Global Hunter Securities GHS 100 Energy Conference - PrecisionIR

NRP’s Illinois Basin StrategyNRP’s ILB Strategy• Began increasing exposure to Illinois Basin in 2005• Invested ~$586 million since 2005 on coal reserve royalty andinfrastructure properties• Production has increased significantly since initial investment– 5% in 2005 to 21% of NRP total in 2012; expected to continue to growU.S. Thermal Coal Production Outlook(millions of tons)ILB13345%1932013 2023APP274(25%)207• Projects recently completed– Hillsboro (Deer Run) – should contribute 7-9 million tons on an annualbasis– Sugar Camp infrastructure and ORRIPRB2013 202345026% 568• Agreement with Cline Group - opportunities on up to 3 billiontons of coal reserves or infrastructure• Illinois Basin coal is well situated to increase market share asAppalachia declines and export demand rises– Additional scrubbers to handle Illinois Basin coal– Transportation and BTU advantage over PRB coals– Thicker coal seams than Appalachia means very low operating costscompared to CAPP– Export capability through the mouth of the Mississippi RiverSource: SNL Coal.2013 2023Positive Macro ILB TrendsIncreased Domestic ScrubbersLow Cost PositionEfficient Export AccessHigh Heat ContentLower Regulatory / Environmental Issues10