Natural Resource Partners: Nearing Debt-Free Status, But Margin Of Safety Shrinks (Rating Downgrade)

IWA Research2.6K FollowersFollow5ShareSavePlay(10min)CommentsSummaryNatural Resource Partners L.P. (NRP) is downgraded to Buy, as its valuation now reflects a weaker margin of safety, amid persistent industry weakness compared to the levels from months ago.NRP continues aggressive debt reduction, nearing a fortress balance sheet, with only $33 million left to repay and $30.1 million in cash on the balance sheet.Distribution increases are delayed, due to a $39.2 million soda ash JV investment, but higher payouts and buybacks are expected post-deleveraging.Near-term commodity price gains from the Iran conflict may be fleeting and weak fundamentals could persist, but NRP's intrinsic value still remains above current levels. joebelanger/iStock via Getty Images Introduction The last time I covered Natural Resource Partners L.P. (NRP), I highlighted the company's progress towards their goal of reaching a fortress balance sheet, with robust free cash flow despite the weak market conditions that can potentially unlockThis article was written byIWA Research2.6K FollowersFollowI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NRP either through stock ownership, options, or other derivatives. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.