Natural Resource Partners (NRP) had an impressive third quarter with earnings and revenue beating Zacks Consensus Estimates. Going forward, we expect the partnership to benefit from the improvement in coal market fundamentals, as well as recent acquisitions, its strong liquidity position and solid quarterly results.
We note that the partnership’s strategy of growth through acquisition offers long-term upside to unit-holders. Further, we believe the partnership will continue to grow its distributions in the future, driven by increased cash flows from its coal royalties business and the cancellation of the incentive distribution rights.
We have upgraded our recommendation on the stock to Outperform on the strength of Natural Resource’s robust quarterly results together with a promising distribution growth outlook going forward.
NATURAL RSRC LP (NRP): Free Stock Analysis Report
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