Business Context and Reporting Period
Company: Natural Resource Partners L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: February 2, 2012
Event: Completion of an asset acquisition.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial performance. Key figures include:
- Acquisition Cost: $40 million for the current tranche of coal reserves.
- Total Transaction Value: $255 million for approximately 200 million tons of reserves.
- Cash Paid to Date: $215 million.
- Funding Source: Cash on hand.
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity metrics for the reporting period.
Material Changes
On February 2, 2012, the company completed its fifth acquisition of coal reserves at the Deer Run mine in Illinois from Colt LLC (an affiliate of the Cline Group). This transaction increases the company's reserve base and represents a significant cash outflow of $40 million.
Outlook and Management Commentary
- Future Closing: The final closing for the remaining portion of the $255 million agreement is anticipated to occur in the third quarter of 2012.
- Asset Details: The Deer Run mine is located near Hillsboro in Montgomery and Bond Counties, Illinois.
- Lease Status: The acquired coal reserves are leased to Hillsboro Energy, an affiliate of the Cline Group.
Investor Verification Checklist
- Verify the remaining $40 million payment schedule and the specific conditions for the third-quarter 2012 closing.
- Confirm the impact of the $215 million cash outflow on the company's current liquidity position.
- Review the lease agreement terms with Hillsboro Energy to understand revenue recognition timing.
- Assess the quality and remaining life of the 200 million tons of reserves being acquired.