RADNOR, Pa., Jun 10, 2010 (BUSINESS WIRE) --Penn Virginia Resource Partners, L.P. (NYSE: PVR) announced today the acquisition of approximately 10 million tons of Pittsburgh Seam coal reserves in northern West Virginia for $17.7 million in cash. This transaction supplements 40 million tons that PVR previously acquired in December 2002. Funding for the acquisition was provided by borrowings under PVR's revolving credit facility.
In addition to the acquisition of the reserves, PVR will receive an increase in royalty of $1.00 per ton for the approximate 10 million tons of coal reserves remaining on the original transaction, plus a royalty on the newly-acquired reserves
William H. Shea, Jr., Chief Executive Officer of PVR's general partner, said, "We are pleased to have expanded our coal reserve base in Northern Appalachia, one of the premier coal producing areas in the country, and to have increased the economic attractiveness of our coal royalty properties in this area. This acquisition is expected to be immediately accretive to distributable cash flow."
Headquartered in Radnor, PA, Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which manages coal and natural resource properties and related assets and operates a midstream natural gas gathering and processing business.For more information about us, visit our website at www.pvresource.com.
Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: when and whether the acquisition will be accretive to distributable cash flow; the projected demand for coal; the extent to which the amount and quality of actual production differs from estimated recoverable coal; potential equipment malfunction and repair delays; unanticipated geological problems; the legislative and regulatory environment; and political and economic conditions, including the impact of potential terrorist acts.
Additional information concerning these and other factors can be found in PVR's press releases and public periodic filings with the Securities and Exchange Commission, including PVR's Annual Report on Form 10-K for the year ended December 31, 2009. Many of the factors that will determine PVR's future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. PVR undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise
SOURCE: Penn Virginia Resource Partners, L.P.
Penn Virginia Resource Partners, L.P.
Robert B. Wallace
Executive Vice President and Chief Financial Officer