Natural Resource Partners (NRP) investor relations material

Executive summary

• Net income for Q1 2026 was $19.6 million, down from $40.3 million in Q1 2025, reflecting challenging market conditions for coal and soda ash.

• Generated $33.8 million in free cash flow before a $39.2 million capital investment in the soda ash business; after investment, free cash flow was negative $5.4 million for the quarter.

• Revenues and other income fell 35% year-over-year to $39.4 million, primarily due to decreased coal sales volumes and lower soda ash prices.

• Declared a Q1 2026 distribution of $0.75 per common unit, consistent with the prior quarter, and paid a special $0.12 per unit distribution to cover unitholder tax liabilities.

• Remains committed to deleveraging and increasing unitholder distributions, though timing may be affected by market volatility.

Financial highlights

• Q1 2026 revenues were $39.4 million, down from $60.5 million in Q1 2025, with net income at $19.6 million and adjusted EBITDA at $36.0 million.

• Operating cash flow was $33.0 million; free cash flow was negative $5.4 million after the soda ash investment.

• Mineral Rights segment net income fell $11.7 million year-over-year due to lower coal sales volumes and higher depletion rates.

• Soda Ash segment net income decreased $12.5 million year-over-year, with no distributions received and lower sales prices.

• Corporate and Financing segment net income improved by $3 million year-over-year due to lower interest expense.

Outlook and guidance

• No distributions from the Soda Ash segment are expected until market conditions improve, which could take several years.

• Management expects continued headwinds for metallurgical coal, thermal coal, and soda ash, with no near-term market correction anticipated for soda ash.

• Distributions will continue to be evaluated quarterly, considering profitability, cash flow, debt service, market conditions, and tax liabilities.