þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-2164875 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
Large Accelerated Filer þ | Accelerated Filer o | Non-accelerated Filer o (Do not check if a smaller reporting company) | Smaller Reporting Company o |
Page | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
17 | ||||||||
21 | ||||||||
24 | ||||||||
27 | ||||||||
28 | ||||||||
29 | ||||||||
30 | ||||||||
31 | ||||||||
31 | ||||||||
31 | ||||||||
31 | ||||||||
31 | ||||||||
31 | ||||||||
32 | ||||||||
33 | ||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
2
3
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 145,705 | $ | 95,506 | ||||
Accounts receivable, net of allowance for doubtful accounts |
31,728 | 26,195 | ||||||
Accounts receivable affiliates |
4,713 | 7,915 | ||||||
Other |
438 | 910 | ||||||
Total current assets |
182,584 | 130,526 | ||||||
Land |
24,543 | 24,543 | ||||||
Plant and equipment, net |
57,438 | 62,348 | ||||||
Coal and other mineral rights, net |
1,367,532 | 1,281,636 | ||||||
Intangible assets, net |
156,775 | 161,931 | ||||||
Loan financing costs, net |
3,272 | 2,436 | ||||||
Other assets, net |
556 | 616 | ||||||
Total assets |
$ | 1,792,700 | $ | 1,664,036 | ||||
LIABILITIES AND PARTNERS CAPITAL |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 1,402 | $ | 1,388 | ||||
Accounts payable affiliates |
| 499 | ||||||
Obligation related to acquisitions |
4,100 | | ||||||
Current portion of long-term debt |
30,801 | 31,518 | ||||||
Accrued incentive plan expenses current portion |
6,444 | 6,788 | ||||||
Property, franchise and other taxes payable |
5,513 | 6,926 | ||||||
Accrued interest |
11,679 | 9,811 | ||||||
Total current liabilities |
59,939 | 56,930 | ||||||
Deferred revenue |
122,707 | 109,509 | ||||||
Accrued incentive plan expenses |
10,561 | 11,347 | ||||||
Long-term debt |
793,961 | 661,070 | ||||||
Partners capital: |
||||||||
Common units outstanding (106,027,836) |
787,560 | 806,529 | ||||||
General partners interest |
13,750 | 14,132 | ||||||
Non-controlling interest |
4,743 | 5,065 | ||||||
Accumulated other comprehensive loss |
(521 | ) | (546 | ) | ||||
Total partners capital |
805,532 | 825,180 | ||||||
Total liabilities and partners capital |
$ | 1,792,700 | $ | 1,664,036 | ||||
4
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenues: |
||||||||||||||||
Coal royalties |
$ | 69,788 | $ | 57,832 | $ | 135,153 | $ | 104,993 | ||||||||
Aggregate royalties |
1,831 | 350 | 3,025 | 1,241 | ||||||||||||
Coal processing fees |
3,173 | 2,693 | 6,262 | 4,337 | ||||||||||||
Transportation fees |
3,745 | 4,043 | 7,843 | 6,818 | ||||||||||||
Oil and gas royalties |
1,996 | 2,087 | 4,988 | 3,186 | ||||||||||||
Property taxes |
3,577 | 2,782 | 6,589 | 5,433 | ||||||||||||
Minimums recognized as revenue |
1,841 | 3,418 | 2,348 | 6,792 | ||||||||||||
Override royalties |
3,492 | 3,157 | 6,535 | 6,124 | ||||||||||||
Other |
1,966 | 3,225 | 3,518 | 4,182 | ||||||||||||
Total revenues |
91,409 | 79,587 | 176,261 | 143,106 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||
Depreciation, depletion and amortization |
16,166 | 16,485 | 30,488 | 27,853 | ||||||||||||
General and administrative |
6,439 | 6,794 | 16,635 | 13,342 | ||||||||||||
Property, franchise and other taxes |
3,306 | 3,498 | 7,003 | 7,232 | ||||||||||||
Transportation costs |
523 | 557 | 991 | 822 | ||||||||||||
Coal royalty and override payments |
159 | 301 | 467 | 993 | ||||||||||||
Total operating costs and expenses |
26,593 | 27,635 | 55,584 | 50,242 | ||||||||||||
Income from operations |
64,816 | 51,952 | 120,677 | 92,864 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(12,429 | ) | (10,346 | ) | (23,016 | ) | (21,075 | ) | ||||||||
Interest income |
16 | 4 | 24 | 12 | ||||||||||||
Income before non-controlling interest |
$ | 52,403 | $ | 41,610 | $ | 97,685 | $ | 71,801 | ||||||||
Less non-controlling interest |
(51 | ) | | (51 | ) | | ||||||||||
Net income |
$ | 52,352 | $ | 41,610 | $ | 97,634 | $ | 71,801 | ||||||||
Net income attributable to: |
||||||||||||||||
General partner |
$ | 1,047 | $ | 573 | $ | 1,953 | $ | 917 | ||||||||
Holders of incentive distribution rights |
$ | | $ | 12,983 | $ | | $ | 25,966 | ||||||||
Limited partners |
$ | 51,305 | $ | 28,054 | $ | 95,681 | $ | 44,918 | ||||||||
Basic and diluted net income per limited partner unit |
$ | 0.48 | $ | 0.38 | $ | 0.90 | $ | 0.63 | ||||||||
Weighted average number of units outstanding |
106,028 | 74,028 | 106,028 | 71,752 | ||||||||||||
5
Six Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 97,634 | $ | 71,801 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation, depletion and amortization |
30,488 | 27,853 | ||||||
Non-cash interest charge, net |
268 | 291 | ||||||
Non-controlling interest |
51 | | ||||||
Change in operating assets and liabilities: |
||||||||
Accounts receivable |
(2,331 | ) | (5,085 | ) | ||||
Other assets |
532 | 119 | ||||||
Accounts payable and accrued liabilities |
(485 | ) | 98 | |||||
Accrued interest |
1,868 | (322 | ) | |||||
Deferred revenue |
13,198 | 20,641 | ||||||
Accrued incentive plan expenses |
(1,130 | ) | (1,340 | ) | ||||
Property, franchise and other taxes payable |
(1,413 | ) | (503 | ) | ||||
Net cash provided by operating activities |
138,680 | 113,553 | ||||||
Cash flows from investing activities: |
||||||||
Acquisition of land, coal and other mineral rights |
(99,368 | ) | (110,411 | ) | ||||
Acquisition or construction of plant and equipment |
(325 | ) | (2,102 | ) | ||||
Disposition of assets |
1,100 | | ||||||
Net cash used in investing activities |
(98,593 | ) | (112,513 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from loans |
335,000 | 81,000 | ||||||
Debt issuance costs |
(1,052 | ) | | |||||
Proceeds from issuance of units |
| 110,436 | ||||||
Repayment of loans |
(202,826 | ) | (98,542 | ) | ||||
Capital contribution |
| 2,350 | ||||||
Payment of obligation related to acquisitions |
(4,025 | ) | (2,969 | ) | ||||
Costs associated with equity transactions |
(140 | ) | (152 | ) | ||||
Distributions to partners |
(116,845 | ) | (97,387 | ) | ||||
Net cash provided by (used in) financing activities |
10,112 | (5,264 | ) | |||||
Net decrease in cash and cash equivalents |
50,199 | (4,224 | ) | |||||
Cash and cash equivalents at beginning of period |
95,506 | 82,634 | ||||||
Cash and cash equivalents at end of period |
$ | 145,705 | $ | 78,410 | ||||
Supplemental cash flow information: |
||||||||
Cash paid during the period for interest |
$ | 20,859 | $ | 21,070 | ||||
Non-cash activities: |
||||||||
Mineral rights to be received |
$ | | $ | 13,249 | ||||
Non-controlling interest |
$ | 373 | $ | (7,335 | ) | |||
Obligation related to purchase of reserves and infrastructure |
$ | 4,100 | $ | 6,200 |
6
7
Initial | ||||||||
Final | Estimated | |||||||
Fair Value | Fair Value | |||||||
(In thousands) | (In thousands) | |||||||
(unaudited) | ||||||||
Coal and other mineral rights |
$ | 45,329 | $ | 45,759 | ||||
Intangible assets |
$ | 1,863 | $ | 1,806 | ||||
Capital contribution |
$ | 42,500 | $ | 42,500 | ||||
Non-controlling interests |
$ | 4,692 | $ | 5,065 |
8
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Asset held for sale |
$ | 1,802 | $ | | ||||
Plant construction in-process |
| 6,279 | ||||||
Plant and equipment at cost |
83,019 | 81,906 | ||||||
Less accumulated depreciation |
(27,383 | ) | (25,837 | ) | ||||
Net book value |
$ | 57,438 | $ | 62,348 | ||||
Six months ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Total depreciation expense on plant and equipment |
$ | 4,235 | $ | 4,159 | ||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Coal and other mineral rights |
$ | 1,736,223 | $ | 1,629,286 | ||||
Less accumulated depletion and amortization |
(368,691 | ) | (347,650 | ) | ||||
Net book value |
$ | 1,367,532 | $ | 1,281,636 | ||||
9
Six months ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Total depletion and amortization expense on coal and other mineral rights |
