Natural Resource Partners (NYSE:NRP) Posts Quarterly Earnings Results, Beats Estimates By $1.19 EPS

Key Points

• Natural Resource Partners reported Q1 EPS of $1.44, beating estimates by $1.19 and delivering revenue of $47.18M, alongside a 65.16% net margin and 22.52% return on equity.
• The firm made a $39M capital infusion into its Sisecam Wyoming soda ash JV as the asset faces a global supply glut and weak demand, and does not expect distributions from that JV to resume until market conditions improve.
• NRP generated $34M of free cash flow in Q1 (and $167M LTM before the Sisecam investment) and has reduced debt to $45M; management plans to raise unit distributions later this year but cautioned commodity headwinds may delay timing and declared a $0.75 quarterly dividend.

Natural Resource Partners (NYSE:NRP - Get Free Report) posted its quarterly earnings results on Wednesday. The energy company reported $1.44 earnings per share for the quarter, topping the consensus estimate of $0.25 by $1.19, Zacks reports. Natural Resource Partners had a return on equity of 22.52% and a net margin of 65.16%.The company had revenue of $47.18 million during the quarter, compared to the consensus estimate of $37.80 million.

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

• NRP generated $34M of free cash flow in Q1 and $167M LTM (before the $39M Sisecam investment) and has rapidly reduced outstanding debt to $45M, emphasizing deleveraging to boost future unitholder distributions.
• Sisecam Wyoming (soda ash JV) is facing a pronounced global supply glut and weak demand; NRP made a $39M capital infusion, does not expect distributions to resume until demand or supply dynamics change, and is re‑evaluating its long‑term assumptions for the asset.
• The mineral rights segment remains a key cash generator (Q1: $34M net income, $43M free cash flow), but coal sales volumes were down ~20% YoY and rising diesel/shipping costs are compressing producer margins.
• Management intends to increase unit distributions this year (targeting November) but warns that ongoing commodity headwinds—particularly in soda ash—could delay that timing.

Natural Resource Partners Price Performance

Natural Resource Partners stock traded down $2.44 during midday trading on Wednesday, reaching $115.44. 121,340 shares of the stock were exchanged, compared to its average volume of 20,525. The company's fifty day moving average is $119.81 and its 200-day moving average is $112.98. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.85 and a current ratio of 1.85. Natural Resource Partners has a 52 week low of $91.79 and a 52 week high of $128.60. The firm has a market cap of $1.53 billion, a PE ratio of 11.50 and a beta of 0.19.

Natural Resource Partners Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Tuesday, May 19th will be issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, May 19th. Natural Resource Partners's dividend payout ratio is 29.88%.

Institutional Investors Weigh In On Natural Resource Partners

Several large investors have recently added to or reduced their stakes in the business. Annandale Capital LLC increased its stake in Natural Resource Partners by 0.4% in 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 during the last quarter. NewEdge Advisors LLC increased its position in shares of Natural Resource Partners by 144.0% in the second quarter. NewEdge Advisors LLC now owns 266 shares of the energy company's stock worth $25,000 after purchasing 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 purchasing an additional 184 shares in the last quarter. First Foundation Advisors lifted its position in Natural Resource Partners by 3.2% during the third quarter. First Foundation Advisors now owns 7,941 shares of the energy company's stock valued at $834,000 after purchasing an additional 245 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in 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 worth $5,635,000 after buying an additional 993 shares in the last quarter. Institutional investors own 31.77% of the company's stock.

Analysts Set New Price Targets

NRP has been the subject of a number of research reports. Wall Street Zen lowered shares of Natural Resource Partners from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Weiss Ratings restated a "buy (b-)" rating on shares of Natural Resource Partners in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of "Buy".

About Natural Resource Partners

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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