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Natural Resource Partners (NRP)
NYSE:NRP
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Natural Resource PRN
(NYSE:NRP)
74Outperform
Natural Resource PRN (NRP) vs. S&P 500 (SPY)
Market Cap
$1.38B
Dividend Yield2.86%
Average Volume (3M)23.99K
Price to Earnings (P/E)9.3
Beta (1Y)0.62
Revenue Growth-16.56%
EPS Growth-24.95%
CountryUS
Employees56
SectorEnergy
Sector Strength85
IndustryCoal
Share Statistics
EPS (TTM)11.27
Shares Outstanding13,138,097
10 Day Avg. Volume12,458
30 Day Avg. Volume23,992
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.81
Price to Cash Flow (P/CF)5.40
P/FCF Ratio5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Natural Resource PRN Business Overview & Revenue Model
Company DescriptionNatural Resource Partners L.P., through its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates through two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in Appalachia, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties are located in the United States; oil and gas properties located in Louisiana; timber assets located in West Virginia; and trona ore mining operation and soda ash refinery are located in the Green River Basin, Wyoming. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.
How the Company Makes MoneyNRP generates revenue through a combination of consultancy fees, project management contracts, and long-term service agreements with governments, non-governmental organizations, and private sector clients. The company also engages in strategic partnerships with technology firms to develop innovative solutions for resource management, which can lead to diversified income streams through joint ventures. Additionally, NRP may receive grants or funding from environmental agencies and international bodies to support its sustainability projects.
Natural Resource PRN Financial Statement Overview
Summary
NRP demonstrates strong balance sheet and cash flow management with low debt levels and significant free cash flow generation. However, declining net income and revenue are notable concerns.Income Statement
The company's income statement reveals mixed results. Gross profit margins are strong, with the most recent year showing a 100% margin due to revenue equaling gross profit. However, net profit margins have been declining due to a decrease in net income from $274.4M in 2023 to $3.1M in 2024. Revenue declined by 8.73% from 2023 to 2024, which is a concern. EBIT and EBITDA margins remain healthy, indicating operational efficiency.68
Positive
Balance Sheet
The balance sheet shows a strong equity position with an equity ratio of 71.3% in 2024, up from previous years. Debt-to-equity ratio is low at 0.03, indicating very low leverage, which is a positive indicator of financial health. ROE has drastically decreased because of low net income, but overall stability is maintained through strong stockholder equity.74
Positive
Cash Flow
The cash flow statement is robust, with significant free cash flow in 2024, matching the operating cash flow at $248.5M, demonstrating strong cash generation. Free cash flow growth is negative due to a decrease from 2023, but the company maintains a positive cash flow to net income ratio, indicating good cash management.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 245.03M | 293.66M | 328.08M | 194.25M | 129.01M | Gross Profit |
| 268.01M | 261.34M | 305.57M | 175.17M | 119.81M | EBIT |
| 199.20M | 292.54M | 305.23M | 147.78M | 91.45M | EBITDA |
| 214.73M | 311.03M | 317.29M | 166.85M | -34.65M | Net Income Common Stockholders |
| 3.10M | 274.42M | 268.49M | 48.16M | -136.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 30.44M | 11.99M | 39.09M | 135.52M | 99.79M | Total Assets |
| 772.91M | 797.88M | 235.09M | 953.82M | 921.88M | Total Debt |
| 14.19M | 155.06M | 168.28M | 433.55M | 471.50M | Net Debt |
| -16.25M | 143.07M | 129.19M | 298.02M | 371.71M | Total Liabilities |
| 221.80M | 219.64M | 235.09M | 513.89M | 549.02M | Stockholders Equity |
| 551.11M | 570.23M | 404.80M | 3.21M | 322.00K |
| Cash Flow | Free Cash Flow | |||
| 248.49M | 310.97M | 266.72M | 121.80M | 89.27M | Operating Cash Flow |
| 248.49M | 310.98M | 266.84M | 121.80M | 89.27M | Investing Cash Flow |
| 7.51M | 5.42M | 2.69M | 2.41M | 1.68M | Financing Cash Flow |
| -237.55M | -343.50M | -365.95M | -88.49M | -89.43M |
Natural Resource PRN Technical Analysis
Neutral
103.90
Price Trends
102.92
Positive
103.64
Positive
96.82
Positive
Market Momentum
1.02
Positive
48.90
Neutral
16.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRP, the sentiment is Neutral. The current price of 103.9 is below the 20-day moving average (MA) of 104.81, above the 50-day MA of 102.92, and above the 200-day MA of 96.82, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NRP.
