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): November 8, 2011

WESTMORELAND COAL COMPANY

(Exact name of registrant as specified in its charter)

Delaware	001-11155	23-1128670
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2 North Cascade Avenue, 2nd Floor, Colorado Springs, CO	80903
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (719) 442-2600

(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:

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 November 8, 2011, Westmoreland Coal Company (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2011. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

On November 8, 2011, 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 three months ended September 30, 2011. 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 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 November 8, 2011
	99.2	Transcript of 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: November 10, 2011	By:	/s/ Russell H. Werner
		Russell H. Werner
		Controller and Principal Accounting Officer (a duly authorized officer)

EXHIBIT INDEX

Exhibit No.		Description
	99.1	Press Release dated November 8, 2011
	99.2	Transcript of Investor Conference Call

EX-99.1

EXHIBIT 99.1

Westmoreland Coal Company	2 N. Cascade Ave., 2nd Floor
(719) 442-2600 — Telephone	Colorado Springs, CO 80903

Westmoreland Reports
Third Quarter 2011 Results

Colorado Springs, CO — November 8, 2011 — Westmoreland Coal Company (NasdaqGM:WLB) today reported its third quarter results for 2011.

Highlights:

• Operating income increased $0.8 million from $7.8 million in Q3 2010 to $8.6 million in Q3 2011. Year to date 2011 operating income was $15.0 million compared to 2010 year to date operating income of $14.5 million.

• Adjusted EBITDA increased $1.4 million during Q3 2011 to $24.2 million as compared to $22.8 million in Q3 2010. Year to date 2011 Adjusted EBITDA was $61.7 million compared to year to date 2010 Adjusted EBITDA of $60.4 million.

• Net income applicable to common shareholders of $2.4 million ($0.18 per basic and diluted share) for Q3 2011 compared to Q3 2010 net income of $2.5 million ($0.23 per basic and diluted share). Year to date net loss for 2011 was $23.3 million compared to a year to date 2010 net income of $0.2 million. The 2011 net loss includes $17.0 million in charges related to the refinancing of debt in February 2011 and $3.2 million of expense on the conversion feature’s fair value adjustment.

• Westmoreland again continued its strong safety performance achieving reportable and lost time incident rates 55.5% and 52.5%, respectively, of the national averages for surface operations for the third quarter of 2011.

• During the third quarter of 2011, Westmoreland’s Western Energy Mine received an Excellence in Surface Coal Mining Award from the Office of Surface Mining for its reclamation efforts at the Company’s mine in Colstrip, Montana.

“We are very pleased with our third quarter results,” said Keith E. Alessi, Westmoreland’s President and CEO. “Despite losing significant tons again this quarter to flooding and record levels of hydropower generation, we managed to increase both our operating income and Adjusted EBITDA over the prior year. Additionally, through excellent preparation and response, our ROVA Power operation minimized its downtime and mitigated impacts Hurricane Irene had on our third quarter operations.”

“We are also very pleased with the continuation of our strong safety performance during the third quarter of 2011 as we again beat the national surface mine averages. We take great pride in another major mining award as our Western Energy Mine in Colstrip, Montana received the Office of Surface Mining’s Directors Award for Excellence in Surface Coal Mining.”

“During the quarter we made progress on one of our key strategic initiatives, the addition of new coal reserves, as we continued negotiations with resource owners at several at our mines. We hope to complete at least one of these negotiations by year end. In line with another of our key strategic initiatives, we also continue to explore opportunities to grow our business through the acquisition of operations that fit our core mine mouth business model.”

Westmoreland’s 2011 year to date net income includes $17.0 million of charges related to the refinancing of debt in February 2011 and $3.2 million of expense on the fair value adjustment on the conversion feature in the Company’s convertible debt that was for the most part converted to common stock and retired in February 2011. 2010 year to date net income included $0.9 million of expense related to the impact of the fair value adjustment of the conversion feature and the related debt discount. Excluding those items, net income decreased by $0.5 million.

