Natural Resource Partners L.P. (NYSE:NRP) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET

Company Participants

Tiffany Sammis - Manager, IR

Craig Nunez - President and COO

Chris Zolas - CFO

Kevin Craig - EVP

Conference Call Participants

Amer Tiwana - Imperial Capital

Operator

Thank you for joining the Natural Resource Partners L.P. Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded.

I would now hand today's call over to Tiffany Sammis, Manager of Investor Relations. Please go ahead.

Tiffany Sammis

Thank you. Good morning and welcome to the Natural Resource Partners' second quarter 2022 conference call. Today's call is being webcast and a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer; Chris Zolas, Chief Financial Officer; and Kevin Craig, Executive Vice President.

Some of our comments today may include forward-looking statements reflecting NRP's views about future events. These matters involve risks and uncertainties that can cause our actual results to materially differ from our forward-looking statements.

These risks are discussed in NRP's Form 10-K and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Our comments today also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP measures are included in our second quarter press release, which can be found on our website.

I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular co-lessee or detailed market fundamentals. In addition, I refer you to Sisecam Resources' public disclosures and commentary for specific questions regarding our Soda Ash business segment.

Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer.

Craig Nunez

Thank you, Tiffany, and good morning, everyone. NRP generated $64 million of free cash flow in the second quarter, which when combined with the $52 million generated in Q1 resulted in the best start to a year in the history of the partnership.

Performance over the last 12 months has been equally impressive with our business generating $202 million of free cash flow. While inflationary pressures, weakening demand in China, the war in Ukraine, and slowing global economic growth, pose increasing risks to our business, we believe the supply/demand balance for met coal, thermal coal, and soda ash will remain well-supported relative to historical norms for the foreseeable future. We expect continued strong performance for the partnership in the second half of the year.