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Natural Resource (NRP) Q2 Earnings & Revenues Beat Estimates

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Natural Resource Partners LP (NRP - Free Report) delivered second-quarter 2018 adjusted earnings of $1.75 per unit, surpassing the Zacks Consensus Estimate of $1.32 by 32.6%. The bottom line also improved from the year-ago quarter’s figure.

Total Revenues

In the quarter under review, Natural Resource’s total revenues of $111.1 million beat the Zacks Consensus Estimate of $96 million by 15.7%. Moreover, the top line was up by 17% compared with the year-ago quarter’s number.

The above positive result was driven by strong metallurgical and thermal coal export demand coupled with stable domestic coal prices, which boosted the royalty revenues of the company.

Natural Resource Partners LP Price, Consensus and EPS Surprise

Segment Details

The Coal Royalty and Other segment’s revenues and other income (excluding gains on asset sales) were up by 8.6% year over year to $53.90 million.

The Construction Aggregates segment’s revenues in the second quarter were $40.41 million, up nearly 20.4% from the prior-year quarter’s level.

Revenues in Soda Ash segment were $16.53 million, up from $8.39 million in the year-earlier quarter.

Highlights of the Release

Total coal production in the reported quarter was 7022 thousand tons, up from 6478 thousand tons a year ago. While combined average coal royalty revenues per ton were $4.95, up from $4.62 in the preceding year.

Total operating expenses in the quarter under review were up 21.7% to $54.2 million from $44.5 million in the previous year.

Interest expenses dropped 12.8% to $17.7 million from $20.3 million in the year-ago period.

Financial Condition

Natural Resource Partners had cash and cash equivalents of $53 million as of Jun 30, 2018, up from $29.8 million as of Dec 31, 2017.

The partnership continues to lower outstanding debt levels. Long-term debt was $723.2 million as of Jun 30, 2018, down from $729.6 million as of Dec 31, 2017.

Cash flow from operating activities in the second quarter was $54.4 million, up from $35.1 million in the same period last year.

Zacks Rank

Natural Resource carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Coal Industry Stocks

CONSOL Coal Resources LP’s second-quarter 2018 adjusted earnings per unit of 69 cents beat the Zacks Consensus Estimate of 65 cents by 6.15%.

Alliance Resource Partners, L.P.’s (ARLP - Free Report) second-quarter 2018 adjusted earnings per unit of 64 cents topped the Zacks Consensus Estimate of 63 cents by 1.59%.

Consol Energy Inc.’s (CEIX - Free Report) second-quarter 2018 adjusted earnings per unit of $1.58 outpaced the Zacks Consensus Estimate of $1.39 by 13.67%.

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