Nat'l Resource Ptrs Retains a Buy

Houston, TX-based Natural Resource Partners, L.P. (NRP - Snapshot Report) is a master limited partnership engaged mainly in owning and managing coal properties in the Appalachian region, the Illinois basin and the Powder River basin.

We are maintaining our Buy recommendation on Natural Resource Partners but are lowering our target price from $33.50 to $29.50 per unit. The partnership looks to grow distributable cash flow in '09/'10 as its lessees have locked in coal production at prices above '08 levels.

We see NRP growing its annualized distribution by 7.5% over the next four quarters to $2.30 per unit. Its low capex requirements, strong cash flow profile and $200 MM of available liquidity makes the partnership an attractive investment during this time of economic turmoil. NRP is our preferred name in the industry.

Read the full analyst report on NRP