Westmoreland Resource Partners LP
Westmoreland Resource Partners LP — Citi 2015 MLP / Midstream Infrastructure Conference
19 slides from Westmoreland Resource Partners LP's conference presentation, Aug 26, 2015
Slide 1: Citi 2015 MLP / Midstream Infrastructure Conference
Citi 2015 MLP / Midstream Infrastructure Conferenc: August 18-20, 2 YES ORHAND a xp citi
Slide 2: Forward Looking Statements
Forward Looking Statements “anticipates, “intends, predict’, “coula’, “shoul, “wl, recent acquisitions and their anticipated effects onus. they We th ying or atrial b fitve, market, ‘+ Inaccuracies in our estimates of our coal reserves; bonding expenses; ‘+The inability to control costs: ‘+ Ourrolat
Slide 3: WMLP — MLP Built on Long-Term Coal Contracts
WMLP — MLP Built on Long-Term Coal Contracts © Largest producer of surface mined coal in Ohio. © Primary customers are large coal-fired electric utilities = Base load scrubbed power plants = Long-term sales contracts Focused on acquiring thermal coal reserves that can be efficiently mines Significan
Slide 4: MLP Structure with Premier Sponsor
MLP Structure with Premier Sponsor OAL COMPANY. Public iil ala Unitholders om 99% 100% Oxtord Mining Company, LLC 100% 100% 100% se Kentucky (Harrison / Operations Kemmerer) (inactive) thn : wet,
Slide 5: WMLP's Relationship with Westmoreland
WMLP’s Relationship with Westmoreland e WMLP benefits from Westmoreland's strong sponsorship = Large stable of assets suitable for drop down to WMLP- = Leading market position with low-cost operating model = Consistent cash flow generation = Protection from market coal and commodity price volatility
Slide 6: Accomplished Management Team
Accomplished Management Team Keith Alessi * Prior Chiet large Chief Executive Officer and acquisitions President . i t . Michigan and a and Pr Financial Officer in April 2008 Kevin Paprzycki * Previously Chief fi i i lied i poration, Bal Young . lor of i i MB: 5 Jennifer Grafton February 2011 ; ‘ :
Slide 7: Proven Record of Successful Acquisition Integration
Proven Record of Successful Acquisition Integration Acquired the Kemmerer mine from Chevron in January 2012 performance, exceeding guidance igned new | i d productivity improvernents productivity, costs, and safety © Acquired Canadian operations from Sherritt in April 2014 . erie IT, legal, HR and p
Slide 8: Unique and Predictable Operating Model
Unique and Predictable Operating Model Primarily Simple Surface Mining Transportation Advantage Long-Term Contracts Cost Protection Primarily simple surface mining method executed with draglines and shovels Mine-mouth positioning, close proximity to customer facilities = Significant savings to custo
Slide 9: Long-Term Cost-Protected Contracts Provide Stable Predictable Cash Flows
Long-Term Cost-Protected Contracts Provide Stable Predictable Cash Flows Mine Primary Power Plant oe oa Contract Life Plant Environmental Provisions Genesee Genesee BI 3 (III 2055 scrubbed, PM, NOx, Mercury Poplar River Poplar River ie] 2 DA 2022” PM, Mercury ‘Sheerness Sheerness bl 2 EN 2025 PM, Me
Slide 10: Proximity to Captive Customer Base with Export Opportunity
Proximity to Captive Customer Base with Export Opportunity Mine Competitive Advantage Beulah ‘© Mines located adjacent or in close proximity to principal customers Buckingham © Delivery by conveyor and short haul truck — the most economical Jewett methods Kemmerer (WMLP) e Significant cost advantage
Slide 11: Coal is the Primary Fuel in the Markets Served
Coal is the Primary Fuel in the Markets Served Power Generation by Fuel Type in Markets Served") (2014) Population Growth in Markets Served" (2014 - 2020) WH Coal Mi NaturalGas MM Nuclear Ml Hydroelectric |) Other Population Growth of 6% Alberta Saskatchewan Mountain West North Central Coal fuels ~6
Slide 12: Significant Scale with Built-in Resource Growth
Significant Scale with Built-in Resource Growth Top North American Coal Producers (2014 Production)(") Significantly Enhanced Reserve Base!) (Wilions of short tons) (Wilions of shor tons) 190 Significant reserve growth with ~2 billion tons of additional resources to be proven 131 1,308 8 ay 63 60 a
Slide 13: Westmoreland Customers Purchase Fuel Well Below the Competition
Westmoreland Customers Purchase Fuel Well Below the Competition Comparison vs. Other Coal Regions ($/MBtu) Comparison vs. Natural Gas ($/MBtu) | Westmoreland © —— Natural Gas (Henry Hub) CAAP NAAP Rockies i. Basin. «= PRB Wes 2010 ©2011 012012014 Total Cost of Delivered Coal Minimal risk of displace
Slide 14: Strong Safety Culture
Strong Safety Culture Lost Time Incident Rate Reportable Incident Rate IH National Surface Mine Average Ill. Westmoreland I National Surface Mine Average Ill Westmoreland 1.83 1.83 1.23 1.23 a8 ae 1.18 168 4.69 172 0.88 0.88 11 ve 1.32 1.29 0.65 0.66 - 0.48 2010A 2011A 2012A 2013A 20144 2010A, 20114
Slide 15: Ohio Operations Serve Base-Load Scrubbed Power Plants with Low Retirement Risk
Ohio Operations Serve Base-Load Scrubbed Power Plants with Low Retirement Risk © Our primary power plant customers Reportable Incident Rate are located within the PIM market . pore sii ‘on coal for base- . al represented 47% of total net generation in 2014, * Our, er plants have solid environmental
Slide 16: Attractive Portfolio of Long-Term Sales Contracts
Attractive Portfolio of Long-Term Sales Contracts . Subslantlly all WMLP customers purchase coal for Committed as }-Term Supply Contracts'") of one year or longer (Witions of shor tons) Sales (Mstpa) . a of coal tons sold were under long-term supply contracts in 2014 Percent of 2015E Sales Under Con
Slide 17: Future Potential Drop Downs
Future Potential aoe Drop Downs to portfolio of high-q Overview Stable of Potential Drop Down Assets «Large inventory of MLP-eligible assets at Westmoreland * USAssets Canadian Assets C itr to drive growth at GP and partnership levels = Absaloka = Activated Carbon = Buckingham = Char Plant © Exper b
Slide 18: Visible, High Growth Drop Down Plan
Visible, High Growth Drop Down Plan Illustrative EBITDA Growth Profile (US$ mm) Pipeline of future acquisitions to ance growth str to sustain 5-7 year down strategy targeting 6% distribution growth @ $175 Current WMLP Kemmerer Post Kemmerer Potential Sponsor Post Sponsor _ilustrative Sponsor / Mustr
Slide 19: Generate stable cash flow supported by long-term coal sales contracts
Generate stable cash flow supported by long-term coal sales contracts Complete strategic and accretive transactions with our sponsor » Opportunistically pursue strategic acquisitions from third parties Continue WMLP’s strong safety record a WESTMORELAND RESOURCE PARTNERS, LP
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