$ | 21,041 | $ | 18,489 | ||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Contract intangibles |
$ | 180,291 | $ | 180,233 | ||||
Less accumulated amortization |
(23,516 | ) | (18,302 | ) | ||||
Net book value |
$ | 156,775 | $ | 161,931 | ||||
Six months ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Total amortization expense on intangible assets |
$ | 5,212 | $ | 5,203 | ||||
Estimated | ||||
Amortization | ||||
Expense | ||||
(In thousands) | ||||
(Unaudited) | ||||
Remainder of 2011 |
$ | 9,887 | ||
For year ended December 31, 2012 |
11,193 | |||
For year ended December 31, 2013 |
10,538 | |||
For year ended December 31, 2014 |
10,538 | |||
For year ended December 31, 2015 |
10,538 |
10
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
$300 million floating rate revolving credit facility, due March 2012 |
$ | | $ | 94,000 | ||||
5.55% senior notes, with semi-annual interest payments in June and
December, maturing June 2013 |
35,000 | 35,000 | ||||||
4.91% senior notes, with semi-annual interest payments in June and
December, with annual principal payments in June, maturing in June 2018 |
32,317 | 37,650 | ||||||
8.38% senior notes, with semi-annual interest payments in March and
September, with scheduled principal payments beginning March 2013,
maturing in March 2019 |
150,000 | 150,000 | ||||||
5.05% senior notes, with semi-annual interest payments in January and
July, with annual principal payments in July, maturing in July 2020 |
76,923 | 76,923 | ||||||
5.31% utility local improvement obligation, with annual principal and
interest payments, maturing in March 2021 |
1,922 | 2,115 | ||||||
5.55% senior notes, with semi-annual interest payments in June and
December, with annual principal payments in June, maturing in June 2023 |
33,600 | 36,900 | ||||||
4.73% senior notes, with semi-annual interest payments in June and
December, with scheduled principal payments beginning December 2014,
maturing in December 2023 |
75,000 | | ||||||
5.82% senior notes, with semi-annual interest payments in March and
September, with annual principal payments in March, maturing in March
2024 |
195,000 | 210,000 | ||||||
8.92% senior notes, with semi-annual interest payments in March and
September, with scheduled principal payments beginning March 2014,
maturing in March 2024 |
50,000 | 50,000 | ||||||
5.03% senior notes, with semi-annual interest payments in June and
December, with scheduled principal payments beginning December 2014,
maturing in December 2026 |
175,000 | | ||||||
Total debt |
824,762 | 692,588 | ||||||
Less current portion of long term debt |
(30,801 | ) | (31,518 | ) | ||||
Long-term debt |
$ | 793,961 | $ | 661,070 | ||||
Senior Notes | Credit Facility | Total | ||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Remainder of 2011 |
$ | 7,692 | $ | | $ | 7,692 | ||||||
2012 |
30,801 | | 30,801 | |||||||||
2013 |
87,230 | | 87,230 | |||||||||
2014 |
77,136 | | 77,136 | |||||||||
2015 |
77,136 | | 77,136 | |||||||||
Thereafter |
544,767 | | 544,767 | |||||||||
$ | 824,762 | $ | | $ | 824,762 | |||||||
| Maintain a ratio of consolidated indebtedness to consolidated EBITDA (as defined in the note purchase agreement) of no more than 4.0 to 1.0 for the four most recent quarters; | ||
| not permit debt secured by certain liens and debt of subsidiaries to exceed 10% of consolidated net tangible assets (as defined in the note purchase agreement); and | ||
| maintain the ratio of consolidated EBITDA to consolidated fixed charges (consisting of consolidated interest expense and consolidated operating lease expense) at not less than 3.5 to 1.0. |
11
Series | Amount | Interest Rate | Issue Date | Maturity | ||||||||||||
H |
$75 million | 4.73 | % | April 20, 2011 | December 1, 2023 | |||||||||||
I |
$125 million | 5.03 | % | April 20, 2011 | December 1, 2026 | |||||||||||
J |
$50 million | 5.03 | % | June 15, 2011 | December 1, 2026 | |||||||||||
K |
$50 million | 5.18 | % | October 3, 2011 | December 1, 2026 |
| a ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the credit agreement) of 3.75 to 1.0 for the four most recent quarters; provided however, if during one of those quarters we have made an acquisition, then the ratio shall not exceed 4.0 to 1.0 for the quarter in which the acquisition occurred and (1) if the acquisition is in the first half of the quarter, the next two quarters or (2) if the acquisition is in the second half of the quarter, the next three quarters; and | ||
| a ratio of consolidated EBITDDA to consolidated fixed charges (consisting of consolidated interest expense and consolidated lease operating expense) of 4.0 to 1.0 for the four most recent quarters. |
12
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Reimbursement for services |
$ | 2,091 | $ | 1,789 | $ | 4,153 | $ | 3,580 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal royalty revenues |
$ | 5,250 | $ | 7,475 | $ | 14,429 | $ | 12,782 | ||||||||
Coal processing fees |
492 | 313 | 1,193 | 441 | ||||||||||||
Transportation fees |
3,745 | 3,992 | 7,844 | 6,400 | ||||||||||||
Minimums recognized as revenue |
| 3,100 | | 6,200 | ||||||||||||
Override revenue |
228 | 277 | 679 | 719 | ||||||||||||
$ | 9,715 | $ | 15,157 | $ | 24,145 | $ | 26,542 | |||||||||
13
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal processing revenues |
$ | 2,419 | $ | 1,811 | $ | 4,625 | $ | 2,534 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal royalty revenues |
$ | 419 | $ | 379 | $ | 753 | $ | 832 | ||||||||
14
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Revenues | Percent | Revenues | Percent | Revenues | Percent | Revenues | Percent | |||||||||||||||||||||||||
Alpha Natural Resources |
$ | 29,701 | 32 | % | $ | 21,652 | 27 | % | $ | 54,292 | 31 | % | $ | 38,941 | 27 | % | ||||||||||||||||
The Cline Group |
$ | 9,715 | 11 | % | $ | 15,157 | 19 | % | $ | 24,145 | 14 | % | $ | 26,542 | 19 | % |
Outstanding grants at January 1, 2011 |
753,868 | |||
Grants during the year |
279,078 | |||
Grants vested and paid during the year |
(162,186 | ) | ||
Forfeitures during the year |
| |||
Outstanding grants at June 30, 2011 |
870,760 | |||
15
16
17
18
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Net cash provided by operating activities |
$ | 91,646 | $ | 71,672 | $ | 138,680 | $ | 113,553 | ||||||||
Less scheduled principal payments |
(8,633 | ) | (9,350 | ) | (23,826 | ) | (24,542 | ) | ||||||||
Less reserves for future principal payments |
(7,700 | ) | (7,880 | ) | (15,759 | ) | (15,939 | ) | ||||||||
Add reserves used for scheduled principal payments |
8,633 | 9,350 | 23,826 | 24,542 | ||||||||||||
Distributable cash flow |
$ | 83,946 | $ | 63,792 | $ | 122,921 | $ | 97,614 | ||||||||
19
20
Three Months Ended | ||||||||||||||||
June 30, | Increase | Percentage | ||||||||||||||
2011 | 2010 | (Decrease) | Change | |||||||||||||
(In thousands, except percent and per ton data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal: |
||||||||||||||||
Coal royalty revenues |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
$ | 5,180 | $ | 4,924 | $ | 256 | 5 | % | ||||||||
Central |
55,119 | 38,526 | 16,593 | 43 | % | |||||||||||
Southern |
3,447 | 6,074 | (2,627 | ) | (43 | )% | ||||||||||
Total Appalachia |
63,746 | 49,524 | 14,222 | 29 | % | |||||||||||
Illinois Basin |
4,771 | 6,819 | (2,048 | ) | (30 | )% | ||||||||||
Northern Powder River Basin |
1,120 | 1,489 | (369 | ) | (25 | )% | ||||||||||
Gulf Coast |
151 | | 151 | 100 | % | |||||||||||
Total |
$ | 69,788 | $ | 57,832 | $ | 11,956 | 21 | % | ||||||||
Production (tons) |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
1,199 | 1,251 | (52 | ) | (4 | )% | ||||||||||
Central |
8,023 | 6,971 | 1,052 | 15 | % | |||||||||||
Southern |
472 | 833 | (361 | ) | (43 | )% | ||||||||||
Total Appalachia |
9,694 | 9,055 | 639 | 7 | % | |||||||||||
Illinois Basin |
1,268 | 1,751 | (483 | ) | (28 | )% | ||||||||||
Northern Powder River Basin |
425 | 961 | (536 | ) | (56 | )% | ||||||||||
Gulf Coast |
151 | | 151 | 100 | % | |||||||||||
Total |
11,538 | 11,767 | (229 | ) | (2 | )% | ||||||||||
