credit suisse global credit products conference sept 15-17-2014

8/10/2019 Credit Suisse Global Credit Products Conference Sept 15-17-2014

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westmoreland.com | NASDAQ:WLB

September 17-19, 2014

Investor Presentation:Credit Suisse Global Credit Products Conference


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Coal Sales Adj. EBITDA

(Mst) (US$ mm)

U.S. 25 - 28 $112 - $120

Canada (12 Months)(3) 23 - 26 $113 - $122

Pro Forma Total 48 - 54 $225 - $242

Formed in 1854, Westmoreland is the sixth largest NorthAmerican coal producer(1)

Operates 12 surface coal mines and two coal-fired powergenerating units

Closed acquisition of Sherritt Internationals coal assets inApril 2014

Well-positioned to deliver shareholder value:

Leading market position with low-cost operating model

Generating consistent cash flows

Cost-protected contract pricing insulates business frombroader coal price environment

Strong management with a track record of delivering

growth Award-winning safety and environmental performance,

winning state and national awards

Source: Company filings, SNL, Statistics Canada1. Based on 2013 combined pro forma production volumes.2. Net leverage calculated as: (gross debt less cash and cash equivalents and debt service reserves) / Adjusted EBITDA.3. Acquisition of Canadian assets closed 28-Apr-14; 2014 Canadian target represents a pro forma full year estimate.

Coal Sales Adj. EBITDA

(Mst) (US$ mm)

U.S. 25 $116

Canada (12 Months) 26 $123

Pro Forma Total 51 $239

Company Highlights

Overview

2014 Targets2013 Accomplishments

Financial Position and Credit Rating (30-Jun-14)

Net Leverage(2) 3.1x

EV/LTM EBITDA 5.6x

Rating Agency Corporate Bonds

S&P B- B-

Moody's Caa1 Caa1


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Operations Profile

Coal U.S.

Coal Canada

Power

Strategically located to minimizecoal transport

Adjacent customer facilitiesprovide fuel cost advantage

Proximity to export terminals

High-quality, stable customer base

Track record of operating at highcapacity factors

Next generation environmental controlsfor clean operation

Awarded Carolina Star, NorthCarolinas highest recognition forworkplace safety

2 power generating uni ts

12 surface operations

Jewett

Kemmerer

BeulahSavage

RosebudAbsaloka

EstevanPoplar River

GeneseePaintearth

Sheerness

Coal Valley

Roanoke ValleyPower Facility

(ROVA)

Headquarters


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4Source: Company filings, SNL, Statistics Canada1. Based on 2013 combined pro forma production volumes.

Closed Transformative Acquisition of Sherritts Coal Business

Significantly

Increased Scale

Doubled Westmorelands production, creating the 6th largest North American coal producer(1)

Combined reserves of 1.2 billion tons

Enhanced sustainability of long mine lives and support of long-term cash flows

Highly

Complementary to

Existing Operations

Complementary to core surface mining, mine-mouth model

Operations strategically located adjacent to customer generating facilities

Operate under long-term cost-protected contracts

Safe and environmentally responsible operations

Enhanced

Asset Portfol io

Asset diversification into Canada, one of the worlds most favorable mining jurisdictions

Entry point into the export market and strategic access to port facilities

Added highly skilled workforce and management teams

Financially

Accretive

Ahead of schedule in integrating the Canadian operations

Opportunities identified to further optimize the mining operations based on Westmorelands experience,synergies and economies of scale

Pro forma 2013 revenue of ~$1.3 billion with pro forma Adjusted EBITDA of $239 million


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Coal Sales (Mst) 25 26 51

Revenue (US$ mm) $675 $652 $1,327

Adj. EBITDA (US$ mm) $116 $123 $239

Operating Mines (Qty) 6 6 12

Reserves (Mst) 514 676 1,191

Source: Company filingsNote: Based on 2013 pro forma figures.

Building a Diversified North American Coal Leader


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61. Based on 2013 combined pro forma production volumes.

