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 Year Ended December 31, Increase Percentage (In thousands, except per ton data) 2022 2021 (Decrease) Change Coal sales volumes (tons) Appalachia Northern 1,696 1,335 361 27 % Central 13,646 12,279 1,367 11 % Southern 1,784 1,571 213 14 % Total Appalachia 17,126 15,185 1,941 13 % Illinois Basin 11,135 9,388 1,747 19 % Northern Powder River Basin 4,288 3,151 1,137 36 % Gulf Coast 385 55 330 600 % Total coal sales volumes 32,934 27,779 5,155 19 % Coal royalty revenue per ton Appalachia Northern $ 8.75 $ 6.51 $ 2.24 34 % Central 10.47 5.71 4.76 83 % Southern 13.50 9.14 4.36 48 % Illinois Basin 2.50 2.12 0.38 18 % Northern Powder River Basin 4.07 3.54 0.53 15 % Gulf Coast 0.58 0.60 (0.02 ) (3 )% Combined average coal royalty revenue per ton 6.90 4.47 2.43 54 % Coal royalty revenues Appalachia Northern $ 14,836 $ 8,691 $ 6,145 71 % Central 142,930 70,149 72,781 104 % Southern 24,076 14,355 9,721 68 % Total Appalachia 181,842 93,195 88,647 95 % Illinois Basin 27,856 19,917 7,939 40 % Northern Powder River Basin 17,437 11,151 6,286 56 % Gulf Coast 223 33 190 576 % Unadjusted coal royalty revenues 227,358 124,296 103,062 83 % Coal royalty adjustment for minimum leases (402 ) (20,207 ) 19,805 98 % Total coal royalty revenues $ 226,956 $ 104,089 $ 122,867 118 % Other revenues Production lease minimum revenues $ 5,854 $ 14,269 $ (8,415 ) (59 )% Minimum lease straight-line revenues 18,792 20,564 (1,772 ) (9 )% Carbon neutral initiative revenues 8,600 13,790 (5,190 ) (38 )% Wheelage revenues 13,961 10,065 3,896 39 % Property tax revenues 5,878 6,028 (150 ) (2 )% Coal overriding royalty revenues 3,434 4,367 (933 ) (21 )% Lease amendment revenues 3,201 4,696 (1,495 ) (32 )% Aggregates royalty revenues 3,299 1,889 1,410 75 % Oil and gas royalty revenues 16,161 4,506 11,655 259 % Other revenues 877 933 (56 ) (6 )% Total other revenues $ 80,057 $ 81,107 $ (1,050 ) (1 )% Royalty and other mineral rights $ 307,013 $ 185,196 $ 121,817 66 % Transportation and processing services revenues 21,072 9,052 12,020 133 % Gain on asset sales and disposals 1,082 245 837 342 % Total Mineral Rights segment revenues and other income $ 329,167 $ 194,493 $ 134,674 69 % 32 Table of Contents Coal Royalty Revenues Approximately 70% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal during the year ended December 31, 2022.