Average gross royalty per ton |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
$ | 4.32 | $ | 3.94 | $ | 0.38 | 10 | % | ||||||||
Central |
6.87 | 5.53 | 1.34 | 24 | % | |||||||||||
Southern |
7.30 | 7.29 | 0.01 | | ||||||||||||
Total Appalachia |
6.58 | 5.47 | 1.11 | 20 | % | |||||||||||
Illinois Basin |
3.76 | 3.89 | (0.13 | ) | (3 | )% | ||||||||||
Northern Powder River Basin |
2.64 | 1.55 | 1.09 | 70 | % | |||||||||||
Gulf Coast |
1.00 | | 1.00 | 100 | % | |||||||||||
Combined average gross royalty per ton |
$ | 6.05 | $ | 4.91 | $ | 1.14 | 23 | % | ||||||||
Aggregates: |
||||||||||||||||
Royalty revenue |
$ | 1,737 | $ | 1,064 | $ | 673 | 63 | % | ||||||||
Aggregate royalty bonus |
$ | 94 | $ | (714 | ) | $ | 808 | |||||||||
Production |
1,671 | 778 | 893 | 115 | % | |||||||||||
Average base royalty per ton |
$ | 1.04 | $ | 1.37 | $ | (0.33 | ) | (24 | )% |
21
22
Six Months Ended | ||||||||||||||||
June 30, | Increase | Percentage | ||||||||||||||
2011 | 2010 | (Decrease) | Change | |||||||||||||
(In thousands, except percent and per ton data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal: |
||||||||||||||||
Coal royalty revenues |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
$ | 9,861 | $ | 9,340 | $ | 521 | 6 | % | ||||||||
Central |
100,561 | 70,334 | 30,227 | 43 | % | |||||||||||
Southern |
8,188 | 10,275 | (2,087 | ) | (20 | )% | ||||||||||
Total Appalachia |
118,610 | 89,949 | 28,661 | 32 | % | |||||||||||
Illinois Basin |
13,831 | 11,029 | 2,802 | 25 | % | |||||||||||
Northern Powder River Basin |
2,513 | 4,015 | (1,502 | ) | (37 | )% | ||||||||||
Gulf Coast |
199 | | 199 | 100 | % | |||||||||||
Total |
$ | 135,153 | $ | 104,993 | $ | 30,160 | 29 | % | ||||||||
Production (tons) |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
2,374 | 2,498 | (124 | ) | (5 | )% | ||||||||||
Central |
15,350 | 13,367 | 1,983 | 15 | % | |||||||||||
Southern |
1,120 | 1,534 | (414 | ) | (27 | )% | ||||||||||
Total Appalachia |
18,844 | 17,399 | 1,445 | 8 | % | |||||||||||
Illinois Basin |
3,544 | 2,898 | 646 | 22 | % | |||||||||||
Northern Powder River Basin |
905 | 2,272 | (1,367 | ) | (60 | )% | ||||||||||
Gulf Coast |
191 | | 191 | 100 | % | |||||||||||
Total |
23,484 | 22,569 | 915 | 4 | % | |||||||||||
Average gross royalty per ton |
||||||||||||||||
Appalachia |
||||||||||||||||
Northern |
$ | 4.15 | $ | 3.74 | $ | 0.41 | 11 | % | ||||||||
Central |
6.55 | 5.26 | 1.29 | 25 | % | |||||||||||
Southern |
7.31 | 6.70 | 0.61 | 9 | % | |||||||||||
Total Appalachia |
6.29 | 5.17 | 1.12 | 22 | % | |||||||||||
Illinois Basin |
3.90 | 3.81 | 0.09 | 2 | % | |||||||||||
Northern Powder River Basin |
2.78 | 1.77 | 1.01 | 57 | % | |||||||||||
Gulf Coast |
1.04 | | 1.04 | 100 | % | |||||||||||
Combined average gross royalty per ton |
$ | 5.76 | $ | 4.65 | $ | 1.11 | 24 | % | ||||||||
Aggregates: |
||||||||||||||||
Royalty revenue |
$ | 2,931 | $ | 1,880 | $ | 1,051 | 56 | % | ||||||||
Aggregate royalty bonus |
$ | 94 | $ | (639 | ) | $ | 733 | |||||||||
Production |
2,936 | 1,383 | 1,553 | 112 | % | |||||||||||
Average base royalty per ton |
$ | 1.00 | $ | 1.36 | $ | (0.36 | ) | (26 | )% |
23
| Depreciation, depletion and amortization of $16.2 million and $16.5 million for the quarters ended June 30, 2011 and 2010 and $30.5 million and $27.9 million for the six months ended June 30, 2011 and 2010. Depletion and amortization increased approximately $2.6 million for the six months ended June 30, 2011, and is primarily due to increased oil and gas depletion on our BRP properties. | ||
| General and administrative expenses were $6.4 million and $6.8 million for the quarters ended June 30, 2011 and 2010 and $16.6 million and $13.3 million the six month periods ending June 30, 2011 and 2010, respectively. General and administrative expenses for the six months ended June 30, 2011 increased $3.3 million compared to the same period in 2010, primarily due to higher accruals under our long-term incentive plan attributable to increases in our unit price, as well as increased expenses for additional employees. |
24
Quarters Ending | ||||||||
March 31, | June 30, | |||||||
2011 | 2011 | |||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Outstanding balance, beginning of period |
$ | 94,000 | $ | 179,000 | ||||
Borrowings under credit facility |
85,000 | | ||||||
Less: Repayments under credit facility |
| 179,000 | ||||||
Outstanding balance, ending period |
$ | 179,000 | $ | | ||||
| the higher of the federal funds rate plus an applicable margin ranging from 0% to 0.50% or the prime rate as announced by the agent bank; or | ||
| at a rate equal to LIBOR plus an applicable margin ranging from 0.45% to 1.50%. |
| a ratio of consolidated indebtedness to consolidated EBITDDA (as defined in the credit agreement) of 3.75 to 1.0 for the four most recent quarters; provided however, if during one of those quarters we have made an acquisition, then the ratio shall not exceed 4.0 to 1.0 for the quarter in which the acquisition occurred and (1) if the acquisition is in the first half of the quarter, the next two quarters or (2) if the acquisition is in the second half of the quarter, the next three quarters; and |
25
| a ratio of consolidated EBITDDA to consolidated fixed charges (consisting of consolidated interest expense and consolidated lease operating expense) of 4.0 to 1.0 for the four most recent quarters. |
| Maintain a ratio of consolidated indebtedness to consolidated EBITDA (as defined in the note purchase agreement) of no more than 4.0 to 1.0 for the four most recent quarters; | ||
| not permit debt secured by certain liens and debt of subsidiaries to exceed 10% of consolidated net tangible assets (as defined in the note purchase agreement); and | ||
| maintain the ratio of consolidated EBITDA to consolidated fixed charges (consisting of consolidated interest expense and consolidated operating lease expense) at not less than 3.5 to 1.0. |
Series | Amount | Interest Rate | Issue Date | Maturity | ||||||||||||
H |
$75 million | 4.73 | % | April 20, 2011 | December 1, 2023 | |||||||||||
I |
$125 million | 5.03 | % | April 20, 2011 | December 1, 2026 | |||||||||||
J |
$50 million | 5.03 | % | June 15, 2011 | December 1, 2026 | |||||||||||
K |
$50 million | 5.18 | % | October 3, 2011 | December 1, 2026 |
| $35.0 million of 5.55% senior notes due 2013; | ||
| $32.3 million of 4.91% senior notes due 2018; | ||
| $150.0 million of 8.38% senior notes due 2019; | ||
| $76.9 million of 5.05% senior notes due 2020; | ||
| $1.9 million of 5.31% utility local improvement obligation due 2021; | ||
| $33.6 million of 5.55% senior notes due 2023; | ||
| $75.0 million of 4.73% senior notes due 2023; | ||
| $195.0 million of 5.82% senior notes due 2024; | ||
| $50.0 million of 8.92% senior notes due 2024; and | ||
| $175.0 million of 5.03% senior notes due 2026. |
26
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Reimbursement for services |
$ | 2,091 | $ | 1,789 | $ | 4,153 | $ | 3,580 | ||||||||
Three Months End | Six Months End | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal royalty revenues |
$ | 5,250 | $ | 7,475 | $ | 14,429 | $ | 12,782 | ||||||||
Coal processing fees |
492 | 313 | 1,193 | 441 | ||||||||||||
Transportation fees |
3,745 | 3,992 | 7,844 | 6,400 | ||||||||||||
Minimums recognized as revenue |
| 3,100 | | 6,200 | ||||||||||||
Override revenue |
228 | 277 | 679 | 719 | ||||||||||||
$ | 9,715 | $ | 15,157 | $ | 24,145 | $ | 26,542 | |||||||||
27
Three Months End | Six Months End | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal processing revenue |
$ | 2,419 | $ | 1,811 | $ | 4,625 | $ | 2,534 | ||||||||
Three Months End | Six Months End | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Coal royalty revenue |
$ | 419 | $ | 379 | $ | 753 | $ | 832 | ||||||||
28
29
30
31
4.1
|
| Form of Series J Note (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed on June 15, 2011). | ||
31.1*
|
| Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley. | ||
31.2*
|
| Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley. | ||
