|
Nine Months
Ended September 30, |
|
|
Percentage |
|
2004 |
2003 |
Change |
Financial Highlights |
(in thousands) |
|
|
|
|
|
Revenues |
|
|
|
Coal royalties |
$ 52,395 |
$ 35,658 |
align=left> 47% |
Coal services |
2,614 |
1,523 |
72% |
Timber |
499 |
829 |
(40%) |
Minimum rentals |
5 |
1,035 |
(100%) |
Equity earnings |
165 |
- |
- |
Other |
414 |
289 |
43% |
Total revenues |
bgColor=#99CCFF>
56,092 |
bgColor=#99CCFF>
39,334 |
align=left> 43% |
|
|
|
|
Operating costs and expenses |
|
|
|
Royalties |
4,907 |
1,263 |
align=left> 289% |
Operating |
667 |
1,225 |
align=left> (46%) |
Taxes other than income |
753 |
978 |
(23%) |
General and administrative |
6,036 |
5,199 |
16% |
Depreciation, depletion and
amortization |
14,385 |
12,027 |
20% |
Total operating costs
and expenses |
bgColor=#99CCFF>
26,748 |
bgColor=#99CCFF>
20,692 |
29% |
|
|
|
|
Operating income |
bgColor=#99CCFF> 29,344 |
bgColor=#99CCFF> 18,642 |
bgColor=#99CCFF>
57% |
|
|
|
|
Interest
expense, net |
bgColor=#99CCFF>
(3,601) |
bgColor=#99CCFF>
(2,593) |
bgColor=#99CCFF>
39% |
|
25,743 |
16,049 |
60% |
Cumulative effect of change in accounting
principle |
bgColor=#99CCFF>
- |
bgColor=#99CCFF>
(107) |
bgColor=#99CCFF> (100%) |
|
|
|
|
Net income |
bgColor=#99CCFF>$ 25,743 |
bgColor=#99CCFF>$ 15,942 |
bgColor=#99CCFF>
61% |
|
|
|
|
|
|
|
|
Operating Statistics |
|
|
|
Royalty coal tons produced by lessees
(tons in thousands) |
23,865 |
19,252 |
24% |
Average royalty per ton ($/ton) |
$
2.20 |
$
1.85 |
19% |
Revenues. Our revenues in the first
three quarters of 2004 were $56.1 million compared with $39.3 million for the
same period in 2003, an increase of $16.8 million, or 43 percent. The
increase in revenues primarily related to increased coal royalties received from
our lessees.
Coal royalty revenues for the nine months ended
September 30, 2004, were $52.4 million compared with $35.7 million for the same
period in 2003, an increase of $16.7 million, or 47 percent. Production by
our lessees increased by 4.6 million tons, or 24 percent, to 23.9 million tons
in the first three quarters of 2004 from 19.3 million tons in the first three
quarters of 2003. Average royalties per ton increased to $2.20 in the
first three quarters of 2004 from $1.85 in the comparable 2003 period. The
increase in the average royalties per ton was primarily due to stronger market
conditions for coal and the resulting higher coal prices. At the property
level, these variances were primarily due to the following factors:
* Production on the Coal River property increased by 3.7
million tons and revenues increased by $10.0 million. One lessee, which
utilizes longwall mining, began mining on one of our subleased properties from
an adjacent property during the first quarter of 2004, which resulted in an
additional 2.6 million tons of coal production, or $5.7 million in revenues in
the first three quarters of 2004. The addition of a mine operator and a
new mine by another of our lessees contributed approximately 0.6 million tons of
coal production, or $2.5 million of revenue. The commencement of
operations in July 2003 on our West Coal River property also contributed an
additional 0.5 million tons, or $1.2 million of revenue. Increased demand
also fueled a coal sales price increase in the region, which in turn resulted in
an nine percent increase in our average gross royalty per ton on the Coal River
property, from $2.35 per ton in the first three quarters of 2003 to $2.56 per
ton in the first three quarters of 2004.
16
* Production on the Wise property increased by 0.6
million tons and revenues increased by $4.4 million, of which approximately $2.8
million related to the average royalty rate received from our lessees.
Increased coal prices fueled by stronger demand in the region resulted in higher
price realizations by our lessees. This caused a 18 percent increase in
the average gross royalty per ton from $2.27 per ton in the first three quarters
of 2003 to $2.67 per ton in the first three quarters of 2004. Production
increased primarily due to additional mining equipment being added by two of our
lessees.
