ACQUISITION

3 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

ACQUISITION

ACQUISITION

On December 23, 2011, the Company, through Westmoreland Kemmerer, Inc., entered into a purchase and sale agreement with Chevron Mining Inc., a Missouri corporation (the “Seller”), pursuant to which the Company agreed to purchase from Seller the Kemmerer surface coal mine, associated processing facilities and other related real and personal property assets located in Kemmerer, Wyoming and assumed certain liabilities related to the mine. The Company did not acquire working capital in the acquisition, other than inventory. On January 31, 2012, the Company closed on the acquisition of the Kemmerer Mine from the Seller.

During the second quarter of 2012, the Company revised its preliminary allocation of the purchase price for $2.2 million of deferred revenue. Adjustments to preliminary fair values are assumed to have been made as of the acquisition date. As a result, Revenues and Operating income for the first quarter of 2012 would have been higher and Net loss would have been lower by approximately $1.3 million. The results in the consolidated statements of operations for the three months ended March 31, 2012 reflect this adjustment. The remaining $0.9 million of deferred revenue was recognized as revenue in the second quarter of 2012.

The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisition occurred on January 1, 2011. The unaudited pro forma results have been prepared based on estimates and assumptions, which the Company believes are reasonable, however, they are not necessarily indicative of the consolidated results of operations had the acquisition occurred on January 1, 2011, or of future results of operations.

	Three Months Ended March 31, 2012
	(In thousands)
Total Revenues
As reported	$	147,236
Pro forma	$	161,349
Operating Income
As reported	$	9,085
Pro forma	$	11,359
Net income (loss) applicable to common shareholders
As reported	$	518
Pro forma	$	1,580
Net income (loss) per share applicable to common shareholders
As reported	$	0.04
Pro forma	$	0.11