32.1*
|
| Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350. | ||
32.2*
|
| Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350. | ||
101*
|
| The following financial information from the quarterly report on Form 10-Q of Natural Resource Partners L.P. for the quarter ended June 30, 2011, formatted in XBRL (eXtensible Business Reporting Language): | ||
(i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements, tagged as blocks of text. |
* | Submitted herewith. |
32
NATURAL RESOURCE PARTNERS L.P. | ||||
By: | NRP (GP) LP, its general partner | |||
By: | GP NATURAL RESOURCE PARTNERS LLC, its general partner | |||
Date: August 5, 2011 | By: | /s/ Corbin J. Robertson, Jr. | ||
Corbin J. Robertson, Jr., Chairman of the Board and Chief Executive Officer (Principal Executive Officer) |
||||
Date: August 5, 2011 | By: | /s/ Dwight L. Dunlap | ||
Dwight L. Dunlap, Chief Financial Officer and Treasurer (Principal Financial Officer) |
||||
Date: August 5, 2011 | By: | /s/ Kenneth Hudson | ||
Kenneth Hudson Controller (Principal Accounting Officer) |
||||
33
1) | I have reviewed this report on Form 10-Q of Natural Resource Partners L.P. | ||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4) | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5) | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions); |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
By: | /s/ Corbin J. Robertson, Jr. | |||
Corbin J. Robertson, Jr. | ||||
Chief Executive Officer |
1) | I have reviewed this report on Form 10-Q of Natural Resource Partners L.P. | ||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4) | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5) | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions); |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
By: | /s/ Dwight L. Dunlap | |||
Dwight L. Dunlap | ||||
Chief Financial Officer and Treasurer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Corbin J. Robertson, Jr. | ||||
Name: | Corbin J. Robertson, Jr. | |||
Date: | August 5, 2011 | |||
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Dwight L. Dunlap | ||||
Name: | Dwight L. Dunlap | |||
Date: | August 5, 2011 | |||
Consolidated Balance Sheets (Parenthetical)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Partners' capital: | ||
Common units, outstanding | 106,027,836 | 106,027,836 |
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Revenues: | ||||
Coal royalties | $ 69,788 | $ 57,832 | $ 135,153 | $ 104,993 |
Aggregate royalties | 1,831 | 350 | 3,025 | 1,241 |
Coal processing fees | 3,173 | 2,693 | 6,262 | 4,337 |
Transportation fees | 3,745 | 4,043 | 7,843 | 6,818 |
Oil and gas royalties | 1,996 | 2,087 | 4,988 | 3,186 |
Property taxes | 3,577 | 2,782 | 6,589 | 5,433 |
Minimums recognized as revenue | 1,841 | 3,418 | 2,348 | 6,792 |
Override royalties | 3,492 | 3,157 | 6,535 | 6,124 |
Other | 1,966 | 3,225 | 3,518 | 4,182 |
Total revenues | 91,409 | 79,587 | 176,261 | 143,106 |
Operating costs and expenses: | ||||
Depreciation, depletion and amortization | 16,166 | 16,485 | 30,488 | 27,853 |
General and administrative | 6,439 | 6,794 | 16,635 | 13,342 |
Property, franchise and other taxes | 3,306 | 3,498 | 7,003 | 7,232 |
Transportation costs | 523 | 557 | 991 | 822 |
Coal royalty and override payments | 159 | 301 | 467 | 993 |
Total operating costs and expenses | 26,593 | 27,635 | 55,584 | 50,242 |
Income from operations | 64,816 | 51,952 | 120,677 | 92,864 |
Other income (expense): | ||||
Interest expense | (12,429) | (10,346) | (23,016) | (21,075) |
Interest income | 16 | 4 | 24 | 12 |
Income before non-controlling interest | 52,403 | 41,610 | 97,685 | 71,801 |
Non-controlling interest | (51) | (51) | ||
Net income | 52,352 | 41,610 | 97,634 | 71,801 |
Net income attributable to: | ||||
General partner | 1,047 | 573 | 1,953 | 917 |
Holders of incentive distribution rights | 12,983 | 25,966 | ||
Limited partners | $ 51,305 | $ 28,054 | $ 95,681 | $ 44,918 |
Basic and diluted net income per limited partner unit | $ 0.48 | $ 0.38 | $ 0.9 | $ 0.63 |
Weighted average number of units outstanding | 106,028 | 74,028 | 106,028 | 71,752 |
Coal and Other Mineral Rights (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coal and Other Mineral Rights (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coal and other mineral rights |
|
Document and Entity Information (USD $)
In Billions, except Share data |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
Aug. 05, 2011
|
Jun. 30, 2010
|
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NATURAL RESOURCE PARTNERS LP | ||
Entity Central Index Key | 0001171486 | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2011 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q2 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1.0 | ||
Entity Common Stock, Shares Outstanding | 106,027,836 |
Subsequent Events (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified |
Jul. 20, 2011
|
Jul. 31, 2011
Royal Oil And Gas [Member]
|
---|---|---|
Business Acquisition [Line Items] | ||
Purchase price | $ 8.0 | |
Area of coal reserve acquired | 44,000 | |
Subsequent Events (Textuals) [Abstract] | ||
Distributions per unit declared | $ 0.54 |
Related Party Transactions (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of reimbursements |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of revenues |
|
Equity Transactions Including Distributions (Details) (USD $)
|
Jun. 30, 2011
|
May 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|
Equity Transactions Including Distributions (Textuals) [Abstract] | |||
Quarterly distribution to holders of common units | $ 0.54 | ||
Number of units issued to holders of incentive distribution rights | 32,000,000 | ||
Common units, outstanding | 106,027,836 | 106,027,836 | |
General partner interest percentage | 2.00% |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Long-Term Debt
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
7. Long-Term Debt
Long-term debt consists of the following:
Principal payments due in:
The senior note purchase agreement contains covenants requiring our operating subsidiary to:
The 8.38% and 8.92% senior notes also provide that in the event that the Partnership’s
leverage ratio exceeds 3.75 to 1.00 at the end of any fiscal quarter, then in addition to all other
interest accruing on these notes, additional interest in the amount of 2.00% per annum shall accrue
on the notes for the two succeeding quarters and for as long thereafter as the leverage ratio
remains above 3.75 to 1.00.
In the second quarter, the Partnership issued $250 million of senior unsecured notes and is
committed to issue another $50 million of unsecured senior notes in October of this year. Proceeds
from the senior notes were used to repay all of the outstanding borrowings under the revolving
credit facility and the Partnership has used, or will use, the remaining proceeds for acquisitions.
A summary of the four tranches of senior notes are as follows:
All tranches have semi-annual interest payments beginning December 1, 2011, and equal annual
principal payments beginning December 1, 2014.
The Partnership made principal payments of $23.8 million on its senior notes during the six
months ended June 30, 2011.
The Partnership has a $300 million revolving credit facility, and at June 30, 2011, the full
amount was available under the facility. The Partnership incurs a commitment fee on the undrawn
portion of the revolving credit facility at rates ranging from 0.10% to 0.30% per annum. Under an
accordion feature in the credit facility, the Partnership may request its lenders to increase their
aggregate commitment to a maximum of $450 million on the same terms. However, the Partnership
cannot be certain that its lenders will elect to participate in the accordion feature. To the
extent the lenders decline to participate, the Partnership may elect to bring new lenders into the
facility, but cannot make any assurance that the additional credit capacity will be available on
existing or comparable terms.