The Company’s revenues in Q3 2011 increased to $132.4 million compared with $124.1 million in the third quarter of 2010. This increase was primarily driven by an increase in the Company’s coal segment revenues due to increased sales at its Absaloka, Beulah, and Jewett Mines. Favorable pricing also contributed to the increased revenues.

Westmoreland’s Adjusted EBITDA increased to $24.2 million in Q3 2011 from $22.8 million in Q3 2010.

Coal Segment Operating Results

The following table summarizes the Company’s Q3 2011 and Q3 2010 coal segment performance:

	Three Months Ended September 30,
					Increase / (Decrease)
	2011		2010		$			%
Revenues (in thousands)	$	108,823	$	100,482	$	8,341			8.3	%
Operating income (in thousands)		9,679		8,869		810			9.1	%
Adjusted EBITDA (in thousands)		22,070		20,839		1,231			5.9	%
Tons sold — millions of equivalent tons		6.0		6.5		(0.5	)		(7.7	)%
Operating income per ton sold	$	1.61	$	1.36	$	0.25			18.2	%

Westmoreland’s coal revenues for the third quarter of 2011 increased to $108.8 million compared with $100.5 million in the third quarter of 2010. This $8.3 million increase was primarily due to increased sales at the Absaloka, Beulah, and Jewett Mines. Favorable pricing also contributed to the increased revenues. Overall tons sold decreased during the quarter due to lower sales at the Rosebud Mine as a result of favorable hydropower conditions, however revenues were largely unaffected due to favorable pricing.

Coal segment operating income was $9.7 million in the third quarter of 2011 compared to $8.9 million in the third quarter of 2010. This $0.8 million increase was primarily driven by favorable pricing.

Power Segment Operating Results

The following table summarizes the Company’s Q3 2011 and Q3 2010 power segment performance:

	Three Months Ended September 30,
					Increase / (Decrease)
	2011		2010		$			%
	(In thousands)
Revenues	$	23,626	$	23,598	$	28			0.1	%
Operating income		4,694		5,059		(365	)		(7.2	)%
Adjusted EBITDA		7,441		7,761		(320	)		(4.1	)%
Megawatts hours		445		439		6			1.4	%

The Company’s power segment revenues for the third quarter of 2011 were comparable with our third quarter 2010 power segment revenues.

Power segment operating income decreased to $4.7 million in the third quarter of 2011 compared to $5.1 million in the third quarter of 2010. This $0.4 million decrease was primarily from increased property tax expense.

Heritage Segment Operating Results

The Company’s third quarter 2011 heritage operating expenses of $4.1 million are comparable to $4.7 million in the third quarter of 2010.

Corporate Segment Operating Results

The Company’s corporate segment operating expenses for the third quarter of 2011 of $1.7 million are comparable to $1.4 million in the third quarter of 2010.

Nonoperating Results

The Company’s interest expense for the third quarter of 2011 increased to $7.7 million compared with $5.8 million for the third quarter of 2010. This increase was primarily due to the higher overall debt levels resulting from the February 2011 note offering.

The Company’s other income for the third quarter of 2011 of $0.1 million was comparable to the third quarter of 2010.

Cash Flow from Operations and Liquidity

Cash provided by operating activities decreased by $3.6 million in the nine months ended September 30, 2011 compared to the nine months ended September 30, 2010, primarily due to the increase in interest payments in 2011 related to the issuance of the Company’s new notes in February 2011.

Safety

Safety performance at Westmoreland mines continued to be significantly better than the national average for surface operations.

	Reportable		Lost Time
Westmoreland Coal		1.01		0.63
National Surface Mine Average		1.82		1.20

Conference Call

A conference call regarding Westmoreland Coal Company’s third quarter 2011 results will be held on Tuesday, November 8, 2011, at 10:00 a.m. Eastern Time. Call-in instructions are available on the Company’s web site and have been provided in a separate news release.

Additional Information

Westmoreland Coal Company is the oldest independent coal company in the United States. The Company’s coal operations include coal mining in the Powder River Basin in Montana 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.

