Back to top

Analyst Blog

Rhino Resource Partners L.P. (RNO - Snapshot Report) made a public offering of around 1.1 million units representing limited partner interests. The partnership will allow the underwriters of the issue a window of 30 days to purchase up to 165,000 additional common units to cover over-allotments, if necessary.

Rhino Resource Partners intends to utilize the net proceeds of the issue, including proceeds from any exercise of the over-allotment option, to lower outstanding borrowings under its credit facilities. The units will be offered in accordance to the shelf prospectus previously filed with the Securities and Exchange Commission.

The partnership follows this practice of issuing new units and utilizes the proceeds to repay its borrowings from its credit facilities. In Jul 2011, the partnership issued 2.5 million units priced at $24.50 per unit and utilized the proceeds to replenish its credit facilities.

Rhino Resource Partners ended the second quarter of 2013 with nearly 15.38 million of outstanding units. The partnership presently distributes $1.78 per unit to unitholders on an annualized basis. The proposed issue of common units will increase the total cash distribution amount. However, the partnership has sufficient cash generation capabilities to meet the additional cash distribution burden.

Rhino Resource Partners has taken initiatives to make strategic acquisitions and monetize assets not featuring in its long-term goals to create a strong generation portfolio. These initiatives have started to reflect in its quarterly results, with Rhino Resource Partners surpassing the Zacks Consensus Estimate in three out of the last four quarters.

Rhino Resource Partners currently has a Zacks Rank #3 (Hold). Other operators in the sector having a favorable Zacks Rank are Alliance Holdings GP, L.P. (AHGP - Snapshot Report), Alliance Resource Partners L.P. (ARLP - Snapshot Report) and Suncoke Energy Partners, L.P. (SXCP - Snapshot Report). Alliance Holdings GP and Alliance Resource Partners LP retain a Zacks Rank #1 (Strong Buy), while Suncoke Energy Partners has a Zacks Rank #2 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
SKYWORKS SO… SWKS 52.07 +2.58%
CLAYTON WIL… CWEI 109.08 +2.51%