At June 30, 2011 the Partnership did not have any outstanding balance on its revolving credit
facility, while at December 31, 2010 the Partnership had $94.0 million outstanding on its revolving
credit facility. The weighted average interest rates for the six months ended June 30, 2011 and
the year ended December 31, 2010 were 1.83% and 1.42%, respectively.
The revolving credit facility contains covenants requiring the Partnership to maintain:
The Partnership was in compliance with all terms under its long-term debt as of June 30, 2011.
|
Major Lessee (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Lessee (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from lessees that exceeded ten percent of total revenues |
|
Fair Value (Details) (USD $)
In Millions |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Fair Value (Textuals) [Abstract] | ||
Fair market value of long term debt | $ 843.8 | $ 596.1 |
Carrying value of senior notes | $ 824.8 | $ 598.6 |
Long Term Debt (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments due |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the four tranches of senior notes |
|
Incentive Plans
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||
Incentive Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Incentive Plans |
12. Incentive Plans
GP Natural Resource Partners LLC adopted the Natural Resource Partners Long-Term Incentive
Plan (the “Long-Term Incentive Plan”) for directors of GP Natural Resource Partners LLC and
employees of its affiliates who perform services for the Partnership. The Compensation, Nominating
and Governance (“CNG”) Committee of GP Natural Resource Partners LLC’s board of directors
administers the Long-Term Incentive Plan. Subject to the rules of the exchange upon which the
common units are listed at the time, the board of directors and the compensation committee of the
board of directors have the right to alter or amend the Long-Term Incentive Plan or any part of the
Long-Term Incentive Plan from time to time. Except upon the occurrence of unusual or nonrecurring
events, no change in any outstanding grant may be made that would materially reduce the benefit
intended to be made available to a participant without the consent of the participant.
Under the plan a grantee will receive the market value of a common unit in cash upon vesting.
Market value is defined as the average closing price over the last 20 trading days prior to the
vesting date. The CNG Committee may make grants under the Long-Term Incentive Plan to employees and
directors containing such terms as it determines, including the vesting period. Outstanding grants
vest upon a change in control of the Partnership, the general partner, or GP Natural Resource
Partners LLC. If a grantee’s employment or membership on the board of directors terminates for any
reason, outstanding grants will be automatically forfeited unless and to the extent the CNG
Committee provides otherwise.
A summary of activity in the outstanding grants during 2011 is as follows:
Grants typically vest at the end of a four-year period and are paid in cash upon vesting. The
liability fluctuates with the market value of the Partnership units and because of changes in
estimated fair value determined each quarter using the Black-Scholes option valuation model. Risk
free interest rates and volatility are reset at each calculation based on current rates
corresponding to the remaining vesting term for each outstanding grant and ranged from 0.23% to
1.24% and 26.02% to 49.56%, respectively at June 30, 2011. The Partnership’s historical
distribution rate of 6.73% and historical forfeiture rate of 2.85% were used in the calculation at
June 30, 2011. The Partnership recorded expenses related to its plan to be reimbursed to its
general partner of $1.1 million and $0.6 million and $5.5 million and $2.4 million for the three
and six month periods ended June 30, 2011 and 2010, respectively. In connection with the Long-Term
Incentive Plan, payments are typically made during the first half of the year. Payments of $5.7
million and $3.2 million were made during the six month periods ended June 30, 2011 and 2010,
respectively.
In connection with the phantom unit awards granted since February 2008, the CNG Committee also
granted tandem Distribution Equivalent Rights, or DERs, which entitle the holders to receive
distributions equal to the distributions paid on the Partnership’s common units. The DERs are
payable in cash upon vesting but may be subject to forfeiture if the grantee ceases employment
prior to vesting.
The unaccrued cost, associated with the unvested outstanding grants and related DERs at June
30, 2011, was $17.6 million.
|
Significant Acquisitions
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Acquisitions |
3. Significant Acquisitions
NBR Sand. In June 2011, the Partnership acquired an overriding royalty interest in
approximately 711 acres of frac sand reserves near Tyler, TX for $16.5 million, of which $14.4
million was funded at closing and the remaining $2.1 million was paid in July 2011.
CALX Resources. In February 2011, the Partnership acquired approximately 500 acres of mineral
and surface rights related to limestone reserves on the Tennessee River near Paducah, Kentucky for
$16.0 million, of which $14.0 million has been paid at June 30, 2011 and the remaining $2.0 million
will be paid as certain milestones are completed.
BRP LLC. In June 2010, the Partnership and International Paper Company (“IPC”) formed BRP to
own and manage mineral assets previously owned by IPC. Some of these assets are currently subject
to leases, and certain other assets are available for future development by the venture. In
exchange for a $42.5 million contribution, NRP became the controlling member with the right to
designate two of the three managers of BRP. NRP has a 51% income interest plus a preferential
cumulative annual distribution prior to profit sharing. In exchange for the contribution of the
producing properties and the properties not currently producing, IPC received $42.5 million in
cash, a minority voting interest and a 49% income interest after the preferential cumulative annual
distribution. The amount of the preference is fixed throughout the life of the venture but can be
reduced by a portion of the proceeds received from sales of producing properties included in the
initial acquisition. Identified tangible assets included in the transaction are oil and gas, coal,
and aggregate reserves, as well the rights to other unidentified minerals which may include coal
bed methane, geothermal, CO2 sequestration, water rights, precious metals, industrial
minerals and base metals. Certain properties, including oil and gas, coal and aggregates, as well
as land leased for cell towers, are currently under lease and generating revenues.
The transaction was accounted for as a business combination and, at June 30, 2011, the assets
and liabilities of the venture are included in the consolidated balance sheet. The allocation of
the purchase price was based on independent third party valuations. The following table summarizes
the final allocation of the purchase price and preliminary estimated fair values of the assets
acquired and liabilities assumed for the BRP transaction:
Approximately $38.3 million of the total $47.2 million asset fair value, as well as the value
of the $4.7 million non-controlling interest, were estimated using an expected cash flows approach.
The remaining assets fair value was determined using a market approach. See Note 8, “Fair Value”.
Operations of the venture are included from June 1, 2010, the effective date of acquisition.
Total net income from startup through December 31, 2010 was $2.3 million and for the six months
ended June 30, 2011 was $1.7 million. The venture operating agreement provides that net income of
the venture only be allocated to the non-controlling interests after the preferential cumulative
annual distribution.
Transaction expenses related to the acquisition through December 31, 2010 were $2.5 million.
For the six months ended June 30, 2011, transaction expenses were $0.4 million and are included in
general and administrative expenses in the accompanying Consolidated
Statements of Income.
Sierra Silica. In April 2010, the Partnership acquired the rights to silica reserves on
approximately 1,000 acres of property in Northern California for $17.0 million.
Colt. In September 2009, the Partnership signed a definitive agreement to acquire
approximately 200 million tons of coal reserves related to the Deer Run Mine in Illinois from Colt,
LLC, an affiliate of the Cline Group, through several separate transactions for a total purchase
price of $255 million. As of June 30, 2011, the Partnership had acquired approximately 92.1
million tons of reserves for approximately $175 million, including $70.0 million paid during the
first quarter 2011. Future closings anticipated through 2012 will be associated with completion of
certain milestones related to the new mine.
|
Long-Term Debt (Details 1) (USD $)
In Thousands |
Jun. 30, 2011
|
---|---|
Principal payments due | |
Remainder of 2011 | $ 7,692 |
2012 | 30,801 |
2013 | 87,230 |
2014 | 77,136 |
2015 | 77,136 |
Thereafter | 544,767 |
Principal payments | 824,762 |
Credit Facility [Member]
|
|
Principal payments due | |
Remainder of 2011 | 0 |
2012 | 0 |
2013 | 0 |
2014 | 0 |
2015 | 0 |
Thereafter | 0 |
Principal payments | 0 |
Senior Notes [Member]
|
|
Principal payments due | |
Remainder of 2011 | 7,692 |
2012 | 30,801 |
2013 | 87,230 |
2014 | 77,136 |
2015 | 77,136 |
Thereafter | 544,767 |
Principal payments | $ 824,762 |
Related Party Transactions
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions |
9. Related Party Transactions
Reimbursements to Affiliates of our General Partner
The Partnership’s general partner does not receive any management fee or other compensation
for its management of Natural Resource Partners L.P. However, in accordance with the partnership
agreement, the general partner and its affiliates are reimbursed for expenses incurred on the
Partnership’s behalf. All direct general and administrative expenses are charged to the
Partnership as incurred. The Partnership also reimburses indirect general and administrative
costs, including certain legal, accounting, treasury, information technology, insurance,
administration of employee benefits and other corporate services incurred by our general partner
and its affiliates.