However, we believe this increase in global soda ash production will result in an oversupplied market and a decline in soda ash prices in 2024. 31 Table of Contents Results of Operations Year Ended December 31, 2023 and 2022 Compared Revenues and Other Income The following table includes our revenues and other income by operating segment: For the Year Ended December 31, Increase Percentage Operating Segment (In thousands) 2023 2022 (Decrease) Change Mineral Rights $ 296,612 $ 329,167 $ (32,555 ) (10 )% Soda Ash 73,397 59,795 13,602 23 % Total $ 370,009 $ 388,962 $ (18,953 ) (5 )% 32 Table of Contents The changes in revenues and other income are discussed for each of the operating segments below: 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 Year Ended December 31, Increase Percentage (In thousands, except per ton data) 2023 2022 (Decrease) Change Coal sales volumes (tons) Appalachia Northern 1,145 1,696 (551 ) (32 )% Central 13,927 13,646 281 2 % Southern 2,670 1,784 886 50 % Total Appalachia 17,742 17,126 616 4 % Illinois Basin 8,119 11,135 (3,016 ) (27 )% Northern Powder River Basin 4,589 4,288 301 7 % Gulf Coast 1,477 385 1,092 284 % Total coal sales volumes 31,927 32,934 (1,007 ) (3 )% Coal royalty revenue per ton Appalachia Northern $ 7.15 $ 8.75 $ (1.60 ) (18 )% Central 8.95 10.47 (1.52 ) (15 )% Southern 12.81 13.50 (0.69 ) (5 )% Illinois Basin 3.61 2.50 1.11 44 % Northern Powder River Basin 4.50 4.07 0.43 11 % Gulf Coast 0.66 0.58 0.08 14 % Combined average coal royalty revenue per ton 6.83 6.90 (0.07 ) (1 )% Coal royalty revenues Appalachia Northern $ 8,192 $ 14,836 $ (6,644 ) (45 )% Central 124,631 142,930 (18,299 ) (13 )% Southern 34,205 24,076 10,129 42 % Total Appalachia 167,028 181,842 (14,814 ) (8 )% Illinois Basin 29,350 27,856 1,494 5 % Northern Powder River Basin 20,666 17,437 3,229 19 % Gulf Coast 969 223 746 335 % Unadjusted coal royalty revenues 218,013 227,358 (9,345 ) (4 )% Coal royalty adjustment for minimum leases (2 ) (402 ) 400 100 % Total coal royalty revenues $ 218,011 $ 226,956 $ (8,945 ) (4 )% Other revenues Production lease minimum revenues $ 3,322 $ 5,854 $ (2,532 ) (43 )% Minimum lease straight-line revenues 19,389 18,792 597 3 % Carbon neutral initiative revenues 2,969 8,600 (5,631 ) (65 )% Wheelage revenues 12,191 13,961 (1,770 ) (13 )% Property tax revenues 6,219 5,878 341 6 % Coal overriding royalty revenues 2,175 3,434 (1,259 ) (37 )% Lease amendment revenues 3,070 3,201 (131 ) (4 )% Aggregates royalty revenues 2,876 3,299 (423 ) (13 )% Oil and gas royalty revenues 7,387 16,161 (8,774 ) (54 )% Other revenues 1,124 877 247 28 % Total other revenues $ 60,722 $ 80,057 $ (19,335 ) (24 )% Royalty and other mineral rights $ 278,733 $ 307,013 $ (28,280 ) (9 )% Transportation and processing services revenues 14,923 21,072 (6,149 ) (29 )% Gain on asset sales and disposals 2,956 1,082 1,874 173 % Total Mineral Rights segment revenues and other income $ 296,612 $ 329,167 $ (32,555 ) (10 )% 33 Table of Contents Coal Royalty Revenues Approximately 70% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal during the year ended December 31, 2023.
We have debt service obligations, including approximately $40 million of principal repayments on Opco’s senior notes in 2023. As discussed previously, during 2022 we permanently retired all of our 9.125% Senior Notes due 2025 and had $70 million drawn on our Opco Credit Facility as of December 31, 2022.
We have debt service obligations, including approximately $31 million of principal repayments on Opco’s senior notes in 2024. As of December 31, 2023 our leverage ratio was 0.5x.
(2) The amounts indicated in the table include interest due on Opco’s senior notes. Inflation Inflation in the United States has been relatively low in previous years, and despite rising costs beginning in 2021 and continuing into 2022, inflation did not have a material impact on operations for the years ended December 31, 2022, 2021 and 2020.
Class A Convertible Preferred Units and Warrants " in this Annual Report on Form 10-K. Inflation Despite rising costs beginning in 2021 and continuing into 2023, inflation did not have a material impact on operations for the years ended December 31, 2023, 2022 and 2021.
