May Updates

Stocks mentioned include NRP, DSGR, NATH, SWKH, EPSN

Natural Resource Partners (NRP)

The full article on NRP can be found here. The investment case was first published on the Sunday’s Idea Brunch site here.

NRP generated $73 million of free cash flow in Q1, which I believe is a record for the company.

Including a paydown that occurred subsequent to quarter end, NRP has paid down 33% of the $250 million outstanding preferred equity at par. This is the maximum amount that the preferred equity holder can elect to redeem in one year. From this point forward I believe that all 2023 free cash flow not allocated to distributions will go towards debt reduction.