10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-34815

_________________________

Westmoreland Resource Partners, LP

(Exact name of registrant as specified in its charter)

____________________________________________________

Delaware	77-0695453
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

9540 South Maroon Circle, Suite 200, Englewood, CO 801112

(Address of principal executive offices and zip code) 

(855) 922-6463

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ☒    NO ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES ☒    NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” and “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer     ☐                                                                                    Accelerated filer                       ☐

Non-accelerated filer       ☐  (Do not check if a smaller reporting company) Smaller reporting company     ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ☐NO ☒

As of July 23, 2015, 5,711,630 common units representing limited partner interest in our Partnership (the "common units") were outstanding. The common units trade on the New York Stock Exchange under the ticker symbol “WMLP.” 

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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TABLE OF CONTENTS

	TABLE OF CONTENTS
	PART I. FINANCIAL INFORMATION	Page
ITEM 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2015 and 2014	5
	Condensed Consolidated Statements of Partners’ Capital for the Six Months Ended June 30, 2015	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014	7
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	31
	PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	32
ITEM 1A.	Risk Factors	32
ITEM 4.	Mine Safety Disclosures	33
ITEM 6.	Exhibits	33

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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PART I. FINANCIAL INFORMATION

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except for unit data)

	Westmoreland Resource Partners, LP
	(Successor)
	As of June 30, 2015			As of December 31, 2014
Assets	(Unaudited)
Current assets:
Cash	$	12,766		$	5,921
Receivables:
Trade	14,020			22,710
Other	—			116
	14,020			22,826
Inventory	14,870			14,013
Other current assets	2,264			1,317
Total current assets	43,920			44,077
Property, plant and equipment:
Land and mineral rights	75,794			71,715
Plant and equipment	134,291			134,029
	210,085			205,744
Less accumulated depreciation, depletion and amortization	(19,170		)	—
Net property, plant and equipment	190,915			205,744
Advanced coal royalties	10,645			9,153
Restricted investments and bond collateral	8,307			10,621
Intangible assets, net of accumulated amortization of $1.0 million and $0 in June 30, 2015 and December 31, 2014, respectively	29,967			31,000
Deferred financing costs, net	6,195			6,993
Total Assets	$	289,949		$	307,588

See accompanying notes to condensed consolidated financial statements.

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except for unit data)

	Westmoreland Resource Partners, LP
	(Successor)
	As of June 30, 2015		As of December 31, 2014
Liabilities and Partners' Capital	(Unaudited)
Current liabilities:
Current installments of long-term debt	$	6	$	6
Accounts payable and accrued expenses:
Trade	20,392		19,135
Production taxes	903		1,033
Accrued compensation	767		1,531
Asset retirement obligations	11,547		7,783
Other current liabilities	1,382		4,007
Total current liabilities	34,997		33,495
Long-term debt, less current installments	175,864		175,029
Asset retirement obligations, less current portion	21,339		23,902
Warrants	1,504		1,981
Other liabilities	1,020		160
Total liabilities	234,724		234,567
Partners' capital:
Limited partners (5,711,630 and 5,505,087 units outstanding as of June 30, 2015 and December 31, 2014, respectively)	21,863		39,549
General partner (35,291 units outstanding as of June 30, 2015 and December 31, 2014)	33,362		33,472
Total partners’ capital	55,225		73,021
Total liabilities and partners’ capital	$	289,949	$	307,588

See accompanying notes to consolidated financial statements.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except for unit and per unit data)

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP			Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)			(Successor)			(Predecessor)
	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Revenues:
Coal revenues	$	55,036		$	79,586		$	116,786		$	156,356
Royalty revenues	1,651			85			3,521			184
Non-coal revenues	2,828			2,330			6,775			3,465
Total Revenues	59,515			82,001			127,082			160,005
Costs and expenses:
Cost of coal revenues (excluding depreciation, depletion and amortization)	46,866			67,295			101,517			133,021
Cost of non-coal revenues	235			369			3,390			771
Depreciation, depletion and amortization	9,563			10,072			19,743			21,296
Selling and administrative	3,065			3,270			5,613			6,926
Loss (gain) on sale/disposal of assets	651			(763		)	1,685			(559		)
Restructuring charges	103			—			656			75
Total cost and expenses	60,483			80,243			132,604			161,530
Operating (loss) income	(968		)	1,758			(5,522		)	(1,525		)
Other (expense) income:
Interest expense	(5,872		)	(7,003		)	(11,652		)	(13,873		)
Interest income	—			2			—			3
Change in fair value of warrants	448			1,885			477			1,470
Total other expenses	(5,424		)	(5,116		)	(11,175		)	(12,400		)
Net loss	(6,392		)	(3,358		)	(16,697		)	(13,925		)
Less net loss attributable to noncontrolling interest	—			461			—			842
Net loss attributable to unitholders	(6,392		)	(2,897		)	(16,697		)	(13,083		)
Less net loss allocated to general partner	(40		)	(57		)	(103		)	(259		)
Net loss allocated to limited partners	$	(6,352	)	$	(2,840	)	$	(16,594	)	$	(12,824	)
Net loss per limited partner unit:
Basic	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
Diluted	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
Weighted average number of limited partner units outstanding:
Basic	5,878,187			2,062,834			5,878,187			2,058,912
Diluted	5,878,187			2,062,834			5,878,187			2,058,912
Distribution per limited partner unit	$	0.2000		$	—		$	0.2000		$	—
Distribution per general partner unit	$	0.2000		$	—		$	0.2000		$	—

See accompanying notes to condensed consolidated financial statements. 

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(UNAUDITED)

(in thousands, except for unit data)

	Limited Partners															Total Partners' Capital
	Common				Liquidation			Total				General Partner
Successor	Units	Capital			Units	Capital		Units	Capital			Units	Capital
Balance at December 31, 2014	5,505,087	$	39,549		856,698	$	—	6,361,785	$	39,549		35,291	$	33,472		$	73,021
Net loss	—	(16,594		)	—	—		—	(16,594		)	—	(103		)	(16,697		)
Common unit distributions to unitholders	206,543	—			—	—		206,543	—			—	—			—
Cash distribution to unitholders	—	(1,176		)	—	—		—	(1,176		)	—	(7		)	(1,183		)
Equity-based compensation	—	84			—	—		—	84			—	—			84
Balance at June 30, 2015	5,711,630	$	21,863		856,698	$	—	6,568,328	$	21,863		35,291	$	33,362		$	55,225

See accompanying notes to condensed consolidated financial statements. 

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands) 

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)
	Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Cash flows from operating activities:
Net loss	$	(16,697	)	$	(13,925	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization	19,743			21,296
Accretion of asset retirement obligations	1,630			1,125
Restructuring charges	656			75
Equity-based compensation	84			921
Loss (gain) on sale/disposal of assets	1,685			(559		)
Non-cash interest expense	2,664			3,786
Amortization of deferred financing costs	817			1,923
Other	(477		)	(1,470		)
Changes in operating assets and liabilities:
Receivables, net	8,807			(1,850		)
Inventories	(857		)	(505		)
Accounts payable and accrued expenses	1,127			(1,123		)
Accrued compensation	(765		)	(2,196		)
Asset retirement obligations	(2,415		)	(2,115		)
Other assets and liabilities	(2,077		)	258
Net cash provided by operating activities	13,925			5,641
Cash flows from investing activities:
Additions to property, plant, equipment and other	(6,434		)	(5,864		)
Change in restricted investments and bond collateral	2,258			506
Net proceeds from sales of assets	126			3,599
Net cash used in investing activities	(4,050		)	(1,759		)
Cash flows from financing activities:
Repayments of long-term debt	(1,829		)	(1,947		)
Borrowings on revolving lines of credit	—			13,500
Repayment on revolving lines of credit	—			(15,000		)
Debt issuance costs and other refinancing costs	(18		)	9
Cash distributions to partners	(1,183		)	—
Net cash used in by financing activities	(3,030		)	(3,438		)
Net increase (decrease) in cash	6,845			444
Cash, beginning of the period	5,921			3,089
Cash, end of the period	$	12,766		$	3,533
Supplemental disclosures of cash flow information:
Cash paid for interest	$	8,170		$	8,243
Non-cash transactions:
Asset retirement obligations capitalized in mine development	2,533			2,880
Market value of common units vested in LTIP	—			217

 See accompanying notes to condensed consolidated financial statements. 

