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Natural Resource (NRP) Q3 Earnings & Revenues Lag Estimates

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Natural Resource Partners LP (NRP - Free Report) delivered third-quarter 2018 adjusted earnings of $1.30 per unit, which missed the Zacks Consensus Estimate of $1.40 by 7.1%. However, the bottom line improved from the year-ago quarter’s figure of $1.08.

Total Revenues

In the quarter under review, Natural Resource’s total revenues of $95 million fell short of the Zacks Consensus Estimate of $97 million by 2.1%. However, the top line was up by 1.9% compared with the year-ago quarter’s number.

The year-over-year upside was driven by strong metallurgical and thermal coal export demand coupled with stable domestic coal prices.

Natural Resource Partners LP Price, Consensus and EPS Surprise

Segment Details

The Coal Royalty and Other segment’s revenues slid 0.4% year over year to $49.4 million.

The Construction Aggregates segment’s revenues (excluding gains on asset sales) in the third quarter were $36.6 million, up nearly 5.6% from the prior-year quarter’s level.

Revenues in Soda Ash segment were $8.8 million, down from $9 million in the year-ago quarter.

Highlights of the Release

Total coal production in the reported quarter was 6,032 thousand tons, up from 5,933 thousand tons a year ago. Also, combined average coal royalty revenues per ton were $5.10, up from $4.54 in the preceding year.

Total operating expenses in the quarter under consideration rose 4.7% to $49 million from $46.8 million in the previous year.

Interest expenses declined 12.6% to $17.5 million from $20 million in the year-ago period.

Financial Condition

Natural Resource had cash and cash equivalents of $63.4 million as of Sep 30, 2018, up from $29.8 million as of Dec 31, 2017.

The partnership continues to lower outstanding debt levels. Long-term debt was $716.5 million as of Sep 30, 2018, down from $729.6 million as of Dec 31, 2017.

Cash flow from operating activities in the third quarter was $33.4 million, up from $25.8 million in the same period last year.

Zacks Rank

Natural Resource currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Coal Releases

Arch Coal Inc. (ARCH - Free Report) delivered third-quarter 2018 operating earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $3.02 by 109.6%.

Cloud Peak Energy’s earnings of 16 cents per share in third-quarter 2018 outperformed the Zacks Consensus Estimate of a loss of 8 cents by 300%.

Alliance Resource Partners, L.P. (ARLP - Free Report) reported third-quarter 2018 operating earnings of 55 cents per unit, missing the Zacks Consensus Estimate of 74 cents by 25.7%.

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