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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): FEBRUARY 13, 2003
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NATURAL RESOURCE PARTNERS L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 001-31465 35-2164875
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or organization) Number) Identification No.)
601 JEFFERSON, SUITE 3600
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (713) 751-7507
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ITEM 9. REGULATION FD DISCLOSURE.
In accordance with General Instruction B.2 of Form 8-K, the following
information and the exhibits referenced therein shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor
shall it or they be deemed incorporated by reference in any filing under the
Securities Act of 1933, as amended.
Set forth below is a press release of Natural Resource Partners L.P.
dated February 13, 2003, announcing the company's fourth quarter results, its
outlook for 2003 and information relating to its first quarterly distribution.
NATURAL RESOURCE PARTNERS L.P. REPORTS FOURTH QUARTER 2002 RESULTS
HOUSTON, Feb 13, 2003 /PRNewswire-FirstCall via COMTEX/ -- Natural Resource
Partners L.P. (NYSE: NRP) today reported net income of $6.4 million for the
period from the closing date of the initial public offering ("IPO"), October 17,
2002, through December 31, 2002. During the period, NRP's lessees produced and
sold 7.3 million tons generating $11.5 million of coal royalty revenues for an
average royalty revenue per ton of $1.58. The results include one month of coal
royalty and other revenues generated from NRP's acquisition of coal reserves and
surface lands from El Paso Corporation in December 2002.
Production, revenue and direct costs and expenses attributable to such
properties prior to the IPO are not included in the results. During the period
from October 1, 2002 through October 16, 2002, 1.4 million tons of coal were
mined from such properties, generating $2.3 million in coal royalty revenue.
Earnings before interest, income taxes, depletion and amortization (EBITDA) from
October 17, 2002 through December 31, 2002 was $11.1 million calculated as
follows:
Net Income $ 6,415
Add:
Depletion and amortization 4,526
Interest Expense 200
EBITDA $ 11,141
Corbin J. Robertson Jr., Chairman and Chief Executive Officer of Natural
Resource Partners L.P., said, "We are very pleased with the results of NRP's
operations during our first period since becoming a publicly traded partnership.
We closed our first acquisition in December and will continue to focus on
growing the Partnership through additional accretive acquisitions while
maintaining a strong balance sheet."
2003 Outlook
For 2003, Natural Resource Partners expects its lessees to produce between 36.5
million tons and 38.5 million tons of coal with approximately 80% to 84% being
produced in Appalachia, 5% to 7% in the Illinois Basin and 10% to 14% from the
Northern Powder River Basin. This production should generate coal royalty
revenues of approximately $57 million to $61 million with total revenues of
approximately $67 million to $71 million based upon average selling prices
provided by its lessees. NRP expects net income to be between $30 million and
$33 million generating between $54 million and $58 million of EBITDA. Depletion
and amortization is expected to range between $22 million and $23 million. Net
income per limited partner unit in 2003 is expected to be between $1.35 and
$1.45.
NRP expects its revenues to be higher in the second half of 2003 than the first
half due to increased
production. In addition, it expects general and administrative costs to be
higher in the first half of 2003 due to expenses related to its annual audit and
report to its unitholders, as well as expenses related to tax return and K-1
preparation. The above estimates assume borrowings remain drawn under the
current credit facility.
Distributions
On February 14, 2003, Natural Resource Partners will make its first quarterly
distribution of $9.8 million or $0.4234 per unit on all 22.7 million limited
partner units outstanding as well as to the general partner interest. The
distribution is prorated from October 17, 2002 through December 31, 2002, and is
equivalent to $0.5125 per unit had NRP operated for the full quarter.
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 are those concerning the
2003 outlook for earnings, production, expenses, EBITDA and distributable cash
flow. 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 -
NATURAL RESOURCE PARTNERS L.P.
Supplemental Information
From Commencement of Operations (on October 17, 2002)
Through December 31, 2002
In thousands except per ton
(unaudited)
(in thousands)
Coal royalty revenues:
Appalachia $ 9,492
Illinois Basin 727
Northern Powder River Basin 1,313
Total NRP $ 11,532
Sales volumes (tons):
Appalachia 5,448
Illinois Basin 601
Northern Powder River Basin 1,265
Total NRP 7,314
Average royalty rate
Appalachia $ 1.74
Illinois Basin 1.21
Northern Powder River Basin 1.04
Average NRP $ 1.58
NATURAL RESOURCE PARTNERS L.P.
Condensed Statement of Income
From Commencement of Operations (on October 17, 2002)
Through December 31, 2002
(unaudited)
(in thousands)
Revenues:
Coal royalties $ 11,532
Minimums recognized as revenue 872
Override royalties 226
Other 1,263
Total revenues 13,893
Operating costs and expenses:
Depletion and amortization 4,526
General and administrative 1,059
Taxes other than income 1,296
Royalty payments 397
Total operating
costs and expenses 7,278
Operating income 6,615
Interest expense (200)
Net income $ 6,415
Net income attributable
to general partner 128
Net income attributable
to limited partners $ 6,287
Basic and diluted net income
per limited partner unit
Common $ 0.28
Subordinated $ 0.28
Weighted average number
of units outstanding:
Common 11,354
Subordinated 11,354
NATURAL RESOURCE PARTNERS L.P.
Statement of Cash Flows
From Commencement of Operations (on October 17, 2002)
Through December 31, 2002
(unaudited)
(in thousands)
Cash flows from operating activities:
Net Income $ 6,415
Adjustments to reconcile net income
to net cash provided by operating
activities, net of acquisitions
Depletion and amortization 4,526
Change in current assets
and liabilities (4,203)
Net cash provided
by operating activities 6,738
Cash flows from investing activities:
Acquisition of property (57,449)
Net cash used
in investing activities (57,449)
Cash flows from financing activities:
Proceeds from revolving
credit facility 57,500
Deferred financing costs (1,316)
Repayment of debt (46,531)
Net proceeds from initial public
offering of common units 46,963
Contributions by sponsors 1,848
Net cash provided
by financing activities 58,464
Net increase in cash 7,753
Cash, beginning of period ---
Cash, end of period $ 7,753
Supplemental information:
Non cash investing activities:
Net assets contributed at inception $153,091
Excess of fair market value over
historical cost of Arch
contributed properties 110,315
Deferred revenue assumed
on acquisition of property (2,152)
NATURAL RESOURCE PARTNERS L.P.
Condensed Balance Sheet
December 31, 2002
(unaudited)
(in thousands)
Current assets $ 17,307
Property and equipment, net 374,187
Other assets 1,225
Total assets $392,719
Current liabilities $ 3,333
Long-term debt 57,500
Deferred revenue 13,252
Partners' capital 318,634
Total liabilities
and partners' capital $392,719
SOURCE Natural Resource Partners L.P.
CONTACT: Kathy Hager of Natural Resource Partners L.P.,
+1-713-751-7555,
or khager@nrplp.com
URL: http://www.nrplp.com
http://www.prnewswire.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
NATURAL RESOURCE PARTNERS L.P.
(Registrant)
By: NRP (GP) LP
its General Partner
By: GP Natural Resource Partners LLC
its General Partner
/s/ Charles H. Kerr
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Charles H. Kerr
Secretary
Dated: February 14, 2003