Natural Resource Partners L.P. (NRP) filed Quarterly Report for the period ended 2009-09-30.
Natural Resource LP is a master limited partnership that engages principally in the business of owning and managing coal royalty properties in the three major coal-producing regions of the United States. Natural Resource Partners L.p. has a market cap of $1.53 billion; its shares were traded at around $22.02 with a P/E ratio of 13.6 and P/S ratio of 5.2. The dividend yield of Natural Resource Partners L.p. stocks is 9.8%. Natural Resource Partners L.p. had an annual average earning growth of 12.9% over the past 5 years.
Highlight of Business Operations:
As of September 30, 2009 we had $278 million in available capacity under our existing credit facility, which does not mature until March 2012, as well as approximately $61 million in cash. In connection with the Colt acquisition in the third quarter, the holders of our incentive distribution rights agreed to forego approximately $7.35 million in distributions with respect to each of the third and fourth quarters of 2009, giving us approximately $14.7 million of additional liquidity. In addition, because we amortize substantially all of our long-term debt, we have no need to pay off or refinance any debt obligations other than our regularly scheduled principal payments.
Pursuant to purchase and sale agreements in connection with the Blue Star and Colt acquisitions, we anticipate funding an additional $257 million over the next 27 months, of which approximately $175 million is anticipated to be funded over the next 12 months, as the sellers achieve various development milestones. We anticipate funding these acquisitions through the use of the available capacity under our credit facility and through the issuance of debt and/or equity in the capital markets. We believe that we have enough liquidity to meet our current capital needs.
As of September 30, 2009, our reserves were subject to 206 leases with 75 lessees. For the nine months ended September 30, 2009, our lessees produced 35.5 million tons of coal generating $148.3 million in coal royalty revenues from our properties, and our total revenues were $190.2 million.
Colt — In September 2009, we signed a definitive agreement to acquire approximately 200 million tons of coal reserves related to the Deer Run Mine in Illinois from Colt LLC, an affiliate of the Cline Group, through eight separate transactions for a total purchase price of $255 million. Upon closing of the first transaction, NRP paid $10.0 million, funded through its credit facility, and acquired approximately 3.3 million tons of reserves associated with the initial production from the mine. Future closings anticipated through 2012 will be associated with completion of certain milestones relating to the new mine’s construction.
Blue Star — In July 2009, we acquired approximately 121 acres of limestone reserves in Wise County, Texas from Blue Star Materials, LLC for a purchase price of $24 million. As of September 30, 2009, we had funded $12.0 million of the acquisition with borrowings under our credit facility. The remaining payments are expected to be made over the next six months upon completion of certain development milestones.
Rate This Article: |
  |