Natural Resource Partners (NYSE:NRP) Posts Quarterly Earnings Results, Beats Expectations By $1.55 EPS

Natural Resource Partners (NYSE:NRP) issued its quarterly earnings results on Wednesday. The energy company reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $1.55, FiscalAI reports. The business had revenue of $52.97 million for the quarter, compared to analyst estimates of $37.70 million. Natural Resource Partners had a net margin of 57.13% and a return on equity of 16.82%.

Here are the key takeaways from Natural Resource Partners’ conference call:

• NRP generated $42 million in second-quarter free cash flow and $163 million over the trailing 12 months before its soda ash investment. Management said the mineral rights segment remains a dependable cash generator across commodity cycles.
• The company repaid its bank revolver and has only $14 million of debt remaining, with the final scheduled payment due in December. Management expects to significantly increase common-unit distributions beginning with the payment planned for November.
• The soda ash market remains oversupplied, with weak flat-glass demand and international prices below most producers’ costs. NRP expects domestic soda ash prices to decline as 2027 contracts are negotiated, and does not expect distributions from Sisecam Wyoming to resume until demand improves or supply is reduced.
• Second-quarter net income was $25 million, while mineral rights net income was $36 million; mineral rights free cash flow was $45 million. Mineral rights earnings were pressured by higher depletion expense from revised mine plans, partly offset by higher metallurgical and thermal coal volumes and pricing.
• Management said thermal coal faces ongoing long-term pressure from increasingly competitive renewables, while higher oil prices can increase associated natural-gas production and weigh on North American thermal coal prices. Coal markets have modestly improved from their lows, but executives do not foresee a clear catalyst for a sharp price recovery.

Natural Resource Partners Price Performance

NYSE:NRP traded up $2.69 during mid-day trading on Friday, hitting $107.64. 57,241 shares of the company’s stock traded hands, compared to its average volume of 45,136. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.09 and a current ratio of 2.09. The company has a market cap of $1.43 billion, a PE ratio of 13.73 and a beta of 0.15. The firm’s 50 day simple moving average is $100.55 and its 200 day simple moving average is $111.57. Natural Resource Partners has a 1 year low of $95.51 and a 1 year high of $128.60.

Natural Resource Partners Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 18th will be issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 2.8%. The ex-dividend date is Tuesday, August 18th. Natural Resource Partners’s dividend payout ratio (DPR) is 35.25%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded shares of Natural Resource Partners from a “buy (b)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has an average rating of “Hold”.

Insider Activity

In other Natural Resource Partners news, EVP Kevin J. Craig purchased 336 shares of Natural Resource Partners stock in a transaction on Tuesday, May 26th. The shares were bought at an average price of $102.18 per share, with a total value of $34,332.48. Following the completion of the acquisition, the executive vice president directly owned 47,019 shares of the company’s stock, valued at approximately $4,804,401.42. This trade represents a 0.72% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 35.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Morgan Stanley increased its position in Natural Resource Partners by 14.3% during the fourth quarter. Morgan Stanley now owns 1,006,232 shares of the energy company’s stock worth $105,051,000 after buying an additional 125,530 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Natural Resource Partners by 9.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 748,185 shares of the energy company’s stock valued at $78,111,000 after acquiring an additional 63,350 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Natural Resource Partners by 12,329.6% in the second quarter. Corient Private Wealth LLC now owns 621,478 shares of the energy company’s stock valued at $59,357,000 after acquiring an additional 616,478 shares in the last quarter. Progeny 3 Inc. boosted its stake in shares of Natural Resource Partners by 3.3% during the third quarter. Progeny 3 Inc. now owns 312,523 shares of the energy company’s stock valued at $32,815,000 after acquiring an additional 9,973 shares during the last quarter. Finally, UBS Group AG boosted its stake in shares of Natural Resource Partners by 5.9% during the third quarter. UBS Group AG now owns 214,771 shares of the energy company’s stock valued at $22,551,000 after acquiring an additional 12,055 shares during the last quarter. 31.77% of the stock is currently owned by institutional investors and hedge funds.

Natural Resource Partners Company Profile

Natural Resource Partners LP (NYSE: NRP) is a master limited partnership that acquires and manages royalty and other mineral interests in coal and other natural resources across North America and Australia. The partnership was formed in 2010 as a spin-out from a major U.S. coal producer and is headquartered in Fairmont, West Virginia. Its core business model centers on owning gross proceeds interests, gross royalty proceeds interests and fee minerals, which provide the right to receive a portion of revenues from mining and mineral production without operating the mines directly.

NRP’s U.S.