Note 2 - Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2.    Revenues from Contracts with Customers

The following table presents the Partnership's Mineral Rights segment revenues by major source:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Coal royalty revenues	$	52,381	$	32,432	$	170,775	$	66,095
Production lease minimum revenues		1,885		3,235		3,542		10,241
Minimum lease straight-line revenues		4,778		4,808		14,235		15,773
Carbon neutral initiative revenues (1)		8,600		—		8,600		—
Property tax revenues		1,360		1,466		4,527		4,522
Wheelage revenues		2,977		1,964		11,073		5,589
Coal overriding royalty revenues		1,367		757		2,307		3,592
Lease amendment revenues		759		1,519		2,450		3,159
Aggregates royalty revenues		884		429		2,691		1,339
Oil and gas royalty revenues		6,170		1,154		10,890		3,420
Other revenues		218		120		705		692
Royalty and other mineral rights revenues	$	81,379	$	47,884	$	231,795	$	114,422
Transportation and processing services revenues (2)		5,969		2,171		15,377		6,545
Total Mineral Rights segment revenues	$	87,348	$	50,055	$	247,172	$	120,967

(1)

Included within carbon neutral initiative revenues are payments that are recognized at a point in time upon satisfaction of NRP's performance obligation.

(2)

Transportation and processing services revenues from contracts with customers as defined under ASC 606 was $4.9 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively, and $12.9 million and $3.7 million for the nine months ended September 30, 2022 and 2021, respectively. The remaining transportation and processing services revenues of $1.1 million and $0.9 million for the three months ended September 30, 2022 and 2021, respectively, and $2.5 million and $2.8 million for the nine months ended September 30, 2022 and 2021, respectively, related to other NRP-owned infrastructure leased to and operated by third-party operators accounted for under other guidance. See Note 14. Financing Transaction for more information.

The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers:

	September 30,		December 31,
(In thousands)	2022		2021
Receivables
Accounts receivable, net	$	30,991	$	22,277
Other current assets, net (1)		874		769
Other long-term assets, net (2)		75		250
Contract liabilities
Current portion of deferred revenue	$	8,886	$	11,817
Deferred revenue		35,882		50,045

⁽¹⁾ Other current assets, net includes short-term notes receivables from contracts with customers.

⁽²⁾ Other long-term assets, net includes long-term lease amendment fee receivables from contracts with customers.

The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue: 

	For the Nine Months Ended
	September 30,
(In thousands)	2022			2021
Balance at beginning of period (current and non-current)	$	61,862		$	61,554
Increase due to minimums and lease amendment fees		11,309			6,411
Recognition of previously deferred revenue		(28,403	)		(8,532	)
Balance at end of period (current and non-current)	$	44,768		$	59,433

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty leases are as follows as of  September 30, 2022 (in thousands): 

Lease Term (1)	Weighted Average Remaining Years	Annual Minimum Payments
0 - 5 years	2.4	$	22,229
5 - 10 years	3.8		7,517
10+ years	12.8		27,221
Total	7.5	$	56,967

⁽¹⁾ Lease term does not include renewal periods.