The reimbursements to affiliates of the Partnership’s general partner for services performed
by Western Pocahontas Properties and Quintana Minerals Corporation are as follows:
The Partnership leases substantially all of two floors of an office building in Huntington,
West Virginia from Western Pocahontas Properties and pays $0.5 million in lease payments each year
through December 31, 2018.
Transactions with Cline Affiliates
Various companies controlled by Chris Cline lease coal reserves from the Partnership, and the
Partnership provides coal transportation services to them for a fee. At June 30, 2011, Mr. Cline,
both individually and through another affiliate, Adena Minerals, LLC, owns a 31% interest in the
Partnership’s general partner, as well as 16,686,672 common units. Revenues from the Cline
affiliates are as follows:
At June 30, 2011, the Partnership had accounts receivable totaling $3.1 million from Cline
affiliates, and had received $58.4 million in minimum royalty payments that have not been recouped
by Cline affiliates, of which $12.0 million was received in the current year.
Quintana Capital Group GP, Ltd.
Corbin J. Robertson, Jr. is a principal in Quintana Capital Group GP, Ltd., which controls
several private equity funds focused on investments in the energy business. In connection with the
formation of Quintana Capital, the Partnership adopted a formal conflicts policy that establishes
the opportunities that will be pursued by the Partnership and those that will be pursued by
Quintana Capital. The governance documents of Quintana Capital’s affiliated investment funds
reflect the guidelines set forth in NRP’s conflicts policy.
A fund controlled by Quintana Capital owns a significant membership interest in Taggart Global
USA, LLC, including the right to nominate two members of Taggart’s 5-person board of directors.
The Partnership owns and leases preparation plants to Taggart
Global, which designs, builds and operates the plants. The lease payments are based on the
sales price for the coal that is processed through the facilities. The Partnership currently
leases four facilities to Taggart. Revenues from Taggart are as follows:
At June 30, 2011, the Partnership had accounts receivable totaling $1.4 million from Taggart.
A fund controlled by Quintana Capital owns Kopper-Glo, a small coal mining company that is one
of the Partnership’s lessees with operations in Tennessee. Revenues from Kopper-Glo are as
follows:
The Partnership also had accounts receivable totaling $0.2 million from Kopper-Glo at June 30,
2011.
|
Subsequent Events
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Subsequent Events [Abstract] | |
Subsequent Events |
14. Subsequent Events
The following represents material events that have occurred subsequent to June 30, 2011
through the time of the Partnership’s filing with the Securities and Exchange Commission:
Distributions
On July 20, 2011, the Partnership declared a distribution of $0.54 per unit to be paid on
August 12, 2011 to unitholders of record on August 5, 2011.
Acquisition
Royal Oil and Gas. In July 2011, the Partnership acquired approximately 44,000 acres of coal
reserves and coal bed methane located in Pennsylvania and Illinois from Royal Oil and Gas
Corporation for $8.0 million.
|
Commitments and Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies |
10. Commitments and Contingencies
Legal
The Partnership is involved, from time to time, in various legal proceedings arising in the
ordinary course of business. While the ultimate results of these proceedings cannot be predicted
with certainty, Partnership management believes these claims will not have a material effect on the
Partnership’s financial position, liquidity or operations.
Environmental Compliance
The operations conducted on the Partnership’s properties by its lessees are subject to
environmental laws and regulations adopted by various governmental authorities in the jurisdictions
in which these operations are conducted. As owner of surface interests in some properties, the
Partnership may be liable for certain environmental conditions occurring at the surface properties.
The terms of substantially all of the Partnership’s leases require the lessee to comply with all
applicable laws and regulations, including environmental laws and regulations. Lessees post
reclamation bonds assuring that reclamation will be completed as required by the relevant permit,
and substantially all of the leases require the lessee to indemnify the Partnership against, among
other things, environmental liabilities. Some of these indemnifications survive the termination of
the lease. The Partnership has neither incurred, nor is aware of, any material environmental
charges imposed on it related to its properties as of June 30, 2011. The Partnership is not
associated with any environmental contamination that may require remediation costs.
Acquisition
In conjunction with a definitive agreement, as of June 30, 2011, the Partnership may be
obligated to purchase in excess of 100 million additional tons of coal reserves from Colt, LLC for
an aggregate purchase price of $80.0 million over the next year as certain milestones are completed
relating to construction of a new mine.
|
Coal and Other Mineral Rights (Details) (USD $)
In Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Dec. 31, 2010
|
|
Coal and other mineral rights | |||
Coal and other mineral rights | $ 1,736,223 | $ 1,629,286 | |
Less accumulated depletion and amortization | (368,691) | (347,650) | |
Net book value | 1,367,532 | 1,281,636 | |
Total depletion and amortization expense on coal and other mineral rights | $ 21,041 | $ 18,489 |
Fair Value
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Fair Value [Abstract] | |
Fair Value |
8. Fair Value
The Partnership’s financial instruments consist of cash and cash equivalents, accounts
receivable, accounts payable and long-term debt. The carrying amount of the Partnership’s financial
instruments included in accounts receivable and accounts payable approximates their fair value due
to their short-term nature. The Partnership’s cash and cash equivalents include money market
accounts and are considered a Level 1 measurement. The fair market value of the Partnership’s
long-term debt was estimated to be $843.8 million and $596.1 million at June 30, 2011 and December
31, 2010, respectively, for the senior notes. The carrying value of the Partnership’s senior notes
was $824.8 million and $598.6 million at June 30, 2011 and December 31, 2010, respectively. The
fair value is estimated by management using comparable term risk-free treasury issues with a market
rate component determined by current financial instruments with similar characteristics which is a
Level 3 measurement. Since the Partnership’s credit facility is variable rate debt, its fair value
approximates its carrying amount.
|
Basis of Presentation and Organization
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Basis of Presentation and Organization [Abstract] | |
Basis of Presentation and Organization |
1. Basis of Presentation and Organization
The accompanying unaudited consolidated financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been included. Operating
results for the six months ended June 30, 2011 are not necessarily indicative of the results that
may be expected for future periods.
You should refer to the information contained in the footnotes included in Natural Resource
Partners L.P.’s 2010 Annual Report on Form 10-K in connection with the reading of these unaudited
interim consolidated financial statements.
The Partnership engages principally in the business of owning, managing and leasing mineral
properties in the United States. The Partnership owns coal reserves in the three major
coal-producing regions of the United States: Appalachia, the Illinois Basin and the Western United
States, as well as lignite reserves in the Gulf Coast region. The Partnership also owns aggregate
reserves in several states across the country. The Partnership does not operate any mines on its
properties, but leases reserves to experienced operators under long-term leases that grant the
operators the right to mine the Partnership’s reserves in exchange for royalty payments. Lessees
are generally required to make payments based on the higher of a percentage of the gross sales
price or a fixed royalty per ton, in addition to a minimum payment.
In addition, the Partnership owns transportation and preparation equipment, other coal related
rights and oil and gas properties on which it earns revenue.
The general partner of the Partnership is NRP (GP) LP, a Delaware limited partnership, whose
general partner is GP Natural Resource Partners LLC, a Delaware limited liability company.
|
Plant and Equipment
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant and Equipment |
4. Plant and Equipment
The Partnership’s plant and equipment consist of the following:
Under the provisions of one of the Partnership’s tipple leases, the lessee exercised its
option to purchase the tipple and corresponding land for fair market value, which is greater than
the carrying amount of the asset. In May 2011, the lessee paid a $1.0 million deposit that is
nonrefundable and will be applied to the purchase price if the lessee proceeds. The Partnership
believes it is very likely the lessee will proceed and has classified the net book value of the
tipple and corresponding land, less the $1.0 million paid, as an asset held for sale.
