For the period ended December 31, the Texas-based company reported revenues of $US77.5 million, an 18% increase over the fourth quarter 2009.
NRP cited prices for the spike, as well as jumps in production.
Production, meanwhile, rose 7% to 12.1 million tons, and the average coal royalty revenue per ton rose 9% year-on-year to $4.67.
Net income to the company’s limited partners increased 52%, or $14.3 million, to $41.7 million in the December quarter.
NRP officials said about a third of the increase was due to increased revenues while $5 million was associated a plan, announced last September, to eliminate incentive distribution rights.
"The coal market improved throughout the year leading us to results that greatly exceeded our initial expectations," NRP president and chief operating officer Nick Carter said.
"We generated revenue in excess of $300 million for the first time, and in 2011 we continue to see an improving market for metallurgical coal, and to a more limited extent, steam coal."
The situation with met coal across the globe was a highlight of NRP’s report on the current market, which included a substantial price increase in the first half of the year with prices stabilisation in the June half.
A second area of focus for the MLP was its acquisitions; the company spent approximately $179 million on those transactions in 2010, most of which was related to the Deer Run mine in the Illinois Basin and the formation of BRP, a venture with International Paper for mineral rights on more than 7 million acres.
Both operations should have increasing cash flows for NRP into 2012 and beyond.
“The Deer Run mine, currently under development, is expected to increase coal royalty production for NRP in 2011 and dramatically increase production in 2012 as the longwall production commences,” officials said.
“BRP should begin to increase revenues as further leasing of those reserves and mineral rights occur over the next several years.
“NRP personnel are actively engaged in soliciting new lessees for these additional mineral rights.”
In regards to Deer Run, the company has already invested $70 million into the reserves it has already purchased.
It expects another $40 million will be spent this year for the remainder of those reserves.
Overall, the company is looking ahead with growth in sight.
“At year-end, NRP had a cash balance of $95.5 million and, following the $70 million acquisition completed in January 2011, NRP had $136 million available on its credit facility,” it said.
“These balances should allow NRP to fund its committed capital obligations of $40 million in 2011 and pursue additional acquisitions.”
