Coal has been hot again lately. Prices have rebounded from last year, domestic utilities have worked down stockpiles and overseas demand continues to grow. As a result, coal companies all across the board are near their 52-week highs, including giants like Peabody Energy (NYSE:BTU) and Arch Coal (NYSE:ACI). For investors more inclined towards income-producing assets, however, there is still time to consider the merits of Penn Virginia Resource Partners (NYSE:PVR) - a high-quality company involved in both coal and natural gas.
A Third Quarter Lacking A Bit of Energy
On first blush, Penn Virginia's third quarter results do not look like the sort that would get investors very excited. Distributable cash flow (a non-GAAP metric that gives a sense of the company's distribution-paying capability) was down 9% and adjusted net income was down about 13% from last year.
The coal business held up well enough - royalty revenue rose 17% on a 15% increase in royalties per ton, while production barely ticked higher. That, in turn, fueled 25% operating income growth.
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