* Production on the Spruce Laurel property increased by
0.3 million tons and revenues increased by $1.3 million. The revenue increase
was primarily the result of increased coal sales prices fueled by stronger
demand in the region. The higher royalty rates received from our lessees
resulted in a 27 percent increase in the average gross royalty per ton on the
Spruce Laurel property, from $1.90 per ton in the first three quarters of 2003
to $2.42 per ton in the first three quarters of 2004.
Coal services revenues were $2.6 million for
the nine months ended September 30, 2004, compared with $1.5 million for the
nine months ended September 30, 2003, an increase of $1.1 million, or 72
percent. This increase was primarily the result of start-up operations at
our West Coal River and Bull Creek facilities in July 2003 and February 2004,
respectively.
Timber revenues decreased to $0.5 million for
the nine months ended September 30, 2004, compared with $0.8 million in the
first three quarters of 2003, a decrease of $0.3 million, or 40 percent.
The decrease was due to the timing of a parcel sale of our standing timber in
2003 and poor weather conditions in the second quarter of 2004.
Minimum rental revenues decreased to less than
$0.1 million for the nine months ended September 30, 2004, from $1.0 million in
the comparable period of 2003. Almost all lessees met their minimum
obligations during the first nine months of 2004. The $1.0 million
recognized in the first three quarters of 2003 primarily related to four leases.
Each of these leases was assigned to a new lessee approved by us. The
leases were amended at the time of assignment to allow the new lessees
additional time to offset actual production against minimum rental payments.
We recognized equity earnings of $0.2 million
in the third quarter of 2004 from our investment in a coal handling joint
venture which is accounted for under the equity method. We acquired our
interest in the joint venture in July 2004. See Note 3 in the Notes to
Consolidated Financial Statements.
Operating Costs and Expenses. Our
aggregate operating costs and expenses for the first three quarters of 2004 were
$26.7 million, compared with $20.7 million for the same period in 2003, an
increase of $6.0 million, or 29 percent. The increase in operating costs and
expenses primarily related to increases in royalty expenses, general and
administrative expenses and DD&A, offset by decreases in operating expenses
and taxes other than income.
Royalty expenses were $4.9 million for the nine
months ended September 30, 2004, compared with $1.3 million for the nine months
ended September 30, 2003, an increase of $3.6 million. This increase was
the result of an increase in production by lessees on subleased properties,
primarily on our Coal River property. Production on these subleased
properties increased to 3.4 million tons in the first three quarters of 2004
from 0.8 million tons in the first three quarters of 2003, representing a 2.6
million ton increase.
Operating expenses decreased by 46 percent, to
$0.7 million in the first three quarters of 2004 compared with $1.2 million in
the same period of 2003. The decrease was due to the assumption by a new
lessee of costs incurred after May 2003 to maintain idled mines on our West Coal
River property, which is part of our Coal River property. We paid these costs
through May 2003.
Taxes other than income decreased by 23 percent
to $0.8 million for the nine months ended September 30, 2004, from $1.0 million
for the nine months ended September 30, 2003. The decrease was attributable to
property taxes in 2003 resulting from the assumption of the property tax
obligation on our West Coal River property upon re-acquiring the lease from the
bankrupt lessee.
General and administrative expenses increased
$0.8 million, or 16 percent, to $6.0 million in the first three quarters of
2004, from $5.2 million in the same period of 2003. Approximately $0.2 million
was attributable to costs related to a secondary public offering for the sale of
common units held by an affiliate of Peabody Energy Corporation. The
remainder is primarily attributable to increased consulting fees used to
evaluate acquisition opportunities and increased payroll costs allocated to the
Partnership by the general partner.
DD&A for the nine months ended September
30, 2004, was $14.4 million compared with $12.0 million for the same period of
2003, an increase of $2.4 million, or 20 percent. This increase was a
result of increased production by several of our lessees over the comparable
periods and depreciation on our West Coal River and Bull Creek facilities which
began start-up operations in July 2003 and February 2004, respectively.
