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Natural Resource (NRP) Q1 Earnings Lag but Revenues Beat

Natural Resource Partners LP NRP reported first-quarter 2016 adjusted earnings of 29 cents per unit, missing the Zacks Consensus Estimate of $1.27 by 77.2%. The figure also fell short of $1.24 per unit earned in first-quarter 2015 by 76.6%.

On a GAAP basis, the partnership recorded earnings of $1.88 per unit, up 34.3% from the year-ago figure of $1.40. The difference between GAAP and adjusted earnings was due to non-cash charges for the impairment of certain assets and a one-time gain on asset sales.

Total Revenue

In the quarter under review, Natural Resource Partners’ total revenue of $102.8 million exceeded the Zacks Consensus Estimate of $91 million by 13%. Quarterly revenues, however, dropped 6.3% year over year.

Highlights of the Release

Coal-related revenues tanked 26.3% year over year to $40.6 million from $55.1 million a year ago. The decrease is primarily attributable to lower coal sales and a decline in average coal royalty revenues.

Revenues at the Soda Ash segment plummeted 21.6% to $9.8 million from $12.5 million a year ago.

Revenues at the VantaCore segment dropped 7.8% to $24.7 million from $26.8 a year ago.

Oil & Gas revenues surged 81.6% to $27.6 million from $15.2 million a year ago.

Total operating expenses in the reported quarter declined 22.7% to $53.6 million from $69.3 million in the prior-year quarter.

Financial Condition

Natural Resource Partners had cash and cash equivalents of $52.1 million as of Mar 31, 2016, up from $51.8 million as of Dec 31, 2015. Long-term debt was $1,147 million as of Mar 31, 2016, down from $1,270.3 million as of Dec 31, 2015.

In the quarter under review, cash from operating activities was $19.4 million, down 65% from $55.5 million in the prior-year period.

Distributable cash flow increased 9.6% to $58.4 million from $53.3 million in the prior-year quarter.

Peer Releases

CONSOL Energy Inc. CNX reported an adjusted loss of 7 cents per share for the first quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 9 cents.

CNX Coal Resources LP’s CNXC first-quarter 2016 adjusted earnings of 11 cents per unit lagged the Zacks Consensus Estimate of 20 cents by a wide 45%.

SunCoke Energy Inc. SXC posted first-quarter 2016 adjusted earnings of 5 cents per share, outpacing the Zacks Consensus Estimate by a penny.

Zacks Rank

Natural Resource Partners currently has a Zacks Rank #4 (Sell).

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