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Note 7 - Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

7.    Segment Information

 

The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments:

 

Mineral Rights—consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The Partnership is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally into the glass and chemicals industries.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

NRP’s Chief Operating Decision Makers (“CODM”) are its Chief Executive Officer and President and Chief Operating Officer. Together, they evaluate the Partnership’s performance monthly through a review of the segments’ net income and free cash flow as compared to budget and utilize this information to assess the segments’ performance and allocate resources. NRP does not conduct operations on any of its assets or directly engage in any type of industrial activity. Instead, it leases its mineral and other rights to companies that conduct operations on its properties in exchange for paying royalties and other fees to the Partnership. Operating expenses, capital costs and other liabilities arising out of production activities are borne entirely by NRP's lessees. In the case of its soda ash investment, operations are managed by NRP's partner, Sisecam Chemicals Wyoming LLC. As such, none of the Partnership's expenses are considered to affect the trends reflected in the segments or consolidated information nor are they considered important to NRP’s future profitability. Accordingly, NRP has determined its significant segment expenses to be its employee related expenses, including compensation (salaries, benefits and bonus) and long-term incentive compensation as well as interest expense and property tax expense. The Partnership is responsible for paying property taxes on the properties it owns. Typically, NRP's lessees are contractually responsible for reimbursing the Partnership for property taxes on the leased properties and this reimbursement amount is included within the Mineral Rights segment revenues. Reclassifications have been made to prior year amounts to conform with current year presentation. 

 

 

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

 

  

Operating Segments

         

(In thousands)

 

Mineral Rights

  

Soda Ash

  

Corporate and Financing

  

Total

 

For the Year Ended December 31, 2024

                

Revenues

 $245,027  $—  $—  $245,027 

Equity in earnings of Sisecam Wyoming

  —   18,135   —   18,135 

Gain on asset sales and disposals

  

4,845

   

—

   

—

   

4,845

 

Total revenues and other income

 $249,872  $18,135  $—  $268,007 

Less:

              — 

Compensation (salaries, benefits and bonus)

 $7,948  $—  $8,570  $16,518 

Long-term incentive compensation (1)

  1,785   —   9,466   11,251 

Property taxes

  7,704   —   —   7,704 

Depreciation, depletion and amortization

  15,517   —   18   15,535 

Asset impairments

  87   —   —   87 

Interest expense, net (2)

  —   —   15,554   15,554 

Other segment items (3)

  10,428   171   7,115   17,714 

Net income (loss)

 $206,403  $17,964  $(40,723) $183,644 

As of December 31, 2024

                

Total assets

 $509,127  $257,355  $6,425  $772,907 
                 

For the Year Ended December 31, 2023

                

Revenues

 $293,656  $—  $—  $293,656 

Equity in earnings of Sisecam Wyoming

  —   73,397   —   73,397 

Gain on asset sales and disposals

  2,956   —   —   2,956 

Total revenues and other income

 $296,612  $73,397  $—  $370,009 

Less:

                

Compensation (salaries, benefits and bonus)

 $8,382  $—  $10,204  $18,586 

Long-term incentive compensation (4)

  2,022   —   8,711   10,733 

Property taxes

  6,758   —   —   6,758 

Depreciation, depletion and amortization

  18,471   —   18   18,489 

Asset impairments

  556   —   —   556 

Interest expense, net (2)

  —   —   14,103   14,103 

Other segment items (3)

  14,896   257   7,196   22,349 

Net income (loss)

 $245,527  $73,140  $(40,232) $278,435 

As of December 31, 2023

                

Total assets

 $516,844  $276,549  $4,483  $797,876 
                 

For the Year Ended December 31, 2022

                

Revenues

 $328,085  $—  $—  $328,085 

Equity in earnings of Sisecam Wyoming

  —   59,795   —   59,795 

Gain on asset sales and disposals

  

1,082

   

—

   

—

   

1,082

 

Total revenues and other income

 $329,167  $59,795  $—  $388,962 

Less:

                

Compensation (salaries, benefits and bonus)

 $8,206  $—  $9,388  $17,594 

Long-term incentive compensation (5)

  1,259   —   4,505   5,764 

Property taxes

  6,389   —   —   6,389 

Depreciation, depletion and amortization

  22,519   —   —   22,519 

Asset impairments

  4,457   —   —   4,457 

Interest expense, net (2)

  —   —   26,274   26,274 

Loss on extinguishment of debt

  —   —   10,465   10,465 

Other segment items (3)

  18,889   160   7,959   27,008 

Net income (loss)

 $267,448  $59,635  $(58,591) $268,492 

 

(1)

Long-term incentive compensation for the year ended December 31, 2024 includes (1) Mineral Rights segment: $1.4 million of equity compensation and $0.4 million of cash compensation; (2) Corporate & Financing segment: $9.1 million of equity compensation and $0.4 of cash compensation
(2)Included in interest expense, net was $0.7 million, $0.3 million and $0.3 million of interest income for the years ended December 31, 2024, 2023 and 2022, respectively.

(3)

Other segment items in the Mineral Rights segment primarily include: insurance, legal, overriding royalty expense, processing and transportation expense, information technology, shared facility services, rent and professional fees. Other segment items in the Soda Ash segment primarily include professional fees. Other segment items in the Corporate and Financing segment primarily include: insurance, legal, information technology, shared facility services, rent and professional fees.

(4)Long-term incentive compensation for the year ended December 31, 2023 includes (1) Mineral Rights segment: $1.4 million of equity compensation and $0.6 million of cash compensation; (2) Corporate & Financing segment: $8.4 million of equity compensation and $0.3 million of cash compensation 
(5)Long-term incentive compensation for the year ended December 31, 2022 includes (1) Mineral Rights segment: $0.8 million of equity compensation and $0.5 million of cash compensation; (2) Corporate & Financing segment: $4.1 million of equity compensation and $0.3 million of cash compensation