“This new joint venture with International Paper will continue to diversify our assets and income stream while providing us current cash flows and upside potential from the millions of undeveloped acres included in the venture. The agreement is being structured to provide NRP with a reasonable return on our initial investment with significant upside potential for both parties,” said Corbin J. Robertson Jr., chairman and CEO, NRP.
The more than 7 million acres are located in 31 states and consist of reserves of oil and gas, coal and aggregates, as well as the rights to develop coal bed methane, geothermal, CO2 sequestration, water rights, cell towers, precious metals, industrial minerals and base metals. Royalties are currently generated from active leases from oil and gas, coal, aggregates and cell towers with upside potential from additional leasing and development. Approximately three-fourths of the acreage is located in the Gulf Coast Region, with the second largest area being the Pacific Northwest.
