8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 8-K

____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 26, 2013

__________________________________________

WESTMORELAND COAL COMPANY

(Exact Name of Registrant as Specified in Charter)

__________________________________________

Delaware	001-11155	23-1128670
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

9540 South Maroon Circle, Suite 200, Englewood, CO	80112
(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code:(855) 922-6463

_______________________________________________________

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 26, 2013, Westmoreland Coal Company (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2013. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On April 26, 2013, beginning at 10:00 a.m. Eastern Time, the Company hosted a conference call with investors to discuss the Company's financial and operating results for the first quarter ended March 31, 2013. The conference call was made available to the public via conference call and webcast. The transcript of the conference call is attached hereto as Exhibit 99.2.

The information in this Item 2.02 of the Current Report on Form 8-K and the exhibits attached hereto are being furnished and shall not be deemed “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

     (d)     Exhibits

Exhibit No.	Description
99.1	Press Release dated April 26, 2013
99.2	Transcript of April 26, 2013 Investor Conference Call

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WESTMORELAND COAL COMPANY
Date: April 30, 2013	By:	/s/ Kevin Paprzycki
		Kevin Paprzycki Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated April 26, 2013
99.2	Transcript of April 26, 2013 Investor Conference Call

EX-99.1

Exhibit 99.1

	WESTMORELAND COAL COMPANY 9540 South Maroon Circle, Suite 200 Englewood, Colorado 80112 (855) 922-6463 Telephone
NEWS RELEASE
Westmoreland Reports First Quarter 2013 Results

Englewood, CO – April 26, 2013 - Westmoreland Coal Company (NasdaqGM:WLB) today reported its first quarter results for 2013.

Highlights:

• Q1 2013 revenues grew 9.6% to $161.4 million compared with $147.2 million in Q1 2012

• Adjusted EBITDA decreased 5.9% from $27.3 million to $25.7 million

• Q1 2013 net loss applicable to common shareholders increased to $2.7 million from income of $0.5 million in Q1 2012

• Cash and cash equivalents increased $9.3 million to $40.9 million during the first quarter of 2013

• Net leverage ratio decreased from 3.0 to 2.91

• 2013 guidance for production volume, Adjusted EBITDA, and capital spending reiterated

“We consider the first quarter to be very good considering the fact that it included an outage at the Coyote plant, our Beulah Mine's primary customer, and an outage at our ROVA plant. The combined impact of these two events on the quarter was almost $6.0 million of EBITDA.” said Robert P. King, Westmoreland's Chief Executive Officer.

“Because the ROVA outage was planned and we were aware that Coyote's unplanned outage which occurred in November 2012 would extend into the first quarter, the impacts of both of these outages on the first quarter were anticipated and in line with our expectations. With both of these events behind us, we expect the second quarter to improve significantly and be stronger than last year. We remain pleased with the performance of our business and still expect 2013 adjusted EBITDA to fall in the range between $112 and $120 million, consistent with the guidance provided in our March 1, 2013 release.”

“In the first quarter, Westmoreland continued to have overall reportable and lost time incidence rates lower than the national average for surface mines. Two of our mines experienced incidents during the quarter that resulted in our overall reportable and lost time incident rates being high compared to previous performance. We have refocused our safety training and awareness efforts across the organization to improve our safety performance. We are pleased that four of our mines (Jewett, Rosebud, Absaloka and Savage) worked without a reportable injury for the quarter.”

Safety

Q1 2013 safety performance at Westmoreland mines was again better than national averages for surface operations, in line with our past experience.

	Three Months Ended March 31, 2013
	Reportable	Lost Time
Westmoreland	1.56	0.94
National Average	1.65	1.13
Percentage	94.5%	83.2%

Westmoreland News Release Page 1 of 7 April 26, 2013

Financial Results

Westmoreland's revenues in Q1 2013 increased to $161.4 million compared with $147.2 million in Q1 2012 due to the Kemmerer acquisition and increased tonnage due to stronger power demand and favorable weather conditions. First quarter revenue growth was offset by an unplanned customer outage at the Beulah Mine and a planned annual maintenance outage at the ROVA power plant, which in 2012 occurred during the second quarter.

Westmoreland's Q1 2013 Adjusted EBITDA decreased to $25.7 million from $27.3 million in Q1 2012. This decrease was driven by the timing of the planned maintenance outage at ROVA, the Beulah Mine customer shutdown, and increased royalties and timing of maintenance costs at our Kemmerer Mine.

Westmoreland's Q1 2013 net loss to common shareholders increased by $3.2 million, from $0.5 million of income ($0.04 per basic and diluted share) in Q1 2012 to $2.7 million of loss ($0.19 per basic and diluted share) in Q1 2013.