17
Interest Expense. Interest
expense, net of interest income, was $3.6 million for the nine months ended
September 30, 2004, compared with $2.6 million for the same period in 2003, an
increase of $1.0 million, or 39 percent. The increase was primarily due to our
closing in March 2003 of a private placement of $90 million ten-year senior
unsecured notes payable (the "Notes"), which bear interest at a fixed rate of
5.77 percent. Prior to the private placement, the $90 million was included
on our revolving credit facility, which bears interest at a generally lower rate
based on the Eurodollar rate plus an applicable margin, which ranges from 1.25
to 2.25 percent. Also, we borrowed an additional $28.5 million on our revolving
credit facility in the third quarter of 2004 for our investment in a coal
handling joint venture.
Liquidity and Capital Resources
Since the Partnership's
inception in 2001, cash generated from operations and our borrowing capacity,
supplemented with the issuance of new common units, have been sufficient to meet
our scheduled cash distributions, working capital requirements and capital
expenditures. Our primary cash requirements consist of distributions to our
general partner and unitholders, normal operating and administrative expenses,
interest and principal payments on our long-term debt capital investment in
fee-based coal handling facilities and acquisitions of new assets or
businesses.
Cash Flows. Net cash provided
by operating activities was $38.7 million in the first three quarters of 2004
compared with $28.1 million in first three quarters of 2003. The increase was
largely due to increased production by our lessees and higher average gross
royalties per ton.
Net cash used in investing
activities was $28.8 million in the first three quarters of 2004 compared with
$3.0 million in first three quarters of 2003. Cash used in investing activities
for the nine months ended September 30, 2004, primarily related to a $28.4
million equity investment in a coal handling joint venture as well as the
completion of a new coal loading facility on our Coal River property in West
Virginia and two smaller infrastructure projects. Net cash used in
investing activities for the nine months ended September 30, 2003 primarily
related to additional expenditures to complete the close of an acquisition in
December 2002.
Net cash used in financing
activities was $3.2 million in the first three quarters of 2004 compared with
$26.7 million in first three quarters of 2003. Distributions to partners
increased to $29.2 million for the first nine months of 2004 from $27.1 million
in the same period of 2003. Changes in borrowings, primarily to fund the
equity investment, and debt issuance costs accounted for the remainder of the
decrease.
In July 2004, we announced a $0.02
per unit increase in our quarterly distribution to $0.54, or $2.16 per unit on
an annualized basis, which was paid on August 13, 2004 to unitholders of record
August 4, 2004. The increased rate will also apply to a quarterly
distribution announced in October 2004 payable on November 12, 2004, to
unitholders of record on November 3, 2004.
Long-Term Debt. As of
September 30, 2004, we had outstanding borrowings of $117.9 million, consisting
of $30.0 million borrowed under our revolving credit facility and $88.5 million
of the Notes, partially offset by $0.6 million fair value of the interest rate
swap described below. The current portion of the Notes as of
September 30, 2004, was $4.8 million.
Hedging Activities. In March 2003, we
entered into an interest rate swap agreement with a notional amount of $29.5
million, to hedge a portion of the fair value of the Notes. This swap is
designated as a fair value hedge and has been reflected as a decrease in
long-term debt of $0.6 million as of September 30, 2004, with a corresponding
increase in other liabilities. Under the terms of the interest rate swap
agreement, the counterparty pays us a fixed annual rate of 5.77 percent on a
total notional amount of $29.5 million, and we pay the counterparty a variable
rate equal to the floating interest rate, which is determined semi-annually and
is based on the six month London Interbank Offering Rate ("LIBOR") plus 2.36
percent.
Investment in Joint Venture. In
July 2004, we acquired from affiliates of Massey Energy Company a 50 percent
interest in a joint venture formed to own and operate end-user coal handling
facilities. The purchase price was $28.4 million and was funded
through the Partnership's credit facility.
The joint venture owns coal handling facilities
which unload shipments, store and transfer coal for three industrial coal
consumers in the chemical, paper and lime production industries located in
Tennessee, Virginia and Kentucky, respectively. A combination of fixed
monthly fees and per ton throughput fees are paid by those consumers under
long-term leases expiring between 2007 and 2019. We recognized equity
earnings of $0.2 million in the third quarter. After adding back noncash
expenses consisting primarily of depreciation, depletion and amortization
("DD&A"), we expect to receive a joint venture distribution of approximately
$1.0 million during the fourth quarter of 2004 relating to third quarter
operations.
18
Future Capital Needs and Commitments.