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

NOTE 1:BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of Westmoreland Resources Partners, LP, or the Partnership, and its consolidated subsidiaries and are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and require use of management's estimates. The financial information contained in this Form 10-Q is unaudited, but reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial information for the periods shown. Such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015.

Westmoreland Coal Company's ("WCC") cost of acquiring our General Partner, Westmoreland Resources GP, LLC, ("GP") has been pushed-down to establish a new accounting basis for us beginning in the last minutes of the year ended December 31, 2014, in accordance with ASC 805. Accordingly, the accompanying condensed consolidated financial statements are presented for two periods, Predecessor and Successor, which relate to the accounting periods preceding and succeeding the completion of the transaction. The Predecessor and Successor periods have been separated by a vertical line on the face of the condensed consolidated financial statements to highlight the fact that the financial information for such periods has been prepared under two different historical-cost bases of accounting.

Significant Relationships Referenced in Notes to Consolidated Financial Statements

• “We,” “us,” “our,” “or the "Partnership” means the business and operations of Westmoreland Resource Partners, LP, the parent entity, as well as its consolidated subsidiaries.

• Our “GP” means Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP.

Organization

Westmoreland Resource Partners, LP is a Delaware limited partnership formed in August 2007. We are a low-cost producer and marketer of high-value thermal coal to United States (“U.S.”) utilities and industrial users, and we are the largest producer of surface‑mined coal in Ohio. We market our coal primarily to large electric utilities with coal-fired, base-load scrubbed power plants under long-term coal sales contracts. We focus on acquiring thermal coal reserves that we can efficiently mine with our large-scale equipment. Our reserves and operations are strategically located to serve our primary market area of the Midwest and northeastern United States. Additionally, we hold a fee simple interest in coal reserves in Lincoln County, Wyoming, for which we have entered into a coal mining lease with a subsidiary of WCC pursuant to which we earn a per ton royalty as these coal reserves are mined.

We operate in a single business segment and have four operating subsidiaries, Oxford Mining Company, LLC(“Oxford Mining”), Oxford Mining Company-Kentucky, LLC (“Oxford Mining Kentucky”), Westmoreland Kemmerer Fee Coal Holdings, LLC ("WKFCH") and Harrison Resources, LLC (“Harrison Resources”). Our operating subsidiaries are primarily in the business of utilizing surface mining techniques to mine domestic coal and prepare it for sale to our customers or leasing our controlled coal reserves to others to mine.

We are managed by WCC through our GP, and all executives, officers and employees who provide services to us are employed by either WCC or our GP. WCC directly owns our GP. WCC’s common stock trades on the NASDAQ Global Market under the symbol “WLB.”

As of July 23, 2015, WCC and its consolidated subsidiaries owned, through their limited and general partner interests in us, an approximate 78% of our common units on a fully diluted basis and, indirectly, all of our incentive distribution rights.

Significant Accounting Policies

There were no changes to our significant accounting policies from those disclosed in the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014 (the "2014 Form 10-K").

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

Special Distribution to Public Unitholders

In January 2015, as previously announced, we made a one-time special distribution of 206,543 common units, representing an approximate 25% distribution, to our public unitholders on a pro rata basis.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-9, Revenue From Contracts With Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to receive in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In April 2015, the FASB agreed to propose a one-year deferral of the revenue recognition standard's effective date. The new guidance is now effective for the interim and annual periods beginning after December 15, 2017; early application is permitted, but not before the original effective date (annual reporting periods beginning after December 15, 2016). We are currently assessing the impact that this standard will have on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted for financial statements that have not been previous issued. Management projects the impact to the financial statements resulting in balance sheet reclassification for which the Deferred financing costs, net account is recharacterized as a contra-liability reducing the Long-term debt, less current installments balance for each of the respective periods upon adoption.

In April 2015, the FASB issued ASU 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions a consensus of the Emerging Issues Task Force) (a consensus of the Emerging Issues Task Force). ASU 2015-06 requires a master limited partnership (MLP) to allocate the earnings or losses of a transferred business for periods before the date of a dropdown of net assets accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit (EPU). The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. The guidance is applied retrospectively and earlyadoption is permitted.

In April 2014, the FASB issued ASU 2014-8, Presentation of Financial Statements and Property, Plant and Equipment, which changes the presentation of discontinued operations on the statements of operations and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new guidance is effective for interim and annual periods beginning after December 15, 2014. We adopted ASU 2014-8 effective January 1, 2015.

In August 2014, the FASB issued ASU 2014-17, Pushdown Accounting, which allows entities to elect pushdown of purchase accounting each time there is a change-in-control event in which an acquirer obtains control of an acquiree. If an acquiree does not initially elect to apply pushdown accounting upon a change-in-control event, it can subsequently elect to apply pushdown accounting to its most recent change-in-control event in a later reporting period as a change in accounting principle. Once made, the election to apply pushdown accounting is irrevocable. Entities applying pushdown accounting are required to measure the individual assets and liabilities of the acquired entity based on the measurement guidance in

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

ASC 805, including the recognition of goodwill. However, any bargain purchase gain recognized by the acquirer should not be recognized in the acquiree’s income statement, but rather as an adjustment to additional paid-in capital. Acquisition-related debt is recognized by the acquiree only if the acquired entity is required to recognize a liability for debt in accordance with other applicable guidance. See our application of ASU 2014-17 in Note 2.

Reclassifications

Certain prior-year amounts have been reclassified in our condensed statements of operations and statements of cash flows for the six months ended June 30, 2014 to conform with the financial statement line items used by our GP's parent, WCC.

NOTE 2:    ACQUISITION AND PUSHDOWN ACCOUNTING

Westmoreland Coal Company's Acquisition of our General Partner

On December 31, 2014, pursuant to a Purchase Agreement dated October 16, 2014, WCC acquired, for $33.5 million in cash, 100% of the equity of our GP from (i) the holders of all of our GP’s outstanding Class A Units, AIM Oxford Holdings, LLC ("AIM") and C&T Coal, Inc. ("C&T"), (ii) the holders of all of our GP’s outstanding Class B Units, certain former executives of our GP, and (iii) the holders of all of the outstanding warrants for our GP’s Class B Units (the "Warrantholders"). At the same time, WCC also acquired, for no additional consideration, (i) 100% of the Partnership’s outstanding subordinated units from AIM and C&T, which subordinated units were then converted to liquidation units, and (ii) 100% of the Partnership’s outstanding warrants for subordinated units from the Warrantholders, which warrants were then canceled by WCC.

The purchase consideration for our GP and control of our GP’s consolidated subsidiaries is estimated at $239.2 million, which included $33.5 million paid in cash, plus the assumption of approximately $194.9 million of liabilities. In the second quarter of 2015 we made an immaterial adjustment to the purchase accounting assumptions. Given, the immaterial nature of the adjustment, previously issued financial statements have not been adjusted.

The acquisition of our GP was accounted for by WCC under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. We have elected to apply pushdown accounting to our consolidated financial statements. By applying pushdown accounting, our financial statements also reflect these adjustments to fair value with a portion allocated to noncontrolling interest for the portion of us that is not owned directly by WCC.

