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Natural Resource (NRP) Beats Q1 Earnings & Revenue Estimates

Zacks Equity Research

Natural Resource Partners LP NRP delivered first-quarter 2019 adjusted earnings of $1.75 per unit, which beat the Zacks Consensus Estimate of $1.30 by 34.6%. Moreover, the bottom line improved 56.3% from the year-ago quarter’s figure.

Total Revenues

In the quarter, total revenues amounted to $67 million and beat the Zacks Consensus Estimate of $62 million by 8%. Also, the top line improved 11.5% from the year-ago quarter’s level.

The upside was driven by stable performance from metallurgical and thermal coal properties. Net income was driven by higher average coal royalty revenue per ton and increased coal overriding royalty revenues from the Williamson property in the Illinois Basin.

Natural Resource Partners LP Price, Consensus and EPS Surprise

Natural Resource Partners LP Price, Consensus and EPS Surprise | Natural Resource Partners LP Quote

Highlights of the Release

The Coal Royalty and Other segment contributed 82.6% to total revenues in the first quarter. Also, the Soda Ash segment contributed 17.4% to revenues.

Total operating expenses in the quarter rose 8.2% to $17.1 million from $15.8 million in the prior-year quarter. The uptick was caused by higher operating and maintenance expenses in the quarter.

Interest expenses declined 21.1% to $14.2 million from $18 million in the year-ago quarter.

Financial Condition

Natural Resource had cash and cash equivalents of $112.4 million as of Mar 31, 2019, up from $101.8 million as of Dec 31, 2018.

The partnership continues to lower outstanding debt levels. Long-term debt was $541.6 million as of Mar 31, 2019, down from $557.5 million as of Dec 31, 2018.

Cash flow from operating activities in the first quarter was $22.8 million, up from $17.4 million in the year-ago quarter.

Zacks Rank

Natural Resource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Coal Releases

Arch Coal Inc. ARCH delivered first-quarter 2019 operating earnings of $3.36 per share, which beat the Zacks Consensus Estimate of $2.53 by 32.8%.

Alliance Resource Partners, L.P. ARLP generated first-quarter 2019 operating earnings of $1.03 per unit, which topped the Zacks Consensus Estimate of 69 cents by 49%.

Peabody Energy Corp. BTU announced first-quarter 2019 earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of 50 cents by 130%.

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