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

Natural Resource Partners (NYSE:NRP) posted 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. 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 analyst estimates 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 Price Performance

Shares of NRP traded up $8.36 during trading hours on Wednesday, hitting $105.30. 92,383 shares of the stock were exchanged, compared to its average volume of 44,264. Natural Resource Partners has a 12-month low of $95.51 and a 12-month high of $128.60. The company has a market cap of $1.40 billion, a price-to-earnings ratio of 12.37 and a beta of 0.15. The stock’s 50-day moving average price is $100.55 and its two-hundred day moving average price is $111.75. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.09 and a current ratio of 2.09.

Insider Transactions at Natural Resource Partners

In other Natural Resource Partners news, EVP Kevin J. Craig acquired 336 shares of the business’s stock in a transaction on Tuesday, May 26th. The stock was bought at an average price of $102.18 per share, for a total transaction of $34,332.48. Following the acquisition, the executive vice president owned 47,019 shares in the company, valued at approximately $4,804,401.42. The trade was a 0.72% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 35.30% of the company’s stock.

Institutional Investors Weigh In On Natural Resource Partners

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Annandale Capital LLC increased its holdings in shares of Natural Resource Partners by 0.4% during the 4th quarter. Annandale Capital LLC now owns 26,207 shares of the energy company’s stock worth $2,736,000 after buying an additional 107 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of Natural Resource Partners by 144.0% in the second quarter. NewEdge Advisors LLC now owns 266 shares of the energy company’s stock valued at $25,000 after buying an additional 157 shares in the last quarter. Jump Financial LLC grew its position 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 valued at $233,000 after acquiring an additional 184 shares in the last quarter. First Foundation Advisors lifted its position in shares of Natural Resource Partners by 3.2% during the third quarter. First Foundation Advisors now owns 7,941 shares of the energy company’s stock worth $834,000 after purchasing an additional 245 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Natural Resource Partners by 1.9% in the third quarter. Bank of America Corp DE now owns 53,662 shares of the energy company’s stock valued at $5,635,000 after purchasing an additional 993 shares in the last quarter. 31.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings cut 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, the company has an average rating of “Hold”.

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.