We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Natural Resource Partners (NRP) to Gain from Rising Prices
Read MoreHide Full Article
On Nov 10, 2016, we issued an updated research report on Natural Resource Partners L.P. (NRP - Free Report) . The partnership is poised to reap the benefits of improving coal prices, which is being driven by changes in the coal markets. However, stringent emission regulation and dependence on a few customers for coal royalty revenues are major headwinds.
Natural Resource Partners’ earnings in the reported quarter were lower than the Zacks Consensus Estimate even though the total revenue surpassed the mark. Amid the difficult coal market fundamentals, Natural Resource Partners is working on a strategic plan to strengthen its balance sheet and improve liquidity. The partnership repaid debts worth $144.6 million in the first nine months of 2016.
Natural Resource Partners’ exposure to metallurgical coal, prices of which have been on the rise in last few months, places it advantageously. Rising demand for domestic thermal coal due to improving natural gas prices could boost coal production from its high-quality coal mines, paving the way for an increase in royalty revenues.
In July, the partnership sold its non-operated oil and gas working interest assets in the Williston Basin for $116.1 million. This has allowed the partnership to focus on its core activities in operation, primarily aggregates, soda ash, and the coal and hard minerals business segments.
However, dependence on a few customers for the majority of its royalty revenues could significantly impact the prospects of the partnership. Last year, Natural Resource Partners lost one of its premier customers due to bankruptcy.
In addition, stringent emission standards are resulting in a decline in the usage of coal in power plants, which will adversely impact Natural Resource Partners’ coal royalty revenues.
Natural Resource Partners currently sports a Zacks Rank #1 (Strong Buy). Some other favorably placed stocks in the coal industry include Cloud Peak Energy , SunCoke Energy, Inc. (SXC - Free Report) and Alliance Resource Partners LP (ARLP - Free Report) . Each of these stocks sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cloud Peak Energy, SunCoke Energy and Alliance Resource Partners have each surpassed third-quarter 2016 earnings estimates by a respective 150.0%, 177.78% and 13.75%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Natural Resource Partners (NRP) to Gain from Rising Prices
On Nov 10, 2016, we issued an updated research report on Natural Resource Partners L.P. (NRP - Free Report) . The partnership is poised to reap the benefits of improving coal prices, which is being driven by changes in the coal markets. However, stringent emission regulation and dependence on a few customers for coal royalty revenues are major headwinds.
Natural Resource Partners’ earnings in the reported quarter were lower than the Zacks Consensus Estimate even though the total revenue surpassed the mark. Amid the difficult coal market fundamentals, Natural Resource Partners is working on a strategic plan to strengthen its balance sheet and improve liquidity. The partnership repaid debts worth $144.6 million in the first nine months of 2016.
Natural Resource Partners’ exposure to metallurgical coal, prices of which have been on the rise in last few months, places it advantageously. Rising demand for domestic thermal coal due to improving natural gas prices could boost coal production from its high-quality coal mines, paving the way for an increase in royalty revenues.
NATURAL RSRC LP Price and EPS Surprise
NATURAL RSRC LP Price and EPS Surprise | NATURAL RSRC LP Quote
In July, the partnership sold its non-operated oil and gas working interest assets in the Williston Basin for $116.1 million. This has allowed the partnership to focus on its core activities in operation, primarily aggregates, soda ash, and the coal and hard minerals business segments.
However, dependence on a few customers for the majority of its royalty revenues could significantly impact the prospects of the partnership. Last year, Natural Resource Partners lost one of its premier customers due to bankruptcy.
In addition, stringent emission standards are resulting in a decline in the usage of coal in power plants, which will adversely impact Natural Resource Partners’ coal royalty revenues.
Natural Resource Partners currently sports a Zacks Rank #1 (Strong Buy). Some other favorably placed stocks in the coal industry include Cloud Peak Energy , SunCoke Energy, Inc. (SXC - Free Report) and Alliance Resource Partners LP (ARLP - Free Report) . Each of these stocks sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cloud Peak Energy, SunCoke Energy and Alliance Resource Partners have each surpassed third-quarter 2016 earnings estimates by a respective 150.0%, 177.78% and 13.75%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>