Natural Resource Partners (NYSE:NRP) Posts Earnings Results, Beats Expectations By $1.55 EPS

Key Points

• Natural Resource Partners beat earnings expectations, reporting $1.85 EPS versus the $0.30 consensus and revenue of $52.97 million versus $37.70 million expected. Shares rose 8.6% following the results.
• The company generated $42 million in second-quarter free cash flow, repaid its bank revolver, and has just $14 million of debt remaining. Management expects to substantially increase common-unit distributions beginning with the planned November payment.
• Soda ash oversupply and ongoing thermal-coal pressures remain risks: weak flat-glass demand and low international prices are delaying Sisecam Wyoming distributions, while management sees no clear catalyst for a sharp coal-price recovery.

Natural Resource Partners (NYSE:NRP - Get Free Report) posted its quarterly earnings results on Wednesday. The energy company reported $1.85 EPS for the quarter, topping analysts' consensus estimates of $0.30 by $1.55, FiscalAI reports. The firm had revenue of $52.97 million for the quarter, compared to analysts' expectations of $37.70 million. Natural Resource Partners had a net margin of 61.28% and a return on equity of 18.49%.

Here are the key takeaways from Natural Resource Partners' conference call:

• NRP generated $42 million in second-quarter free cash flow and $163 million over the trailing 12 months before its soda ash investment. Management said the mineral rights segment remains a dependable cash generator across commodity cycles.
• The company repaid its bank revolver and has only $14 million of debt remaining, with the final scheduled payment due in December. Management expects to significantly increase common-unit distributions beginning with the payment planned for November.
• The soda ash market remains oversupplied, with weak flat-glass demand and international prices below most producers’ costs. NRP expects domestic soda ash prices to decline as 2027 contracts are negotiated, and does not expect distributions from Sisecam Wyoming to resume until demand improves or supply is reduced.
• Second-quarter net income was $25 million, while mineral rights net income was $36 million; mineral rights free cash flow was $45 million. Mineral rights earnings were pressured by higher depletion expense from revised mine plans, partly offset by higher metallurgical and thermal coal volumes and pricing.
• Management said thermal coal faces ongoing long-term pressure from increasingly competitive renewables, while higher oil prices can increase associated natural-gas production and weigh on North American thermal coal prices. Coal markets have modestly improved from their lows, but executives do not foresee a clear catalyst for a sharp price recovery.

Natural Resource Partners Stock Up 8.6%

Shares of NYSE NRP traded up $8.36 during midday trading on Wednesday, reaching $105.30. 92,383 shares of the company's stock traded hands, compared to its average volume of 44,264. The company has a market cap of $1.40 billion, a price-to-earnings ratio of 12.37 and a beta of 0.15. The stock's 50 day simple moving average is $100.55 and its 200-day simple moving average is $111.75. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.07. Natural Resource Partners has a one year low of $95.51 and a one year high of $128.60.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings cut Natural Resource Partners from a "buy (b)" rating to a "hold (c+)" rating in a research note on Monday, May 18th. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of "Hold".

Insider Transactions at Natural Resource Partners

In related news, EVP Kevin J. Craig purchased 336 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were acquired at an average cost of $102.18 per share, for a total transaction of $34,332.48. Following the acquisition, the executive vice president owned 47,019 shares of the company's stock, valued at $4,804,401.42. The trade was a 0.72% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 35.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Annandale Capital LLC raised its stake in shares of Natural Resource Partners by 0.4% during the 4th quarter. Annandale Capital LLC now owns 26,207 shares of the energy company's stock worth $2,736,000 after acquiring an additional 107 shares in the last quarter. NewEdge Advisors LLC grew its stake in Natural Resource Partners by 144.0% during the 2nd quarter. NewEdge Advisors LLC now owns 266 shares of the energy company's stock worth $25,000 after buying an additional 157 shares during the last quarter. Jump Financial LLC raised its stake in Natural Resource Partners by 8.1% in the second quarter. Jump Financial LLC now owns 2,444 shares of the energy company's stock valued at $233,000 after buying an additional 184 shares during the last quarter. First Foundation Advisors grew its stake in shares of Natural Resource Partners by 3.2% during the third quarter. First Foundation Advisors now owns 7,941 shares of the energy company's stock worth $834,000 after acquiring an additional 245 shares during the last quarter. Finally, Bank of America Corp DE raised its position in shares of Natural Resource Partners by 1.9% in the 3rd quarter. Bank of America Corp DE now owns 53,662 shares of the energy company's stock valued at $5,635,000 after purchasing an additional 993 shares during the last quarter. Hedge funds and other institutional investors own 31.77% of the company's stock.

Natural Resource Partners Company Profile

Natural Resource Partners LP NYSE: NRP is a master limited partnership that acquires and manages royalty and other mineral interests in coal and other natural resources across North America and Australia. The partnership was formed in 2010 as a spin-out from a major U.S. coal producer and is headquartered in Fairmont, West Virginia. Its core business model centers on owning gross proceeds interests, gross royalty proceeds interests and fee minerals, which provide the right to receive a portion of revenues from mining and mineral production without operating the mines directly.

NRP's U.S.

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