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Natural Resource Partners (NRP) Tops Q3 Earnings

Natural Resource Partners L.P.NRP reported third-quarter 2015 earnings of 23 cents per unit, beating the Zacks Consensus Estimate of 13 cents by a wide margin of 77%.

The GAAP figure saw a loss of $4.79 per unit in the quarter versus earnings of 32 cents per unit in the third quarter of 2014. The difference between the GAAP loss and adjusted earnings was due to non-cash charges for impairment of certain assets.

Total Revenues

In the quarter under review, Natural Resource Partners' revenues of $125.5 million exceeded the Zacks Consensus Estimate of $120 million by 4.5%. The top line also soared 36.4% year over year, mainly driven by higher aggregate related revenues.

Highlights of the Release

Coal-related revenues declined 15.6% year over year to $55 million, mainly due to a decline in coal royalty revenue from Appalachia and the absence of a coal reserve swap that existed in the third quarter of 2014.

Aggregates-related revenues rose significantly to $42.3 million from $2.6 million in third-quarter 2014.

Oil and gas related revenues rose 29% from the year-ago quarter to $12.4 million.

Total operating expenses shot up significantly to $701.7 million from $36.6 million in the prior-year quarter. The increase was primarily driven by $626.8 million in asset impairments.

Interest expenses during the quarter rose 26% to $23.7 million.

Financial Condition

Natural Resource Partners had cash and cash equivalents of $61.2 million as of Sep 30, 2015, up from $50.1 million as of Dec 31, 2014. Long-term debt was $1,323.7 million as of Sep 30, 2015, down from $1,374.3 million as of Dec 31, 2014.

In the first nine months of 2015, cash from operating activities was $161.4 million, up 2.7% from $157.1 million in the prior-year period.

In the reported quarter, distributable cash flow marginally rose to $58 million from $57.7 million in the prior-year quarter.

Other Coal Company Releases

Diversified fuel producer, CONSOL Energy Inc. CNX reported an adjusted loss of 28 cents per share for the third quarter of 2015, much wider than the Zacks Consensus Estimate of a loss of 2 cents.

SunCoke Energy Inc. SXC reported a third-quarter 2015 adjusted loss of 6 cents per share, as against the Zacks Consensus Estimate of earnings of 3 cents.

Peabody Energy BTU reported a loss of $8.13 per share in third-quarter 2015, marginally narrower than the Zacks Consensus Estimate of a loss of $8.20

Zacks Rank

Natural Resource Partners currently has a Zacks Rank #3 (Hold).

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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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