Oxford Resource (OXF) Suspends Q4 Common, Unit Dividends

January 29, 2013 7:22 AM EST Send to a Friend
Oxford Resource Partners, LP (NYSE: OXF) (the "Partnership" or "Oxford") determined, based upon continued weakness in the coal markets, to suspend the cash distributions on both its common and subordinated units for its fourth quarter ended December 31, 2012. In making this decision, the Board concluded that it was in the best interests of the Partnership to further preserve liquidity.

Despite the challenging environment, the Partnership continues to benefit from its low-cost production profile and strategic importance to its customers. The Partnership's sales book is 98 percent committed and priced for 2013 based on currently anticipated levels of production.

The Partnership continues to pursue opportunities to enhance its liquidity, including the sale of certain excess Illinois Basin equipment. The Partnership is also pursuing the refinancing of its credit facility, and plans to provide an update on that effort when it announces its financial results for the fourth quarter of 2012, which the Partnership intends to do in early to mid-March 2013.

Under the Partnership's partnership agreement, arrearage amounts resulting from suspension of the common units distribution accumulate. Arrearage amounts resulting from suspension of the subordinated units distribution do not accumulate. In the future as distributions are made for any quarter, the first priority is to pay the then minimum quarterly distribution to common unitholders. Any additional distribution amounts paid at that time are then paid to common unitholders until their previously unpaid accumulated arrearage amounts have been paid in full.


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