Wider-than-Expected Loss at Oxford Resource - Analyst Blog

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Coal producer Oxford Resource Partners, LP 's ( OXF ) operating loss of 48 cents per unit in the fourth quarter of 2013 was wider than the Zacks Consensus Estimate of a loss of 41 cents. In the year-ago quarter the company reported loss of 37 cents.

GAAP loss in the reported quarter was 33 cents per unit compared to a loss of 29 cents in the year ago quarter. The difference between GAAP and operating loss in fourth quarter was due to impact of one-time restructuring and asset impairment charges and gain from the changes in the fair value of warrants.

Oxford Resource Partners' operating loss of $1.22 per unit in 2013 was wider than the Zacks Consensus Estimate of a loss of $1.18. In 2012, the operating earnings of the company were 89 cents.

Revenue

Oxford Resource Partners' total revenue of $82.3 million in the fourth quarter was down 4.8% from $86.5 million in the year-ago period.

Full-year 2013 revenues came in at $346.8 million, missing year-ago revenues of $373.5 billion by 7.2%.  

The decline was primary due to lower sales volume from the Illinois Basin operations.

Highlights of the Release

During the year, Oxford Resource Partners increased its coal reserves by acquiring 6.2 million tons of proven and probable coal reserves in Northern Appalachia. In addition, the partnership also received necessary permits to mine 6.8 million tons of proven and probable coal reserves in Northern Appalachia.

Cash coal sales per ton during the year were $50.92 up 2.7% from the year-ago level. However, 3.5% increase in the cash cost per ton to $43.99 in 2013, offset the benefits of increase in the selling price.

Interest expenses were $21.1 million versus $11.5 million in 2012. The increase in expenses was primarily due to expense incurred to service higher debts.

Financial Update

Cash and cash equivalents as of Dec 31, 2013 were $3.1 million versus $3.9 million as of Dec 31, 2012.

Long-term debt as of Dec 31, 2013 was $155.4 million versus $41.6 million as of Dec 31, 2012.

Guidance

Oxford Resource Partners expects to produce between 5.5 million tons and 5.9 million tons and sell between 5.6 million tons and 6.0 million tons of thermal coal in 2014.

The partnership expects average selling price to be in the range of $51.50 to $53.50 per ton, exceeding the selling price of $51.09 per ton in the fourth quarter of 2013.

The partnership expects its capital expenditure in 2014 be in the range of $17 million to $21 million.

Other Company Releases

Arch Coal Inc . ( ACI ) reported fourth-quarter 2013 pro forma loss of 45 cents per share, wider than the Zacks Consensus Estimate of a loss of 36 cents.

Walter Energy Inc. 's ( WLT ) operating loss per share of 55 cents per share in the fourth quarter of 2013 was narrower than the Zacks Consensus Estimate of a loss of 79 cents.

Alpha Natural Resources ( ANR ) reported a loss of 52 cents per share for the fourth quarter of 2013, narrower than the Zacks Consensus Estimate of a loss of 61 cents.

Zacks Rank

Oxford Resource Partners, L.P. currently has a Zacks Rank #3 (Hold).



ARCH COAL INC (ACI): Free Stock Analysis Report

ALPHA NATRL RES (ANR): Free Stock Analysis Report

OXFORD RES PTNR (OXF): Free Stock Analysis Report

WALTER ENERGY (WLT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ACI , ANR , OXF , WLT

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