The allocation of the purchase price is preliminary pending the completion of various analyses and the finalization of estimates. During the measurement period (which is not to exceed one year from the acquisition date), additional assets or liabilities may be recognized if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets or liabilities as of that date. The preliminary allocation may be adjusted after obtaining additional information regarding, among other things, asset valuations, liabilities assumed and revisions of previous estimates. These adjustments may be significant and will be accounted for retrospectively.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

A summary of the estimated purchase consideration and a preliminary allocation of the estimated purchase consideration is as follows (in millions):

Estimated purchase consideration
Market value of limited partners' units	$	10.8
Cash paid	33.5
Total consideration	$	44.3
Estimated fair value of liabilities assumed:
Debt	$	160.1
Asset retirement obligations	31.7
Other liabilities	1.1
Warrants	2.0
Total estimated fair value of liabilities assumed	194.9
Total estimated purchase consideration:	$	239.2
Preliminary allocation of estimated purchase consideration:
Working capital	$	14.7
Land and mineral rights	39.5
Plant and equipment	134.0
Advanced coal royalties	9.2
Restricted investments and bond collateral	10.6
Intangible asset	31.0
Other assets	0.2
Total preliminary allocation of estimated purchase consideration:	$	239.2

Kemmerer Drop-down

On June 1, 2015, we entered into a Contribution Agreement (the “Contribution Agreement”) with WCC pursuant to which, upon satisfaction or waiver of the conditions set forth in the Contribution Agreement, WCC would make a contribution (the “Contribution”) to us of all of the outstanding equity interests in Westmoreland Kemmerer, LLC, a Delaware limited liability company (formerly Westmoreland Kemmerer, Inc., or “Kemmerer”) for aggregate consideration of approximately $230 million. Upon closing the Contribution, WMLP would own 100%of the outstanding equity interests in Kemmerer, which owns and operates the Kemmerer Mine in Lincoln County, Wyoming.

We expect to close the Contribution in the third quarter of 2015. However, there can be no assurance that the Contribution will be completed within the anticipated timeframe, or at all, or that the anticipated benefits will be realized.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

NOTE 3:INVENTORY

Inventory consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Coal	$	7,188	$	6,590
Fuel inventory	1,583		1,860
Materials and supplies	6,099		5,563
Total	$	14,870	$	14,013

NOTE 4:RESTRUCTURING CHARGES

Concurrent with the WCC transactions completed in December 2014 (the "WCC Transactions"), a restructuring plan was initiated to streamline operations and eliminate duplicate roles and responsibilities between us and WCC. As of December 31, 2014, we recorded restructuring charges for employee termination benefits of $2.8 million and incurred additional restructuring costs of $0.1 million and $0.7 million for the three and six months ended June 30, 2015.

WCC Transactions restructuring accrual activity is summarized as follows:

	Westmoreland Resource Partners, LP (Successor)
	As of December 31, 2014		Six Months Ended June 30, 2015					As of June 30, 2015
	Liability		Charges		Payments			Liability
Severance and other termination costs	$	2,783	$	656	$	(3,188	)	$	251

The following table summarizes the total WCC Transactions restructuring charges incurred over the course of the restructuring:

	Westmoreland Resource Partners, LP (Successor)
	Charges
	For the Six Months Ended June 30, 2015		Incurred Through June 30, 2015		Total Expected Restructuring Expenses
Severance and other termination costs	$	656	$	3,439	$	3,439

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

NOTE 5:OTHER CURRENT ASSETS

Other current assets consisted of the following: 

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Prepaid Insurance	$	1,649	$	418
Other	615		899
Total	$	2,264	$	1,317

NOTE 6:LONG-TERM DEBT

Debt consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,			December 31,
	2015			2014
First lien debt:
Term loan	$	173,174		$	175,000
Paid-in-kind interest	2,664			—
Total first lien debt	175,838			175,000
Notes payable	32			35
Total debt	175,870			175,035
Less current portion	(6		)	(6		)
Long-term debt	$	175,864		$	175,029

Credit Facilities

On December 31, 2014, we closed on a credit facility under a Financing Agreement (the “2014 Financing Agreement”) with the lenders party thereto and U.S. Bank National Association as Administrative and Collateral Agent. The 2014 Financing Agreement includes a $175 million term loan, with an option for up to $120 million in additional term loans for acquisitions if requested by us and approved by the issuing lenders. The credit facility under the 2014 Financing Agreement matures in matures in December 2018. The 2014 Financing Agreement contains customary financial and other covenants. Borrowings under the 2014 Financing Agreement are secured by substantially all of our physical assets. Our initial borrowings under the 2014 Financing Agreement in December 2014 were used to retire our then-existing first and second lien credit facilities and to pay fees and expenses related to the 2014 Financing Agreement, with the remaining amount available as working capital.

As of June 30, 2015, we had a term loan of $175.8 million outstanding under the 2014 Financing Agreement. Borrowings on such term loan bear interest at a variable rate per annum equal to, at our option, the London Interbank Offered Rate (“LIBOR”) (floor of 0.75% plus 8.5%) or the Reference Rate (as defined in the 2014 Financing Agreement). As of June 30, 2015, the 2014 Financing Agreement had a cash interest rate of 9.25%, consisting of the LIBOR floor (0.75%) plus 8.5%.

The 2014 Financing Agreement also provides for “PIK Interest” (as defined in the 2014 Financing Agreement) at a variable rate per annum between 1.00% and 3.00% based on our Consolidated Total Net Leverage Ratio (as defined in the 2014 Financing Agreement). The rate of PIK Interest is recalculated on a quarterly basis with the PIK Interest added quarterly to the then-outstanding principal amount of the term loan under the 2014 Financing Agreement. PIK Interest under the 2014

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

Financing Agreement was $1.3 million and $2.7 million for the three and six months ended June 30, 2015, respectively. The outstanding term loan amount represents the principal balance of $173.2 million, plus PIK Interest of 2.7 million.

During the three months ended June 30, 2015, we paid down $1.8 million of the first lien term loan with proceeds from oil and gas royalties received and the granting of a pipeline right-of-way to a third party. The Financing Agreements require mandatory prepayment of principal with proceeds from such events.

As of June 30, 2015, we were in compliance with all covenants under the terms of the 2014 Financing Agreement.

Deferred Financing Costs

We capitalized costs that represented fees paid to lenders and advisors and for legal services included in Deferred financing costs, net. Deferred financing costs are amortized over the life of the agreement, included in interest expense, using the effective interest rate method. Amortization of deferred financing costs was $0.4 million and $0.8 million for the three and six months ended June 30, 2015, respectively and $1.0 million and $1.9 million for the three and six months ended June 30, 2014, respectively.

NOTE 7:     FAIR VALUE OF FINANCIAL INSTRUMENTS

The book values of cash, accounts receivable, restricted investment and bond collateral, and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the restricted investment and bond collateral and warrants were determined based upon a market approach and approximates the carrying value at June 30, 2015.

The warrants are fair valued at each balance sheet date using the Black-Scholes model. As of June 30, 2015, the fair value of each warrant was $9.03, based on the following assumptions: spot price of $9.15 per unit, exercise price of $0.12 per unit, term of 3.00 years, volatility of 90.4% and a three-year treasury rate of 1.0%.

The fair value of the restricted investment and bond collateral are Level 1 and warrants are a Level 2 measurement. 

NOTE 8:ASSET RETIREMENT OBLIGATIONS

As of June 30, 2015, our asset retirement obligation ("ARO") totaled $32.9 million, including amounts reported as current liabilities. While the precise amount of these future costs cannot be determined with certainty, we estimate that, as of June 30, 2015, the aggregate undiscounted cost of our final ARO is $42.8 million. 

Changes in the Partnership's asset retirement obligations were as follows: 

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)
	Six Months Ended   June 30, 2015			Six Months Ended   June 30, 2014
Asset retirement obligations, January 1,	$	31,685		$	31,654
Accretion	1,630			1,125
Changes resulting from additional mines	1,541			2,702
Changes due to amount and timing of reclamation	992			149
Payments	(2,962		)	(2,345		)
Asset retirement obligations, June 30,	32,886			33,285
Less current portion	(11,547		)	(9,086		)
Asset retirement obligations, less current portion	$	21,339		$	24,199

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

NOTE 9:UNIT-BASED COMPENSATION

We grant employees and non-employee directors restricted common units under our Long-Term Incentive Plan (“LTIP”).

We recognized compensation expense from unit-based arrangements shown in the following table:

	Westmoreland Resource Partners, LP		Oxford Resource Partners, LP		Westmoreland Resource Partners, LP		Oxford Resource Partners, LP
	(Successor)		(Predecessor)		(Successor)		(Predecessor)
	Three Months Ended   June 30, 2015		Three Months Ended   June 30, 2014		Six Months Ended   June 30, 2015		Six Months Ended   June 30, 2014
Recognition of fair value of restricted common units over the vesting period	$	63	$	465	$	84	$	921

A summary of restricted common unit award activity for the six months ended June 30, 2015 is as follows:

	Westmoreland Resource Partners, LP (Successor)
	Units	Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense
				(in thousands)
Non-vested at December 31, 2014	—	$	—
Granted	21,930	11.40
Vested	—	—
Non-vested at June 30, 2015	21,930	$	11.40	$	167	1

¹Expected to be recognized over the next 8 months.