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Forward-looking statements include, but are not limited to, the Company’s hope to complete at least one of coal reserve acquisitions by year end.

Forward-looking statements are based on the Company’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. The Company’s actual results may differ materially from those contemplated by the forward-looking. The Company cautions you therefore 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 and the following:

• changes in the Company’s postretirement medical benefit and pension obligations and the impact of recently enacted healthcare legislation;

• changes in the Company’s black lung obligations, changes in the Company’s experience related to black lung claims, and impact of the recently enacted healthcare legislation;

• the Company’s potential inability to expand or continue current coal operations due to limitations in obtaining bonding capacity for new mining permits;

• the Company’s potential inability to maintain compliance with debt covenant requirements;

• the potential inability of the Company’s subsidiaries to pay dividends to them due to restrictions in the Company’s debt arrangements, reductions in planned coal deliveries or other business factors;

• the Company’s potential inability to enter into new coal supply agreements with existing customers due to the unfavorable result of competitive bid processes or the shutdown of a power facility due to new environmental legislation or regulations;

• risks associated with the structure of ROVA’s contracts with its lenders, coal suppliers and power purchaser, which could dramatically affect the overall profitability of ROVA;

• the effect of Environmental Protection Agency inquiries and regulations on the operations of ROVA;

• the effect of prolonged maintenance or unplanned outages at the Company’s operations or those of its major power generating customers, including unplanned outages at its customers due to the impact of weather-related variances;

• future legislation and changes in regulations, governmental policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxides, nitrogen oxides, particulate matter or greenhouse gases; and

• the other factors that are described in “Risk Factors” in the Company’s Form 10-K for fiscal year 2010 and in subsequent Quarterly Reports on 10-Q.

Any forward-looking statements made by the Company in this news release speaks only as of the date on which it was made. Factors or events that could cause the Company’s actual results to differ may emerge from time-to-time, and it is not possible for the Company to predict all of them. The Company 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 (719) 442-2600

Westmoreland Coal Company and Subsidiaries
Consolidated Statements of Operations (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands, except per share data)
Revenues	$	132,449		$	124,080		$	372,353		$	378,152
Cost, expenses and other:
Cost of sales		100,164			94,208			288,964			296,366
Depreciation, depletion and amortization		11,612			10,964			33,861			33,435
Selling and administrative		9,884			8,930			28,224			28,578
Heritage health benefit expenses		3,896			4,241			11,115			11,550
Loss on sales of assets		91			165			415			256
Other operating income		(1,769	)		(2,267	)		(5,236	)		(6,519	)
		123,878			116,241			357,343			363,666
Operating income (loss)		8,571			7,839			15,010			14,486
Other income (expense):
Interest expense		(7,650	)		(5,756	)		(22,262	)		(17,245	)
Loss on extinguishment of debt		—			—			(17,030	)		—
Interest income		423			603			1,134			1,380
Other income (loss)		147			17			(2,630	)		907
		(7,080	)		(5,136	)		(40,788	)		(14,958	)
Income (loss) before income taxes		1,491			2,703			(25,778	)		(472	)
Income tax expense (benefit)from operations		(84	)		285			(706	)		149
Net income (loss)		1,575			2,418			(25,072	)		(621	)
Less net loss attributable to noncontrolling interest		(1,154	)		(435	)		(2,783	)		(1,878	)
Net income (loss) attributable to the Parent company		2,729			2,853			(22,289	)		1,257
Less preferred stock dividend requirements		340			340			1,020			1,020
Net income (loss) applicable to common shareholders	$	2,389		$	2,513		$	(23,309	)	$	237
Net income (loss) per share applicable to common shareholders:
Basic	$	0.18		$	0.23		$	(1.79	)	$	0.02
Diluted		0.18			0.23			(1.79	)		0.02
Weighted average number of common shares outstanding:
Basic		13,384			10,849			12,990			10,676
Diluted		13,442			10,911			12,990			10,758
Net income (loss) (from above)	$	1,575		$	2,418		$	(25,072	)	$	(621	)
Other comprehensive income (loss):
Amortization of accumulated actuarial gains or losses, pension		442			332			1,212			996
Amortization of accumulated actuarial gains or losses, transition obligations and prior service costs, postretirement medical benefits		(72	)		(68	)		(216	)		(206	)
Tax effect of other comprehensive income gains		(141	)		—			(308	)		—
Unrealized and realized gains and losses on available-for-sale securities		(12	)		262			(203	)		(345	)
Comprehensive income (loss)	$	1,792		$	2,944		$	(24,587	)	$	(176	)

See accompanying Notes to Consolidated Financial Statements.

