Westmoreland Coal Company - PowerPoint PPT Presentation

Westmoreland Coal Company

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Financial Position  Market Capitalization $332 (US$ mm) Net Leverage (1) 2.3x (ratio) EV / LTM EBITDA (2) 4.9x (ratio)  Current Debt Rating  Rating Agency Corporate Bonds  S&P B- B- Moody's Caa1 Caa1      Westmoreland Coal Company

Westmoreland Coal Company Westmoreland Coal Company Pro Forma LTM Coal Sales 25 27 52 (Mst) LTM Revenue $660 $683 $1,343 (US$ mm) LTM Adj. EBITDA $116 $119 $235 (US$ mm) 6 6 (Prairie), 1 (Mountain) No. of Operating Mines 13 Reserves (1) 553 676 1,229 (Mst) Resources (1) 624 1,366 1,990 (Mst) Westmoreland Coal Company

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 1 2   Dragline Coal seams Overburden excavation  4 3    Westmoreland Coal Company

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Customer Rating Reserve Life Contract Life  Power Plant Customer Moody's / DBRS S&P  2052 Rosebud Colstrip PPL, Puget Sound Baa3, Baa2 BBB, A- 2019  2037 Kemmerer Naughton PacifiCorp Baa1 A- 2021  U.S. Operations 2032 Beulah Coyote Otter Tail Baa3 BBB 2016  2031 Savage Lewis & Clarke MDU n.a. BBB+ 2017  2021 Jewett Limestone NRG Energy Ba3 BB- 2018 (1) 2021 Absaloka Sherco Xcel, TransAlta Baa1, Baa3 A-, BBB- 2021 2055 Genesee Genesee Capital Power n.a. BBB- 2055 2041 Poplar River Poplar River SaskPower AA n.a. 2015 Canadian Operations 2040 Boundary Dam B. Dam, Shand SaskPower AA n.a. 2024 2024 Sheerness Sheerness ATCO, TransAlta n.a., Baa3 A, BBB- 2026 2022 Paintearth 2022 Battle River ATCO n.a. A 2018 Coal Valley Coal Valley Seaborne market n.a. n.a. Weighted Avg. Contract Life: 2024 Westmoreland Coal Company

 National Surface Mines Westmoreland Sherritt 1.46  1.23 1.23 1.17 1.13 0.88 0.79  0.66 0.65 0.48 0.17 0.14 0.13 0.09 0.06  2009 2010 2011 2012 2013 (1) (2) 2.11 1.83 1.83 1.69 1.65 1.38 1.31 1.32 1.12 1.03 0.58 0.36 0.35 0.22 0.17 2009 2010 2011 2012 2013 Westmoreland Coal Company

  Peabody 193  Arch Coal 137 Genesee Coal Valley  Alpha 104 Paintearth Sheerness Bienfait Poplar River Boundary Dam Cloud Peak 91 Savage Beulah Rosebud Absaloka Murray Energy 58 (1) PF Westmoreland 49 Kemmerer Alliance 35 Westmoreland Headquarters Luminant 31 NACCO 28 Jewett Teck 27 Coal – U.S. Coal – Canada 0 50 100 150 200 250 (mm tons) Westmoreland Coal Company

In millions of tons  Westmoreland Sherritt Resources to be Proven  Significant additional resources to be proven  3,220 1,990 676 553 425 423 390 368 2008 2009 2010 2011 2012 Westmoreland Coal Company

 Alberta Saskatchewan 7% 3% 8%  19% 52% 52% 37% 22% Total: 72,918 GWh Total: 22,129 GWh Mountain West North Central 7% 12% 10% 4% 9% 12% 52% 6% 66% 23% Total: 369,790 GWh Total: 329,238 GWh Fuel Source by Region Geographical Regions Coal Type Coal Alberta Bituminous Sub-bituminous Natural Gas Saskatchewan Lignite Nuclear Mountain Hydroelectric Western North Central Other Westmoreland Coal Company

 U.S. Capacity Factor Prairie Operations (2) Westmoreland 84% 84%  81% 79% 79% 72% 67% 66% 64% 60% 58% 54%   2010A 2011A 2012A 2013E Westmoreland Sherritt Natural Gas US$ / mm BTU $6.00 $4.00 $2.00 -- 2010 2011 2012 2013 Westmoreland Coal Company

 (In millions of tons) Westmoreland Sherritt 60  50 40 30 20 10 -- 2014 2016 2018 2020 2022 2024 2026 2028 2030 Westmoreland Coal Company

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   Rapidly paid down leverage used 7.6x for Kemmerer acquisition to below pre-transaction levels  3.7x 3.5x 3.3x 2.8x 2.3x 2009 2010 2011 Kemmerer 2013 Sherritt Acquisition Acquisition Westmoreland Coal Company

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 8.1x Median: 7.1x 7.6x  7.1x 6.0x 6.0x  2009 2010 2011 2012 2013   16.5x 11.9x 7.2x Median: 6.3x 5.5x 2.1x 2.3x 1.9x (1) Walter Arch Alpha Peabody CONSOL Cloud Westmoreland Peak Westmoreland Coal Company

 13.7x  12.0x  11.4x Median: 11.0x 10.5x 10.0x 7.5x 5.0x Arch Walter Alpha CONSOL Peabody Cloud Westmoreland Peak Westmoreland Coal Company

 Obed Prince Rupert Alberta Edmonton  Coal deposits Bituminous BRITISH COLUMBIA Coal Valley  Sub-bituminous Transportation CN railway Westshore Terminals Calgary Vancouver (US$/t) (In millions of tons) Australian Premium HCC Nameplate Capacity: 36 Mst 400 33 30 29 27 300 200 100 - Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 2010A 2011A 2012A 2013E (Annualized) Westmoreland Coal Company

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Westmoreland Coal Company