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Oct. 29, 2012 /PRNewswire/ -- Oxford Resource Partners, LP (NYSE: OXF) (the "Partnership" or "Oxford") declared a reduced cash distribution of
$0.20 per common unit for its third quarter ended
September 30, 2012. The Partnership determined that no cash distribution will be paid on its subordinated units for its third quarter ended
September 30, 2012. The common units distribution will be paid on
November 14, 2012, to all common unitholders of record as of the close of business on
November 8, 2012.
As reported in its second quarter earnings release, by the end of 2012 the Partnership expected to receive
$10-$15 million in proceeds from the sale of excess equipment from its
Illinois Basin operations, which would provide additional liquidity for operations and allow the Partnership to make the third quarter distributions out of operating cash flows. However, the Partnership has determined it likely will not obtain acceptable value for the assets by the end of 2012. Therefore, the Partnership has elected to reduce the common units distribution and suspend the subordinated units distribution to preserve liquidity until its liquidity can be enhanced with funds generated from operations and/or proceeds from the sale of excess assets at acceptable values. This decision was made by the Board in the best interests of the Partnership as it continues to navigate a challenging environment.
Despite this environment, the Partnership's sales book is committed and priced fully for the remainder of 2012 and 97% for all of 2013 based on currently anticipated levels of production. The Partnership continues to explore value enhancing opportunities that capitalize on its low cost production profile and strategic importance to its customers.