Westmoreland Coal Company and Subsidiaries
Summary Financial Information (Unaudited)

	Nine Months Ended September 30,
	2011			2010
	(In thousands)
Cash Flow
Net cash provided by operating activities	$	34,028		$	37,584
Net cash used in investing activities		(15,495	)		(16,950	)
Net cash provided by (used in) financing activities		18,921			(15,083	)

	September 30,			December 31,
	2011			2010
	(In thousands)
Balance Sheet Data (Unaudited)
Total assets	$	768,967		$	750,306
Total debt	$	286,460		$	242,104
Working capital deficit	$	(5,906	)	$	(35,793	)
Total deficit	$	(174,368	)	$	(162,355	)
Common shares outstanding		13,762			11,161

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands)
Adjusted EBITDA by Segment
Coal	$	22,070		$	20,839		$	57,262		$	58,753
Power		7,441			7,761			20,152			18,644
Heritage		(4,076	)		(4,729	)		(12,062	)		(12,745	)
Corporate		(1,278	)		(1,067	)		(3,663	)		(4,234	)
Total	$	24,157		$	22,804		$	61,689		$	60,418

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands)
Reconciliation of Adjusted EBITDA to net income (loss)
Net income (loss)	$	1,575		$	2,418		$	(25,072	)	$	(621	)
Income tax expense (benefit) from continuing operations		(84	)		285			(705	)		149
Other loss (income)		(147	)		(17	)		2,630			(908	)
Interest income		(423	)		(603	)		(1,134	)		(1,380	)
Loss on extinguishment of debt		—			—			17,030			—
Interest expense		7,650			5,756			22,262			17,246
Depreciation, depletion and amortization		11,612			10,964			33,861			33,435
Accretion of ARO and receivable		2,700			2,847			8,100			8,687
Amortization of intangible assets and liabilities		167			112			494			348
EBITDA		23,050			21,762			57,466			56,956
Loss on sale of assets		91			165			415			256
Share-based compensation		1,016			877			3,808			3,206
Adjusted EBITDA	$	24,157		$	22,804		$	61,689		$	60,418

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 the Company’s operating performance and the Company believes that EBITDA and Adjusted EBITDA are useful to an investor in evaluating the Company’s 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 the Company’s operations from period to period by removing the effect of the Company’s capital structure and asset base from its 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 the Company’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 the Company’s results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:

• do not reflect the Company’s 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, the Company’s 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 the Company’s 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 the Company’s industry and in other industries may calculate EBITDA and Adjusted EBITDA differently from the way that the Company 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 the Company to invest in the growth of its business. The Company compensates for these limitations by relying primarily on its GAAP results and using EBITDA and Adjusted EBITDA only as supplemental data.

EX-99.2

EXHIBIT 99.2

Transcript of
Westmoreland Coal (WLB)
Investor Conference Call
November 8, 2011

Participants

Keith Alessi, President & CEO
Doug Kathol, EVP
Kevin Paprzycki, CFO

Presentation

Operator

Good morning ladies and gentlemen and welcome to the Westmoreland Coal Company’s Investor teleconference. 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 telephone. 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 * followed by the 0 on your telephone keypad. As a reminder, this conference is being recorded today and a replay will be made available as soon as practical on the Investor portion of the Westmoreland Website, through November 22^nd, 2011.