NOTE 10:    COMMITMENTS AND CONTINGENCIES

Coal Sales Contracts

We are committed under long-term contracts to sell coal that meets certain quality requirements at specified prices. Many of these prices are subject to cost pass-through or cost adjustment provisions that mitigate some risk from rising costs. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer or us. As of June 30, 2015, the remaining terms of our long-term contracts range from one to three years.

Purchase Commitments

From time to time, we purchase coal from third parties in order to meet quality or delivery requirements under our customer contracts. We buy coal on the spot market, and the cost of that coal is dependent upon the market price and quality of the coal.

Surety andPerformance Bonds

As of June 30, 2015, we had $32.7 million in surety bonds outstanding to secure certain reclamation obligations which were collateralized by cash deposits of $6.9 million. Such cash collateral is included in Restricted investments and bond collateral on our consolidated balance sheets and Change in restricted investments and bond collateral within investing activities on our consolidated statements of cash flow. Additionally, we had road bonds totaling $0.5 million and performance bonds totaling $2.9 million outstanding to secure contractual performance. We believe these bonds will expire without any claims or payments thereon and therefore will not have a material adverse effect on our financial position, liquidity or operations.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

Legal

From time to time, we are involved in various legal proceedings arising in the ordinary course of business. We accrue for such liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated. Accruals are based on developments to date; management's estimates of the outcomes of these matters; our experience in contesting, litigating and settling similar matters; and any related insurance coverage. While the ultimate outcome of these proceedings cannot be predicted with certainty, we have accrued $0.6 million to resolve various claims as of June 30, 2015, of which $0.1 million, net, was accrued during 2015.

Guarantees

Our GP and the Partnership guarantee certain obligations of our subsidiaries. We believe that these guarantees will expire without any liability to the guarantors, and therefore will not have a material adverse effect on our financial position, liquidity or operations.

NOTE 11:EARNINGS (LOSSES) PER UNIT

The computation of basic and diluted earnings (losses) per unit under the two class method for limited partner units and general partner units is presented as follows:

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP			Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)			(Successor)			(Predecessor)
	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Limited partner units
Average units outstanding basic and diluted1, 2	5,878,187			2,062,834			5,878,187			2,058,912
Net loss allocated to limited partners basic and diluted2	$	(6,354	)	$	(2,848	)	$	(16,597	)	$	(12,862	)
Net loss per limited partner unit basic and diluted2	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
General partner units
Average units outstanding basic and diluted	35,291			35,291			35,291			35,291
Net loss allocated to general partners basic and diluted2	$	(38	)	$	(49	)	$	(100	)	$	(221	)
Net loss per general partner unit basic and diluted	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
Distribution paid per limited partner unit	$	0.20		$	—		$	0.20		$	—
Distribution paid per general partner unit	$	0.20		$	—		$	0.20		$	—

¹Unvested LTIP units are not dilutive units for the years and periods presented herein, but could be in the future.Anti-dilutive units are not used in calculating diluted average units.

²Reflects the impact of the outstanding common unit warrants for the three and six months ended June 30, 2015 and 2014, respectively..

NOTE 12:RELATED PARTY TRANSACTIONS

In connection with our formation in August 2007, the Partnership and Oxford Mining entered into an administrative and operational services agreement (the “Services Agreement”) with our GP, which agreement was amended in February 2015. The Services Agreement is terminable by either party upon thirty days’ written notice. Under the terms of the Services Agreement, our GP provides services through its employees to us and is reimbursed for all related costs incurred on our behalf. Pursuant to the Agreement, the Partnership engaged the GP to continue providing administrative, engineering, operating and other services to the Partnership. Administrative services include without limitation legal, accounting, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except for unit and per unit data)

resources, credit, payroll, internal audit and tax. The Partnership pays the GP a fixed annual fee of $500,000 for certain administrative services, and reimburses the GP at cost for other expenses and expenditures. The term of the Services Agreement expires on December 31, 2015, and automatically renews for successive one year periods unless terminated. The primary reimbursements to our GP under the Service Agreement during the three and six months ended June 30, 2015, were for costs related to payroll. Reimbursable costs under the Services Agreement totaling $0.8 million and $0.6 million were included in accounts payable as of June 30, 2015 and December 31, 2014, respectively.

Additionally, in December 2014 we entered into a coal mining lease, with a subsidiary of WCC, to mine fee simple interest coal reserves we control at WCC’s Kemmerer Mine in Lincoln County, Wyoming. Under this lease, we earn a per ton royalty as these coal reserves are mined. For the three and six months ended June 30, 2015, we recognized $1.6 million and $3.4 million, respectively, in coal royalty revenue, of which $1.6 million was included in Receivables - trade at June 30, 2015.

Finally, we sold coal to and performed various transportation and operational services for a subsidiary of WCC, which generated $6.5 million and $18.7 million in coal revenues and less than $0.1 million and $2.4 million in non-coal revenues for the three and six months ended June 30, 2015, respectively. As of June 30, 2015 revenues totaling $2.9 million were included in Receivables - trade.

NOTE 13:SEGMENT INFORMATION

We operate in one business segment. We operated surface coal mines in the Illinois Basin through December 2013, and we operate surface coal mines in Northern Appalachia and sell high-value thermal coal to utilities, industrial customers, municipalities and other coal-related entities primarily in the Midwest and northeastern United States. Our operating and executive management makes its decisions based on consolidated reports. Three of our operating subsidiaries extract coal utilizing surface-mining techniques and prepare it for sale to their customers. Such operating subsidiaries share customers and a particular customer may receive coal from any one of such operating subsidiaries. We also lease or sublease coal reserves to others through Oxford Mining and WKFCH in exchange for a per ton royalty rate. 

NOTE 14:SUBSEQUENT EVENTS

Cash Distribution

On July 17, 2015, our GP declared a cash distribution for all of our unitholders and warrant holders of $0.20 per unit for the second quarter ended June 30, 2015.  The distribution will be paid on August 14, 2015 to all unitholders and warrant holders of record as of the close of business on August 7, 2015.

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Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2014 included in our 2014 Form 10-K and filed with the United States Securities and Exchange Commission (the “SEC”). This discussion contains forward-looking statements that reflect management’s current views with respect to future events and financial performance. Our actual results may differ materially from those anticipated in these forward-looking statements or as a result of certain factors such as those set forth below under “Cautionary Statement About Forward-Looking Statements.”

Cautionary Statement About Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements.” Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “may,” “plan,” “predict,” “project,” “should,” “could,” “will” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make throughout this report regarding recent significant transactions and their anticipated effects on us, and statements in “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding factors that may cause our results of operation in future periods to differ from our expectations.

Forward-looking statements are based on our current expectations and assumptions regarding our 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. Our actual results may differ materially from those contemplated by the forward-looking statements. We therefore caution you 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:

• Our substantial level of indebtedness and our ability to adhere to financial covenants related to our borrowing arrangements;

• Inaccuracies in our estimates of our coal reserves;

• The effect of consummating financing, acquisition and/or disposition transactions;

• Our potential inability to expand or continue current coal operations due to limitations in obtaining bonding capacity for new mining permits, and/or increases in our mining costs as a result of increased bonding expenses;

• The effect of prolonged maintenance or unplanned outages at our operations or those of our major power generating customers;

• The inability to control costs;

• Competition within our industry and with producers of competing energy sources;

• Our relationships with, and other conditions affecting, our customers;

• The availability and costs of key supplies or commodities, such as diesel fuel, steel, explosives and tires;

• Potential title defects or loss of leasehold interests in our properties, which could result in unanticipated costs or an inability to mine the properties;

• The inability to renew our mineral leases or material changes in lease royalties;

• The effect of legal and administrative proceedings, settlements, investigations and claims, including any related to citations and orders issued by regulatory authorities, and the availability of related insurance coverage;

• Existing and future legislation and regulation affecting both our coal mining operations and our customers’ coal usage, governmental policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxides, nitrogen oxides, particulate matter or greenhouse gases;

• The effect of the Environmental Protection Agency’s inquiries into and regulations of the operations of the power plants to which we provide coal;

• Our ability to pay our quarterly distributions which substantially depends upon our future operating performance (which may be affected by prevailing economic conditions in the coal industry), debt covenants, and financial, business and other factors, some of which are beyond our control;

• Adequacy and sufficiency of our internal controls;

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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• Our potential need to recognize additional impairment and/or restructuring expenses associated with our operations, as well as any changes to previously identified impairment or restructuring expense estimates, including additional impairment and restructuring expenses associated with our Illinois Basin operations; and

• Other factors that are described in “Risk Factors” in this report and under the heading “Risk Factors” found in our other reports filed with the SEC, including our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q.