Our financial results by segment for the year ended December 31, 2022 are as follows: Operating Segments Corporate and (In thousands) Mineral Rights Soda Ash Financing Total Revenues and other income $ 329,167 $ 59,795 $ — $ 388,962 Net income (loss) $ 267,448 $ 59,635 $ (58,591 ) $ 268,492 Asset impairments 4,457 — — 4,457 Net income (loss) excluding asset impairments $ 271,905 $ 59,635 $ (58,591 ) $ 272,949 Adjusted EBITDA (1) $ 294,424 $ 44,675 $ (21,852 ) $ 317,247 Cash flow provided by (used in) continuing operations Operating activities $ 262,807 $ 44,672 $ (40,641 ) $ 266,838 Investing activities $ 2,806 $ — $ (118 ) $ 2,688 Financing activities $ (614 ) $ — $ (365,341 ) $ (365,955 ) Distributable cash flow (1) $ 265,613 $ 44,672 $ (40,759 ) $ 269,526 Free cash flow (1) $ 264,530 $ 44,672 $ (40,759 ) $ 268,443 Cash flow cushion (1) N/A N/A N/A $ 145,084 (1) See"—Results of Operations" below for reconciliations to the most comparable GAAP financial measures. 29 Table of Contents Current Results/Market Commentary Business Outlook and Quarterly Distributions We generated $266.8 million of operating cash flow and $268.4 million of free cash flow during the year ended December 31, 2022, and ended the year w ith $99.1 million of l iquidity consisting of $39.1 million of cash and cash equivalents and $60 million of borrowing capacity under our Opco Credit Facility.
Our financial results by segment for the year ended December 31, 2023 are as follows: Operating Segments Corporate and (In thousands) Mineral Rights Soda Ash Financing Total Revenues and other income $ 296,612 $ 73,397 $ — $ 370,009 Net income (loss) $ 245,527 $ 73,140 $ (40,232 ) $ 278,435 Asset impairments 556 — — 556 Net income (loss) excluding asset impairments $ 246,083 $ 73,140 $ (40,232 ) $ 278,991 Adjusted EBITDA (1) $ 264,554 $ 81,221 $ (26,111 ) $ 319,664 Cash flow provided by (used in) continuing operations Operating activities $ 259,983 $ 81,207 $ (30,212 ) $ 310,978 Investing activities $ 5,426 $ — $ (10 ) $ 5,416 Financing activities $ (583 ) $ — $ (342,913 ) $ (343,496 ) Distributable cash flow (1) $ 265,409 $ 81,207 $ (30,222 ) $ 316,394 Free cash flow (1) $ 262,446 $ 81,207 $ (30,222 ) $ 313,431 (1) See"—Results of Operations" below for reconciliations to the most comparable GAAP financial measures. 30 Table of Contents Current Results/Market Commentary Business Outlook and Quarterly Distributions We generated $311.0 million of operating cash flow and $313.4 million of free cash flow during the year ended December 31, 2023, and ended the year w ith $71.2 million of liq uidity consisting of $12.0 million of cash and cash equivalents a nd $59.2 million of borrowing capacity under our Opco Credit Facility.
The excess of cumulative distributions received over our cumulative equity in earnings are considered returns of investment and classified as investing cash inflows. Mineral Rights Mineral rights owned and leased are recorded at its original cost of construction or, upon acquisition, at fair value of the assets acquired.
This evaluation is performed at the inception of the lease and only reassessed upon modification or renewal of the lease. Mineral Rights Mineral rights owned and leased are recorded at its original cost of construction or, upon acquisition, at fair value of the assets acquired.
Revenues from Foresight in 2022 represent traditional royalty and minimum payments. • Northern Powder River Basin : Coal royalty revenues increased $6.3 million primarily due to increased sales volumes as our lessee mined more on our property during 2022 as compared to 2021in accordance with its mine plan.
The increase in sales volumes was due to our lessee mining more on our property during 2023 as compared to 2022 in accordance with its mine plan.
Transportation and Processing Services Revenues Transportation and processing services revenues increased $12.0 million during the year ended December 31, 2022 as compared to the prior year primarily due to the lease amendment with Foresight whereas transportation and processing revenues were based on the recognition of a fixed amount in 2021.