|
Related Party Transactions (Details 1) (USD $)
In Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Summary of revenues from related party | ||||
Coal royalty revenues | $ 69,788 | $ 57,832 | $ 135,153 | $ 104,993 |
Coal processing fees | 3,173 | 2,693 | 6,262 | 4,337 |
Transportation fees | 3,745 | 4,043 | 7,843 | 6,818 |
Minimums recognized as revenue | 1,841 | 3,418 | 2,348 | 6,792 |
Override revenue | 3,492 | 3,157 | 6,535 | 6,124 |
Total revenues | 91,409 | 79,587 | 176,261 | 143,106 |
Cline Affiliates [Member]
|
||||
Summary of revenues from related party | ||||
Coal royalty revenues | 5,250 | 7,475 | 14,429 | 12,782 |
Coal processing fees | 492 | 313 | 1,193 | 441 |
Transportation fees | 3,745 | 3,992 | 7,844 | 6,400 |
Minimums recognized as revenue | 3,100 | 6,200 | ||
Override revenue | 228 | 277 | 679 | 719 |
Total revenues | $ 9,715 | $ 15,157 | $ 24,145 | $ 26,542 |
Plant and Equipment (Details) (USD $)
|
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
May 31, 2011
|
Dec. 31, 2010
|
|
Plant and Equipment | ||||
Asset held for sale | $ 1,802,000 | $ 0 | ||
Plant construction in-process | 0 | 6,279,000 | ||
Plant and equipment at cost | 83,019,000 | 81,906,000 | ||
Less accumulated depreciation | (27,383,000) | (25,837,000) | ||
Net book value | 57,438,000 | 62,348,000 | ||
Total depreciation expense on plant and equipment | 4,235,000 | 4,159,000 | ||
Plant and Equipment (Textuals) [Abstract] | ||||
Deposit nonrefundable | $ 1,000,000 |
Coal and Other Mineral Rights
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coal and Other Mineral Rights [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coal and Other Mineral Rights |
5. Coal and Other Mineral Rights
The Partnership’s coal and other mineral rights consist of the following:
|
Related Party Transactions (Details 3) (Kopper-Glo [Member], USD $)
In Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Kopper-Glo [Member]
|
||||
Summary of revenues from related party | ||||
Revenues from related party | $ 419 | $ 379 | $ 753 | $ 832 |
Incentive Plans (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||
Incentive Plans (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Summary of activity in outstanding grants |
A summary of activity in the outstanding grants during 2011 is as follows:
|
Intangible Assets (Details) (USD $)
In Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Dec. 31, 2010
|
|
Intangible assets | |||
Contract intangibles | $ 180,291 | $ 180,233 | |
Less accumulated amortization | (23,516) | (18,302) | |
Net book value | 156,775 | 161,931 | |
Total amortization expense on intangible assets | 5,212 | 5,203 | |
Estimated amortization expense | |||
Remainder of 2011 | 9,887 | ||
For year ended December 31, 2012 | 11,193 | ||
For year ended December 31, 2013 | 10,538 | ||
For year ended December 31, 2014 | 10,538 | ||
For year ended December 31, 2015 | $ 10,538 |
Related Party Transactions (Details 2) (Taggart Global USA, LLC [Member], USD $)
In Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Taggart Global USA, LLC [Member]
|
||||
Summary of revenues from related party | ||||
Revenues from related party | $ 2,419 | $ 1,811 | $ 4,625 | $ 2,534 |
Significant Acquisitions (Details) [Textuals] (USD $)
|
3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
NBR Sand, LLC [Member]
|
Feb. 28, 2011
CALX Resources, LLC [Member]
|
Jun. 30, 2011
BRP LLC [Member]
|
Dec. 31, 2010
BRP LLC [Member]
|
Jun. 30, 2010
BRP LLC [Member]
|
Apr. 30, 2010
Sierra Silica [Member]
|
Jun. 30, 2011
Colt [Member]
|
Sep. 30, 2009
Colt [Member]
|
|
Recent Acquisitions (Textuals) [Abstract] | ||||||||||||
Purchase price | $ 16,500,000 | $ 16,000,000 | $ 42,500,000 | $ 17,000,000 | $ 255,000,000 | |||||||
Amount paid at closing | 70,000,000 | 70,000,000 | 14,400,000 | 14,000,000 | 175,000,000 | |||||||
Amount paid in future | 2,100,000 | 2,000,000 | ||||||||||
Percentage of income interest as a result of acquisition | 51.00% | |||||||||||
Percentage of minority voting interest of IPC | 49.00% | |||||||||||
Total asset fair value | 47,200,000 | |||||||||||
Non controlling interest | 5,065,000 | 5,065,000 | 4,700,000 | |||||||||
Assets fair value using a cash flows approach | 38,300,000 | |||||||||||
Net income | 52,352,000 | 41,610,000 | 97,634,000 | 71,801,000 | 1,700,000 | 2,300,000 | ||||||
Transaction expenses related to acquisition | $ 400,000 | $ 2,500,000 | ||||||||||
Area of land of acquired property | 711 | 500 | 1,000 | |||||||||
Coal reserve agreed to acquire under partnership agreement | 92,100,000 | 200,000,000 |
Equity Transactions, including Distribution
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Equity Transactions, including Distribution [Abstract] | |
Equity Transactions, including Distributions |
13. Equity Transactions, including Distributions
On May 13, 2011, the Partnership paid a quarterly distribution $0.54 per unit to all holders
of common units.
On September 20, 2010, the Partnership 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, the Partnership issued 32 million common units to the holders of the IDRs.
There are now 106,027,836 common units outstanding and the general partner retained its 2%
interest in the Partnership.
|
Intangible Assets
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
6. Intangible Assets
Amounts recorded as intangible assets along with the balances and accumulated amortization are
reflected in the table below:
The estimates of future expense for the periods indicated below are based on current mining
plans, which are subject to revision in future periods.
|
Significant Acquisitions (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Acquisitions (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the final allocation of the purchase price and preliminary estimated fair values of the assets acquired and liabilities |
|
Related Party Transactions (Details) (USD $)
In Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Summary of reimbursements | ||||
Reimbursement for services | $ 2,091 | $ 1,789 | $ 4,153 | $ 3,580 |
Significant Acquisitions (Details) (USD $)
In Thousands |
Jun. 30, 2011
|
---|---|
Summary of the final allocation of the purchase price and preliminary estimated fair values of the assets acquired and liabilities | |
Coal and other mineral rights | $ 45,329 |
Coal and other mineral rights, Estimated fair value | 45,759 |
Intangible assets | 1,863 |
Intangible assets, Estimated fair value | 1,806 |
Capital contribution | 42,500 |
Capital contribution, Estimated fair value | 42,500 |
Non-controlling interests | 4,692 |
Non-controlling interests, Estimated fair value | $ 5,065 |
Plant and Equipment (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant and Equipment (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant and Equipment |
Under the provisions of one of the Partnership’s tipple leases, the lessee exercised its
option to purchase the tipple and corresponding land for fair market value, which is greater than
the carrying amount of the asset. In May 2011, the lessee paid a $1.0 million deposit that is
nonrefundable and will be applied to the purchase price if the lessee proceeds. The Partnership
believes it is very likely the lessee will proceed and has classified the net book value of the
tipple and corresponding land, less the $1.0 million paid, as an asset held for sale.
|
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Commitments and Contingencies (Textuals) [Abstract] | |
Excess purchase obligation on additional tons of coal reserves | 100,000,000 |
Aggregate purchase price | $ 80.0 |
Period of acquisition | over the next year |
Intangible Assets (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated amortization expense |
|
Recent Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements |
2. Recent Accounting Pronouncements
In June 2011, the FASB amended the presentation of comprehensive income. The amendments in
this update give the Partnership the option to present the total comprehensive income, the
components of net income, and the components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate but consecutive statements. These
amendments are effective for fiscal years and interim periods within those years, beginning on or
after December 15, 2011. The Partnership has not determined which method of presentation it will
elect.
In May 2011, the FASB amended fair value measurement and disclosure requirements. The
amendments result in common fair value measurement and disclosure requirements in U.S. GAAP and
International Financial Reporting Standards (IFRSs). Some of the amendments clarify the FASB’s
intent about the application of existing fair value measurement requirements. Other amendments
change a particular principal or requirement for measuring fair value or for disclosing information
about fair value measurements. The amendment likely to have the most impact on the Partnership
relates to the fair value disclosure of the senior notes’ quantitative information about
unobservable inputs used in fair value measurements, that is categorized within Level 3 of the fair
value hierarchy. These amendments are effective for fiscal years and interim periods within those
years, beginning on or after December 15, 2011. The Partnership does not expect this adoption to
have a material impact on its financial position, results of operations or cash flows.
