Natural Resource Partners: Good Fortunes Coming To The Rescue

DT Analysis
11K Followers

Summary

  • Earlier in 2021 it appeared to be a foregone conclusion that Natural Resource Partners would be completely suspending their distributions after 2021.
  • Thankfully surging coal prices have seen good fortunes coming to the rescue.
  • This has lifted their financial performance massively during the third quarter of 2021.
  • This saw their leverage ratio plunge to only 3.80 and management now expects it to be less than 3.75 by the end of 2021, thereby allowing their distributions to continue into 2022.
  • Following these risks subsiding, I believe that upgrading my rating to neutral is appropriate.

Life after death, green sprout on the coals after the fire. Rebirth of nature after the fire. Rebirth concept

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Introduction

When last covering the thermal coal-reliant Natural Resource Partners (NYSE:NRP), it seemed that their distributions were living on borrowed time with everything moving in the wrong direction, as my previous article discussed. Whilst it

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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