Transportation and Processing Services Revenues Transportation and processing services revenues decreased $6.1 million during the year ended December 31, 2023 as compared to the prior year primarily due to a temporary relocation of certain production off of NRP's coal reserves.
Revenues from Foresight in 2022 represented traditional royalty and minimum payments and were greater than the fixed revenue from 2021. Soda Ash Revenues and other income related to our Soda Ash segment increased $37.9 million c ompared to the prior year primarily as a result of increased international sales prices.
Soda Ash Revenues and other income related to our Soda Ash segment increased $13.6 million c ompared to the prior year primarily due to higher sales prices driven by strong demand domestically, partially offset by lower soda ash production and sales volumes.
These decreases were partially offset by an $11.7 milli on increase in oil and gas royalty revenues primarily due to new wells and increased natural gas prices as compared to the prior year.
These decreases were partially offset by a $4.3 million increase in general and administrative expenses primarily due to higher long-term incentive expense during the year ended December 31, 2023, as compared to the prior year.
In 2021 we paid half of our preferred unit distributions in kind and in 2022 we paid all of our preferred unit distributions in cash and redeemed the outstanding paid-in-kind units. • $11.7 million of increased cash used for common unit distributions as a result of increasing our common unit distributions to $0.75/unit beginning in the second quarter of 2022.
These decreases in cash flow used were partially offset by the following: • $178.3 million of cash used to redeem the preferred units in 2023; • $223.0 million of cash used to repay a portion of the Opco Credit Facility in 2023; • $56.1 million of cash used to settle certain of our warrants in 2023; and • $35.5 million of increased cash distributions to common unitholders and the general partner as a result of the special cash distribution of $2.43/unit made in the first quarter of 2023 in addition to increasing our common unit distributions to $0.75/unit beginning in the second quarter of 2022.
Removed
Cash Flow Cushion Cash flow cushion represents net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivables; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities, one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and redemption of PIK units, common unit distributions and warrant cash settlements.
Added
We chose to redeem the preferred units for $83.3 million in cash rather than converting them into common units. In 2023, we also executed negotiated transactions with holders of the preferred units pursuant to which we repurchased and retired an aggregate of 95,001 preferred units for $95.0 million in cash.
Removed
Cash flow cushion 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.
Added
Of the originally issued 250,000 preferred units, 71,666 preferred units remain outstanding as of December 31, 2023. Following these redemptions and repurchases, the subject units were retired and no longer remain outstanding and Blackstone ceased to own any preferred units. All rights of Blackstone related to its ownership of preferred units ceased, including Blackstone's right to appoint a board designee.
Removed
Cash flow cushion is a supplemental liquidity measure used by our management to assess our ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.
Added
In 2023, we negotiated transactions with holders of the warrants to purchase common units (the "warrants") pursuant to which we repurchased and retired an aggregate of 752,500 warrants with a strike price of $22.81 and 710,000 warrants with a strike price of $34.00 for approximately $56.1 million in cash.
Removed
During the year, we refinanced, upsized, and extended our Opco Credit Facility to $130 million due 2027. Also during the year, we permanently retired all $300 million of our 2025 Senior Notes. As of December 31, 2022 our leverage ratio was 0.5x.
Added
In January and February 2024, holders of our warrants exercised a total of 1,219,665 warrants with a strike price of $34.00. We settled the warrants on a net basis with a total of $56 million in cash and 198,767 common units. Following these transactions, of the originally issued 4,000,000 warrants, 320,335 warrants with a strike price of $34.00 remain outstanding.
Removed
We chose to redeem the preferred units for $47.5 million in cash plus any accrued and unpaid distributions, utilizing cash on hand and borrowings under our revolving credit facility. Of the originally issued 250,000 Class A Preferred Units, 202,501 Class A Preferred Units remain outstanding as of the date of this report.
Added
In February 2024, we exercised our option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million.
