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Natural Resource (NRP) Q1 Earnings Lag but Revenues Beat

Natural Resource Partners LPNRP reported first-quarter 2016 adjusted earnings of 29 cents per unit, missing the Zacks Consensus Estimate of $1.27 by 77.2%. The figure also fell short of $1.24 per unit earned in first-quarter 2015 by 76.6%.

On a GAAP basis, the partnership recorded earnings of $1.88 per unit, up 34.3% from the year-ago figure of $1.40. The difference between GAAP and adjusted earnings was due to non-cash charges for the impairment of certain assets and a one-time gain on asset sales.

Natural Resource Partners LP (NRP) EPS BNRI & Surprise Percent - Last 5 Quarters | FindTheCompany

Total Revenue

In the quarter under review, Natural Resource Partners' total revenue of $102.8 million exceeded the Zacks Consensus Estimate of $91 million by 13%. Quarterly revenues, however, dropped 6.3% year over year.

Highlights of the Release

Coal-related revenues tanked 26.3% year over year to $40.6 million from $55.1 million a year ago. The decrease is primarily attributable to lower coal sales and a decline in average coal royalty revenues.

Revenues at the Soda Ash segment plummeted 21.6% to $9.8 million from $12.5 million a year ago.

Revenues at the VantaCore segment dropped 7.8% to $24.7 million from $26.8 a year ago.

Oil & Gas revenues surged 81.6% to $27.6 million from $15.2 million a year ago.

Total operating expenses in the reported quarter declined 22.7% to $53.6 million from $69.3 million in the prior-year quarter.

Financial Condition

Natural Resource Partners had cash and cash equivalents of $52.1 million as of Mar 31, 2016, up from $51.8 million as of Dec 31, 2015. Long-term debt was $1,147 million as of Mar 31, 2016, down from $1,270.3 million as of Dec 31, 2015.

In the quarter under review, cash from operating activities was $19.4 million, down 65% from $55.5 million in the prior-year period.

Distributable cash flow increased 9.6% to $58.4 million from $53.3 million in the prior-year quarter.

Peer Releases

CONSOL Energy Inc. CNX reported an adjusted loss of 7 cents per share for the first quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 9 cents.

CNX Coal Resources LP's CNXC first-quarter 2016 adjusted earnings of 11 cents per unit lagged the Zacks Consensus Estimate of 20 cents by a wide 45%.

SunCoke Energy Inc. SXC posted first-quarter 2016 adjusted earnings of 5 cents per share, outpacing the Zacks Consensus Estimate by a penny.

Zacks Rank

Natural Resource Partners currently has a Zacks Rank #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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