|Oxford Resource Partners, LP Reaffirms Payment of Minimum Quarterly Distribution to Its Common Unitholders|
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.
Oxford has taken and is taking the following actions with respect to its ILB operations:
None of these actions will adversely affect Oxford's commitment and ability to reliably and efficiently serve its remaining ILB customers.
Northern Appalachian (NAPP) Operations
Oxford's core NAPP business remains strong. As the largest producer of surface mined coal in
President and Chief Executive Officer
Financial Outlook Update
Oxford is confident in the outlook for the balance of 2012, which will largely be driven by the strength of its core NAPP business and the benefits from its ILB restructuring initiatives. Given the unseasonably warm winter and the impact of the ILB contract termination and restructuring efforts, Oxford believes the first quarter 2012 financial results will not be representative of the results expected for the remainder of 2012. Oxford expects to provide updated 2012 guidance when it reports its first quarter 2012 financial results in early May.
Oxford reaffirms that it expects to pay the minimum quarterly distribution of
Oxford currently maintains sufficient available liquidity, and expects its liquidity to strengthen throughout 2012 as a result of the previously mentioned steps. Oxford is currently in compliance with all of the covenants of its credit facility and does not expect any of the restructuring or other contemplated actions to alter such compliance.
For more information about
FORWARD-LOOKING STATEMENTS: Except for historical information, statements made in this press release are "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements, including the statements and information included under the headings "Overview," "Business Update," "Financial Outlook Update," "Distributions" and "Liquidity."
These statements are based on certain assumptions made by the Partnership based on its management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership's management believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Partnership's control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: productivity levels, margins earned and the level of operating costs; weakness in global economic conditions or in customers' industries; changes in governmental regulation of the mining industry or the electric power industry and the increased costs of complying with those changes; decreases in demand for electricity and changes in coal consumption patterns of U.S. electric power generators; the Partnership's dependence on a limited number of customers; the Partnership's inability to enter into new long-term coal sales contracts at attractive prices and the renewal and other risks associated with the Partnership's existing long-term coal sales contracts, including risks related to adjustments to price, volume or other terms of those contracts; difficulties in collecting the Partnership's receivables because of credit or financial problems of major customers, and customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform; the Partnership's ability to acquire additional coal reserves; the Partnership's ability to respond to increased competition within the coal industry; fluctuations in coal demand, prices and availability due to labor and transportation costs and disruptions, equipment availability, governmental regulations, including those pertaining to carbon dioxide emissions, and other factors; significant costs imposed on the Partnership's mining operations by extensive and frequently changing environmental laws and regulations, and greater than expected environmental regulations, costs and liabilities; legislation and regulatory and related judicial decisions and interpretations including issues pertaining to climate change and miner health and safety; a variety of operational, geologic, permitting, labor and weather-related factors, including those pertaining to both the Partnership's mining operations and its underground coal reserves that it does not operate; limitations in the cash distributions the Partnership receives from its majority-owned subsidiary,
The Partnership undertakes no obligation to publicly update or revise any forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. Further information on risks and uncertainties is available in the Partnership's periodic reports filed with the
Brian Meilton of Oxford Resource Partners, LP, +1-614-643-0314, ir@OxfordResources.com