Penn Virginia Resource Partners L.P. (PVR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Penn Virginia Resource Partners is a limited partnership formed by Penn Virginia Corporation to engage in the business of managing coal properties in the Central Appalachian region of the United States. They enter into long-term leases with experienced third- party mine operators for the right to mine their coal reserves in exchange for royalty payments. Penn Virginia Resource Partners L.P. has a market cap of $691.5 million; its shares were traded at around $13.35 with a P/E ratio of 10.6 and P/S ratio of 0.8. The dividend yield of Penn Virginia Resource Partners L.P. stocks is 14.1%. Penn Virginia Resource Partners L.P. had an annual average earning growth of 15% over the past 5 years.
As of December 31, 2008, we owned or controlled approximately 827 million tons of proven and probable coal reserves in Central and Northern Appalachia, the San Juan Basin and the Illinois Basin. We enter into long-term leases with experienced, third-party mine operators, providing them the right to mine our coal reserves in exchange for royalty payments. We actively work with our lessees to develop efficient methods to exploit our reserves and to maximize production from our properties. We do not operate any mines. In the three months ended March 31, 2009, our lessees produced 8.7 million tons of coal from our properties and paid us coal royalties revenues of $30.6 million, for an average royalty per ton of $3.50. Approximately 82% of our coal royalties revenues in the
Net cash provided by operating activities in the three months ended March 31, 2009 increased by $5.6 million, or 19%, to $34.4 million from $28.8 million in the same period of 2008. The overall increase in net cash provided by operating activities was primarily attributable to increased coal royalties received, which was driven primarily by increased production and sales prices of coal in all regions and an increase in cash received from the settlement of our derivative positions. These increases were partially offset by decreased cash received from the sales of residue gas and NGLs, which was primarily driven by a decrease in commodity prices for natural gas and NGLs. See Results of OperationsCoal and Natural Resource Management Segment and Results of OperationsNatural Gas Midstream Segment for a more detailed explanation of the factors that increased cash provided by our operating activities.
Net cash used in investing activities in the three months ended March 31, 2009 increased by $0.7 million, or 4%, to $18.0 million from $17.3 million in the same period of 2008. The cash used in investing activities for the three months ended March 31, 2009 and 2008 were used primarily for capital expenditures. The following table sets forth capital expenditures by segment made during the three months ended March 31, 2009 and 2008:
Net cash used in financing activities in the three months ended March 31, 2009 decreased by $9.6 million, or 42%, to $13.1 million from $22.7 million in the same period of 2008. Over the comparative periods, we had an increase in cash distributions to partners, which was related to an increase in the distribution per unit and to $9.3 million debt issuance costs paid in the three months ended March 31, 2009. The increase in cash distributions to partners was due to the increase in the cash distribution paid per unit and to the increase in our outstanding common units resulting from our 2008 unit offering where we issued an additional 5.15 million common units to the public. These increases in cash used in financing activities were partially offset by an increase in net proceeds from our long-term borrowings under the Revolver. See Long-Term Debt below for a more detailed description of our March 31, 2009 long-term debt balance. Net cash provided by financing activities in the three months ended March 31, 2009 and 2008 was used primarily for capital expenditures.
Revolver. In March 2009, we increased the size of the Revolver from $700.0 million to $800.0 million, which resulted in $9.3 million of debt issuance costs. The Revolver is secured with substantially all of our assets. As of March 31, 2009, net of outstanding borrowings of $595.1 million and letters of credit of $1.6 million, we had remaining borrowing capacity of $203.3 million on the Revolver. The Revolver matures in December 2011 and is available to us for general purposes, including working capital, capital expenditures and acquisitions, and includes a $10.0 million sublimit for the issuance of letters of credit. In the three months ended March 31, 2009, we incurred commitment fees of $0.1 million on the unused portion of the Revolver. The interest rate under the Revolver fluctuates based on the ratio of our total indebtedness-to-EBITDA. Interest is payable at a base rate plus an applicable margin of up to 1.25% if we select the base rate borrowing option under the Revolver or at a rate derived from the London Interbank Offered Rate, or LIBOR, plus an applicable margin ranging from 1.75% to 2.75% if we select the LIBOR-based borrowing option. At March 31, 2009, the weighted average interest rate on borrowings outstanding under the Revolver was approximately 3.75%. We do not have a public credit rating for the Revolver.
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Penn Virginia Resource Partners is a limited partnership formed by Penn Virginia Corporation to engage in the business of managing coal properties in the Central Appalachian region of the United States. They enter into long-term leases with experienced third- party mine operators for the right to mine their coal reserves in exchange for royalty payments. Penn Virginia Resource Partners L.P. has a market cap of $691.5 million; its shares were traded at around $13.35 with a P/E ratio of 10.6 and P/S ratio of 0.8. The dividend yield of Penn Virginia Resource Partners L.P. stocks is 14.1%. Penn Virginia Resource Partners L.P. had an annual average earning growth of 15% over the past 5 years.