For the remainder of 2004, we anticipate making additional capital expenditures,
excluding acquisitions, of up to approximately $0.4 million for coal services
related projects and other property and equipment. Part of our strategy is
to make acquisitions which increase cash available for distribution to our
unitholders. Our ability to make these acquisitions in the future will depend in
part on the availability of debt financing and on our ability to periodically
use equity financing through the issuance of new units. Since completing a large
acquisition in late 2002 and the coal handling joint venture in July 2004, our
ability to incur additional debt has been restricted due to limitations in our
debt instruments. At September 30, 2004, we have approximately $32 million
of borrowing capacity available under our revolving credit facility. This
limitation may necessitate the issuance of new units, as opposed to using debt,
to provide a large part of the funding for acquisitions in the future.
We believe that we will continue to have
adequate liquidity to fund future recurring operating and investing
activities. Short-term cash requirements, such as operating expenses and
quarterly distributions to our general partner and unitholders, are expected to
be funded through operating cash flows. Long-term cash requirements for
asset acquisitions are expected to be funded by several sources, including cash
flows from operating activities, borrowings under credit facilities and the
issuance of additional equity and debt securities. Our ability to complete
future debt and equity offerings will depend on various factors, including
prevailing market conditions, interest rates and our financial condition and
credit rating at the time.
Environmental
Surface Mining Valley Fills. Over
the course of the last several years, opponents of surface mining have filed
three lawsuits challenging the legality of permits authorizing the construction
of valley fills for the disposal of coal mining overburden under federal and
state laws applicable to surface mining activities. Although two of these
challenges were successful in the United States District Court for the Southern
District of West Virginia (the "District Court"), the United States Court of
Appeals for the Fourth Circuit overturned both of those decisions in Bragg
v. Robertson in 2001 and in Kentuckians For The Commonwealth v. Rivenburgh in
2003.
A ruling on July 8, 2004, which was made by the
District Court in connection with a third lawsuit, may impair our lessees'
ability to obtain permits that are needed to conduct surface mining
operations. In this case, Ohio Valley Environmental Coalition v. Bulen,
the District Court determined that the Army Corps of Engineers (the "Corps")
violated the Clean Water Act and other federal statutes when it issued
Nationwide Permit 21 ("NWP21"). Section 404 of the Clean Water Act
authorizes the Corps to issue general permits to allow parties to construct in
navigable waters surface impoundments, valley fills and other structures that
are needed for surface mining without having to obtain an individual Section 404
permit.
The District Court's order prohibits the Corps
from issuing any new permits under NWP21 in areas subject to the District
Court's jurisdiction, which are a number of counties in West Virginia. The
ruling only voided such permits where work has not yet commenced, and the
decision thus leaves some ambiguity about its potential applicability to permits
that have already been issued under NWP 21 where the work has already
begun. Unless this decision is overturned on appeal, companies seeking to
construct surface mining impoundments or valley fills in navigable waters in the
areas covered by this decision will need to apply for and obtain individual
permits under Section 404 of the Clean Water Act. Obtaining individual
Section 404 permits for surface mining activities is likely to substantially
increase both the time for and the costs of our lessees obtaining permits.
These increased permitting costs, and any delay or inability to obtain Section
404 permits, could impair our lessees' ability to produce coal and adversely
affect our coal royalty revenues.
Mine Health and Safety Laws.
The operations of our lessees are subject to stringent health and safety
standards that have been imposed by federal legislation since the adoption of
the Mine Health and Safety Act of 1969. However, since we do not operate any
mines and do not employ any coal miners, we are not subject to such laws and
regulations. The Mine Health and Safety Act of 1969 resulted in increased
operating costs and reduced productivity. The Mine Safety and Health Act of
1977, which significantly expanded the enforcement of health and safety
standards of the Mine Health and Safety Act of 1969, imposes comprehensive
health and safety standards on all mining operations. In addition, as part of
the Mine Health and Safety Acts of 1969 and 1977, the Black Lung Acts require
payments of benefits by all businesses conducting current mining operations to
coal miners with black lung and to some beneficiaries of a miner who dies from
this disease.