Removed
Mineral Rights Business Segment Metallurgical coal prices reached historical highs and were the primary driver of strong segment performance. Numerous factors continue to provide support for met pricing. Supply chain disruptions, labor shortages and years of underinvestment in new coal production capacity continue to undermine producers’ ability to bring new production online to meet demand.
Added
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. The Opco Credit Facility otherwise continues to operate under its existing terms and conditions in all material respects.
Removed
While met prices have pulled back from the peaks reached last year, we continue to believe met prices will remain well-supported for the foreseeable future. Thermal coal prices also reached record highs in 2022, but have declined significantly in recent months due to unusually warm weather in Europe and North America as well as lower natural gas prices.
Added
Mineral Rights Business Segment Revenues and other income during the year ended December 31, 2023 decreased $32.6 million, or 10%, as compared to the prior year primarily due to decreased metallurgical coal sales prices, decreased revenues from oil and gas royalties, lower transportation and processing services revenues and certain carbon neutral initiative transactions entered into in 2022.
Removed
While we do not expect to see thermal prices rebound to last year’s levels, many of the factors that provided support to prices over the last year still exist. Boycotts of Russian coal continue to force European buyers to source coal from other regions, including the U.S.
Added
Cash provided by operating activities and free cash flow decreased $2.8 million and $2.1 million, respectively, compared to the prior year period primarily due to the lower revenues during the year ended December 31, 2023 as compared to the prior year period.
Removed
Operators will continue to be burdened by labor shortages, pressure from governments, regulators, activists, and capital providers, which will limit ability to increase thermal production to meet demand. China appears to be relaxing its three-year ban on Australian coal imports with the recent approvals for several Chinese companies to buy Australian coal.
Added
Metallurgical and thermal coal prices saw significant variability in 2023, and were off the record highs seen in 2022, but finished the year strong relative to historical norms.
Removed
Additional demand from a Chinese economy emerging from a zero-COVID policy should provide additional support for prices. We expect these factors to keep thermal prices elevated relative to historical levels for the foreseeable future We continue to explore and identify carbon neutral revenue sources across our large portfolio of land and mineral assets.
Added
We believe limitations from ongoing labor shortages, access to capital, and inflationary pressures should provide continued price support for metallurgical and thermal coal in 2024, despite headwinds from lower steel demand and the long-term secular decline in thermal energy production.
Removed
The types of opportunities include the sequestration of carbon dioxide underground and in standing forests, and the generation of green electricity using geothermal, solar, and wind energy. We own the rights to sequester carbon dioxide ("CO 2 ") on approximately 3.5 million acres of pore space in the southern United States.
Added
We continue to explore and identify carbon neutral revenue sources across our large portfolio of surface, mineral, and timber assets, including the permanent sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy, as well as lithium production.
Removed
As announced previously, in the first quarter of 2022 we executed our first subsurface CO 2 sequestration lease on 75,000 acres of underground pore space we own in southwest Alabama with the potential to store over 300 million metric tons of CO 2 .
Added
Strong sales prices at Sisecam Wyoming for the year ended December 31, 2023 more than offset input cost inflation, supply chain difficulties, and the influx of supply from China in the latter part of the year.
Removed
In October of 2022, we announced our second subsurface CO 2 transaction with the execution of a lease for approximately 65,000 acres of pore space we control near southeast Texas with estimated storage capacity of at least 500 million metric tons of CO 2 .
Added
Total coal royalty revenues decreased $8.9 million from 2022 to 2023.
Removed
In total, we have approximately 140,000 acres of pore space under lease for carbon sequestration with estimated CO 2 storage capacity of 800 million metric tons.
Added
Carbon neutral initiative revenues recognized in 2022 primarily related to subsurface CO 2 storage and geothermal energy transactions; and • A $2.5 million decrease in production lease minimum revenues primarily as a result of a decrease in breakage revenues as compared to the prior year.
Removed
Total coal royalty revenues increased $122.9 million from 2021 to 2022. Strong coal prices in 2022 were primarily driven by improved demand combined with a limited ability for operators to increase production due to ongoing labor shortages, global supply chain interruptions, and limited access to capital.
