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Publish Date : 05-Jan-2015

Westmoreland Coal Company, Oxford Resource Partners, LP and Oxford Resources GP, LLC, the general partner of Oxford (the “GP”), today announced the completion of Westmoreland’s acquisition of the GP and Westmoreland’s contribution of certain royalty-bearing coal reserves to the MLP in return for MLP common units (the “Contribution”), as well as Westmoreland’s acquisition of Buckingham Coal Company, LLC.

The completion of the GP acquisition and the Contribution provide Westmoreland with a platform to implement a value-creating drop-down strategy, pursuant to which it intends to periodically contribute certain U.S. and Canadian coal assets to the MLP in exchange for a combination of cash and additional limited partner interests. Westmoreland expects these transactions to unlock value that is inherent in Westmoreland’s stable cash flow-generating business model, to the benefit of both its stakeholders and the MLP’s unitholders. The MLP will continue to operate as a stand-alone, publicly traded master limited partnership, with Westmoreland owning 77% of the fully diluted limited partner interests.

“We are pleased that these strategic transactions have come to a successful close and excited for Westmoreland to enter the MLP space,” stated Keith E. Alessi, Westmoreland’s Chief Executive Officer. “We believe our strategy with respect to the MLP will help ensure our continued long-term growth.” “Oxford is very pleased that it has been able to join with Westmoreland,” said Oxford’s President and Chief Executive Officer, Charles C. Ungurean. “This is the culmination of our efforts to bring increased value to our unitholders. We believe that this represents a great opportunity for our company, unitholders, employees and customers, as well as providing a MLP vehicle for Westmoreland and its shareholders. This represents a win for all stakeholders.”

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