Westmoreland Investment Highlights

Coal is the primary fuel for power generation in markets served

Power plant customers are base load generators with high utilization

Useful lives of customer plants extend well into the future

Operates in Favorable

Coal Markets

Simple mining methods and mine-mouth model

Mines adjacent to customer facilities provide fuel cost advantage

High quality, stable customer base under cost-protected contracts

Unique and

Predictable

Operating Model

6th largest coal producer in North America(1)

Geographic and regulatory diversification Strong low cost reserve base with additional resources to be developed

Largest mobile dragline operator in the world

Significant Scaleand Diversification

Experienced management team with a proven record of improving operations

Successful acquisition and integration of the Kemmerer mine from Chevron in 2012

Superior safety and environmental record

Proven

Management Team

Pursue disciplined growth through acquisition and contract mining

Optimize existing and newly acquired mining operations

Growth through alternative structures such as MLPs

Export market potential and identified growth projects

Positioned for Growth


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7Source: World Coal Association

Simple Surface Mining and Mine-Mouth Operations

Addition of Canadian Surface Mines Complements Westmorelands Core Competency

Simple surface mining methodexecuted with draglines, trucks andshovels

Mine-mouth positioning located inclose proximity to customer facilities/ key infrastructure

Significant savings by minimizingtransportation distances

High barriers to entry

Long-term cost-protected contractswith high quality customers

Straightforward reclamation

Majority of expenses are fullyreimbursed by customers

Overburden dug byshovels and hauled

by dump trucks

Overburden beingexcavated by dragline

Transportation by conveyor, truck or railto nearby customer facilities

Dragline backfillleveled bybulldozers

Tipping overburdenfrom benches

to backfill

Subsoil and topsoilreplaced and shaped

High-quality investment grade customers

Coal seams OverburdenDragline

excavation

1Simple Mining Method

3 Adjacent Power Plant Customers4 Straightforward Reclamation Process

2 Shortened Transportation Routes

Unique Operating Model Scale and Diversification Favorable Coal Markets Proven Management Team Positioned for Growth


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8Source: Company filings

Proximity to Captive Customer Base with Significant Export Opportunity

Primary

Transport Method Mine Competitive Advantage

Mine-mouth Beulah

Jewett

Kemmerer

Rosebud

Estevan

Genesee

Paintearth

Poplar River

Sheerness

Principal customers and strategic infrastructurelocated adjacent to mines

Coal delivered by conveyor and short haul trucking the most economical methods

Significant cost advantage exists even in competitivenatural gas pricing environment

Stable predictable cash flow from long-term cost-protected pricing mechanism with customers

Performance and deliveries not reliant on rail service

Truck Savage Customers located ~20-25 miles from the mineallowing for economical transportation

Rail Absaloka 300+ mile rail advantage over other Powder RiverBasin competitors

The 50% to 100% increase in rail rates in recent yearshas improved Absalokas competitive position

Newly constructed Western Wye rail spur transportsAbsaloka production to TransAltas Centralia facility

Seaborne Coal Valley Established exporter of premium thermal coal to highgrowth Pacific-rim customers

Strategic access to port facilities

OpenMarket/ExportOpportunities

DomesticCaptive

CustomerBase

Mine-mouth positioning andshortened transportation routesmakes Westmoreland a preferredsupplier

Westmoreland captures a share of

the transportation savings resultingin higher margins

Attractive low-cost operationsprovide fuel ~50% below currentnatural gas prices

Less reliant on rail than otherproducers



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Provides Revenue Visibility and Predictability

Source: Company filings1. Absaloka contract life based on a weighted average between the Sherco and Centralia contracts. Sherco contract is a revolving 3-year contract. TransAlta

contract runs to 2025.

High Quality Customer Base and Long-term Contracts

Long Lived Reserves and Contracts with High Quality Stable Customers

Majority of customers are investmentgrade utilities

Cost-protected contracts:

Long-term

Cost-protected or cost-indexed

Fixed cost reimbursement

Reduced price risk

Stable Cash Flow

Weighted Avg. Contract Life: 2025

Customer Rating

Power Plant Served Primary Customer Moody's/DBRS S&P

Colstrip PPL, Puget Sound Baa3, Baa1 BBB, BBB

Naughton PacifiCorp A3 A-

Coyote Otter Tail Baa2 BBB

Lewis & Clark MDU BBB+

Limestone NRG Energy Ba3 BB-

Sherco, Centralia Xcel, TransAlta A3, Baa3 A-, BBB-

Genesee Capital Power BBB-

Poplar River SaskPower AA

Boundary Dam, Shand SaskPower AA

Sheerness ATCO, TransAlta --, Baa3 A, BBB-

Battle River ATCO A

2019

2021

2016

2017

2018

2021

2055

2015

2024

2026

2022

CanadianOperations

U.S.