Coal Segment Operating Results

The following table summarizes Westmoreland's Q1 2013 and Q1 2012 coal segment performance:

	Three Months Ended March 31,
					Increase / (Decrease)
	2013		2012		$			%
	(In thousands, except per ton data)
Revenues	$	142,112	$	126,514	$	15,598		12.3	%
Operating income	13,472		14,437		(965		)	(6.7	)%
Adjusted EBITDA	29,906		29,158		748			2.6	%
Tons sold - millions of equivalent tons	6.1		5.5		0.6			10.9	%

Westmoreland's first quarter 2013 coal segment revenues and Adjusted EBITDA increased primarily due to the Kemmerer acquisition and increased tonnage demand due to stronger power demand and favorable weather conditions. These increases were partially offset by an unplanned customer outage at the Beulah Mine and increased royalties and timing of maintenance costs at the Kemmerer Mine.

Power Segment Operating Results

The following table summarizes Westmoreland's Q1 2013 and Q1 2012 power segment performance:

	Three Months Ended March 31,
						Increase / (Decrease)
	2013			2012		$			%
	(In thousands)
Revenues	$	19,336		$	20,722	$	(1,386	)	(6.7	)%
Operating income	(1,003		)	2,789		(3,792		)	(136.0	)%
Adjusted EBITDA	1,709			5,467		(3,758		)	(68.7	)%
Megawatts hours	340			373		(33		)	(8.8	)%

Westmoreland's power revenues and Adjusted EBITDA for the first quarter of 2013 decreased due to a planned annual maintenance outage at the ROVA power plant. In 2012, this planned maintenance outage occurred during the second quarter.

Nonoperating Results

Heritage and Corporate expenses for Q1 2013 remained at levels consistent with Q1 2012.

Interest expense for Q1 2013 increased to $10.2 million from $9.9 million in Q1 2012 as a result of the Kemmerer acquisition debt issued in January 2012.

Westmoreland News Release Page 2 of 7 April 26, 2013

Cash Flow, Liquidity, and Leverage

Q1 2013 operating cash flows increased to $21.2 million, enabling a strong ending cash position of $40.9 million. Total debt repayment during Q1 2013 was $6.6 million.

As of March 31, 2013, Westmoreland had total liquidity of $84.0 million, including cash on hand, and $23.1 million and $20.0 million of credit availability under the WML and corporate revolving lines of credit, respectively. Both of the credit facilities had no borrowings with one outstanding letter of credit in the amount of $1.9 million on the WML line.

During Q1 2013, Westmoreland's Net Leverage Ratio decreased to 2.91.

	March 31,	December 31,
Leverage Ratios	2013	2012
	(In millions)
Gross Debt	356.3	361.0
Less:
Cash & Cash Equivalents	40.9	31.6
Debt Service Reserves	13.1	13.1
Net Debt	302.3	316.3
Adjusted EBITDA (for the twelve months ended)	103.8	105.4
Gross Leverage	3.43	3.43
Net Leverage	2.91	3.00

Conference Call

A conference call regarding Westmoreland Coal Company's first quarter 2013 results will be held on April 26, 2013, at 10:00 a.m. Eastern Time. Call-in numbers are:

Live Participant Dial In (Toll Free): 877-407-9210

Live Participant Dial In (International): 201-689-8049

About Westmoreland Coal Company

Westmoreland Coal Company is the oldest independent coal company in the United States. The Company's coal operations include sub-bituminous coal mining in the Powder River Basin in Montana and Wyoming, and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. For more information, visit www.westmoreland.com.

Westmoreland News Release Page 3 of 7 April 26, 2013

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. Our actual results may differ materially from those contemplated by the forward-looking statements, including that Westmoreland may not achieve the projected sales tons, adjusted EBITDA or capital expenditure targets. 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. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political, economic, business, competitive, market, weather and regulatory conditions.

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.

