HOUSTON, Oct. 22, 2015 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) provided an update to its long-term plan to strengthen its balance sheet and reduce debt. Today the Board of Directors of its general partner has declared a third quarter 2015 distribution of $0.045 per unit for NRP, representing a 50% reduction from the distribution paid with respect to the second quarter 2015. The distribution will be paid on November 13, 2015 to unitholders of record on November 5, 2015.
In addition, primarily as a result of the continued deterioration of the coal markets and weakness of oil and gas prices, NRP expects that it will recognize material non-cash asset impairments in its third quarter 2015 financial results.
"We are focused on the long-term best interest of the partnership, and are committed to reducing our leverage during this period of extreme stress in the coal and oil and gas industries. In addition to the reduced quarterly distribution, we have commenced processes to sell certain assets that should enable us to remain on track with the strategic plan that we announced in April, with a long-term goal of reducing our consolidated leverage ratio to 3.5x by the end of 2017," said Wyatt Hogan, President and COO of Natural Resource Partners L.P.
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in OCI Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. 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. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
SOURCE Natural Resource Partners L.P.