Environmental Compliance. The
operations of our lessees are subject to environmental laws and regulations
adopted by various governmental authorities in the jurisdictions in which these
operations are conducted. The terms of the Partnership's coal property leases
impose liability for all environmental and reclamation liabilities arising under
those laws and regulations on the relevant lessees. The lessees are bonded and
have indemnified the Partnership against any and all future environmental
liabilities. The Partnership regularly visits coal properties under lease to
monitor lessee compliance with environmental laws and regulations and to review
mining activities. Management believes that the Partnership's lessees will be
able to comply with existing regulations and does not expect any material impact
on the Partnership's financial condition or results of operations.
19
We have certain reclamation bonding
requirements with respect to certain of our unleased and inactive
properties. As of September 30, 2004, the Partnership's environmental
liabilities totaled $1.5 million. Given the uncertainty of when the
reclamation area will meet regulatory standards, a change in this estimate could
occur in the future.
Recent Accounting Pronouncements
See Note 12 in the Notes to
Consolidated Financial Statements for a description of recent accounting
pronouncements.
Item 3. Quantitative and Qualitative Disclosures
about Market Risk
Market risk is the risk of loss
arising from adverse changes in market rates and prices. The principal market
risks to which we are exposed are interest rate risk and coal price risks.
We are also indirectly exposed to the
credit risk of our lessees. If our lessees become financially insolvent,
our lessees may not be able to continue operating or meeting their minimum lease
payment obligations. As a result, our coal royalty revenues could decrease
due to lower production volumes.
As of September 30, 2004, $88.5 million of our
borrowings were financed with debt which has a fixed interest rate throughout
its term. In connection with this financing, we executed an interest rate
derivative transaction to effectively convert the interest rate on one-third of
the amount financed from a fixed rate of 5.77 percent to a floating rate of
LIBOR plus 2.36 percent. The interest rate swap has been accounted for as
a fair value hedge in compliance with SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, as amended by SFAS No. 137 and SFAS No.
138.
Forward-Looking Statements
Statements included in this report
which are not historical facts (including any statements concerning plans and
objectives of management for future operations or economic performance, or
assumptions related thereto) are forward-looking statements. In addition, the
Partnership and its representatives may from time to time make other oral or
written statements which are also forward-looking statements.
Such forward-looking statements
include, among other things, statements regarding development activities,
capital expenditures, acquisitions and dispositions, expected commencement dates
of coal mining, projected quantities of future coal production by the
Partnership's lessees, costs and expenditures as well as projected demand or
supply for coal and coal handling joint venture operations, which will affect
sales levels, prices, royalties and distributions realized by the
Partnership.
These forward-looking statements
are made based upon management's current plans, expectations, estimates,
assumptions and beliefs concerning future events impacting the Partnership and,
therefore, involve a number of risks and uncertainties. The Partnership cautions
that forward-looking statements are not guarantees and that actual results could
differ materially from those expressed or implied in the forward-looking
statements.
Important factors that could cause
the actual results of operations or financial condition of the Partnership to
differ materially from those expressed or implied in the forward-looking
statements include, but are not necessarily limited to:
* the ability to acquire new coal reserves on
satisfactory terms;
* the price for which such reserves can be sold;
* the volatility of commodity prices for coal;
* the projected demand for coal;
* the projected supply of coal;
* the ability to lease new and existing coal
reserves;
* the ability of lessees to produce sufficient
quantities of coal on an economic basis from the Partnership's reserves;
* the ability of lessees to obtain favorable
contracts for coal produced from the Partnership's reserves;
* competition among producers in the coal industry
generally;
* the extent to which the amount and quality of
actual production differs from estimated recoverable proved coal
reserves;
* unanticipated geological problems;
20
* availability of required materials and equipment;
* the occurrence of unusual weather or operating
conditions including force majeure events;
* the failure of equipment or processes to operate
in accordance with specifications or expectations;
* delays in anticipated start-up dates of lessees'
mining operations and related coal infrastructure projects;
* environmental risks affecting the mining of coal
reserves;
* the timing of receipt of necessary governmental
permits by the Partnership's lessees;
* the risks associated with having or not having
price risk management programs;
* labor relations and costs;
* accidents;
* changes in governmental regulation or enforcement
practices, especially with respect to environmental, health and
safety matters, including with
respect to emissions levels applicable to coal-burning power
generators;
* uncertainties relating to the outcome of
litigation regarding permitting of the disposal of coal overburden;
* risks and uncertainties relating to general
domestic and international economic (including inflation and
interest rates) and political conditions;
* the experience and financial condition of
lessees, including their ability to satisfy their royalty, environmental,
reclamation and other obligations
to
the Partnership and others;
* coal handling joint venture operations;
* changes in financial market conditions; and
* other risk factors as detailed in the Partnership's
Securities and Exchange Commission filings on Annual Report on Form 10-K.