Other accounting standards that have been issued or proposed by the FASB or other
standards-setting bodies are not expected to have a material impact on the Partnership’s financial
position, results of operations and cash flows.
|
Major Lessees
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Lessees [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Lessees |
11. Major Lessees
Revenues from lessees that exceeded ten percent of total revenues for the periods as presented
below:
In the first half of 2011, the Partnership derived over 45% of its total revenue from the two
companies listed above. As a result, the Partnership has a significant concentration of revenues
with those lessees, although in most cases, with the exception of the Williamson mine operated by
an affiliate of the Cline group, the exposure is spread out over a number of different mining
operations and leases. Cline’s Williamson mine alone was responsible for approximately 9% of our
total revenues for the first six months of 2011. As a result of the merger of Alpha Natural
Resources and Massey Energy Company, all prior period revenues from Massey have been combined with
those of Alpha for presentation purposes in this 10-Q.
|
Long-Term Debt (Details) (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Long-term debt | ||
Total debt | $ 824,762 | $ 692,588 |
Less - current portion of long term debt | (30,801) | (31,518) |
Long-term debt | 793,961 | 661,070 |
Credit Facility [Member]
|
||
Long-term debt | ||
Total debt | 94,000 | |
$300 million floating rate revolving credit facility, due March 2012
|
||
Long-term debt | ||
Total debt | 0 | |
5.55% senior notes, with semi-annual interest payments in June and December, maturing June 2013
|
||
Long-term debt | ||
Total debt | 35,000 | 35,000 |
4.91% senior notes, with semi-annual interest payments in June and December, with annual principal payments in June, maturing in June 2018
|
||
Long-term debt | ||
Total debt | 32,317 | 37,650 |
8.38% senior notes, with semi-annual interest payments in March and September, with scheduled principal payments beginning March 2013, maturing in March 2019
|
||
Long-term debt | ||
Total debt | 150,000 | 150,000 |
5.05% senior notes, with semi-annual interest payments in January and July, with annual principal payments in July, maturing in July 2020
|
||
Long-term debt | ||
Total debt | 76,923 | 76,923 |
5.31% utility local improvement obligation, with annual principal and interest payments, maturing in March 2021
|
||
Long-term debt | ||
Total debt | 1,922 | 2,115 |
5.55% senior notes, with semi-annual interest payments in June and December, with annual principal payments in June, maturing in June 2023
|
||
Long-term debt | ||
Total debt | 33,600 | 36,900 |
5.82% senior notes, with semi-annual interest payments in March and September, with annual principal payments in March, maturing in March 2024
|
||
Long-term debt | ||
Total debt | 195,000 | 210,000 |
4.73% senior notes, with semi-annual interest payments in June and December, with scheduled principal payments beginning December 2014, maturing in December 2023
|
||
Long-term debt | ||
Total debt | 75,000 | 0 |
8.92% senior notes, with semi-annual interest payments in March and September, with scheduled principal payments beginning March 2014, maturing in March 2024
|
||
Long-term debt | ||
Total debt | 50,000 | 50,000 |
5.03% senior notes, with semi-annual interest payments in June and December, with scheduled principal payments beginning December 2014, maturing in December 2026
|
||
Long-term debt | ||
Total debt | $ 175,000 | $ 0 |
Recent Accounting Pronouncements (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Recent Accounting Pronouncements (Policies) [Abstract] | |
Comprehensive Income |
In June 2011, the FASB amended the presentation of comprehensive income. The amendments in
this update give the Partnership the option to present the total comprehensive income, the
components of net income, and the components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate but consecutive statements. These
amendments are effective for fiscal years and interim periods within those years, beginning on or
after December 15, 2011. The Partnership has not determined which method of presentation it will
elect.
|
Fair value measurement |
In May 2011, the FASB amended fair value measurement and disclosure requirements. The
amendments result in common fair value measurement and disclosure requirements in U.S. GAAP and
International Financial Reporting Standards (IFRSs). Some of the amendments clarify the FASB’s
intent about the application of existing fair value measurement requirements. Other amendments
change a particular principal or requirement for measuring fair value or for disclosing information
about fair value measurements. The amendment likely to have the most impact on the Partnership
relates to the fair value disclosure of the senior notes’ quantitative information about
unobservable inputs used in fair value measurements, that is categorized within Level 3 of the fair
value hierarchy. These amendments are effective for fiscal years and interim periods within those
years, beginning on or after December 15, 2011. The Partnership does not expect this adoption to
have a material impact on its financial position, results of operations or cash flows.
|
EET?D2;S
M6)B6@;V`.J-YX-$^JJ;]C#P_ZI1/EA_JG!XWW`-T&4>>-^$N8;B&;2-2$1
M@E,I%UBU+P*0C'#A2A=MG4QA?MAPII]D<4`ZAA<\_)LT''`(72C#&
[@\=N68?_)W:YA
MQ'GJQ2S:17;]H,JW7L=S)1O\N&63%Q"/![\1#6=!7`92[U()BLV*Q';]XT%-
M0&6%E\0=K30;5WJUT=449G2K"4P+0G%I^X;]2/HY&L1_T3]!$'A=E08C!QC;
MZ8[&`DV)P7AJG-YS_3PU:*XT;>$59@;V3T?((J],F0OK!X;NT0Z+;XY]%K9R
MLV@ F%+W*UE0S-W12A:/C=WM'=H^"IK"
MIG;-<6'TL6NM47%C2F3Z:"N(A>.9[\E\YOO4@.;[9%9HAI5"10V ,R>D#@8:+B[3;)B;C0F*+0N>`ENX$QOVX&2KN?-R.D6MS6GQL
MAL9T@U>$!6K)4)^W$Q\B\[?.T?(.J/<@7 L,[S!>8[7] 6)Y+DYGR><)P$;^MV9!JP,U91&Z
M7%A1PVYMA-\9*V@5%@!6U->4MH8M!R(1GNN=H=3.U$LNIK2@1D]10JA]*<)`
M_S/'6%D*TX`N'-T1`E)ID1*)5WT:BFZB64>(DX525U.`[)+\X:+$.PN7U"$)
M1K=&,!1J)97?IT9U!39S4Y0",9+EUAT7)(9-MS&9**OJ_?HCPEH*B)>;C$"T
M3S4IFWM^F\E`%D%M&$Y5/P41SI'?V8"JUR&@CYF=-YD6)N5JB>V2%QLM"
M1[_;Z'>K)T0=U`=5KP9AK>_)U^:PE*\HA7W6#0LC2EIJ?J55\G327&I6#+ST
MVDI]E'QW]0/9-%;]C)ZV$
+A!*\,D,Y^=)0<&9(N>AN1"?M#M?<;KNM8NTUM@
M["?'Y3;(<&F4BHMJ;1),)8$'AHM'E.N"C`V!%V8M)YAV+.%5%T+JUT),>472
M3U;JY5?'[)Y*O7+B"]%1:X'Z[I6:CC:QCJ--V]MKX`-Z\"]MSW<#F&[WZGH*
M:+MZ"I3Q9G28]=)A-J:T#15*R4$[O!O^V#O@=%=VS!O+$S;FC8V]`[I22V/O
M@-'IVZLUZOMS)8K@N,Z+-])TFJ",;S$6Y,
DR0VE]ZF$Y+V"%"XS1E_QYIXK!:VGBL=PZ(]!R@^.Z#E.`4$_(!\NM"
M#\FO^-^.:\X-*_W7AHXJ50L3"`X$71GGI'BGJ<-55RIAG`6\!]_(UOIJ+%`#
M:E)*!R/V`F3%C4DY*%I-U&"/O=^`@?7>P!OLPEG!;J0Q%-=-@C^3YWA!N
MC5!-ZAY;H%G49E--WY:Y1C!LA/)4FOJW`#P%!V6J%E.M*9*N-D+U%G9=TUR@
MFHMIUK6IIA9HE[[0_`
&UL550)``-7`CQ.5P(\3G5X
M"P`!!"4.```$.0$``.U=6W/;NA%^[TS_`^KSDC-376C%=I1)>L:QXU//V+'&
M<=K3Z70Z,`5).*4(!21]Z:\O`)(2+P`!2J0).9T\Q+:PJV^QP&)WL0`^_/*T
M],`#H@$F_L<#IS\\`,AWR13[\X\'4="#@8OQ`0A"Z$^A1WST\<`G![_\Y8]_
M^/"G7N^W3[=78$K<:(G\$+@4P1!-P2,.%^`3>?01N(/S.:)`M/OLPWN/_7+_
MG'SXE
DL&L:
M058R(C7B_Y@D\P8`S91X+#8=^)/_&P_Y][]A%@Z/W@
MX\$B#%?O!X/'Q\?^TSWU^H3.!X?#X6B0-CR(6[Y_"G"N]>,H;>L,?KN^^NHN
MT!+VL,_E=3=4G(V,SAF/QP/Q*6L:X/>!H+\B+@Q%?VIQ`64+_ELO;=;C?^HY
MA[V1TW\*I@>L#P#X0(F';M$,"`#OP^<54TZ`ERN/`Q=_6U`T8PJC*\;`<8;'
MHR$G_XGU*@YN9A.*`J8W@?74G][0.?3Q?\6O!X`S_W9[N9:!,?%6?9D1^*L[A8)5EQR/$=,9NW
M1-8_)6JW?#
1(-C[`+
M?O?_^84"-J7;5-(Y^]Q#D4:'S_COB#8(P-;/R;(J2OZ.H_R<_&5X\D#9$L[>
M)4(/+5XCL7.;'XLIM?JJ*:)M$6LAVW*)ICC=V
M"
D3U$OD$T'9NS714K,$,U9*FBEOJH>=Z&54P\0A6+
MSN-1;O+9Q!"DVUVS\/$YKW