Operati

ons

Rosebud

Kemmerer

Beulah

Savage

Jewett

Absaloka

Genesee

PoplarRiver

Estevan

Sheerness

Paintearth

Contract Life



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Stable Cash Flows Through Long-Term, Cost Protected Contracts

of sales under cost-plus orcost-indexed contracts

of coal sales underlong-term contracts

of sales contracts includefixed cost reimbursement

if tons are reduced


Two thirds of contracts expire after 2018


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514

676

368

1,191

2011 2013

Source: Company filings, SNL, Statistics CanadaNote: Westmoreland shown pro forma for the acquisition of the Canadian assets.1. Based on 2013 combined pro forma production volumes.

Significant Scale with Built-in Resource Growth

Top North American Coal Producers (2013)

(Mst)

Significant reserve growthwith considerable

resources to be proven

6th largest North American coalproducer(1)

Produces ~70% of thermal coal inCanada

1.2 billion tons of reserves

Addition of Canadian assets

further enhances reserve base Average reserve life extends

beyond 2035

Demonstrated growth at minimalupfront cost

U.S. Operations Canadian Operations

Significantly Enhanced Reserve Base

51

200

158

115

96

53

33

31

29

29

Peabody

Arch Coal

Alpha

Cloud Peak

Murray Energy

Westmoreland

Luminant

Alliance

CONSOL

NACCO

(Mst)



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12

Alber ta(1)

Total: 72,918 GWh

52%37%

3%8%

Saskatchewan

Total: 23,155 GWh

47%

28%

19%

6%

Source: Alberta Department of Energy, SaskPower, U.S. Energy Information Administration1. Alberta based on 2012 figures.

Coal is the Primary Fuel in the Markets Served

Power Generation by Region (2013)

Coal is the primary source for powergeneration in the markets served

Minimal risk of displacement fromother coal basins or natural gas

Mountain

Total: 374,593 GWh

54%

22%

8%

8%7%

West North Central

Total: 331,910 GWh

67%5%

12%

3%

14%

Coal Natural Gas Nuclear Hydroelectric Other

Fuel Source



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66%60%

54%58%

79%72%

64%67%

84% 84%79% 81%

2010A 2011A 2012A 2013A

Source: AESO, Doyle Trading Consultants, Energy Velocity, EVA, FactSet, SNL, U.S. Energy Information Administration1. Capacity factor shown as weighted average across power plants served.2. Alberta power plant customers, based on actuals through September 2013.

Customers are Key Base Load Generators

Coal-Fired Generation Capacity Factor (%)(1)

Customers operate at high capacityfactors

Capacity factor will likely increase asolder, smaller coal-fired powergeneration units are retired

Rising natural gas prices will drive

capacity factors higher

Competitiveness of coal hasrecovered from lows of 2012

U.S. Operations Canadian Operations(2)U.S. Capacity Factor

Westmorelands Customers Can Compete with Natural Gas

(US$ / MBtu) Canadian Operations Natural GasU.S. Operations

--

$2.00

$4.00

$6.00

$8.00

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13



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14Source: Management estimatesNote: Tonnage percentages based on total estimated tonnage in stated year divided by 2014 estimated tonnage.

