18 Comments

Great post as always. Appreciate the link to the Corbin interview. On the call option, my understanding is the affiliates own roughly 29% (not 49%). Please correct me if I’m wrong here, but I believe you might be double counting by adding Corbin’s 20% to the 29% (which already includes his stake).

Regardless, I feel really strong about the integrity of this management team. They strike me as people who truly do care about their partners. I wouldn’t regard this as an issue for LP’s to be concerned about.

Thanks for all the work you’ve done on this and everything else in 2023!

Expand full comment
author

John, thanks for commenting! Glad you enjoyed that video of Corbin. Here's another one. His remarks begin at 34:00.

https://www.c-span.org/video/?419785-3/energy-climate-policy-summit-senator-james-inhofe-corbin-robertson

We are under the impression that "affiliates" does not include the general partner because they are separate entities throughout NRP's filings. Are we mistaken?

Expand full comment

Thanks for the clip. I’ll call the company after the break and get clarification on this for us. Thanks again!

Expand full comment

Curious if you guys ever got feedback from the company on this?

Expand full comment
Jan 26Liked by Six Bravo

Hey all, just thought I'd clarify this issue, which I confirmed directly today with NRP investor relations over the phone. The correct figure is the 29% (more specifically 28.7% if you look at Item 12 on the 10-k in the "Directors and Officers as a Group" line). The 28.7% consists primarily of Corbin J. Robertson, Jr. (20%), S. Reed Morian (5%) and Corbin J. Robertson III (2%).

Expand full comment
author

Thomas, thank you. Very helpful!

Expand full comment

Can you guys email me or DM me on Twitter? You can find my info on my website if needed. Want to discuss something

Expand full comment
author

Sent you an email.

Expand full comment

Great work SB! I wasn’t aware of that risk until now. I like how you look at two different things (the ownership percentage and the track record of the GP) to arrive at your conclusion.

Expand full comment
author

Thanks Tian!

Expand full comment
Dec 23, 2023Liked by Six Bravo

Thanks for the continuing due diligence on this name. It’s been on my watchlist since discovering your work a couple of months back, with the intent to wait until 2024 to build a position so as to avoid the need for dealing with the multi state K1’s for 2023. Of course the price has run up on me over the last few weeks so I will probably wait for (hopefully) a pullback. Question for SB - how many state K1’s - from NRP’s investor site it looks like 20+ ?

Expand full comment

Yes something like that. I also own units in another partnership (ARLP) and IIRC I had to file taxes in 19 states. Some states don’t require you to file if you earned income in that state below some threshold.

Expand full comment

Tian, would you mind sharing what you found to be the best way to file for 19 states? and were there fees for each state?

Six Bravo, enjoying the work you have done on NRP.

Expand full comment

That’s a good question but I’m afraid I don’t have a good answer! 🤣

I use TurboTax for federal and my home state, but either because it doesn’t support filing more than 1 state tax return or it was too expensive (can’t remember), I ended up filing paper returns for the other states. I don’t recommend doing that. It was a lot of work and I made mistakes in at least 2 of them.

Expand full comment
author
Dec 24, 2023·edited Dec 24, 2023Author

Jeremy, we haven't filed having owned NRP yet, so we don't want to speak out of turn. But it looks like our knowledgeable friend Tian shared some useful info.

Expand full comment
Jan 4Liked by Six Bravo

I think in the worst case scenario insiders own 29% + 20% (Corbin JR) + 2% (Corbin III, his son) + 5% Mr. Morian (Corbin's business partner) + 1-2% (management). Slightly under 60% but still a good ways to reach the 80%. At least need to wait for the preferred units to be redeemed, all warrants to be settled (still 1MM+ left), and by then I'm sure the stock price will be even higher than today.

But I don't worry much. Spoke to Craig Nunez and he was nice, polite, and helpful. Their track record speaks of good stewardship. Of course the take-under by SIRE management (which NRP owns 49% of the underlying business, not SIRE itself) wasn't so great, but it's not even close to what certain oil trust does, cough cough... Worst case scenario it becomes a Belridge Oil type play for us, and we still get paid.

Expand full comment
author

A few of us have all come up with different totals. It's clearly not clear. But the important thing is, every calculation has a total well below 80% and the management seems trust worthy.

Thanks for your input, Michael!

Expand full comment

Does anyone know if the option has an expiration date or is it perpetual?

Expand full comment