Unless otherwise specified, the forward-looking statements in this report speak as of the filing date of this report. Factors or events that could cause our actual results to differ may emerge from time-to-time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether because of new information, future developments or otherwise, except as may be required by law.

Reserve engineering is a process of estimating underground accumulations of coal that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by our reserve engineers. In addition, the results of mining, testing and production activities may justify revision of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development of reserves. Accordingly, reserve estimates may differ from the quantities of coal that are ultimately recovered.

Overview

Significant relationships referenced in this management’s discussion and analysis of financial condition and results of operations include the following:

• References to “we,” “us,” “our” or the “Partnership” mean the business and operations of Westmoreland Resource Partners, LP as well as its consolidated subsidiaries.

• References to “GP” mean Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP.

• References to “WCC” mean Westmoreland Coal Company, which owns 100% of Westmoreland Resources GP, LLC, approximately 78% of the common units of Westmoreland Resource Partners, LP on a fully diluted basis and, indirectly, all of the incentive distribution rights in Westmoreland Resource Partners, LP.

We are a low-cost producer and marketer of high-value thermal coal to U.S. utilities and industrial users, and we are the largest producer of surface mined coal in Ohio. We focus on acquiring thermal coal reserves that we can efficiently mine with our large-scale equipment. Our reserves and operations are strategically located to serve our primary market area of the Midwest and northeastern United States. Additionally, we hold a fee simple interest in coal reserves in Lincoln County, Wyoming, for which we have entered into a coal mining lease with a subsidiary of WCC pursuant to which we earn a per ton royalty as these coal reserves are mined.

We operate in a single business segment and have four operating subsidiaries, Oxford Mining, Oxford Mining Kentucky, WKFCH and Harrison Resources. Our operating subsidiaries are primarily in the business of utilizing surface mining techniques to mine domestic coal and prepare it for sale to our customers or leasing our controlled coal reserves to others to mine. Our WKFCH and Harrison Resources operating subsidiaries own and hold coal reserves. WKFCH’s coal reserves are leased to WCC in exchange for a per ton coal royalty. Harrison Resources' coal reserves are surface mined and marketed by Oxford Mining. Oxford Mining Kentucky is an inactive operating subsidiary holding coal reserves in the Illinois Basin for which surface mining operation ceased in December 2013.

Results of Operations

Items that Affect Comparability of Our Results

As of December 31, 2014, WCC's cost of acquiring our GP has been pushed-down to establish a new accounting basis for us, in accordance with ASC 805. Accordingly, the accompanying consolidated financial statements are presented for two periods, Predecessor and Successor, which relate to the accounting periods preceding and succeeding the completion of the acquisition. The Predecessor and Successor periods have been separated by a vertical line on the face of the consolidated financial statements to highlight the fact that the financial information for such periods has been prepared under two different historical-cost bases of accounting. The following narrative analysis of results of operations includes a brief discussion of the factors that materially affected our operating results in the Predecessor period of January 1 - December 31, 2014 along with a brief discussion of Successor activity for the last minutes of the day on December 31, 2014 through June 30, 2015.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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For the three and six months ended June 30, 2015 and 2014, our consolidated results include items that affect comparability of our results. The expense components of these items were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(in thousands)				(in thousands)
	(Successor)		(Predecessor)		(Successor)		(Predecessor)
Restructuring expense	$	103	$	—	$	656	$	75
Kemmerer acquisition related costs	1,128		—		1,128		—
WCC push-down acquisition related costs1	—		—		1,400		—
Impact	$	1,231	$	—	$	3,184	$	75

¹ Includes acquisition and transition costs included in cost of coal revenue related to the sale of inventory written up to fair value.

Restructuring Expense

Restructuring expense increased $0.1 million and $0.6 million to $0.1 million and $0.7 million, respectively for the three and six months ended June 30, 2015, compared the three and six months ended June 30, 2014. For the three and six months ended June 30, 2015 we incurred $0.1 million and $0.7 million, respectively, in severance payments related to the closing of the corporate offices in Columbus, Ohio and the elimination of other nonessential roles. The six months ended June 30, 2014 included $0.1 million in various immaterial costs associated with the restructuring related to our Illinois Basin operations.

Kemmerer acquisition related costs

On June 1, 2015, we entered into the Contribution Agreement with WCC pursuant to which, upon satisfaction or waiver of the conditions set forth in the Contribution Agreement, WCC would make the Contribution to us of all of the outstanding equity interests in Kemmerer for aggregate consideration of approximately $230 million. Upon closing the Contribution, WMLP would own 100% of the outstanding equity interests in Kemmerer, which owns and operates the Kemmerer Mine in Lincoln County, Wyoming.

We expect to close the Contribution in the third quarter of 2015. However, there can be no assurance that the Contribution will be completed within the anticipated time frame, or at all, or that the anticipated benefits will be realized.

For the three and six months ended June 30, 2015 we have incurred and expensed $1.1 million in acquisition related costs for various legal and investment banking expenses, which were included in Selling and administrative in the consolidated statement of operations.

Acquisition Related Costs

As part of the acquisition method of accounting, coal inventory was accounted for at its estimated fair value on December 31, 2014, increasing the coal inventory by $1.4 million. During the six months ended June 30, 2015, the inventory held at December 31, 2014 was sold and we recognized a $1.4 million non-cash charge to cost of coal revenues related to the acquisition method of accounting adjustment.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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The Three Months Ended June 30, 2015(Successor) Compared to theThree Months Ended June 30, 2014(Predecessor)

Summary

	Three Months Ended June 30,
							Increase (Decrease)
	2015			2014			$			%
	(in thousands)
	(Successor)			(Predecessor)
Total Revenues	$	59,515		$	82,001		$	(22,486	)	(27.4	)%
Net loss	(6,392		)	(3,358		)	(3,034		)	(90.4	)%
Adjusted EBITDA1	10,238			12,960			(2,722		)	(21.0	)%
Distributable Cash Flow2	2,512			3,833			(1,321		)	(34.5	)%
Tons sold - millions of equivalent tons	1.1			1.5			(0.4		)	(26.7	)%

¹Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section.

²Distributable cash flow a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section.

We reported total revenues of $59.5 million for the three months ended June 30, 2015 compared to $82.0 million for the three months ended June 30, 2014. The decrease of $22.5 million was principally due to decreased sales and production volumes, which declined to 1.1 million tons sold and produced in the three months ended June 30, 2015, compared to 1.5 million tons sold and produced in the three months ended June 30, 2014. The decrease in tons sold and produced resulted from a decrease in market demand. We reported net loss of $6.4 million for the three months ended June 30, 2015, compared to $3.4 million for the three months ended June 30, 2014. Additionally we reported Adjusted EBITDA of $10.2 million for the three months ended June 30, 2015, compared to $13.0 million for the three months ended June 30, 2014. The average coal sales price per ton sold increased by $0.74 to $53.23 per ton sold in the three months ended June 30, 2015, compared to $52.49 per ton sold in the three months ended June 30, 2014.

Total Revenues

	Three Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Revenues:
Coal revenues	$	55,036	$	79,586	$	(24,550	)	(30.8	)%
Royalty revenues	1,651		85		1,566			1,842.4	%
Non-coal revenues	2,828		2,330		498			21.4	%
Total Revenues	$	59,515	$	82,001	$	(22,486	)	(27.4	)%

Coal sales revenue was $55.0 million for the three months ended June 30, 2015, a decrease of $24.6 million, or 30.8%, from $79.6 million for the three months ended June 30, 2014. The decrease was primarily attributable to a 31.8% reduction in tons sold due to a decrease in demand in the amount of $25.3 million, partially offset by a $0.74 per ton, or an aggregate $0.8 million, increase in the average sale price per ton for the three months ended June 30, 2015.

