HOUSTON, Nov. 25 /PRNewswire-FirstCall/ -- Natural Resource Partners L.P.
(NYSE: NRP) announced today pro forma third quarter revenues of $14.3 million
and excess of revenues over direct costs and expenses of $7.3 million. Pro
Forma nine month revenues were $39.7 million with excess revenues over direct
costs and expenses of $21.0 million.
Pro Forma Third Quarter
Pro forma coal royalty revenue increased 17% to $12.8 million for the
third quarter 2002 from $10.9 million for the third quarter 2001. The revenue
increase was attributable to a 6.5% increase in the average royalty revenue
per ton to $1.64 and an 11% increase in production to 7.8 million tons for the
same period. The production increase was primarily due to the opening of a
new mine, a long wall mine moving onto the property and general increases in
production at other mines.
Pro Forma Year to Date Results
For the nine months ended September 30, 2002, coal royalty revenues
increased 15% to $35.6 million and production increased 6.7% to 21.6 million
tons. The production increase is primarily due to two long wall mines moving
onto properties in West Virginia. The increase in coal royalty revenue was
due to the increased production and a 7.1% increase in the average royalty
revenue to $1.65 per ton.
Natural Resource Partners L.P. is a newly formed master limited
partnership. The partnership was formed from the contribution of properties
from four separate entities. The properties were contributed by Western
Pocahontas Properties Limited Partnership, Great Northern Properties Limited
Partnership, New Gauley Coal Corporation and Arch Coal, Inc. (NYSE: ACI). The
partnership completed its initial public offering in October and has shown the
pro forma numbers included in this release in an effort to provide a more
meaningful presentation of what the partnership results of operations would
have been had it been in the existence during the periods shown. This is not
intended to represent a comprehensive set of statements as certain costs and
expenses such as general and administrative expenses are not shown.
Fourth Quarter 2002 Guidance
The partnership is issuing guidance for the fourth quarter 2002 as
follows:
Production: (millions of tons)
Appalachia 5.7 - 5.9
Illinois Basin .5 - .6
Northern Powder River Basin 1.1 - 1.2
Total Partnership 7.3 - 7.7
Average Revenue per ton: ($ per ton)
Appalachia 1.77 - 1.80
Illinois Basin 1.23 - 1.26
Northern Powder River Basin 1.03 - 1.06
Total Partnership 1.62 - 1.64
Revenues: ($ millions)
Royalty Revenues 11.8 - 12.6
Minimums Recognized .1 - .2
Property Taxes .2 - .3
Other Revenues 1.2 - 1.3
Total Revenues 13.3 - 14.4
Direct Costs and Expenses: ($ millions)
Depreciation, Depletion and Amortization Expense 4.8 - 6.2
General and Administrative Expenses 1.1 - 1.2
Taxes Other than Income .2 - .3
Other Expenses .2 - .3
Commitment Fees .1 - .1
Distributions
Natural Resource Partners intends to pay its first quarterly distribution
to unitholders for the fourth quarter of 2002 in February 2003. This
distribution will be pro-rated to cover the period from the date of completion
of the partnership's initial public offering on October 17, 2002 through
December 31, 2002.
Natural Resource Partners L.P. is headquartered in Houston, TX, with its
operations headquarters in Huntington, WV. NRP is principally engaged in the
business of owning and managing coal properties in the three major coal
producing regions of the United States: Appalachia, the Illinois Basin and the
Powder River Basin.
For additional information, please contact Kathy Hager at 713-751-7555 or
khager@nrplp.com . Further information about NRP is available on the
partnership's website at http://www.nrplp.com .
This press release may include "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those concerning
the fourth quarter guidance and the distributions. All statements, other than
statements of historical facts, included in this press release that address
activities, events or developments that the partnership expects, believes or
anticipates will or may occur in the future are forward-looking statements.
These statements are based on certain assumptions made by the partnership
based on its experience and perception of historical trends, current
conditions, expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the partnership. These risks include, but are not limited to, decreases in
demand for coal; changes in operating conditions and costs; production cuts by
our lessees; commodity prices; unanticipated geologic problems; changes in the
legislative or regulatory environment and other factors detailed in Natural
Resource Partners' Securities and Exchange Commission filings.
-Financials Follow-
The financial statements that follow were compiled by combining the
operations of Western Pocahontas Properties Limited Partnership, Great
Northern Properties Limited Partnership, New Gauley Coal Corporation and the
Arch Coal Contributed Properties and then making pro forma adjustments.
Adjustments were made for the properties retained by certain of the entities.
Offering adjustments relate to the additional depletion due to the step-up in
basis for the Arch Coal Contributed properties.
NATURAL RESOURCE PARTNERS L.P.