# # #

Contact: Kevin Paprzycki (855) 922-6463

Westmoreland News Release Page 4 of 7 April 26, 2013

Westmoreland Coal Company and Subsidiaries

Consolidated Statements of Operations (Unaudited)

	Three Months Ended March 31,
	2013			2012
	(In thousands, except per share data)
Revenues	$	161,448		$	147,236
Cost, expenses and other:
Cost of sales	130,421			110,763
Depreciation, depletion and amortization	14,426			13,289
Selling and administrative	11,887			13,535
Heritage health benefit expenses	3,951			3,810
Loss on sales of assets	(234		)	38
Other operating income	(4,737		)	(3,284		)
	155,714			138,151
Operating income	5,734			9,085
Other income (expense):
Interest expense	(10,160		)	(9,883		)
Interest income	297			406
Other income	70			177
	(9,793		)	(9,300		)
Loss before income taxes	(4,059		)	(215		)
Income tax expense	28			7
Net loss	(4,087		)	(222		)
Less net loss attributable to noncontrolling interest	(1,702		)	(1,080		)
Net loss attributable to the Parent company	(2,385		)	858
Less preferred stock dividend requirements	340			340
Net income (loss) applicable to common shareholders	$	(2,725	)	$	518
Net income (loss) per share applicable to common shareholders:
Basic and diluted	$	(0.19	)	$	0.04
Weighted average number of common shares outstanding
Basic	14,282			13,861
Diluted	14,282			13,968

Westmoreland News Release Page 5 of 7 April 26, 2013

Westmoreland Coal Company and Subsidiaries

Summary Financial Information (Unaudited)

	Three Months Ended March 31,
	2013			2012
	(In thousands)
Cash Flow
Net cash provided by operating activities	$	21,216		$	12,988
Net cash used in investing activities	(5,725		)	(102,571		)
Net cash provided by (used in) financing activities	(6,249		)	108,907

	March 31, 2013			December 31, 2012
	(In thousands)
Balance Sheet Data
Total cash and cash equivalents	$	40,852		$	31,610
Total assets	943,015			$	936,115
Total debt	356,286			360,989
Working capital deficit	(2,950		)	(11,600		)
Total deficit	(286,530		)	(286,231		)
Common shares outstanding	14,365			14,201

The tables below show how we calculated Adjusted EBITDA, including a breakdown by segment, and reconciles Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. Concerning the Year Ended December 31, 2012 column, please refer to our Annual Report on Form 10-K for the year ended December 31, 2012. The Twelve Months Ended March 31, 2013 column is calculated from the prior three columns.

	Three Months Ended March 31,
	2013			2012
	(In thousands)
Adjusted EBITDA by Segment
Coal	$	29,906		$	29,158
Power	1,709			5,467
Heritage	(4,175		)	(4,010		)
Corporate	(1,784		)	(3,286		)
Total	$	25,656		$	27,329

Westmoreland News Release Page 6 of 7 April 26, 2013

	Three Months Ended March 31,						Year Ended December 31,			Twelve Months Ended March 31,
	2013			2012			2012			2013
	(In thousands)
Reconciliation of Adjusted EBITDA to net loss
Net loss	$	(4,087	)	$	(222	)	$	(13,662	)	$	(17,527	)
Income tax expense (benefit)	28			7			90			111
Other loss (income)	(70		)	(177		)	(723		)	(616		)
Interest income	(297		)	(406		)	(1,496		)	(1,387		)
Loss on extinguishment of debt	—			—			1,986			1,986
Interest expense	10,160			9,883			42,677			42,954
Depreciation, depletion and amortization	14,426			13,289			57,145			58,282
Accretion of ARO and receivable	3,180			2,853			12,189			12,516
Amortization of intangible assets and liabilities	164			162			658			660
EBITDA	23,504			25,389			98,864			96,979
Loss on sale of assets	(234		)	38			528			256
Share-based compensation	2,386			1,902			6,040			6,524
Adjusted EBITDA	$	25,656		$	27,329		$	105,432		$	103,759

EBITDA and Adjusted EBITDA are supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. EBITDA and Adjusted EBITDA are included in this news release because they are key metrics used by management to assess Westmoreland’s operating performance and Westmoreland believes that EBITDA and Adjusted EBITDA are useful to an investor in evaluating our operating performance because these measures:

• are used widely by investors to measure a company’s operating performance without regard to items excluded from the calculation of such terms, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors; and

• help investors to more meaningfully evaluate and compare the results of Westmoreland’s operations from period to period by removing the effect of our capital structure and asset base from our operating results.

Neither EBITDA nor Adjusted EBITDA is a measure calculated in accordance with GAAP. The items excluded from EBITDA and Adjusted EBITDA are significant in assessing Westmoreland’s operating results. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, analysis of our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:

• do not reflect our cash expenditures, or future requirements for capital and major maintenance expenditures or contractual commitments;

• do not reflect income tax expenses or the cash requirements necessary to pay income taxes;

• do not reflect changes in, or cash requirements for, our working capital needs; and

• do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on certain of our debt obligations.

