Business Context and Reporting Period
Company: Natural Resource Partners L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: January 13, 2011
Event: Completion of an asset acquisition.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial statements. Key figures include:
- Acquisition Cost: $70 million for the fourth tranche of coal reserves.
- Total Transaction Value: $255 million for approximately 200 million tons of reserves.
- Amount Paid to Date: $175 million.
- Funding Source: NRP's credit facility.
Material Changes
On January 13, 2011, NRP completed the acquisition of coal reserves at the Deer Run mine in Illinois from Colt, an affiliate of the Cline Group. The reserves are leased to Hillsboro Energy, also an affiliate of the Cline Group. Future closings for the remaining balance are contingent upon the completion of milestones related to the new mine's construction.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, management commentary on future performance, or specific risk factors beyond the standard contingencies associated with milestone-based closings for the Deer Run mine construction.
Investor Verification Checklist
- Verify the status of the remaining $80 million payment obligation ($255 million total less $175 million paid).
- Confirm the specific construction milestones required to trigger future closings.
- Review the impact of the $70 million draw on NRP's available credit facility capacity.
- Examine the lease agreement terms between NRP and Hillsboro Energy for the Deer Run mine.