For the three months ended June 30, 2015, we generated $1.7 million in royalty revenues from the receipt of $1.6 million in coal royalty revenues and $0.1 million in oil and gas royalty revenues. In December 2014, pursuant to a contribution agreement, WCC contributed to us 100% of the membership interests in WKFCH. WKFCH holds fee simple interests in 30.4 million tons of coal reserves and related surface lands at WCC’s Kemmerer Mine in Lincoln County, Wyoming. In connection with this contribution, WKFCH entered into a coal mining lease with respect to these coal reserves with a subsidiary of WCC pursuant to which WKFCH earns a per ton royalty as these coal reserves are mined. For the three months ended June 30, 2015 we earned $1.6 million in coal royalty revenues for coal mined by WCC during the period. For the three months ended June 30, 2014 we generated $0.1 million in royalty revenues,which comprised solely oil and gas royalty revenues.

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WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

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Non-coal revenues, primarily from clay and limestone sales, and other miscellaneous revenue, were $2.8 million for the three months ended June 30, 2015, an increase of $0.5 million from $2.3 million for the three months ended June 30, 2014. Other miscellaneous revenue increased by $1.5 million to $2.0 million for the three months ended June 30, 2015 from $0.5 million in the prior year, due primarily to generating $1.8 million in lost coal fees for granting a pipeline right-of-way to a third party in June 2015. The $1.5 million increase in miscellaneous revenue was offset in part by a $1.0 million decrease in clay and limestone sales to $0.9 million for the three months ended June 30, 2015, from $1.9 million for the three months ended June 30, 2014.

Cost of CoalRevenues

	Three Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Cost of coal revenues (excluding depreciation, depletion and amortization)	$	46,866	$	67,295	$	(20,429	)	(30.4	)%

Cost of coal revenues (excluding DD&A) decreased $20.4 million to $46.9 million for the three months ended June 30, 2015 from $67.3 million for the three months ended June 30, 2014, primarily due to decreased coal sales and production volumes. On a per ton basis, cost of coal revenues increased 2.1% to $45.32 per ton sold for the three months ended June 30, 2015 from $44.38 per ton sold for the three months ended June 30, 2014, primarily due to various factors, the most significant of which are discussed below:

• Labor and benefit expenses per ton sold increased 22.9% to $9.73 per ton for the three months ended June 30, 2015 from $7.92 per ton for the three months ended June 30, 2014. This increase of $1.81 per ton was attributed to a $1.32 per ton increase in wages and a $0.49 per ton increase in employee benefits. The $1.32 per ton increase in wages is primarily the result of raises implemented in mid-2014 in response to competition in the labor market from the growing oil and gas drilling business in southeastern Ohio. The $0.49 per ton increase in employee benefits is primarily the result of higher health insurance cost per employee.

• Equipment repair and maintenance expense per ton sold increased $0.61 per ton to $4.28 per ton for the three months ended June 30, 2015 from $3.67 per ton for the three months ended June 30, 2014. This increase of $0.61 per ton is the result of incurring equipment maintenance costs during the three months ended June 30, 2015, deferred from fiscal 2014, combined with a 31.8% decrease in tons sold for the three months ended June 30, 2015, compared with the three months ended June 30, 2014.

• Contract labor expenses per ton sold decreased $1.73 per ton to $0.39 per ton for the three months ended June 30, 2015 from $2.12 per ton for the three months ended June 30, 2014. The decrease of $1.73 per ton was attributed to the 31.8% decrease in tons sold for the three months ended June 30, 2015, compared with the three months ended June 30, 2014.

• Transportation expense per ton sold decreased $0.39 per ton to $7.46 per ton for the three months ended June 30, 2015 from $7.85 per ton for the three months ended June 30, 2014. The decrease of $0.39 per ton was attributed to increased efficiency in managing our haul routes.

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Depreciation, Depletion and Amortization

	Three Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Depreciation, depletion and amortization	$	9,563	$	10,072	$	(509	)	(5.1	)%

Depreciation, depletion and amortization expense decreased to $9.6 million for the three months ended June 30, 2015 from $10.1 million for the three months ended June 30, 2014. The decrease of $0.5 million was primarily attributable to lower production volumes and the decrease in land and mineral rights asset values resulting from the use of the acquisition method of accounting for WCC’s acquisition of 100% of the equity of our GP on December 31, 2014.

Selling and Administrative

	Three Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Selling and administrative	$	3,065	$	3,270	$	(205	)	(6.3	)%

Selling and administrative expenses for the three months ended June 30, 2015, decreased $0.2 million to $3.1 million compared to $3.3 million for the three months ended June 30, 2014. The decrease of $0.2 million was primarily due to cost savings from the restructuring efforts put in place to streamline operations and eliminate duplicated roles in connection with WCC's acquisition of our GP on December 31, 2014, offset in part by $1.1 million in Kemmerer acquisition costs incurred three months ended June 30, 2015.

Loss (gain) on sale/disposal of assets

	Three Months Ended June 30,
						Increase (Decrease)
	2015		2014			$		%
	(in thousands)
	(Successor)		(Predecessor)
Loss (gain) on sale/disposal of assets	$	651	$	(763	)	$	1,414	(185.3	)%

The loss on sale/disposal of assets of $0.7 million for the three months ended June 30, 2015 and the gain on sale/disposal of assets of $0.8 million for the three months ended June 30, 2014, resulted from the disposal of equipment in the normal course of business.

Net Income Attributable to Noncontrolling Interest

	Three Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Less net loss attributable to noncontrolling interest	$	—	$	461	$	(461	)	(100.0	)%

Effective October 1, 2014, Oxford Mining entered into a membership interest redemption agreement with Harrison Resources and CONSOL of Ohio LLC (“CONSOL”) under which Harrison Resources redeemed all of CONSOL’s interest in

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Harrison Resources. Harrison Resources had been a joint venture owned 51% by Oxford Mining and 49% by CONSOL, and as a result of the redemption Oxford Mining owns 100% of Harrison Resources.

Net income attributable to noncontrolling interest of $0.5 million for the three months ended June 30, 2014, relates to the 49% ownership interest in Harrison Resources owned by a subsidiary of CONSOL.

The Six Months Ended June 30, 2015(Successor) Compared to theSix Months Ended June 30, 2014(Predecessor)

Summary

	Six Months Ended June 30,
							Increase (Decrease)
	2015			2014			$			%
	(in thousands)
	(Successor)			(Predecessor)
Total Revenues	$	127,082		$	160,005		$	(32,923	)	(20.6	)%
Net loss	(16,697		)	(13,925		)	(2,772		)	(19.9	)%
Adjusted EBITDA1	19,791			22,201			(2,410		)	(10.9	)%
Distributable Cash Flow2	5,706			5,683			23			0.4	%
Tons sold - millions of equivalent tons	2.2			3.0			(0.8		)	(10.9	)%

¹Adjusted EBITDA, a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section.

²Distributable cash flow a non-GAAP measure, is defined and reconciled to net loss at the end of this “Results of Operations” section.

We reported total revenues of $127.1 million for the six months ended June 30, 2015, compared to $160.0 million for the six months ended June 30, 2014. The decrease of $32.9 million was principally due to decreased sales and production volumes, which declined to 2.2 million tons sold and produced in the six months ended June 30, 2015, compared to 3.0 million tons sold and produced in the six months ended June 30, 2014. The decrease in tons sold and produced resulted from a decrease in market demand. We reported net loss of $16.7 million for the six months ended June 30, 2015, compared to $13.9 million for the six months ended June 30, 2014. Additionally we reported Adjusted EBITDA of $19.8 million for the six months ended June 30, 2015, compared to $22.2 million for the six months ended June 30, 2014. The average coal sales price per ton sold increased $0.74 per ton sold to $53.65 per ton sold in the six months ended June 30, 2015, compared to $52.91 per ton sold in the six months ended June 30, 2014.