In addition, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Other companies in our industry and in other industries may calculate EBITDA and Adjusted EBITDA differently from the way that Westmoreland does, limiting their usefulness as comparative measures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of its business. Westmoreland compensates for these limitations by relying primarily on its GAAP results and using EBITDA and Adjusted EBITDA only as supplemental data.

Westmoreland News Release Page 7 of 7 April 26, 2013

EX-99.2

Exhibit 99.2

Transcript of

Westmoreland Coal Company

2013 First Quarter Investor Conference Call

April 26, 2013

Presenters

Robert King -Chief Executive Officer

Kevin Paprzycki - Chief Financial Officer

Keith Alessi - Chairman

Doug Kathol - Executive Vice President

Participants

Charles Frischer - LF Partners

David Olkovetsky - Jefferies and Company

Bob Clutterbuck - Clutterbuck Capital

Matt Farwell - Imperial Capital

Brian Taddeo - Robert W. Baird

Presentation

Operator

Good morning ladies and gentlemen, and welcome to Westmoreland Coal Company's Investor Conference Call. At this time, all telephone participants are in a listen-only mode. Following the formal presentation, instructions will be given for the question and answer session which will be conducted by phone. Web participants wishing to ask a question will need to dial-in by telephone to the audio portion of the call. If anyone needs operator assistance at any time during the conference please press the star key followed by the zero on your telephone keypad. As a reminder, this conference is being recorded today, and a replay will be made available as soon as it is practical on the investor portion of the Westmoreland website through October 26, 2013.

Management's remarks today may contain forward-looking statements based on the company's projections, current expectations and assumptions regarding the 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. The company's actual results may differ materially from the projections given and results discussed and any such forward-looking statements.

For a summary of risk factors and other information regarding forward-looking statements, please refer to the company's Form 10-K for fiscal year 2012 as well as the company's Form 10-Q for the first quarter expected to be filed with the Securities and Exchange Commission on April 30, 2013. Any forward-looking statements

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represent the company's views only as of today and should be not relied upon as representing its view on any subsequent dates. While the company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so even if estimates change, and therefore, you should not rely on forward-looking statements as representing the company's views as of any date subsequent to today.

Mr. Robert P. King, Chief Executive Officer of Westmoreland Coal Company will be delivering today's remarks. Thank you, Mr. King. Please begin.

Robert King - Chief Executive Officer

Thank you and good morning. Joining me today are Kevin Paprzycki, our CFO; Keith Alessi, our Chairman; and Doug Kathol, our Executive Vice President. This morning, we released our first quarter numbers, and based on Q1 financial performance, I'd say that the quarter was very much in line with what we expected, and our business model continues to prove itself.

This quarter was negatively impacted by a couple of items relative to Q1 of last year. The first of those being the outage of the Coyote Plant that impacted our Beulah sales and that's the outage extended from 2012 into the first quarter, and the second item was moving the ROVA spring outage from Q2 into Q1. We anticipated both of those items going into the quarter. So, Q1 had no real surprises for us and came in line with what we expected.

In our last call, we indicated that we expected the odd-number quarters of 2013 to be relatively flat with last year and the even quarters having some upside relative to last year, and we still believe that's going to the case with Q1 being our weakest quarter. Historically, the second quarter has generally been our weakest quarter, but this year, it appears that we're going to get some uplift due to lower snow packs in the Columbia River Basin, and that's already resulting in some decrease in hydro generation and an increase at Costrip, which is supplied by our Rosebud Mine. We're seeing that generation being heavier and expected to go longer than it went in Q2 of last year.

We also expect ROVA to run more in the second quarter versus the same quarter last year as we shifted its annual outage from Q2 into Q1 of this year. Overall, we're also seeing gas prices that are significantly higher than they were last year and expect general competitiveness and dispatch of coal generation to be better than it was last year. So, we think things are looking pretty good.

When we look at the quarter and we look at the rest of the industry, we continue to see a lot of pressure on coal companies and on their share prices and that includes pressure on our own, based on just sector pressure. Fundamentally, coal demand has not recovered significantly. Steam export market continues to be weak. There's indication that China's economy is slowing down and the sector is under a lot of pressure and there continues to be a lot of idle capacity out there.

Fortunately, our business model is somewhat resistant to market forces and we continue to believe that our customers are well-positioned to be competitive in the electricity market due to the mine-mouth model that we generally have. Despite all

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the sector issues, we're in pretty good shape, and we expect 2013 to be a very good year. That of course assumes that we don't have any major unexpected customer outages or no major issues that come up at our mines, but right now, things are looking pretty good. We continue to believe that our model should differentiate us from the rest of the industry and that the macro coal issues that are out there shouldn't be much of a consideration in evaluating our value relative to others in the industry.

