Penn Virginia Resource Partners manages more than 50 coalmines in Kentucky, Virginia, and West Virginia. Rather than running the mines itself, the firm leases mining rights to over 20 mine operators and charges them for the amount of coal they dig up on its properties.
The beauty of this arrangement is that PVR carries little risk because it simply collects a steady stream of income, much of which it passes on to shareholders through its fat
dividend. In PVR's favor right now are relatively high natural gas prices, which help coal remain the fuel of choice for utility companies.