Total Revenues

	Six Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Revenues:
Coal revenues	$	116,786	$	156,356	$	(39,570	)	(25.3	)%
Royalty revenues	3,521		184		3,337			1,813.6	%
Non-coal revenues	6,775		3,465		3,310			95.5	%
Total Revenues	$	127,082	$	160,005	$	(32,923	)	(20.6	)%

Coal sales revenue was $116.8 million for the six months ended June 30, 2015, a decrease of $39.6 million, or 25.3%, from $156.4 million for the six months ended June 30, 2014. The decrease was primarily attributable to a 26.3% reduction in tons sold, due to a decrease in demand, in the amount of $41.2 million, partially offset by a $0.74 per ton, or an aggregate $1.6 million, increase in the average sale price per ton for the six months ended June 30, 2015.

For the six months ended June 30, 2015, we generated $3.5 million in royalty revenues from the receipt of $3.4 million in coal royalty revenues and $0.1 million in oil and gas royalty revenues. In December 2014, pursuant to a contribution agreement, WCC contributed to us 100% of the membership interests in WKFCH. WKFCH holds fee simple interests in 30.4

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million tons of coal reserves and related surface lands at WCC’s Kemmerer Mine in Lincoln County, Wyoming. In connection with this contribution, WKFCH entered into a coal mining lease with respect to these coal reserves with a subsidiary of WCC pursuant to which we earn a per ton royalty as these coal reserves are mined. For the six months ended June 30, 2015 we earned $3.4 million in coal royalty revenues for coal mined by WCC during the period. For the six months ended June 30, 2014 we generated $0.2 million in royalty revenues which comprised solely oil and gas royalty revenues.

Non-coal revenues, primarily from clay and limestone sales, and other miscellaneous revenue were $6.8 million for the six months ended June 30, 2015, an increase of $3.3 million, from $3.5 million for the six months ended June 30, 2014. Other miscellaneous revenue increased by $4.5 million to $5.3 million for the six months ended June 30, 2015 from $0.8 million in the prior year, primarily due to generating $2.4 million in coal handling and transportation services revenue performed on behalf of a subsidiary of WCC, $1.8 million in lost coal fees for granting a pipeline right-of-way to a third party in June 2015 and $0.7 million in one-time coal handling and transportation services revenue performed on behalf of a customer. The $4.5 million increase in miscellaneous revenue was offset in part by a $1.2 million decrease in clay and limestone sales to $1.5 million for the six months ended June 30, 2015 from $2.7 million for the six months ended June 30, 2014.

Cost of CoalRevenues

	Six Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Cost of coal revenues (excluding depreciation, depletion and amortization)	$	101,517	$	133,021	$	(31,504	)	(23.7	)%

Cost of coal revenues (excluding DD&A) decreased $31.5 million to $101.5 million for the six months ended June 30, 2015, from $133.0 million for the six months ended June 30, 2014, primarily due to decreased coal sales and production volumes. On a per ton basis, cost of coal revenues increased 3.6% to $46.63 per ton sold for the six months ended June 30, 2015 from $45.02 per ton sold for the six months ended June 30, 2014, primarily due to various factors, the most significant of which are discussed below:

• Labor and benefit expenses per ton sold increased 14.7% to $9.68 per ton for the six months ended June 30, 2015, from $8.44 per ton for the six months ended June 30, 2014. This increase of $1.24 per ton was attributed to a $0.85 per ton increase in wages and a $0.39 per ton increase in employee benefits. The $0.85 per ton increase in wages is primarily the result of raises implemented in mid-2014 in response to competition in the labor market from the growing oil and gas drilling business in southeastern Ohio. The $0.39 per ton increase in employee benefits is primarily the result of higher health insurance cost per employee.

• Equipment repair and maintenance expense per ton sold increased $0.79 per ton to $4.32 per ton for the six months ended June 30, 2015 from $3.53 per ton for the six months ended June 30, 2014. This increase of $0.79 per ton is the result of incurring equipment maintenance costs during the six months ended June 30, 2015, deferred from fiscal 2014, combined with a 26.3% decrease in tons sold for the six months ended June 30, 2015, compared with the six months ended June 30, 2014.

• Contract labor expenses per ton sold decreased $1.21 per ton to $0.68 per ton for the six months ended June 30, 2015, from $1.89 per ton for the six months ended June 30, 2014. The decrease of $1.21 per ton was attributed to the 26.3% decrease in tons sold for the six months ended June 30, 2015, compared with the six months ended June 30, 2014.

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Depreciation, Depletion and Amortization

	Six Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Depreciation, depletion and amortization	$	19,743	$	21,296	$	(1,553	)	(7.3	)%

Depreciation, depletion and amortization expense decreased to $19.7 million for the six months ended June 30, 2015 from $21.3 million for the six months ended June 30, 2014. The decrease of $1.6 million was primarily attributable to lower production volumes and the decrease in land and mineral rights asset values resulting from the use of the acquisition method of accounting for WCC’s acquisition of 100% of the equity of our GP on December 31, 2014.

Selling and Administrative

	Six Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Selling and administrative	$	5,613	$	6,926	$	(1,313	)	(19.0	)%

Selling and administrative expenses for the six months ended June 30, 2015 decreased $1.3 million to $5.6 million compared to $6.9 million for the six months ended June 30, 2014. The decrease of $1.3 million was primarily due to cost savings from the restructuring efforts put in place to stream line operations and eliminate duplicated roles in connection with WCC's acquisition of our GP, offset in part by $1.1 million in Kemmerer acquisition costs incurred six months ended June 30, 2015

Loss (gain) on sale/disposal of assets

	Six Months Ended June 30,
						Increase (Decrease)
	2015		2014			$		%
	(in thousands)
	(Successor)		(Predecessor)
Loss (gain) on sale/disposal of assets	$	1,685	$	(559	)	$	2,244	(401.4	)%

The loss on sale/disposal of assets of $1.7 million for the six months ended June 30, 2015, and the gain on sale/disposal of assets of $0.6 million for the six months ended June 30, 2014, resulted from the disposal of equipment in the normal course of business.

Net Income Attributable to Noncontrolling Interest

	Six Months Ended June 30,
					Increase (Decrease)
	2015		2014		$			%
	(in thousands)
	(Successor)		(Predecessor)
Less net loss attributable to noncontrolling interest	$	—	$	842	$	(842	)	(100.0	)%

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Net income attributable to noncontrolling interest of $0.8 million for the six months ended June 30, 2014 relates to the 49% ownership interest in Harrison Resources owned by a subsidiary of CONSOL.

Adjusted EBITDA

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 key metrics used by us to assess our operating performance, and we believe that EBITDA and Adjusted EBITDA are useful to an investor in evaluating our 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 our operations from period to period by removing the effect of our capital structure and asset base from our 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 our 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 our results as reported under GAAP. For example, EBITDA and Adjusted EBITDA:

• do not reflect our cash expenditures or future requirements for capital and major maintenance expenditures or contractual commitments;

• do not reflect changes in, or cash requirements for, our 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 our 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 our industry and in other industries may calculate EBITDA and Adjusted EBITDA differently from the way that we do, 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 us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only as supplemental data.

Distributable Cash Flow

Distributable Cash Flow represents Adjusted EBITDA less cash interest expense (net of interest income), reserve replacement expenditures, maintenance capital expenditures, cash reclamation expenditures and noncontrolling interest. Cash interest expense represents the portion of our interest expense accrued and paid in cash during the reporting periods presented or that we will pay in cash in future periods as the obligations become due. Other maintenance capital expenditures represent expenditures for coal reserve replacement, and for plant, equipment and mine development. Cash reclamation expenditures represent the reduction to our reclamation and mine closure costs resulting from cash payments. Earnings attributable to the noncontrolling interest are not available for distribution to our unitholders and accordingly are deducted.

Distributable Cash Flow should not be considered as an alternative to net income (loss) attributable to our unitholders, income from operations, cash flows from operating activities or any other measure of performance presented in accordance with GAAP. Although Distributable Cash Flow is not a measure of performance calculated in accordance with GAAP, we believe Distributable Cash Flow is useful to investors because this measurement is used by many analysts and others in the industry as a performance measurement tool to evaluate our operating and financial performance, facilitating comparison with the performance of other publicly traded limited partnerships.