For the quarter, there are a couple of other things I'd like to note, first, in line with our strategic goals of securing reserves to support long-term sustainability, we recently reported that with the addition of our Tract I lease at Absaloka that we did with the Crow Tribe and new coal leases from private land owners at Rosebud, Westmoreland has reached a billion tons of combined reserves and resources. This is a pretty significant milestone for us, and increasing our reserves and resources is something that we said we wanted to do and that we needed to do over the last couple of years for mine sustainability. We're very happy that we were able to reach that billion ton mark and we think it's a pretty significant milestone.

Additionally, in March, the Burlington Northern, we talked about this for some months now, the western wye at our Absaloka Mine, the Burlington Northern has begun construction on the switches and signals on the western wye, and this switching will allow us to begin marketing shipments to the west once it's completed. We are still anticipating a project completion date for that project sometime in mid-June, but it's good to know that the BN has actually begun construction on it and we don't expect any delays to that project.

Let's talk about operational performance for the quarter. Operationally during the first quarter, Westmoreland Mines again experienced no major operational or maintenance issues and everything performed well. When we look at sales and production for the quarter, the only significant issues were the outage at the Coyote Plant impacting Beulah, which we talked about a little bit already. That plant went down in November of 2012 and came back up in February of this year. Overall, in the first quarter, this outage reduced Beulah sales by about 330,000 tons.

The other major kind of issue that's out there is the Sherco 3 Plant outage continues to impact coal sales from Absaloka. Somewhere between 600,000 and 700,000 tons of coal sales were lost in the quarter due to the Sherco outage. That plant is expected to be back in service near the end of September. So that issue will continue to impact our sales through Q2 and Q3.

The timeframe on that plant coming back up has slipped a little from the last time we talked I think. It's now end of September, but based on the representations that Xcel is making relative to that plant, we're pretty confident that that timing is going to hold, and it'll be back up in operation in September. Business interruption insurance continues to mitigate the impact of that outage.

Finally, moving the ROVA outage from the second quarter to the first quarter did impact our results. The moving of that outage was a conscious decision that we made due to the excess force outages we were experiencing and that we reported in

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our last call. The remainder of our facilities ran at or above budgeted rates and our customers took their planned or contracted tons.

With that, I'm going to turn it over to Kevin to go over the numbers.

Kevin Paprzycki - Chief Financial Officer

Thanks Bob. Good morning. Our first quarter EBITDA came in at 25.7 million. That was down about 1.7 million or 6% from the first quarter of 2012, and as Bob indicated, our Q1 EBITDA was impacted by the Beulah outage, which year-on-year was probably down about $1.4 million and that maintenance shift that he described usually has an impact of about $4.5 million in the quarters where we plan those outages. So, of course, we expect to get that ROVA impact back in Q2.

Our first quarter revenue came in just over a $161 million. That's an increase of about a little over $14 million, almost 10%. That of course was driven by having a full quarter of Kemmerer revenue in there but it was also driven by stronger Colstrip generation and the weather patterns that we have seen up there. The impact of the Beulah outage and the ROVA maintenance outage shift also impacted our operating income which came in at $5.7 million and the net loss, which came in at 2.7 million.

During the quarter, we did generate over $9 million of cash to increase our cash and cash equivalents to $40.9 million. We were able to do that with a fairly light capital quarter. We spent $5.4 million in capital in Q1, but we're pleased that we were able to increase our cash especially after making $4.5 million of WML amortization payments as well as $16 million of interest payments as our large senior note interest payments that were due during the quarter.

We reduced our net leverage ratio again below 3 down to 2.91 during the quarter, and we expect to continue deleveraging over the course of the year. We did not buy any senior notes back during the quarter but will continue to monitor how the year is progressing and we will be looking for that going forward.

Our total liquidity increased to $84 million at the end of the first quarter between our cash and the two revolving lines of credit that we have.

Lastly, just to reiterate our guidance, based on what we see right now, we're basically going to reiterate the full year 2013 guidance that we gave at the end of the year. Our EBITDA we believe will still come in between $112 million and $120 million and we still expect our full year of capital to be within the $23 million to $28 million original guidance range, though we will expect our capital to pick up a little bit in Q2 as we complete the western wye.

With that, I'll hand it back to Bob.

Robert King - Chief Executive Officer

Thanks, Kevin. Before we open it up for questions, I'd like to make a couple of closing comments and also kick it over to Keith a little bit to see if he has something to say. First, I'd like to say we consider this to be a very good quarter considering the outages at Coyote, Sherco 3 and ROVA. We remain very pleased with the performance of our

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business, and we still expect 2013 adjusted EBITDA to fall in the $112 million to $120 million range, which is consistent with the guidance that we previously provided.

