OKLAHOMA CITY, July 29, 2015 /PRNewswire/ -- New Source Energy Partners L.P. (NYSE: NSLP) (the "Partnership" or "New Source") announced today that the Board of Directors of its General Partner has decided to suspend the cash distribution on common units.
Kristian Kos, Chairman and Chief Executive Officer said: "The continued low commodity price environment coupled with current market conditions have led the Board of Directors to suspend the cash distribution on our common units. Preservation of this capital allows the Partnership to focus on executing our plan to restructure the business and position the Partnership for growth. We will continue to analyze accretive acquisitions to grow the E&P business while we explore the best opportunity to execute our restructuring plan to deliver value to our unitholders via a potential monetization or spin-out of our OFS business."
Under the terms of the Partnership's 11.00% Series A Cumulative Convertible Preferred Units, a spin-out of the Partnership's OFS business occurring prior to either 2100 Energy, LLC having caused at least $100 million of oil and natural gas assets (less certain adjustments) to be transferred to a subsidiary of the Partnership, or December 31, 2016, would require approval by the holders of the preferred units.
Second Quarter 2015 Financial Results and Conference Call
The Partnership will release second quarter 2015 financial results on Monday, August 10, 2015 prior to the open of the New York Stock Exchange. The release will be followed by a conference call for investors at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss the Partnership's second quarter results. Hosting the call will be Kristian B. Kos, Chairman and Chief Executive Officer, Dikran Tourian, President and Chief Operating Officer, and Amber Bonney, Principal Accounting Officer.
The call can be accessed live over the telephone by dialing (877) 407-4018, or for international callers, (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (877) 870-5176 or for international callers, (858) 384-5517. The passcode for the replay is 13616090. The replay will be available until August 24, 2015.
Interested parties may also listen to a simultaneous webcast of the conference call by logging onto the Partnership's website at www.newsource.com in the Investors–Presentations link. A replay of the webcast will also be available for approximately 30 days following the call.
About New Source Energy Partners L.P.
New Source Energy Partners L.P. is an independent energy partnership engaged in the production of its onshore oil and natural gas properties that extends across conventional resource reservoirs in east-central Oklahoma and in oilfield services that specialize in increasing efficiencies and safety in drilling and completion processes. For more information on the Partnership, please visit www.newsource.com.
This news release contains "forward-looking statements" which are based on current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially from the results and other statements contained in this press release. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2014 and the information included in the Partnership's quarterly and current reports and other public filings. These forward-looking statements are based on and include the Partnership's expectations as of the date hereof. Subsequent events and market developments could cause the Partnership's expectations to change. While the Partnership may elect to update these forward-looking statements at some point in the future, the Partnership specifically disclaims any obligation to do so, even if new information becomes available, except as may be required by applicable law.
Note to Non-United States Investors: This press 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%) of New Source Energy Partners L.P.'s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, New Source Energy Partners L.P.'s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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SOURCE New Source Energy Partners L.P.