The 27% increase in coal royalty revenues compared to the 2002 fourth quarter is due mainly to the 23% increase in production. Acquisitions completed during the last year account for $2.2 million of the increase in coal royalty revenues and 1.1 million tons of the increase in production.

NRP announced a fourth quarter net income of $8.6 million or $0.37 per unit and 2003 net income of $36.9 million or $1.59 per unit. Income has been based on the results for the period commencing on October 17, 2002, the closing of NRP's initial public offering, through December 31, 2002.

For 2003, NRP's lessees sold 44.3 million tons of coal, up 13.8 million tons, or 45% from last year. This production generated coal royalty revenues of $73.8 million, an increase of $24.2 million, or approximately 49%. This increase is primarily due to the acquisitions NRP completed during the last year.

"Our net income for the year was in line with our previously announced expectations. Our fourth quarter net income, while in line with our expectations, was below the third quarter net income due to the idled Pinnacle mine. The Pinnacle mine accounted for approximately $1.6 million in coal royalty revenues and $1.2 million in net income in the third quarter prior to its idling," said CEO Nick Carter.

NRP forecasted net income of between $39.5 to $41.5 million and distributable cash flow of $64.1 to $66.6 million for 2004. The estimates do not include any production from the currently idled Pinnacle mine.