Natural Resource PRN Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.42B | 9.61 | 19.34% | 10.50% | -4.60% | -42.35% | |
74 Outperform | $1.38B | 9.25 | 32.48% | 2.86% | -16.56% | -24.95% | |
74 Outperform | $4.12B | 8.02 | 19.67% | 0.65% | -13.20% | -51.56% | |
72 Outperform | $2.44B | 14.16 | 12.64% | 0.74% | -17.03% | -78.54% | |
72 Outperform | $1.67B | 5.08 | 10.41% | 2.19% | -14.50% | -46.36% | |
69 Neutral | $2.55B | 10.15 | 12.64% | 0.66% | -9.10% | -47.93% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% |
* Energy Sector Average
Performance Comparison
NRP
Natural Resource PRN
103.90
15.22
17.16%
ARLP
Alliance Resource
27.28
9.26
51.39%
ARCH
Arch Resources
134.83
-22.98
-14.56%
HCC
Warrior Met Coal
47.72
-12.53
-20.80%
BTU
Peabody Energy Comm
13.55
-10.27
-43.12%
CNR
Core Natural Resources
77.10
-4.94
-6.02%
Natural Resource PRN Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: 6.19% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlights NRP's strategic achievements in debt reduction and cash flow generation. However, significant challenges remain due to the decline in coal and soda ash prices, impacting revenue and market position. The company's initiatives in carbon-neutral projects face uncertainties, affecting future potential growth. While financial management shows strength, market conditions pose substantial hurdles.Highlights
Increased Credit Facility Capacity
NRP increased its credit facility capacity by $45 million to $200 million and extended the maturity date by two years to 2029.
Debt Reduction Achievements
Over the last 10 years, NRP paid off over $1.3 billion of financial obligations, leaving only $142 million of debt remaining.
Free Cash Flow Generation
NRP generated $251 million of free cash flow in 2024, indicating strong cash generation capabilities.
Special Distribution Declared
A special distribution of $1.21 per common unit was declared to cover tax liabilities associated with owning NRP common units in 2024.
Lowlights
Coal Price Decline
Metallurgical and thermal coal prices dropped by half from the highs seen in 2023, negatively impacting revenue.
Soda Ash Market Challenges
Global soda ash prices fell roughly 60% from 2023 highs due to oversupply and decreased demand, leading to a $43 million decline in cash distributions from Sisecam, Wyoming.
Decreased Mineral Rights Segment Income
The Mineral Rights segment saw a decrease of $11 million in net income and $8 million in cash flow in Q4, primarily due to weaker coal demand.
Non-Renewal of CO2 Sequestration Lease
Exxon will not renew its carbon dioxide sequestration lease on NRP's Baldwin County, Alabama acreage, indicating challenges in carbon-neutral initiatives.
Company Guidance
During the Natural Resource Partners LP Fourth Quarter 2024 Earnings Conference Call, significant financial metrics were highlighted, reflecting the company's efforts to strengthen its financial position. In 2024, NRP generated $251 million in free cash flow, paid off all remaining preferred units, settled all outstanding warrants, and increased its credit facility capacity by $45 million to $200 million, extending its maturity to 2029. The company reduced its debt to $142 million after paying off over $1.3 billion in financial obligations over the past decade. Despite falling coal and soda ash prices in 2024, NRP managed to produce $184 million in net income and $248 million in operating cash flow for the year. The Mineral Rights segment reported $206 million in net income and $242 million in operating cash flow, though experiencing a decline from the previous year due to weaker coal demand. Meanwhile, the soda ash segment faced challenges with a decrease in net income by $55 million year-over-year, attributed to market oversupply and weakened demand. Corporate and financing improvements included a near 30% expansion of the credit facility and reduced debt-related expenses. The company maintained quarterly distributions of $0.75 per common unit and announced a special distribution of $1.21 per common unit to cover tax liabilities for 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.