This article is 19 years old. Images might not display.
The D.D. Shepard property will be purchased from a charitable organisation for cash.
The property is adjacent to another NRP property, and contains both metallurgical and steam coal reserves and gas reserves. More than 90% of the property is owned in fee, most of which is contiguous.
NRP said coal produced from the property can be shipped on the CSX and Norfolk Southern rail roads.
The majority of the coal reserves are leased to Peabody Energy while the majority of the gas reserves are leased to Dominion Exploration and Production.
The property currently generates revenue and will be immediately accretive to NRP.
NRP anticipates the property to generate about $20 million in coal royalty revenues in 2007, based on approximately 5.5 million tons of production, and over $2 million in gas royalty and wheelage fees.
“When NRP went public, one of our goals was to acquire large tracts of coal reserves from family held entities,” NRP chief Nick Carter said.
“This is one of the most attractive blocks of currently producing coal in the country and we are very pleased to be able to add it to our diverse portfolio of assets. This property is particularly attractive since it adjoins property currently owned by NRP.”
The partnership expects to close the acquisition in early December.