Last, as we discussed in our last call, the first week of this month, Keith Alessi moved up to the Executive Chairman role and I assumed the CEO role here at Westmoreland. Both Keith and Dick Klingaman, who has assumed the role of head lead director, have provided exceptional leadership for the company over the past few years and really positioned the company for success. I'd like to thank them for the shape that the company is in as I take over as CEO and they will continue to play significant roles for Westmoreland going forward and providing important continuity and be important resources for me to draw on as we go forward.

Strategically, our direction remains the same and that is we're going to continue to manage and drive down our costs, work with our customers to maximize their dispatch. We'll continue to acquire reserves and resources to ensure long-term life and sustainability of our mines. We'll continue to delever the business with free cash flows going to reduce our debt, and finally, we'll continue to look for cash-accretive acquisitions like Kemmerer and other opportunities to grow the business and create shareholder value.

At that, that's all I have to say and I'll kick it over to Keith for any comments. Keith?

Keith Alessi - Chairman

Thanks, Bob. I just would like to point out a couple things. I know a number of folks who are on the call probably saw the Seeking Alpha article online here earlier this week, but I think it's probably one of the better pieces that have been written in terms of describing our business model and the differentiation between us and the other models in the industry. I highly recommend it as a short summary of the business model.

Interestingly, they had excerpted from our investor relations package that we recently put out, and I also encourage folks to look at that. We issued the 8-K earlier in April around the 10^th of the month or so. Kevin and I had the opportunity to present at the Jefferies Bond Conference earlier this month and we used those materials. It's a fresh deck. It's got updated information, it shows great trend analysis and some interesting comparables to the rest of the industry. It also really, I thought, succinctly summarized the state of power generation and specifically power generation patterns of our customer base. So, I encourage people to take a look at that, and with that, let's open it up for questions.

Operator

(Operator instructions). Our first question comes from the line of Charles Frisher with LF Partners. Please proceed with your question.

Charles Frischer - LF Partners

Good morning gentlemen, nice quarter. Obviously, at $2.50 or $2.00 a Mcf, the tradeoff between coal and gas is not as favorable to us. Can you talk about some of the trends you're seeing now that the natural gas is over $4.00 for the last few months in the business?

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Robert King - Chief Executive Officer

Over the last year, there was a lot of capacity as far as drilling capacity that came out of the gas industry with the low pricing. The amount of rigs that were out there has dropped significantly. With the prices that were out there last year, drilling slowed down and obviously the supply/demand equation is balancing at a higher level. We believe that this level is the more sustainable level because in that $2.00 range, nobody's going to make money in the gas industry regardless of what kind of wells they're drilling, and so, the $4.00 to $6.00 range of gas is what we think is long-term sustainable for them to be able to make money and the place that it ought to balance out at going forward.

Based on that, our plants are competitive all day long. We're competitive even down into the $2.00 range at our mine-mouth plants, and so, [we] don't see gas as being a major factor for us especially as prices are increasing on gas.

Charles Frischer - LF Partners

Okay, thanks Bob. My next question is about the 10.75% bonds and I understand that they're pre-payable in February of 2015 at 103.5-ish and in addition, the bond covenants restrict all sorts of activities including dividend payments and share buyback acts and other corporate actions. I guess is it fair to say that if the markets are agreeable and we're able to refinance those bonds in 2015 that it would give the company also some interesting potential capital allocation strategies that you might think about at that time?

Kevin Paprzycki - Chief Financial Officer

I think that was pretty well said. I think Keith talked about it in the last call. We're kind of tied down right now, but somewhere down the line, there's an optimal capital structure for us.

Charles Frischer - LF Partners

Terrific, thanks Kevin. I have another question if I could. In the last six to twelve months, have you seen any trends in regards to frequency or severity of claims on the health or the pension side?

Robert King - Chief Executive Officer

No. In fact, our overall costs [continue] to drop incrementally as the population of folks decreases.

Kevin Paprzycki - Chief Financial Officer

I think our heritage cash spend in the first quarter continued at a pace that was even better than what we did in 2012. So, we're optimistic there.

Charles Frischer - LF Partners

I don't know if I heard you correct, Bob. The second quarter typically has been the weakest of the company. We've averaged about $14 million of EBITDA the last couple of quarters. Did I hear you say that the first quarter this year is going to be our weakest quarter, not the second quarter?

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Robert King - Chief Executive Officer

That is correct.

