News Releases Details

View all news

Natural Resource Partners L.P. Increases Distribution and Reports on Status Of Pinnacle Mine

10/23/2003

HOUSTON, Oct. 23 /PRNewswire-FirstCall/ -- Natural Resource Partners L.P. (NYSE: NRP) today declared a quarterly distribution of $0.5375 per unit payable on November 14, 2003 to unitholders of record on November 3, 2003. This distribution represents an increase of $0.015 over the previous quarterly distribution and equates to an annualized distribution of $2.15 per unit. In its first year of operations NRP has increased its annualized distribution by $0.10 per unit, or approximately 5%.

"We are pleased to increase our distribution for the second time since our initial public offering in October 2002," said Corbin J. Robertson, Jr., chief executive officer. "This increase partially reflects the impact of the four accretive acquisitions we have made since our initial public offering as well as our positive outlook for future growth opportunities."

Mr. Robertson also noted that the Pinnacle mine in West Virginia, on NRP reserves under lease to Pinnacle Mining Company, LLC, has been idled since early September. According to Pinnacle's management, the closure of the mine is due to a ventilation disruption most likely caused by a lightning strike to a borehole in a mined out area of the mine. Pinnacle's management has taken steps to inert the atmosphere in the mine and is working with the appropriate state and federal agencies, as well as the UMWA, to reopen the mine. However, it is uncertain when the mine can be brought back into production. The idling of the mine will have a minimal impact on NRP's third quarter results because Pinnacle continued to ship coal from its inventory for several weeks after the mine shut down. Prior to the disruption, NRP's estimated fourth quarter 2003 royalty from the mine was approximately $1.6 million.

In other actions, the Board named Corbin J. Robertson III as Vice President - Acquisitions. Prior to joining NRP, Mr. Robertson worked for two years as a Vice President of Sandefer Capital Partners LLC, a private investment partnership focused on energy related investments, and two years as a management consultant for Deloitte and Touche LLP. Mr. Robertson, 32, is a graduate of the University of Texas with both a BBA and a BA and holds an MBA from Harvard Business School. In addition to his duties at NRP, Mr. Robertson also co-manages a private hedge fund and serves as Vice President - Business Development for Quintana Minerals Corporation, a privately held oil and gas company.

Natural Resource Partners L.P. is headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is a master limited partnership that 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 include the uncertainty associated with the resumption of mining at the Pinnacle mine and the associated royalty revenue. 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.

SOURCE Natural Resource Partners L.P.
10/23/2003
CONTACT: Kathy Hager of Natural Resource Partners L.P., +1-713-751-7555,
or khager@nrplp.com
Web site: http://www.nrplp.com
(NRP)

Multimedia Files:

View all news