#researchshort
👾 This is one that was suggested on my #manicmondays poll by @ctsshah , but $BROS kind of demolished the competition. 👾
⛰️ Natural Resource Partners $NRP ⛰️
$NRP is a master limited partnership headquartered in Houston, Texas, with its operational headquarters in Huntington, West Virginia. According to its website, the company "is principally engaged in the business of owning and managing coal properties, and coal handling and transportation infrastructure in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin. NRP also owns and manages aggregate reserves in Arizona, Texas, West Virginia and Washington. In addition the partnership manages oil and gas properties and timber assets in Appalachia. The partnership does not actively engage in the mining of any of its minerals or natural resources, but rather leases its properties to various operators in exchange for royalty payments." NRP states that 5% of all coal mined in the U.S. is from NRP properties. $NRP was formed in April 2002 with selected properties from the following companies:
⚫Western Pocahontas Properties - formed in 1986 to acquire all the coal, timber and surface rights of CSX Corporation. These assets constituted approximately 45% of Natural Resource Partner's (NRP) reserves at December 31, 2001.
⚫Arch Coal - the second largest coal producer in the United States. The properties contributed to NRP by Arch accounted for approximately 40% of NRP's reserves at December 31, 2001.
Great Northern Properties L.P. - formed in 1992 to acquire the coal-related assets of Burlington Railroad.
⚫New Gauley Coal - as part of Western Pocahontas Properties' acquisition of the CSX properties, WPPLP acquired New Gauley Coal Corporation, which held additional properties in West Virginia.
⚫Cline Group - in February 2012, Natural Resource Partners completed the fifth acquisition of coal reserves at the Deer Run Mine near Hillsboro, Illinois from Colt LLC, an affiliate of the Cline Group.
-Wiki
💰 $NRP Reports Third Quarter 2021 💰
"Our strong performance in the third quarter reflects continued global economic recovery and strong demand for metallurgical coal, thermal coal and soda ash, and we expect conditions to remain favorable over the near and intermediate term," said Craig Nunez, NRP’s President & Chief Operating Officer. "We remain committed to using our robust free cash flow to reduce debt and continue to believe our long-term strategy of de-risking the Partnership in this manner is the best means to maximize unitholder value. In addition, we returned $5.6 million of distributions to common unitholders in the third quarter and have paid out $22.2 million to common unitholders over the last twelve months." Mr. Nunez continued, "I am also pleased to report that we generated and sold $13.8 million in carbon offset credits in October by sequestering over 1 million tonnes of carbon dioxide in our forestlands. This transaction will be reflected in our fourth quarter results and is the first tangible result of our ongoing initiative to generate cash flow from alternative revenue sources we have told you about in previous quarters. We continue to pursue additional alternative revenue projects that have the potential to provide important benefits to the environment and add significant value to NRP over the coming years."
NRP announced that the Board of Directors of its general partner declared a third quarter 2021 cash distribution of $0.45 per common unit of NRP to be paid on November 23, 2021 to unitholders of record on November 16, 2021. In addition, the Board declared an $8.0 million distribution on the preferred units, which will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. The preferred unit distribution includes interest on previously paid-in-kind units and will also be paid one-half in cash and one-half in kind through the issuance of additional preferred units.
NRP's liquidity was $219.0 million at September 30, 2021, consisting of $119.0 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. $NRP announced today that the Board of Directors of its general partner declared a third quarter 2021 cash distribution of $0.45 per common unit of $NRP to be paid on November 23, 2021 to unitholders of record on November 16, 2021. In addition, the Board declared an $8.0 million distribution on the preferred units, which will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. The preferred unit distribution includes interest on previously paid-in-kind units and will also be paid one-half in cash and one-half in kind through the issuance of additional preferred units.
In the third quarter of 2021 net income increased $17.4 million and free cash flow increased $5.6 million as compared to the prior year period primarily due to stronger metallurgical coal demand and pricing in the third quarter of 2021. Approximately 65% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the third quarter of 2021. Metallurgical coal markets have rebounded significantly from the lows seen in 2020 to record highs and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have also significantly improved from the lows seen in 2020, however NRP does not have meaningful sensitivity to thermal coal price movements this year since the substantial majority of NRP's thermal cash flows are fixed through 2021 pursuant to a contract with Foresight Energy that went into effect as they emerged from bankruptcy in 2020. While there is potential for NRP to capture upside from improved thermal coal demand and pricing in 2022, thermal coal markets still face the long-term challenges of lower electricity demand, competition from natural gas and the secular shift to renewable energy.
https://finance.yahoo.com/news/natural-partners-l-p-reports-105500050.html
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