With coal prices expected to remain high this year, the company expects to generate $US100-113 million in distributable cash flow with an expected net income in the range of $US81-91 million.
The coal property owner and manager company announced a fourth quarter 2005 distribution of $US0.7625 per unit, equating to an annualised distribution of $US3.05 per unit and a 15% increase over the same period last year.
“Now that we have seen two months of fourth quarter data from our lessees, we believe that NRP will exceed its previously issued guidance for 2005,” said company chief Dwight L Dunlap.
For 2006, NRP expects its lessees to produce up to 53.5 million tonnes, 20% of which will be metallurgical coal. Revenue expected from coal royalties is forecast to be up to $US140 million, with 25% coming from metallurgical coal. Total revenues in the range of $US148-160 million are expected.
NRP expects 2006 will be a transition year for the company.
“Several of our lessees’ mines, in accordance with their long-range mine plans, will be moving off our properties during 2006,” said president Nick Carter.
“The production declines caused by this movement will be only partially offset by other lessees’ mines moving onto our properties during the year. We expect many of the producers moving off our reserves will return over the next several years.”
The company does not expect several of its 2005 acquisitions to return significant royalty revenue until next year.
NRP has coal holdings in Appalachia, the Illinois Basin and the Powder River Basin.
