1. Cash flow in the first quarter was $44.5 million. Need $59.9 million to cover distribution. There was $40.6 million in once per year expenses, therefore, if NRP has similar results for the next three quarters they will be able to cover the $205.5 Million needed to cover full year distribution.
2. Nick Carter expects improvement in the coal business in the second half. In February he thought that improvement would come in the second quarter.
3. No mention was made of the economy in China. In past quarters Nick Carter has always commented on when he thought the Chinese economy will pick up. Nick made no comment as to the future of met coal.
For the past 10 quarters, NRP has beaten the street with revenue and with income. The stock price has dropped after each quarterly report. Will be interesting to see what happens today.
The big news IMO for Q1 was the contribution from the Aggregate/oil&gas/other segment..coal both steam and MET is kind of in a holding pattern until China,India,et al either get growth up or stagnate.. Trona is obviously doing well and making possible some positive financial engineering. What will be real interesting is NRP continuing to diversify into other minerals or areas to grow outside of coal. I note that PVR, a coal reserve holder like NRP, has decided against investing in more coal reserves using its' capital instead to invest in natural gas gathering/processing systems. I have a chunk of change invested in PVR,too. I am investing more in NRP after yesterday's report. The NRP mgmt team does seem to have a good business plan in operation.