Supply Customer Plants With Long Useful Lives

Key Supplier of Coal to Long-Lived Base Load Customers

Majority of the power plants servedare base load with high capacityfactors

Two-thirds of tonnage remainsthrough 2030

The majority of customer plants are

scrubbed with emissions controls

In Canada, regulations are welldefined

50 year life rule

Majority of Westmorelandsupplied plants have useful lives

extending beyond 2030


Canadian OperationsU.S. Operations(In millions of tons)

--

10

20

30

40

50

60

2014 2016 2018 2020 2022 2024 2026 2028 2030

Significant volume extends well into the future


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Experienced Management Team

Keith Alessi

Chief Executive Officer

Accomplished manager with over 30 years of senior executive experience

Joined Westmoreland as Chief Executive Officer and President in May 2007

Prior Chief Executive Officer of numerous private and public companies with a deep background in integrating large acquisitions

Extensive experience as a director of public and private companies

Jennifer Grafton

General Counsel

Joined Westmoreland as Associate General Counsel in December 2008 and was named General Counsel and Secretary inFebruary 2011

Focuses her practice on SEC compliance, corporate governance, Board management, risk management and employment/laborrelations

Kevin Paprzycki

CFO and Treasurer

Joined Westmoreland as Controller and Principal Accounting Officer in June 2006 and was named Chief Financial Officer inApril 2008

Previously Chief Financial Officer of Evans and Sutherland Computer Corporation and held senior level positions at Applied

Films Corporation, Baker Hughes and Ernst and Young

Joseph Micheletti

Executive Vice President

Joined Westmoreland in August 1998 and has held several key leadership positions at several Westmoreland mining projects,including Senior Vice President of Coal Operations since 2011, before becoming Executive Vice President in August 2014

Responsible for all six of Westmorelands U.S. mining projects

John Schadan

Executive Vice President

Joined Westmoreland in April 2014 as Senior Vice President, Canada Operations and was promoted to Executive VicePresident in August 2014

Career has encompassed both the western Canadian coal business as well as engineering and construction for a majorinternational firm



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16Source: Company filings1. LTI calculated by multiplying the number of total LTIs by 200,000 (equivalence factor for 100 full time employees per year) and dividing by total exposure hours.2. Canadian operations includes contractors.

History of Exceptional Safety Performance

Lost Time Incident Rate(1,2)

Highly skilled workforce with cultureof safety

The U.S. operations are a repeatwinner of the National Mining

Associations Sentinels of SafetyAward

The Canadian operations are arepeat winner of John T. Ryan safetyaward

Reportable Incident Rate(2)

National Surface Mines U.S. Operations Canadian Operations


1.46

1.23 1.231.13 1.17

0.790.88

0.65

0.48

0.66

0.14 0.13 0.17 0.09 0.06

2009 2010 2011 2012 2013

2.11

1.83 1.831.65 1.69

1.38 1.31

1.031.12

1.32

0.36 0.350.17 0.22

0.58

2009 2010 2011 2012 2013


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7.6x7.1x

8.1x

6.0x 6.0x

2009 2010 2011 2012 2013

Median: 7.1x

Source: Bloomberg, company filings, FactSet, street research, SNL1. Net Debt / LTM EBITDA as at 30-Jun-14.

Track Record of Accretive Acquisitions

Average Coal Acquisition EV / NTM EBITDA Multiples

Westmoreland has been successfulin purchasing assets in challengingmarkets at attractive multiples

Well positioned to continue to pursueacquisitions:

Less levered than peers

Peers executed transactions athigh multiples and took onsignificant debt

20-30 opportunities consistent withthe Westmoreland model

Larger producers actively divesting

assets at attractive valuations

U.S. Coal Producer Leverage Net Debt / LTM EBITDA

Kemmerer and Canadian Assets acquired at 3.0 4.0x EBITDA


21.8x

12.8x

6.4x5.4x

3.2x2.3x

3.1x

Walter Arch Peabody Alpha CONSOL CloudPeak

Westmoreland

Median: 5.9x

(1)


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18Source: Management1. Metrics based on improvements attained in the year following the acquisition.2. Tons per man hour.

