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Natural Resource (NRP) Surpasses Earnings Estimates in Q4

Zacks Equity Research

Natural Resource Partners LP NRP delivered fourth-quarter 2018 adjusted earnings of $1.69 per unit, which beat the Zacks Consensus Estimate of $1.22 by 38.52%. Moreover, the bottom line improved 43.2% from the year-ago quarter’s figure of $1.18.

In 2018, the partnership delivered earnings of $5.90 per unit, higher than $3.68 in 2017.

Total Revenues

In the quarter under review, Natural Resource’s total revenues of $90.5 million lagged the Zacks Consensus Estimate of $95 million by 4.9%. However, the top line was up 39% compared with the year-ago quarter’s tally.

The year-over-year upside was driven by strong coal pricing driven by solid export demand as well as stable domestic markets for metallurgical and thermal coal.

In 2018, the partnership generated revenues of $278.5 million higher than $246.3 million in 2017.

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 85% to total revenues in the fourth quarter. Also, the Soda Ash segment contributed 15% to revenues.

Total operating expenses in the quarter rose 123.2% to $38.4 million, from $17.2 million in the prior-year quarter. Expenses increased primarily due to higher Asset impairments in the quarter under review.

Interest expenses declined 11.4% to $17 million from $19.2 million in the year-ago quarter.

Financial Condition

Natural Resource had cash and cash equivalents of $101.8 million as of Dec 31, 2018, up from $26.9 million as of Dec 31, 2017.

The partnership continues to lower outstanding debt levels. Long-term debt was $557.5 million as of Dec 31, 2018, down from $729.6 million as of Dec 31, 2017.

Cash flow from operating activities in the fourth quarter was $81.4 million, up from $46.3 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

Alliance Resource Partners, L.P. ARLP generated fourth-quarter 2018 operating earnings of 69 cents per unit, which missed the Zacks Consensus Estimate of 74 cents by 6.8%.

Peabody Energy Corp. BTU announced fourth-quarter 2018 earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 29.4%.

CONSOL Coal Resources LP’s CCR fourth-quarter 2018 operating earnings of 59 cents per unit beat the Zacks Consensus Estimate of 48 cents.

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Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
 
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