Penn Virgina Resource Partners
) has been downgraded from Neutral to Underperform. The change in
rating comes as commodity prices have fallen along with a drop in
coal production and an increase in emission free resources.
Penn Virginia Resource Partners is a limited partnership that is in
the business of managing coal properties in the Central Appalachian
region of the United States. They enter into long-term leases with
experienced, third- party mine operators for the right to mine
their coal reserves in exchange for royalty payments.
Penn Virginia Resource Partners announced second quarter 2012
earnings of $0.11 per unit, down from $0.32 per unit in the year
ago period. That works out to be a decline of 67.0%. This decline
was due to a weakening coal market, decreasing natural gas liquid
prices and low fee-based contracts in the Midcontinent business
wing. Earnings were lower than the Zacks Consensus Estimate of
$0.19 per unit or a miss of 42%.
Earnings estimates for 2013 have been falling lately, as analysts
trim their estimates in the face of slower growth. In June, the
2013 Zacks Consensus Estimate stood at $1.89 and was subsequently
trimmed to $1.61 in July and currently sits at $1.40.
PENN VA RESRC (PVR): Free Stock Analysis Report
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