Natural Resource Partners LP (NYSE: NRP) disclosed March 11 that it sold overriding royalty interests in the Marcellus Shale, but acknowledged it will be unable to meet its deleveraging goals without more sales.

In February, Houston’s NRP sold royalty and overriding royalty interests in about 765 gross producing wells and about 10% of its estimated proved reserves, or 1,094 thousand barrels of oil equivalent (Mboe) for $37.5 million. The effective date of the sale was Jan. 1.

The company said it sold reserves and royalty rights to 27% or 139 million tons of its hard mineral reserves in December. The assets, located in Texas, Georgia and Tennessee, fetched $10 million.

The company said it intends to use the net proceeds from its asset sales to repay debt.

“While we have closed two asset sale transactions, if we are unable to complete additional asset sales and conditions in the commodity markets continue to deteriorate, our liquidity and our ability to comply with the financial and other restrictive covenants contained in our debt agreements will be adversely affected,” NRP said in a March 11 Securities and Exchange Commission filing.

NRP said the company has sufficient liquidity to meet its current financial needs but must pay annual debt service of $80.8 million in principal payments through 2018.

In April, the company embarked on a long-term plan to strengthen its balance sheet, reduce debt and enhance liquidity. NRP slashed its cash distributions by 87% to pay down debt.

The MLP has also reduced its general and administrative and other overhead costs.

“However, we have determined that the cash savings from the distribution cuts and our cost reduction efforts will not be sufficient to meet our deleveraging objectives and have determined to sell certain assets to help meet these objectives,” NRP said.

NRP’s oil and gas revenues generated an estimated $52 million to $61 million.

The company said it has not sold any of its Williston Basin interests. In November, NRP had non-operated working interest in the Bakken/Three Forks region covering more than 20,000 net acres primarily. NRP also has significant exposure to the Sanish Field. About 92% of NRP’s oil and gas revenue came from the Bakken in 2015.

The company also has interests in 260,000 lease net mineral acres in Oklahoma, Louisiana and the Appalachia. In 2015, NRP recorded revenues and other income of $488.8 million and a net loss of $571.7 million.

Darren Barbee can be reached at dbarbee@hartenergy.com.