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

Natural Resource Partners (NYSE:NRP) posted its quarterly earnings data on Wednesday. The energy company reported $1.85 earnings per share for the quarter, topping the consensus estimate of $0.30 by $1.55, FiscalAI reports. Natural Resource Partners had a net margin of 61.28% and a return on equity of 18.49%. The company had revenue of $52.97 million during the quarter, compared to analysts’ expectations of $37.70 million.

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 Stock Up 0.2%

NRP stock traded up $0.21 during mid-day trading on Thursday, reaching $105.21. 90,166 shares of the company traded hands, compared to its average volume of 44,760. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.07. The stock has a market cap of $1.39 billion, a price-to-earnings ratio of 12.36 and a beta of 0.15. The firm’s 50 day moving average price is $100.56 and its 200 day moving average price is $111.66. Natural Resource Partners has a fifty-two week low of $95.51 and a fifty-two week 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. Stockholders of record on Tuesday, August 18th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $3.00 annualized dividend and a dividend yield of 2.9%. Natural Resource Partners’s payout ratio is presently 35.25%.

Analyst Upgrades and Downgrades

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

Insider Buying and Selling

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

Hedge Funds Weigh In On Natural Resource Partners

A number of hedge funds and other institutional investors have recently made changes to their positions in NRP. NewEdge Advisors LLC raised its position in Natural Resource Partners by 144.0% in the second quarter. NewEdge Advisors LLC now owns 266 shares of the energy company’s stock worth $25,000 after acquiring an additional 157 shares during the period. Raymond James Financial Inc. purchased a new stake in Natural Resource Partners during the second quarter valued at about $137,000. Jump Financial LLC boosted its holdings in Natural Resource Partners by 8.1% in the 2nd quarter. Jump Financial LLC now owns 2,444 shares of the energy company’s stock worth $233,000 after buying an additional 184 shares during the period. BNP Paribas Financial Markets boosted its holdings in shares of Natural Resource Partners by 128.0% in the second quarter. BNP Paribas Financial Markets now owns 2,850 shares of the energy company’s stock worth $272,000 after acquiring an additional 1,600 shares during the period. Finally, Susquehanna Portfolio Strategies LLC bought a new position in Natural Resource Partners in the 4th quarter worth about $334,000. 31.77% of the stock is owned by hedge funds and other institutional investors.

About Natural Resource Partners

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.