Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NATURAL RESOURCE PARTNERS LP | h76273e8vk.htm |
| EX-3.2 - EX-3.2 - NATURAL RESOURCE PARTNERS LP | h76273exv3w2.htm |
| EX-3.1 - EX-3.1 - NATURAL RESOURCE PARTNERS LP | h76273exv3w1.htm |
| EX-10.1 - EX-10.1 - NATURAL RESOURCE PARTNERS LP | h76273exv10w1.htm |
| EX-99.1 - EX-99.1 - NATURAL RESOURCE PARTNERS LP | h76273exv99w1.htm |
Exhibit 99.2
Natural Resource Partners L.P. 601 Jefferson St., Suite 3600, Houston, TX 77002 |
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NEWS RELEASE |
Natural Resource Partners L.P.
Eliminates Incentive Distribution Rights
Eliminates Incentive Distribution Rights
HOUSTON, September 20, 2010 — Natural Resource Partners L.P. (NYSE:NRP) today announced that
it has eliminated all of the incentive distribution rights (IDRs) held by its general partner and
affiliates of the general partner. As consideration for the elimination of the IDRs, Natural
Resource Partners has issued 32 million common units to the holders of the IDRs. NRP now has
106,027,836 common units outstanding and the general partner will retain its 2% interest in Natural
Resource Partners.
Prior to the transaction, the IDRs received approximately 24% of the quarterly distribution and 48%
of any increase in the distribution. Through the elimination of the IDRs, NRP’s limited partner
unitholders will benefit by improving NRP’s cost of capital through:
| • | NRP’s enhanced competitive position in the acquisition markets; and | ||
| • | Increased returns to limited partner unitholders from acquisitions and growth projects. |
“This transaction reflects a strategic move to lower our cost of capital through the elimination of
the IDRs,” said Corbin J. Robertson, Jr., Chairman and Chief Executive Officer. “As the owners of
the general partner now hold over 50% of the outstanding common units, our interests are directly
aligned with the common unit holders and quarterly distributions to all unitholders will
potentially increase at a faster pace than would otherwise have been possible.”
“Historically, NRP has averaged approximately $200 million in acquisitions annually. This
transaction will lower our cost of capital and improve our potential for completing acquisitions,”
said Nick Carter, President and Chief Operating Officer.
While the transaction is expected to be dilutive to cash available for distribution in the
near-term, management believes that the transaction is in the long-term best interest of the
partnership and intends to recommend to the Board that the distribution level be maintained at the
current level through the remainder of 2010. Management will consider recommending increases in
the distribution in the future as current development projects are brought into production and
further acquisitions are completed.
| NRP Eliminates | Page 2 of 2 |
The transaction was negotiated on behalf of the limited partners by a special committee designated
by the board of directors and consisting of the independent directors of the board. The special
committee was advised by UBS Investment Bank and Andrews Kurth LLP. Barclays Capital and Vinson &
Elkins LLP advised the holders of the incentive distribution rights.
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with
its operations headquarters in Huntington, WV. NRP is principally engaged in the business of
owning and managing mineral reserve properties. NRP primarily owns coal, aggregate and oil and gas
reserves across the United States that generate royalty income for the partnership.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or
kroberts@nrplp.com. Further information about NRP is available on the partnership’s website
at www.nrplp.com.
Forward-Looking Statements
This press release may include “forward-looking statements” as defined by the Securities and
Exchange Commission. Such statements include the dilutive effect of this transaction and the
enhanced ability to grow post 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.
10-17
-end-