Charles Frischer - LF Partners

If you could, if you could bear me with one more question-are there any contracts that are coming up for renewal in '14 or '15 that at this point do not look likely to be renewed?

Robert King - Chief Executive Officer

From a contracting basis, we don't have anything coming up in that timeframe, and we're contracted pretty much beyond that in most cases. Obviously, the outlier-the closest one on the radar is Beulah, which we previously announced is going away in 2016.

Charles Frischer - LF Partners

Then, one more if I could, I'm sorry for being so greedy on this, but in your slide deck, you had some mention of the possibility, I know this is not imminent, of exporting out possibly the-obviously, China and India are big buyers of coal. Is there a facility or a port capacity at all that would be available to us now or would we have to wait for something like Gateway and Washington State to kind of become operational before we could take advantage of shipping coal out west?

Robert King - Chief Executive Officer

The biggest problem is port infrastructure for exports. Obviously, there may be small allocations of capacity that come up over time, but right now, generally speaking, there isn't adequate infrastructure to accept much more than is going out now, and we're not, as I said the last time in the last call, we're not hanging our hat on the export strategy. Although if it develops, it's something that we can take advantage of and we would be excited to do so.

Charles Frischer - LF Partners

Terrific, thanks a lot, guys. Thanks a lot.

Operator

Our next question comes from the line of David Olkovetsky with Jefferies and Company. Please proceed with your question.

David Olkovetsky - Jefferies and Company

Hey guys, thanks for taking the questions. First, on Beulah, I guess my understanding is that they've signed with another power provider. Do you have any insight into what they're trying to accomplish there? If I'm not mistaken, that's a mine-mouth operation and I just don't understand how they could find somebody who's less expensive. Can you give me a little bit of sense of what's going on there?

Robert King - Chief Executive Officer

We're actually struggling with that same question. We don't understand how somebody could do it less expensively than we could, but we really can't comment on what other companies are doing or how they're doing it. Obviously, our customer, and we value that customer, has decided to go down a path that's different from us, but it's not something we truly understand.

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David Olkovetsky - Jefferies and Company

Is there any possibility that they will change their mind and has the contract, if you know, has that contract been signed for the full amount of coal that that plant requires or is it for a partial amount? Any sense on that?

Robert King - Chief Executive Officer

To our knowledge, they are contracted to do the entire amount. We have no expectations at this point in time that they'll change their minds.

Keith Alessi - Chairman

If I can add a little bit more color to that, we do not anticipate them coming back to us. That said, we've developed other plans and are developing other plans on how to utilize the assets at that facility. The modeling that we provided for both the rating agencies last year basically had Beulah very close to a zero contribution. We believe that in fact it's going to be much bigger than that in the out years and I think you'll hear more about what we have got planned for the Beulah operation over the next several quarters.

David Olkovetsky - Jefferies and Company

But you do have some plans to sell that coal somewhere, essentially, is that what I'm understanding?

Keith Alessi - Chairman

We have plans to either sell coal, utilize the facilities in place for other purposes or to use those assets in other ways, but we believe that there's value to be derived from the operation and its assets.

David Olkovetsky - Jefferies and Company

Can you comment a little bit about Patriot Coal's bankruptcy and if that's impacting you guys in any way in terms of legacy liabilities?

Robert King - Chief Executive Officer

With regard to legacy liabilities, it should not impact us because we're not in the same pool that Patriot is in. So, from that standpoint in our heritage costs, it should not be an issue.

David Olkovetsky - Jefferies and Company

I apologize, just one more question. It's on the Dominion situation. Has there been any thought given to potentially selling those assets to Dominion so that they can reverse integrate it? Is that something that they would be interested? Is it something that you would be interested in?

Robert King - Chief Executive Officer

I'll let Doug Kathol answer that.

Doug Kathol - Executive Vice President

We believe that these are very good assets. They're excellent because they're new. They're good environmental back-ins on them, and we are engaged with discussions with a number of entities that would be logical in this.

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David Olkovetsky - Jefferies and Company

Ok great, thank you very much guys. Appreciate it.

Operator

Our next question comes from the line of Bob Clutterbuck with Clutterbuck Capital Management. Please proceed with your question.

Bob Clutterbuck - Clutterbuck Capital Management

Good morning guys, and I think a good continuation to what you have going on. All of my questions have been answered save one. I might have one follow up to that. Bob, when you talked about the wye and Burlington Northern finishing, they're putting the switches on now and plus or minus of mid-June completion date, I know on the last call, we certainly don't expect any revenues in 2013. But have the tests continued, the test burns continued or do we have to wait until the wye is completed before the tests burns? I'm not sure how that procedure works. Can you give any more color on it as to expectations for new clients and revenues out of that?

