HOUSTON, Jan. 5 /PRNewswire-FirstCall/ -- Natural Resource Partners L.P.
(NYSE: NRP) today announced it has closed the acquisition of mineral interests
from BLC Properties LLC for $73 million that was previously announced on
December 22, 2003. The acquisition was funded through the partnership's
existing credit facility.
The BLC properties are expected to produce between 5.2 and 5.5 million
tons of coal in the first year, which is anticipated to generate approximately
$13.5 million to $14 million of coal royalty and other revenues. The revenues
will be offset by approximately $800 thousand to $900 thousand of royalty
payments to the surface owners and to BLC. In addition, NRP is retaining the
Middlesboro, KY office of BLC, which will result in general and administrative
costs of approximately $600 thousand to $700 thousand per year.
Nick Carter, President and Chief Operating Officer, said, "These assets
further extend our diversification in Central Appalachia. They add
significant new reserves, new lessees, new markets and most importantly, a new
regional management team."
"In the 15 months since our initial public offering, NRP has completed
6 acquisitions that have increased our reserves by over 50% to nearly
1.75 billion tons, nearly tripled our mineral acreage to approximately
1.5 million acres, nearly doubled the number of leases to 120, and increased
the number of lessees mining our reserves from 31 to 52," said Corbin J.
Robertson, Jr., Chairman and Chief Executive Officer. "We have also increased
our quarterly distribution twice to a current quarterly level of $0.5375 per
unit. In short, 2003 was a very successful first year for Natural Resource
Partners."
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
anticipated coal royalty revenue, coal production, overriding royalty revenue
and operating expenses associated with the transaction. 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. Natural
Resource Partners L.P. has no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Natural Resource Partners L.P.
/CONTACT: Kathy Hager of Natural Resource Partners L.P., +1-713-751-7555,
or khager@nrplp.com /
/Web site: http://www.nrplp.com /
(NRP)