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Natural Resource Partners LP Message Board

  • joelm_shapiro joelm_shapiro Oct 7, 2013 11:49 AM Flag

    What's happening with the International Paper properties?

    NRP bought the mineral royalty rights on millions of acres of private land owned by International Paper, including a vast tract straddling the border between Texas and Louisiana. That was a couple of years ago, and I haven't heard anything about it since. I had hope that the Texas land in particular would be prospective for shale oil development. Has anybody heard any news? Thanks.

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    • SPAM ALERT!

    • It's a joint venture between NRP and IP called BRP Properties. IP contributed 9.1 million acres of mineral rights in exchange for 49% ownership in the JV. 9.1 million acres sounds like a lot, but NRP got 51% ownership for $ 42.5 million. So I think it's more of a long-term bet rather than anything imminent.

      The JV started in 2010. In each year's 10-K since then, NRP has given more info about the properties, but it seems the vast majority of them are still in the early stages of development, with NRP trying to figure out what minerals are actually on the properties in economic quantities to justify development. It sounds like most the operations that are actually being carried on today are carryovers from the time that IP owned the acreage. Certainly NRP has not yet recognized any significant new income from the JV.

      You are not the only one on this board to think that the JV may be a home run at some point. I wouldn't have any way to knowing until NRP announces some deals. But it's been 3 years with nothing to announce so far.

 
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