Added
The fee per ton associated with the transportation and processing of the non-NRP coal is less than the fee per ton associated with the transportation and processing of NRP coal.
Removed
Revenues recognized from Foresight in 2021 were fixed as a result of the lease amendment the Partnership entered into with Foresight in 2020 pursuant to which Foresight agreed to pay NRP fixed cash payments in 2020 and 2021 to satisfy all obligations arising out of the existing various coal mining leases and transportation infrastructure fee agreements between the Partnership and Foresight.
Added
This increase was partially offset by a $29.9 million decrease in Adjusted EBITDA within our Mineral Rights segment as a result of lower revenues and other income during the year ended December 31, 2023 as discussed above and a $4.3 million decrease in Adjusted EBITDA within our Corporate and Financing segment as a result of the increase in general and administrative expenses during the year ended December 31, 2023 as discussed above.
Removed
Cash flow cushion increased $108.9 million as a result of the increase in FCF discussed above and $9.2 million of cash used to settle the exercise of certain of our warrants in 2021, partially offset by: • $34.0 million of increased cash paid with respect to our preferred units.
Added
The discussion by segment is as follows. • Mineral Rights Segment: Cash provided by operating activities, DCF and FCF decreased $2.8 million, $0.2 million and $2.1 million, respectively primarily due to the segment's decrease in revenues and other income as discussed above. • Soda Ash Segment: Cash provided by operating activities, DCF and FCF increased $36.5 million as a result of higher cash distributions received from Sisecam Wyoming in 2023 driven by Sisecam Wyoming's strong operating performance in the first half of 2023. • Corporate and Financing Segment: Cash used in operating activities decreased $10.4 million and DCF and FCF increased $10.5 million primarily due to lower cash paid for interest in 2023 as a result of the retirement of the 2025 Senior Notes in 2022.
Removed
We believe our liquidity position provides us with the flexibility to continue paying down debt and manage our business. As of December 31, 2022 our leverage ratio was 0.5x.
Added
(2) The amounts indicated in the table include interest due on Opco’s senior notes. Preferred Units and Warrants As of December 31, 2023 there were 71,666 preferred units outstanding. As of December 31, 2022 there were 250,000 preferred units outstanding. As of December 31, 2023 there were 1,540,000 warrants with a strike price of $34.00 outstanding.
Removed
These increases in cash flow used were partially offset by $70 million of borrowings on our Opco Credit Facility in 2022 and $9.2 million of cash used in 2021 to settle the exercise of certain of our warrants.
Added
As of December 31, 2022 there were 3,002,500 warrants outstanding, which included warrants to purchase 752,500 common units at a strike price of $22.81 and warrants to purchase 2,250,00 common units with a strike price of $34.00. For more information on our preferred units and warrants, see " Item 8. Financial Statements and Supplementary Data—Note 4.
Removed
This evaluation is performed at the inception of the lease and only reassessed upon modification or renewal of the lease. Oil and gas related revenues consist of revenues from royalties and overriding royalties and are recognized on the basis of volume of hydrocarbons sold by lessees and the corresponding revenues from those sales.
Added
Recent Accounting Standards In November 2023, the FASB issued ASU No. 2023-07 — Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses.
Removed
Also included within oil and gas royalty revenues are lease bonus payments, which are generally paid upon the execution of a lease. We also have overriding royalty revenue interests in certain of our coal and aggregates mineral rights. Revenue from these interests is recognized over time based on when the coal is sold. Carbon neutral initiative revenues.
Added
The guidance is effective for annual and interim periods beginning after December 15, 2023 and is to be adopted retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of ASU 2023-07 to have a material effect on our Consolidated Financial Statements. 39 Table of Contents
Removed
Revenues related to consideration received from carbon neutral initiatives that are recognized at a point in time upon satisfaction of our performance obligation. Wheelage revenues. Revenues related to fees collected per ton to transport foreign coal across property we own that is recognized over time as transportation across our property occurs. Other revenues.
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