Highlight of Business Operations:
We are a publicly traded Delaware limited partnership formed by Penn Virginia in 2001 that is principally engaged in the management of coal and natural resource properties and the gathering and processing of natural gas in the United States. Both in our current limited partnership form and in our previous corporate form, we have managed coal properties since 1882. We currently conduct operations in two business segments: (i) coal and natural resource management and (ii) natural gas midstream. Our operating income (loss) was $21.9 million in the three months ended March 31, 2009, compared to $31.2 million in the three months ended March 31, 2008. In the three months ended March 31, 2009, our coal and natural resource management segment contributed $25.0 million, or 114%, to operating income. This contribution to operating income was partially offset by a $3.0 million operating loss from our natural gas midstream segment, or 14%.As of December 31, 2008, we owned or controlled approximately 827 million tons of proven and probable coal reserves in Central and Northern Appalachia, the San Juan Basin and the Illinois Basin. We enter into long-term leases with experienced, third-party mine operators, providing them the right to mine our coal reserves in exchange for royalty payments. We actively work with our lessees to develop efficient methods to exploit our reserves and to maximize production from our properties. We do not operate any mines. In the three months ended March 31, 2009, our lessees produced 8.7 million tons of coal from our properties and paid us coal royalties revenues of $30.6 million, for an average royalty per ton of $3.50. Approximately 82% of our coal royalties revenues in the
Net cash provided by operating activities in the three months ended March 31, 2009 increased by $5.6 million, or 19%, to $34.4 million from $28.8 million in the same period of 2008. The overall increase in net cash provided by operating activities was primarily attributable to increased coal royalties received, which was driven primarily by increased production and sales prices of coal in all regions and an increase in cash received from the settlement of our derivative positions. These increases were partially offset by decreased cash received from the sales of residue gas and NGLs, which was primarily driven by a decrease in commodity prices for natural gas and NGLs. See Results of OperationsCoal and Natural Resource Management Segment and Results of OperationsNatural Gas Midstream Segment for a more detailed explanation of the factors that increased cash provided by our operating activities.
Net cash used in investing activities in the three months ended March 31, 2009 increased by $0.7 million, or 4%, to $18.0 million from $17.3 million in the same period of 2008. The cash used in investing activities for the three months ended March 31, 2009 and 2008 were used primarily for capital expenditures. The following table sets forth capital expenditures by segment made during the three months ended March 31, 2009 and 2008:
Net cash used in financing activities in the three months ended March 31, 2009 decreased by $9.6 million, or 42%, to $13.1 million from $22.7 million in the same period of 2008. Over the comparative periods, we had an increase in cash distributions to partners, which was related to an increase in the distribution per unit and to $9.3 million debt issuance costs paid in the three months ended March 31, 2009. The increase in cash distributions to partners was due to the increase in the cash distribution paid per unit and to the increase in our outstanding common units resulting from our 2008 unit offering where we issued an additional 5.15 million common units to the public. These increases in cash used in financing activities were partially offset by an increase in net proceeds from our long-term borrowings under the Revolver. See Long-Term Debt below for a more detailed description of our March 31, 2009 long-term debt balance. Net cash provided by financing activities in the three months ended March 31, 2009 and 2008 was used primarily for capital expenditures.
Revolver. In March 2009, we increased the size of the Revolver from $700.0 million to $800.0 million, which resulted in $9.3 million of debt issuance costs. The Revolver is secured with substantially all of our assets. As of March 31, 2009, net of outstanding borrowings of $595.1 million and letters of credit of $1.6 million, we had remaining borrowing capacity of $203.3 million on the Revolver. The Revolver matures in December 2011 and is available to us for general purposes, including working capital, capital expenditures and acquisitions, and includes a $10.0 million sublimit for the issuance of letters of credit. In the three months ended March 31, 2009, we incurred commitment fees of $0.1 million on the unused portion of the Revolver. The interest rate under the Revolver fluctuates based on the ratio of our total indebtedness-to-EBITDA. Interest is payable at a base rate plus an applicable margin of up to 1.25% if we select the base rate borrowing option under the Revolver or at a rate derived from the London Interbank Offered Rate, or LIBOR, plus an applicable margin ranging from 1.75% to 2.75% if we select the LIBOR-based borrowing option. At March 31, 2009, the weighted average interest rate on borrowings outstanding under the Revolver was approximately 3.75%. We do not have a public credit rating for the Revolver.
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