Oxford dividend down

OXFORD Resource Partners has declared a reduced cash dividend of 20c per common unit for its third quarter ended September 30.

Donna Schmidt

However, the partnership has decided it will make no cash distribution to holders of its subordinated units for Q3.

The common units distribution will be made on November 14.

The company is yet to release its Q3 results – that event is slated for November 6.

As reported in its Q2 earnings release, Oxford expected to have $10 to $15 million in proceeds from the sale of excess equipment at its Illinois Basin operations.

This would provide additional liquidity for operations and allow the partnership to make Q3 distributions from operating cash flows.

However, the partnership determined it would not likely get acceptable value for those assets by the end of 2012.

Therefore, it has elected to reduce the common units distribution and suspend the subordinated units distribution to preserve liquidity.

Despite this, the partnership’s sales book is looking healthy.

It is committed and fully priced for the remainder of 2012 and 97% for all of 2013 based on anticipated levels of production.

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