Westmoreland Coal (NasdaqGM: WLB) on July 8 briefly affirmed its previously issued full year consolidated 2015 adjusted EBITDA of $235.0 million to $270.0 million.
Westmoreland also announced that its consolidated second quarter 2015 adjusted EBITDA will meet its original, internal target for the quarter.
“At a time when many in the industry are experiencing tough headwinds, our predictable, cost-plus model continues to operate well,” noted Keith E. Alessi, Chief Executive Officer. “We look forward to speaking in detail to our results on July 24th.”
Westmoreland Coal is the oldest independent coal company in the United States. Westmoreland’s coal operations include sub-bituminous and lignite surface coal mining in the Western United States and Canada, an underground bituminous coal mine in Ohio, 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, formerly Oxford Resource Partners LP, a publicly-traded coal master limited partnership. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina.
The major ongoing move for Westmoreland is a pending buy of the San Juan coal mine in New Mexico. If the New Mexico Public Regulation Commission can’t approve new coal supply and other agreements for a slimmed-down San Juan coal plant, then the whole plant will need to be shut by the end of 2017 with consequences that Public Service Co. of New Mexico is still evaluating.
Chris M. Olson, Vice President, Generation, for Public Service Co. of New Mexico (PNM), provided July 1 testimony at the commission in support of several new agreements to restructure the San Juan plant ownership and secure a new supply of coal beyond the end-of-2017 expiration of the current coal contract with international miner BHP Billiton. The new supply agreement is with Wesmoreland Coal, which plans to buy San Juan Coal Co. from BHP Billiton. SJCC has a coal mine right next to the San Juan power plant.