Westmoreland Coal Company Announces Additional Coal Sales at Kemmerer in 2018
12 July 2017 - 3:05AM
Westmoreland Coal Company (Nasdaq:WLB) today announced that it has
amended an agreement with PacifiCorp to sell approximately 1
million additional tons of coal during 2018 than previously
expected. The additional sales are the result of PacifiCorp’s
plan to extend its Naughton Unit 3 operations through the end of
2018.
“We are pleased to have the benefit of Naughton 3 running an
additional year,” said Kevin Paprzycki, Westmoreland’s Chief
Executive Officer. “We enjoy a strong relationship with
PacifiCorp and are pleased that our collaborative effort yielded a
positive result for both of us and the local Kemmerer
community.”
Westmoreland serves PacifiCorp through its Kemmerer mine, part
of its affiliate Westmoreland Resource Partners, LP
(NYSE:WMLP).
About Westmoreland Coal
Company
Westmoreland Coal Company is the oldest independent coal company
in the United States. Westmoreland’s coal operations include
surface coal mines in the United States and Canada, underground
coal mines in Ohio and New Mexico, a char production facility, and
a 50% interest in an activated carbon plant. Westmoreland
also owns the general partner of and a majority interest in
Westmoreland Resource Partners, LP, a publicly-traded coal master
limited partnership (NYSE:WMLP). Its power operations include
ownership of the two-unit ROVA coal-fired power plant in North
Carolina. For more information, visit
www.westmoreland.com.
About Westmoreland Resource Partners,
LP
Westmoreland Resource Partners, LP is a low-cost producer of
high-value thermal coal. It markets its coal primarily to large
electric utilities with coal-fired, base-load scrubbed power plants
under long-term coal sales contracts. For more information about
Westmoreland Resource Partners, LP (NYSE:WMLP), please visit
www.westmorelandmlp.com.
Cautionary Note Regarding Forward-Looking
Statements
Forward-looking statements are based on Westmoreland’s current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual results may differ materially
from those contemplated by the forward-looking statements.
Westmoreland cautions you against relying on any of these
forward-looking statements. They are statements neither of
historical fact nor guarantees or assurances of future
performance. Possible events or factors that could cause
actual results or performance to differ materially from those
anticipated in Westmoreland’s forward-looking statements include,
but are not limited to the following:
- Westmoreland’s relationships with, and other conditions
affecting, its customers, including how power prices affect its
customers’ decision to run their plants;
- Westmoreland’s ability to consummate the sale of the ROVA and
Coal Valley facilities on reasonable terms or at all;
- existing and future legislation and regulation affecting both
Westmoreland’s coal mining operations and its customers' coal
usage, governmental policies and taxes, including those aimed at
reducing emissions of elements such as mercury, sulfur dioxides,
nitrogen oxides, particulate matter or greenhouse gases;
- the effect of the Environmental Protection Agency's and
Canadian and provincial governments' inquiries and regulations on
the operations of the power plants to which Westmoreland provides
coal;
- Alberta's Climate Leadership Plan to phase out coal-fired
electricity generation by 2030;
- Westmoreland’s substantial level of indebtedness and its
ability to adhere to financial covenants related to its borrowing
arrangements;
- seasonal variations and inclement weather, which may cause
fluctuations in Westmoreland’s operating results, profitability,
cash flow and working capital needs related to Westmoreland’s
operating segments;
- Westmoreland’s ability to manage the San Juan entities;
- the effect of legal and administrative proceedings,
settlements, investigations and claims, including any related to
citations and orders issued by regulatory authorities, and the
availability of related insurance coverage;
- changes in Westmoreland’s post-retirement medical benefit and
pension obligations and the impact of the recently enacted
healthcare legislation on Westmoreland’s employee health benefit
costs;
- inaccuracies in the estimates of Westmoreland’s coal
reserves;
- Westmoreland’s potential inability to expand or continue
current coal operations due to limitations in obtaining bonding
capacity for new mining permits, and/or increases in Westmoreland’s
mining costs as a result of increased bonding expenses;
- the effect of prolonged maintenance or unplanned outages at
Westmoreland’s operations or those of its major power generating
customers;
- the inability to control costs, recognize favorable tax credits
and/or receive adequate train traffic at Westmoreland’s open market
mine operations;
- the ability or inability of Westmoreland’s power hedging
arrangements to generate cash;
- competition within Westmoreland’s industry and with producers
of competing energy sources;
- the availability and costs of key supplies or commodities, such
as diesel fuel, steel and explosives;
- potential title defects or loss of leasehold interests in
Westmoreland’s properties, which could result in unanticipated
costs or an inability to mine the properties; and
- and other risks, uncertainties and assumptions described in
Westmoreland’s periodic filings with the Securities and Exchange
Commission, including in "Risk Factors" in Westmoreland’s most
recent Annual Report on Form 10-K and subsequent filings.
Any forward-looking statements made by Westmoreland in this news
release speak only as of the date on which it was made.
Westmoreland undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
For further information please contact
Gary Kohn
Chief Financial Officer, Westmoreland Coal Company
1-720-354-4467
gkohn@westmoreland.com