v3.26.3
Note 5 - Segment Information
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

5.    Segment Information 

 

The Partnership's reportable 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 reportable 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.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, one of the world's lowest-cost producers of soda ash, an essential ingredient for the manufacturing of glass, detergents, solar panels, and batteries for electric vehicles. Operations are managed by NRP's partner, Sisecam Chemicals Wyoming, LLC, and NRP realizes cash flow when distributions are paid to it.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's reportable segments are allocated to the reportable 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 reportable segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

NRP’s Chief Operating Decision Makers (“CODMs”) are its Chief Executive Officer and President and Chief Operating Officer. They evaluate the Partnership’s performance through a review of the reportable segments’ net income and free cash flow as compared to budget and utilize this information to assess the reportable 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. NRP has determined its significant segment expenses to be its employee related expenses, including compensation (salaries, benefits and bonus) 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 reportable segment revenues.

 

The following tables summarize certain financial information for each of the Partnership's reportable segments:

 

  

Reportable Segments

             

(In thousands)

 

Mineral Rights

  

Soda Ash

  

Total Reportable Segments

  

Corporate and Financing

  

Total

 

For the Three Months Ended September 30, 2026

                    

Revenues

 $48,941  $—  $48,941  $—  $48,941 

Equity in loss of Sisecam Wyoming

  —   (4,126)  (4,126)  —   (4,126)

Gain on asset sales and disposals

  5   —   5   —   5 

Total revenues and other income

 $48,946  $(4,126) $44,820  $—  $44,820 

Less:

                    

Compensation (salaries, benefits and bonus)

  1,781   —   1,781   1,995   3,776 

Property taxes

  1,650   —   1,650   —   1,650 

Depreciation, depletion and amortization

  6,521   —   6,521   5   6,526 

Other items (1)

  2,057   52   2,109   4,217   6,326 

Net income (loss)

 $36,937  $(4,178) $32,759  $(6,217) $26,542 
                     

For the Three Months Ended September 30, 2025

                    

Revenues

 $51,415  $—  $51,415  $—  $51,415 

Equity in loss of Sisecam Wyoming

  —   (2,390)  (2,390)  —   (2,390)

Gain on asset sales and disposals

  906   —   906   —   906 

Total revenues and other income

 $52,321  $(2,390) $49,931  $—  $49,931 

Less:

                    

Compensation (salaries, benefits and bonus)

  1,692   —   1,692   1,926   3,618 

Property taxes

  2,035   —   2,035   —   2,035 

Depreciation, depletion and amortization

  3,864   —   3,864   4   3,868 

Other items (1)

  3,871   56   3,927   5,578   9,505 

Net income (loss)

 $40,859  $(2,446) $38,413  $(7,508) $30,905 
                     

For the Nine Months Ended September 30, 2026

                    

Revenues

 $149,093  $—  $149,093  $—  $149,093 

Equity in loss of Sisecam Wyoming

  —   (16,859)  (16,859)  —   (16,859)

Gain on asset sales and disposals

  49   —   49   —   49 

Total revenues and other income

 $149,142  $(16,859) $132,283  $—  $132,283 

Less:

                    

Compensation (salaries, benefits and bonus)

  5,386   —   5,386   6,047   11,433 

Property taxes

  5,405   —   5,405   —   5,405 

Depreciation, depletion and amortization

  25,257   —   25,257   14   25,271 

Other items (1)

  6,390   203   6,593   12,244   18,837 

Net income (loss)

 $106,704  $(17,062) $89,642  $(18,305) $71,337 

As of September 30, 2026

                    

Total assets

 $485,668  $274,197  $759,865  $4,078  $763,943 
                     

For the Nine Months Ended September 30, 2025

                    

Revenues

 $153,942  $—  $153,942  $—  $153,942 

Equity in earnings of Sisecam Wyoming

  —   4,746   4,746   —   4,746 

Gain on asset sales and disposals

  1,882   —   1,882   —   1,882 

Total revenues and other income

 $155,824  $4,746  $160,570  $—  $160,570 

Less:

                    

Compensation (salaries, benefits and bonus)

  5,313   —   5,313   5,882   11,195 

Property taxes

  5,594   —   5,594   —   5,594 

Depreciation, depletion and amortization

  11,597   —   11,597   14   11,611 

Asset impairments

  20   —   20   —   20 

Other items (1)

  7,542   140   7,682   19,099   26,781 

Net income (loss)

 $125,758  $4,606  $130,364  $(24,995) $105,369 

As of December 31, 2025

                    

Total assets

 $492,672  $250,244  $742,916  $5,449  $748,365 
     
(1)Other items in the Mineral Rights reportable segment primarily include: insurance, legal, overriding royalty expense, processing and transportation expense, information technology, shared facility services, rent, professional fees, long-term incentive compensation expense and bad debt expense. Other items in the Soda Ash reportable segment primarily include professional fees. Other items in Corporate and Financing primarily include: interest expense, net, long-term incentive compensation expense, insurance, legal, information technology, shared facility services, rent and professional fees.