Many of such factors are beyond the
Partnership's ability to control or predict. Readers are cautioned not to put
undue reliance on forward-looking statements.
While the Partnership periodically
reassesses material trends and uncertainties affecting the Partnership's results
of operations and financial condition in connection with the preparation of
Management's Discussion and Analysis of Results of Operations and Financial
Condition and certain other sections contained in the Partnership's quarterly,
annual or other reports filed with the Securities and Exchange Commission, the
Partnership does not undertake any obligation to review or update any particular
forward-looking statement, whether as a result of new information, future events
or otherwise.
Item 4. Controls and Procedures
(a) Disclosure of Controls and Procedures.
The Partnership, under the supervision,
and with the participation, of its management, including its principal executive
officer and principal financial officer, performed an evaluation of the design
and operation of the Partnership's disclosure controls and procedures (as
defined Exchange Act Rules 13a-15(e) and 15(d)-15(e)) as of the end of the
period covered by this report. Based on that evaluation, the general
partner's principal executive officer and principal financial officer concluded
that such disclosure controls and procedures are effective to ensure that
material information relating to the Partnership, including its consolidated
subsidiaries, is accumulated and communicated to the Partnership's management
and made known to the principal executive officer and principal financial
officer, particularly during the period for which this periodic report was being
prepared.
(b) Changes in Internal Control Over Financial
Reporting.
No changes were made in the Partnership's
internal control over financial reporting during the quarter ended September 30,
2004, that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.
However, in connection with our ongoing
evaluation of the effectiveness of our internal control over financial
reporting, we discovered a material weakness in the user access controls related
to our accounting system. Although we are unaware of any misstatement of
financial position, results of operations or cash flows resulting from this
control deficiency, management has determined that there is more than a remote
likelihood that a material misstatement could occur as a result of such control
deficiency. We have updated our software and implemented stricter user
access controls which took effect during the fourth quarter of 2004.
align=left>
21
PART II. Other Information
Items 2, 3, 4 and 5 are not applicable and have been omitted.
Item 1. Legal Proceedings
In August 2004, one of our lessees dislodged a boulder while
repairing a surface mine access road. The boulder rolled down a hillside,
damaging a residence and causing a fatality. On October 29, 2004, A&G
Coal Corp., our lessee, Penn Virginia Operating Co., LLC, our wholly owned
subsidiary, and we were named along with several other defendants in a
lawsuit brought by the family of the deceased in the Circuit Court of Wise
County, Virginia. The lawsuit is seeking $26.5 million in punitive and
compensatory damages. While the ultimate result of the lawsuit cannot be
predicted with certainty, based on the facts currently available to us,
management believes that the case will not have a material adverse effect on
our financial position, results of operations or cash flows.
Item 6. Exhibits and Reports on Form 8-K
align=left>(a) Exhibits
12 Statement
of Computation of Ratio of Earnings to Fixed Charges Calculation.
31.1 Certification Pursuant to
18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
31.2 Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
32.1 Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
32.2 Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
align=left> Reports
on Form 8-K
The partnership furnished a Form 8-K on
August 4, 2004, announcing that it issued a press release regarding its
financial results for the three and six months ended June 30, 2004.
On July 20, 2004, the Partnership furnished a
Form 8-K announcing the acquisition from affiliates of Massey Energy Company of
a 50 percent interest in a joint venture formed to own and operate end-user coal
handling facilities. The purchase price was $28.4 million and was funded
through the Partnership's credit facility. The purchase agreement was attached
to the Form 8-K as Exhibit 10.
SIGNATURES |
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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, thereunto duly
authorized. |
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PENN VIRGINIA RESOURCE PARTNERS, L.P. |
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Date: |
November 4, 2004 |
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/s/ Frank A. Pici
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Frank A. Pici, Vice President and |
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Chief Financial Officer |
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Date: |
November 4, 2004 |
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By: |
/s/ Forrest W. McNair
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Forrest W. McNair, Vice President and Controller |
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22