SELECTED PRO FORMA RESULTS OF OPERATIONS
Three Months Nine Months
Ended September 30, Ended September 30,
2002 2001 2002 2001
(Unaudited) (Unaudited)
Coal Royalties (in thousands)
Western Pocahontas
Properties $5,907 $4,246 $16,220 $11,192
Great Northern 1,928 1,833 5,370 5,052
New Gauley 398 376 1,336 1,152
Arch Coal Contributed
Properties 4,971 4,471 13,851 13,802
Total Combined 13,204 10,926 36,777 31,198
Adjustments for Properties
Retained (373) (1) (1,156) (131)
Pro forma Natural Resource
Partners $12,831 $10,925 $35,621 $31,067
Production (in thousands of tons)
Western Pocahontas
Properties 3,280 2,731 9,008 7,653
Great Northern 1,832 1,437 5,422 4,782
New Gauley 134 180 445 552
Arch Coal Contributed
Properties 2,961 2,747 8,278 8,493
Total Combined 8,207 7,095 23,153 21,480
Adjustments for Properties
Retained (377) (9) (1,586) (1,263)
Pro forma Natural Resource
Partners 7,830 7,086 21,567 20,217
Average Royalty Revenue
($ per ton)
Pro forma Natural Resource
Partners $1.64 $1.54 $1.65 $1.54
NATURAL RESOURCE PARTNERS L.P.
PRO FORMA STATEMENT OF REVENUES AND DIRECT COSTS AND EXPENSES
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
(Unaudited)
(In Thousands)
Historical
Arch Coal
Western Great New Gauley Contributed
Pocahontas Northern Coal Properties
Revenues
Coal royalties $5,907 $1,928 $398 $4,971
Timber royalties 1,002 6 --- ---
Gain on sale of
property 7 --- --- ---
Lease and easement income 106 86 --- ---
Property taxes 548 30 20 268
Other 277 --- --- 369
Total revenues 7,847 2,050 418 5,608
Direct cost and expenses
Taxes other than income 610 24 27 268
Depreciation, depletion
and amortization 1,324 662 48 1,634
Other expenses --- --- --- 101
Total direct costs and
expenses 1,934 686 75 2,003
Excess of revenues over
direct costs and
expenses $5,913 $1,364 $343 $3,605
Adjustments
for
Properties Pro Forma Offering Pro Forma
Retained Combined Adjustments as Adjusted
Revenues
Coal royalties $(373) $ 12,831 --- $12,831
Timber royalties (1,008) --- --- ---
Gain on sale of
property (7) --- --- ---
Lease and easement
income (137) 55 --- 55
Property taxes --- 866 --- 866
Other (132) 514 --- 514
Total revenues (1,657) 14,266 --- 14,266
Direct cost and expenses
Taxes other than income (63) 866 --- 866
Depreciation,
depletion and
amortization (184) 3,484 2,502 5,986
Other expenses --- 101 --- 101
Total direct costs
and expenses (247) 4,451 2,502 6,953
Excess of revenues over
direct costs and
expenses $(1,410) $9,815 $(2,502) $7,313
NATURAL RESOURCE PARTNERS L.P.
PRO FORMA STATEMENT OF REVENUES AND DIRECT COSTS AND EXPENSES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(Unaudited)
(In Thousands)
Historical
Arch Coal
Western Great New Gauley Contributed
Pocahontas Northern Coal Properties
Revenues
Coal royalties $16,220 $5,370 $1,336 $13,851
Timber royalties 2,620 51 --- ---
Gain on sale of
property 92 --- --- ---
Lease and easement
income 318 468 2 ---
Property taxes 1,186 61 20 806
Other 810 --- 50 1,294
Total revenues 21,246 5,950 1,408 15,951
Direct cost and expenses
Taxes other than
income 1,392 68 38 806
Depreciation, depletion
and amortization 3,337 1,865 127 4,603
Other expenses --- --- --- 512
Total direct costs and
expenses 4,729 1,933 165 5,921
Excess of revenues over
direct costs and
expenses $16,517 $4,017 $1,243 $10,030
Adjustments
for
Properties Pro Forma Offering Pro Forma
Retained Combined Adjustments as Adjusted
Revenues
Coal royalties $(1,156) $35,621 --- $35,621
Timber royalties (2,671) --- --- ---
Gain on sale of
property (92) --- --- ---
Lease and easement
income (585) 203 --- 203
Property taxes --- 2,073 --- 2,073
Other (377) 2,111 --- 2,111
Total revenues (4,881) 39,674 --- 39,674
Direct cost and expenses
Taxes other than income (231) 2,073 --- 2,073
Depreciation, depletion
and amortization (423) 9,509 6,575 16,084
Other expenses --- 512 --- 512
Total direct costs and
expenses (654) 12,094 6,575 18,669
Excess of revenues over
direct costs and
expenses $(4,227) $27,580 $(6,575) $21,005
SOURCE Natural Resource Partners L.P.
/CONTACT: Kathy Hager of Natural Resource Partners L.P., +1-713-751-7555,
or khager@nrplp.com /