Robert King - Chief Executive Officer

We do have some small test burns coming out of Absaloka that have not required that wye. However, we do have a major test burn coming up in the third quarter of this year that does require the wye and we will begin shipments for that test burn as soon as the wye is completed. That's relatively major tonnage, and it would be very important for us if we could get that business on a long-term basis. So, we'll begin shipping for that test burn as soon as the wye is completed.

Bob Clutterbuck - Clutterbuck Capital Management

Thank you. I just have one follow up. I just want to make sure I understood looking at our spreadsheets and as you well know historically second quarter is always been the lowest quarter, but I thought in the answer to the first person's question, you said you didn't anticipate that to be the case this year. Is that correct?

Robert King - Chief Executive Officer

No, we have Beulah back running full bore and the outage that would have been normally scheduled for Q2 at ROVA was shifted to Q1. So, ROVA will be running. In addition to that, we are seeing additional generation requirements out of Colstrip due to the low hydro that's out there in the Columbia River Basin. The Columbia River Basin is about 6% lower on snowpack than historically and actual hydrogeneration is significantly lower than it has been in the last couple of years. So, we expect Q2 to get an uplift for all of those reasons, and because of that, we would expect it to be higher than Q1 and higher than traditionally seen.

Bob Clutterbuck - Clutterbuck Capital Management

Okay, terrific. I will turn the floor over to somebody else and keep it going.

Bob King - Chief Executive Officer

Thank you Bob.

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Operator

Our next question comes from the line of Matt Farwell with Imperial Capital. Please proceed with your question.

Matt Farwell - Imperial Capital

Hi, good morning, great quarter. Just a quick question on the M&A since I don't think it was asked. What are the chances that we do see some M&A this year? Have the conditions improved, and if so, how would you finance it? Would it be the tack on to the existing notes?

Robert King - Chief Executive Officer

Well, first I'd say, and we say this in every call, but we are continually looking for opportunities. We in fact are looking at several opportunities very closely right now. We don't know how they'll come out, but we definitely are looking. We think the market is right for it based on value, and it is something that we would hope to accomplish or get substantially accomplished this year. Obviously, with M&A, things happen when they happen and things become available when they become available. So, we're going to try to be aggressive in identifying and looking for opportunities and diligently trying to see if we can get something done.

Keith Alessi - Chairman

I think you also see, much like we did when they did Kemmerer, that we will be creative in how we choose to finance any M&A activity that comes to fruition and that could be by a tack on onto the bonds if appropriate, by assumption of liabilities if that's an option, and there might even be some structural intrigue involved in some of the situations we're looking at that could perhaps involve certain types of arbitrages that could accrue to the value of the shareholders. So, it's situational specific, but all options are on the table that make sense. We're driven by value, liquidity, and certainly shareholder value is an important consideration that will weigh heavily on whatever structure we choose.

Matt Farwell - Imperial Capital

Great, thanks a lot for the call in.

Bob King - Chief Executive Officer

Thank you Matt

Operator

Our next question comes from the line of Brian Taddeo with Robert W. Baird. Please proceed with your question.

Brian Taddeo - Robert W. Baird

Hi, good morning everybody. I just had one quick follow up. Thanks for all the color on everything else this morning. One quick follow up on ROVA-in the past, you've talked about potentially getting something done by the end of this year, maybe early '14. Just curious, I know you commented a little bit earlier, but is there any update as to how the conversations are going? Should we expect that this will get resolved before the first contract rolls off in '14?

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Doug Kathol - Executive Vice President

I think that's good guidance. We're optimistic, but all things in this field take time and we would hope to get something done this year, but if not, we'll get something done in '14.

Keith Alessi - Chairman

We've done some things that it's really clear there also that really extends the runway that we have available to us based on some ways we've run the operation. So, the date that the contract expires is not a critical date in the total scheme of things. We have some longer runway than that based on operational changes we've made.

Brian Taddeo - Robert W. Baird

Okay, thank you very much. Great quarter.

Operator

There are no further questions at this time. I'd like to turn the floor back over for closing comments.

Robert King - Chief Executive Officer

I'd just like to thank everybody for being on the call, and if there are any other questions, please give Kevin a call and he'll be happy to answer those. I think we've basically said everything we need to say. So, thank you and good morning.

Operator

Thank you. This concludes today's Investor Conference Call. If you would like to access this call for a digital replay, you may dial 877-660-6853 or 201-612-7415 and enter conference ID number 412373. Thank you very much.

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