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