NRP's Evolution and Future Distribution Potential

NRP is an example of outstanding shareholder stewardship. Nearing the end of simplification strategy that mgmt laid out in 2015 & successfully implemented; my thoughts on cash distribution potential

“The financial profile of today's NRP is so remarkably improved from that of 7 years ago that it would be hardly recognizable to anyone who hand't followed the transformation.”

— Craig Nunez, President and COO (3/2/23 Earnings Call)

NRP earned $311 million in free cash flow in 2023, or about $24 per share, which gives NRP a P/FCF of 3.7 at the current $90 unit price.

This post will be a quick update on some thoughts on their simplification strategy that they laid out in 2015 (which has been implemented flawlessly in my view), along with my thoughts on their capital allocation strategy and future cash distribution potential.