Natural Resource Partners L.P. (NYSE:NRP) Q4 2023 Results Conference Call March 7, 2024 9:00 AM ET

Company Participants

Tiffany Sammis - Investor Relations

Craig Nunez - President & COO of GP Natural Resource Partners LLC

Chris Zolas - Chief Financial Officer of GP Natural Resource Partners LLC

Conference Call Participants

Victor Ho - Yarra Square

Operator

Good morning, and welcome to the Natural Resource Partners L.P. Fourth Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. After the speakes presentation we will conduct the question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded.

I'd now like to turn the call over to Tiffany Sammis, Manager of Investor Relations. Thank you. Please go ahead.

Tiffany Sammis

Thank you. Good morning, and welcome to the Natural Resource Partners fourth quarter 2023 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 could 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 fourth 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 coal lessee or detailed market fundamentals.

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 a record $313 million of free cash flow in 2023, a 17% increase over our previous record set in 2022. These results are a testament to our success in executing on the strategy we set out in 2015 to delever and derisk the partnership. We have stuck to this strategy through good times and bad, never wavering in our commitment to do exactly what we told you we were going to do.

Years of hard work and persistence are paying off. The business is generating robust levels of free cash flow, the capital structure is solid and our financial outlook is much improved. As of today, our total remaining obligations, which include debt, preferred equity and warrants, stand at approximately $270 million, a 40% decrease from just 1 year ago. I would like to express my sincere thanks for the support of our employees, external stakeholders and Board of Directors, without which none of these results would have been possible.