Management’s remarks today may contain forward-looking statements based on the company’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. The company’s actual result may differ materially from the results discussed in 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 10K for fiscal year 2010 as well as the company’s form 10Q for the third quarter to be filed with the Securities and Exchange Commission on November 8, 2011. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing its views as of any subsequent date. While the company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation even if its estimates change and therefore you should not rely on these forward-looking statements as representing the company’s views as of any date subsequent to today. Mr. Keith E. Alessi, President and Chief Executive Officer of Westmoreland Coal Company will be delivering today’s remarks. Thank you. Mr. Alessi, please begin.

Keith Alessi — Westmoreland Coal Company — President & CEO

Thank you and good morning to everybody on the call. I am joined this morning by Doug Kathol our Executive Vice President and we’ll be chatting about the highlights of the press release we issued earlier this morning. As we previewed for you about three months ago, we anticipated having a pretty solid third quarter which we did. The two key operating metrics that we focus most of our time and attention, both operating income and EBITDA, were up from last year and if you recall, last year was a record year for the company. We are extraordinarily pleased with the results of the quarter. As indicated in the press release, we still saw some of the tail end of the hydro season believe it or not, impacted really the first month of the quarter but that probably was a couple of hundred thousand tons of volume that it cost us. Despite that, we put up a very solid quarter. The net income number of course both on the quarter and on the year are impacted by the fact that we did the financing earlier this year so we have higher interest charges than we would have had a year ago and of course the year to date number also includes the charges related to the refinancing of the debt back in February. That was almost $20 million on charges on that re-fi.

We commented on the fact that we had a very strong safety quarter. We remain committed to that and are thrilled that we are continuing to put up the kinds of numbers we are. And we are really proud of the fact that our Colstrip Montana mine was awarded an Excellence of Surface Coal Mining Award by the Office of Surface Mining in Washington and that is an incredibly prestigious award and we’re very proud of our people up at the Colstrip Mine.

As I look at the quarter, a couple of trends that I focus on, our heritage costs continued to track below where we had projected. We are now coming up on two years of signing the agreement on there and have, I feel, an adequate history now to look back at the numbers and we are very satisfied that we have been able to control the average prescription cost and the cost of pharmaceuticals specifically and so we continue to trend in the proper direction on heritage costs across the board. You will see in my comments in the press release, I refer to two other situations. Back earlier this year, we commented on the fact that our key strategic initiatives for 2011 entailed us picking up more reserves at our mines and also to look at ways that we could grow this business, potentially through acquisition of like mines that look like the mines we currently operate. On the first point, reserve acquisition, that has been a very slow process as we deal with some very large organizations and bureaucracies. But I believe we are getting close on one and certainly by year-end we hope to be in a position to announce some reserve acquisitions. That’s about all I can say for them at this point. Those of you who have listened to us over a period of time know that we have not been particularly concerned about our ability to get reserves, it’s always been a function of when. The reserves are there. They are reserves that really only make sense in our hands and we feel that we can acquire them in very economical ways. We remain committed to that initiative. Our point of view on that has not changed. Certainly, I would have loved to have been in a position to have been able to announce some acquisitions and reserves prior to now but the timing is largely out of our hands but we continue to make progress and I am satisfied with that.

On the second aspect of growing the business, we have engaged in numerous due diligences to look at situations that may or may not be available in the general marketplace. There is nothing to report as we sit here today. Clearly, if and when we get to that point, we would talk to you about it and give you far more details around it but we continue to look for opportunities to expand our footprint. To look at other mine mouth operations and of course we are only interested in doing so if they could be accretive to us in both an earnings and a cash standpoint. So we’ll report out more if and when any of those situations come about.

Other than that, the business is pretty much steady as she goes. As we look to the forth quarter, we look for a solid fourth quarter. Last year’s fourth quarter had some incentive bonuses that we received at our Colstrip operation that we are unlikely to get this year simply because of the significant impact that the hydro season had on the Colstrip facility in the first couple of quarters. That said, I would expect that both our operating income and EBITDA, which were at record levels last year, that would be in the same range as we were last year, +/- a small amount. So we think 2011 will be a good year. We look forward to 2012 being a better year and with that, I will open it up to any questions that folks on the phones might have.

