This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oxford Resource Partners, LP Reaffirms Payment Of Minimum Quarterly Distribution To Its Common Unitholders

Stocks in this article: OXF

COLUMBUS, Ohio, March 21, 2012 /PRNewswire/ -- Oxford Resource Partners, LP (NYSE: OXF) (the "Partnership" or "Oxford") today reaffirmed that it expects to continue to pay the minimum quarterly distribution to its common unitholders and provided business and financial outlook updates for 2012.

Overview

  • Oxford expects to pay its minimum quarterly distribution of $0.4375 per unit to its common unitholders throughout 2012 with the first quarter 2012 distribution expected to occur on May 15.
  • Oxford's core Northern Appalachian ("NAPP") operations, which represented substantially all of 2011 adjusted EBITDA, remain strong with a fully contracted book of business for 2012.
  • As noted in its Form 10-K filing for 2011, Oxford received a contract termination notice from a customer of its Illinois Basin ("ILB") operations.  Oxford believes this action was taken in bad faith by the customer.  Oxford has retained legal counsel and intends to aggressively pursue compensation for damages related to this termination.
  • The ILB operations are being restructured, including the closing of two mines, which will substantially reduce costs and is expected to improve earnings and distributable cash flow for 2012.
  • Oxford currently maintains sufficient available liquidity, and expects this liquidity position to strengthen throughout 2012.  Oxford is in compliance and expects to remain in compliance with all credit facility covenants.

 

Oxford believes the continued strength of its NAPP operations coupled with the decisive action taken in restructuring its ILB operations will improve its liquidity while enhancing its distributable cash flow.

Business Update

Illinois Basin (ILB) Operations

Oxford has taken and is taking the following actions with respect to its ILB operations:

  • As noted in its Form 10-K filing for 2011, Oxford received a contract termination notice from a customer of its ILB operations in Kentucky.  Oxford believes that this customer's action was taken in bad faith, motivated by the combination of the significant price increase that recently went into effect under the customer's supply contract and the current coal market conditions.  Oxford has retained legal counsel and intends to aggressively pursue compensation for damages through all appropriate legal action.
  • Oxford idled an ILB mine and reduced operations at another ILB mine associated with the terminated customer contract, resulting in an unfortunate but necessary reduction in force of approximately 120 employees in Kentucky.  This followed an earlier idling of another ILB mine with a reduction in force of approximately 40 employees in Kentucky.  Oxford is now proceeding to permanently close the two idled mines.
  • Oxford is transferring equipment from these ILB mines to its NAPP operations, a move that is expected to enhance productivity and reduce future capital expenditures in its NAPP operations.
  • Oxford is selling excess ILB equipment idled because of the mine closures and reduced mine operations, the proceeds of which will be used to strengthen its balance sheet.

 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs