Form 4: Natural Resource Partners LP Director Acquires Common Units Upon Conversion of Phantom Units

Director Stephen P Smith acquired 1,183 common units of Natural Resource Partners LP following the conversion of phantom units on February 11, 2025.

Summary

• On February 11, 2025, Stephen P Smith, a director of Natural Resource Partners LP, acquired 1,183 common units.
• This acquisition resulted from the conversion of phantom units, which vested on the one-year anniversary of their grant date in February 2024.
• The phantom units converted into common units on a one-for-one basis, including tandem distribution equivalent rights.
• Accrued quarterly distributions during the vesting period were paid in cash to Stephen P Smith on the reporting date.
• Following the transaction, Stephen P Smith also indirectly owns 2,622 common units through the SP Smith 2002 Revocable Trust, for which his family is the beneficiary.

Sentiment

Score: 6

Explanation: The document is a routine SEC filing related to executive compensation. It doesn't contain information that would significantly impact investor sentiment positively or negatively.

Positives

• The conversion of phantom units to common units indicates a fulfillment of previously awarded compensation.
• The payment of accrued quarterly distributions in cash provides immediate value to the reporting person.

Industry Context

This filing reflects standard executive compensation practices within publicly traded companies, utilizing phantom units as a form of deferred compensation that aligns executive interests with shareholder value.

Comparison to Industry Standards

• The use of phantom units as compensation is common among publicly traded companies, particularly in the energy and natural resources sector.
• Companies like Enterprise Products Partners and Kinder Morgan also utilize similar equity-based compensation plans to incentivize executives.
• The vesting period of one year is relatively standard for phantom unit grants.

Stakeholder Impact

• The conversion of phantom units to common units may have a minor dilutive effect on existing shareholders.
• The transaction aligns the director's interests with those of the shareholders.

Key Dates