Operator

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. Callers in the queue are requested to limit their number of questions to one primary question and one followup question. If you desire to ask additional questions, please re-enter the queue. One moment please while we poll for questions. Our first question comes from Wayne Heilman with Colorado Springs. Please proceed with your question.

<Q>: Keith, Wayne Heilman, looks like a good quarter. Just had a question, when do you anticipate completing the move to Denver?

Keith Alessi — Westmoreland Coal Company — President & CEO

Morning Wayne. Actually, the physical move is occurring over this weekend and we will be in the new offices and up and running in Engelwood on Monday morning.

<Q>: Thank you.

Keith Alessi — Westmoreland Coal Company — President & CEO

Mm hmm.

Operator

Once again ladies and gentlemen, to ask a question at this time, please press *1 on your telephone keypad. One moment please while we poll for questions. Our next question comes from Jed Nausbaum with Redwood Capital. Please proceed with your question.

<Q>: Hi good morning. Great, great quarter. I just had a quick question. I think it was asked on the last call, if there were any updates on kind of the RFP process on that Beulah Mine contract?

Keith Alessi — Westmoreland Coal Company — President & CEO

Yeah, if you recall the Beulah contract expires in 2016. We have engaged in conversations with the power plant about entering into a new agreement starting in 2016. Those conversations have not gone anywhere at this point. We remain in dialog. We are taking a defensive position with respect to it and all of our modelling and planning, you know a plan A and a plan B, a plan A where we enter into a new agreement, a plan B where we don’t. We’re comfortable that either way, we’ve got a good plan for the mine and/or the assets that are deployed at the mine but we have no specific communication in the last quarter that has changed.

Operator

Our next question is coming from Ryan Crane with Clutterbuck. Please proceed with your question.

<Q>: Hi Keith, congrats on a good quarter. I didn’t see a cash balance number in the release. Just didn’t know if you had that off hand?

Keith Alessi — Westmoreland Coal Company — President & CEO

Kevin I guess has joined us there. Kevin, that number is in the 40s?

Kevin Paprzycki — Westmoreland Coal Company — CFO

It’s over $43 million.

<Q>: Okay and you know with the potential acquisition or additional resources you’re contemplating, how would you see that?

Keith Alessi — Westmoreland Coal Company — President & CEO

Well the reserve acquisitions that we are looking at, unlike the federal bonus bid situations that you see on some people like Cloud Peak where they spend $100 million for block reserves and have to come up with 20% of it upfront. We are dealing with private land owners or corporate entities and most of the situations we’re anticipating would be, we’d be prepaying lease payments or paying an annual charge to hold those reserves until we are ready to mine them. So I don’t project any major cash outflows for reserve acquisition. On the acquisition of an entity standpoint, we clearly look at how to finance that prudently. Our expectations would be if and when we got to one of those between adding on to the bond issue we got, put in place the revolver and cash on hand is how we would accommodate it. But we’re trying to conserve the cash we have on hand. We think it helps us with some flexibility in terms of dealing with outside entities. It certainly helps our bonding requirements having more liquidity than what we have enjoyed in the past. So we will prudently finance whatever we do and we will do that in conjunction with our investment banks in terms of determining what’s prudent.

<Q>: Terrific. Thanks a lot.

Operator

Once again ladies and gentlemen, that is *1 at this time to ask a question. There are no further questions in queue at this time. I would like to turn the call back over to management for closing comments.

Keith Alessi — Westmoreland Coal Company — President & CEO

I appreciate everybody joining us this morning. We are clearly happy to respond to any followups you have. We will look forward to talking to you at year end and chatting about the numbers as well as at that time we will I think be in a position to talk a little bit more about projections for 2012 as well as any other activities that consummate the mean time. Thanks so much and the replay is available on the website.

Operator

This concludes today’s investor conference call. If you would like to access this call for digital replay you may dial 877-660-6853 using account number 286 and conference ID number 382073. Thank you. You may now disconnect.