Proven Record of Successful Acquisition Integration


Acquired the Kemmerer mine from Chevron in January 2012

Westmoreland management significantly enhancedfinancial performance, exceeding guidance

Added 118 million tons of reserves

Majority of production is committed and priced under cost-protected contracts minimizing downside exposure

Signed new six-year labor agreement driving operational

and productivity improvements Integration exceeded expectations with strong

improvements in productivity, costs, and safety

Integration of the Canadian operations is progressing aheadof schedule

Increased 2014 EBITDA guidance by US$6 million

Productivity(2)

18%

Reportable Incidents

55%

Labor Grievances

74%

Mine Citations

51%

Mining Cost per Ton

5%

Westmoreland Improvements at Kemmerer(1)


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7.6x

2.8x3.3x

3.7x

2.3x

3.5x3.1x

2009 2010 2011 Kemmerer Acquisition

2013 Sherritt CoalAcquisition

Current(30-Jun-14)(4)(3)

Improved Balance Sheet Strength

1. As of 30-Jun-14 and includes cash on hand and revolving lines of credit.2. Net Leverage calculated as: (total debt less cash and cash equivalents and

debt service reserves) / Adjusted EBITDA.

3. As of 31-Jan-12.4. Calculated using net debt figure pro forma for Sherritt transaction and pro

forma LTM Adj. EBITDA figure as at 30-Sept-13.

Delevering Through Strong Cash Flow Generation

Net Leverage(2)

Paid down $28 million of debt in2013

Total liquidity of $76 million(1)

Potential to further delever throughthe sale of non-core ROVA powergeneration units

Improve debt terms to reduceinterest expense and increasefinancial flexibility

Maximize valuation throughstrong cash flow generation


Rapidly paid down leverage used for Kemmerer acquisition to below pre-transaction levels;

On a similar delevering path following Sherritt acquisition


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Value to Be Realized From Canadian Acquisition

Optimization of Canadian Operations

Integrate operations teams and best practices

Ahead of schedule in transitioning initiatives

Implement Westmorelands operating and capitalphilosophy

Execute upon identified opportunities

Key areas of focus for operational costimprovements:

Dragline procedures and utilization

Pilot program has achieved a 7% gain inproductivity

Capital and operational planning

Administrative savings from centralization andtechnology

E.g. combining Boundary Dam and Bienfait

Opportunity to further expand existing operations

Unique Operating Model Scale and DiversificationFavorable Coal Markets Proven Management Team Positioned for Growth


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21Source: Bloomberg, company filings, street research, Wood Mackenzie

Export Market Potential with Identified Growth Projects

Unique Operating Model Scale and DiversificationFavorable Coal Markets Proven Management Team Positioned for Growth

Westshore Terminals(Vancouver)

Coal deposits

Bituminous

Sub-bituminous

Transportation

Railway

Terminals

BRITISH COLUMBIA

Calgary

Edmonton

Coal Valley

ALBERTA

Obed

Ridley Terminal(Prince Rupert)

(US$/t)

Global demand for seaborne thermal coal is forecastto grow to 2.4 billion tons in 2030, up from 1.0 billiontons in 2012

Coal Valley mine exports high-quality thermal coal tocustomers in Japan and Korea and is an established

brand in these markets

Unique access to strategic port facilities

Recently monetized port capacity at WestshoreTerminals for proceeds of US$37 million

Growth projects like Robb Trend have the potential toenhance reserves and extend mine life

High leverage to recovery in Newcastle thermal coalprice

Historical Price Consensus Forecast RangeConsensus Median

Overview Convenient Access to Local Export Terminals

Newcastle Historical and Consensus Price Forecast

$0

$50

$100

$150

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


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Significant Opportunity to Deliver Shareholder Value

Expand current reserve base to ensure long-term life and sustainabilityReserves

M&A opportunities for Westmoreland to apply its mining expertise Further expand contract mining and cost-plus model

Growth through alternative structures such as MLPs

Growth

Continue to drive down costs

Work with customers to maximize their dispatchManage Costs

Continued focus on safetySafety

Improve debt terms to reduce interest expense and increase financial flexibility

Maximize valuation through strong cash flow generation

Optimize Capital

Structure


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Investor Relations

For investor relations please contact:

Kevin PaprzyckiChief Financial Officer and Treasurer

Westmoreland Coal Company9540 South Maroon Circle, Suite 200

Englewood, CO 80112(720) 354-4489

Toll Free: (855) 922-6463

credit suisse global credit products conference sept 15-17-2014

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