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The tables below show how we calculated EBITDA, Adjusted EBITDA and Distributable Cash Flow and reconcile Distributable Cash Flow to net loss, the most directly comparable GAAP financial measure. 

Reconciliation of Net Loss to Distributable Cash Flows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)						(in thousands)
	(Successor)			(Predecessor)			(Successor)			(Predecessor)
Reconciliation of Net Loss to Adjusted EBITDA
Net loss	$	(6,392	)	$	(3,358	)	$	(16,697	)	$	(13,925	)
Interest expense, net of interest income	5,872			7,001			11,652			13,870
Depreciation, depletion and amortization	9,563			10,072			19,743			21,296
Accretion of ARO	826			560			1,630			1,125
EBITDA	9,869			14,275			16,328			22,366
Restructuring and impairment charges	103			—			656			75
Change in fair value of warrants	(448		)	(1,885		)	(477		)	(1,470		)
Acquisition related costs1	—			—			1,400			—
Loss on sale/disposal of assets	651			(763		)	1,685			(559		)
Unit-based compensation	63			465			84			921
Other non-recurring costs	—			868			115			868
Adjusted EBITDA	10,238			12,960			19,791			22,201
Noncontrolling interest's Adjusted EBITDA	—			(53		)	—			(147		)
Cash interest expense, net of interest income	(4,123		)	(4,101		)	(8,170		)	(8,161		)
Other maintenance capital expenditures	(1,598		)	(3,242		)	(2,952		)	(5,864		)
Reclamation and mine closure costs	(2,005		)	(1,731		)	(2,963		)	(2,346		)
Distributable Cash Flow	$	2,512		$	3,833		$	5,706		$	5,683

¹ Includes acquisition and transition costs included in cost of coal revenue related to the sale of inventory written up to fair value.

Liquidity and Capital Resources 

Liquidity 

Our business is capital intensive and requires substantial capital expenditures for, among other things, purchasing, maintaining and upgrading equipment used in developing and mining our coal, and acquiring reserves. Our principal liquidity needs are to finance current operations, replace reserves, fund capital expenditures, including costs of acquisitions from time to time, service our debt and pay quarterly cash distributions to our unitholders. Our primary sources of liquidity to meet these needs are cash generated by our operations and borrowings under the 2014 Financing Agreement.

Our ability to satisfy our working capital requirements, meet debt service obligations and fund planned capital expenditures substantially depends upon our future operating performance, which may be affected by prevailing economic conditions in the coal industry. To the extent our future operating cash flow or access to financing sources and the costs thereof are materially different than expected, our future liquidity may be adversely affected. 

As of June 30, 2015, our available liquidity was $12.8 million, which consisted entirely of cash on hand.

Please read "— Capital Expenditures" for a further discussion of the impact on liquidity. 

Debt Obligations 

On December 31, 2014, we entered into the 2014 Financing Agreement with the lenders party thereto and U.S. Bank National Association as Administrative and Collateral Agent. The 2014 Financing Agreement includes a $175 million term loan, with an option for up to $120 million in additional term loans for acquisitions if requested by us and approved by the

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issuing lenders. The 2014 Financing Agreement matures in December 2018 and contains customary financial and other covenants. It also permits distributions to our unitholders under specified circumstances. Borrowings under the 2014 Financing Agreement are secured by substantially all of our physical assets. Our initial borrowings under the 2014 Financing Agreement in December 2014 were used to retire our then-existing first and second lien credit facilities and to pay fees and expenses related the 2014 Financing Agreement, with the remaining amount available as working capital.

As of June 30, 2015 the outstanding balance on our 2014 Financing Agreement was $175.8 million. This amount represents the principal balance of $173.2 million, plus PIK Interest of $2.7 million. As of June 30, 2015, our 2014 Financing Agreement had a cash interest rate of 9.25%, consisting of the LIBOR floor (0.75%) plus 8.50%.

Historical Sources and Uses of Cash

The following is a summary of cash provided by or used in each of the indicated types of activities:

	Six Months Ended June 30,
	2015			2014
	(in thousands)
	(Successor)			(Predecessor)
Net cash provided by (used in):
Operating activities	$	13,925		$	5,641
Investing activities	(4,050		)	(1,759		)
Financing activities	(3,030		)	(3,438		)

Net cash provided by operating activities was $13.9 million for the six months ended June 30, 2015 compared to $5.6 million of net cash provided by operating activities for the six months ended June 30, 2014, an increase of $8.3 million. We experienced a net loss for the six months ended June 30, 2015 of $16.7 million, an increase of $2.8 million, compared to a net loss for the six months ended June 30, 2014 of $13.9 million. The increase in the net loss was primarily attributable in part to a $2.2 million increase in loss on sale/disposal of assets. This difference, combined with $11.4 million in cash provided by change in working capital, was the primary driver of the increase in net cash provided by operating activities for the six months ended June 30, 2014. The $11.4 million change in working capital consisted of favorable changes of $10.7 million in accounts receivable, $2.3 million of accounts payable and accrued expenses and $1.4 million in accrued compensation, offset impart by a $2.3 million unfavorable change in other assets and liabilities.

Net cash used in investing activities was $4.1 million for the six months ended June 30, 2015 compared to $1.8 million for the six months ended June 30, 2014, an increase of approximately $2.3 million. The increase was attributable to an increase of $0.6 million in cash used for capital expenditures and a decrease of $3.5 million in cash provided from proceeds from the sale of assets, offset in part by a $1.8 million increase in cash provided by the change in restricted investments and bond collateral.

Net cash used in financing activities was $3.0 million for the six months ended June 30, 2015, down $0.4 million from net cash used in financing activities of $3.4 million for the six months ended June 30, 2014. The $3.0 million of cash flows used in financing activities for the six months ended June 30, 2015, consisted of $1.8 million in repayment of long-term debt and $1.2 million in distributions to unitholders.

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Capital Expenditures 

Our mining operations require investments to maintain, expand, and upgrade existing operations and to meet environmental and safety regulations. We have funded and expect to continue funding capital expenditures primarily from cash generated by our operations, borrowings under the 2014 Financing Agreement, and proceeds from asset sales. 

The following table summarizes our capital expenditures by type for the three months ended June 30, 2015, and 2014.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(in thousands)				(in thousands)
	(Successor)		(Predecessor)		(Successor)		(Predecessor)
Coal reserves	$	—	$	2	$	—	$	5
Mine development	405		429		680		618
Equipment and components	1,193		2,811		2,488		5,241
Total	$	1,598	$	3,242	$	3,168	$	5,864

Critical Accounting Policies and Estimates

Please refer to the corresponding section in Part II, Item 7 of our 2014 Form 10-K and the footnote disclosures included in Part I, Item I of this report for a discussion of our accounting policies and estimates.

Recent Accounting Pronouncements

See Note 1 of Notes to Consolidated Financial Statements included in “Part I - Item 1 - Financial Statements.”

Off-Balance Sheet Arrangements

In the normal course of business, we are a party to certain off-balance sheet arrangements. These arrangements include guarantees and financial instruments with off-balance sheet risk, such as letters of credit and surety, performance and road bonds. No liabilities related to these arrangements are reflected in our consolidated balance sheet, and we do not expect any material adverse effect on our financial condition, results of operations or cash flows to result from these arrangements.

Federal and state laws require us to secure certain long-term obligations, such as ARO, and contractual performance. Historically, we secured these obligations with surety bonds supported by letters of credit. Subsequent to our 2014 refinancing, we have supported our surety bonds with cash deposits.

As of June 30, 2015, we had $32.7 million of surety bonds outstanding to secure certain reclamation obligations. Additionally, as of June 30, 2015, we had $6.9 million of cash deposits in support of these bonds. Further, as of June 30, 2015, we had $0.5 million of road bonds and $2.9 million of performance bonds outstanding that required no security. We believe these bonds and letters of credit will expire without any claims or payments thereon, and accordingly we do not expect any material adverse effect on our financial condition, results of operations or cash flows therefrom.

Our off-balance sheet arrangements are discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2014 Form 10-K.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

We are also exposed to market price risk related to diesel fuel pricing. To reduce this risk in part, we enter into forward purchase agreements. Additionally, we are further protected by diesel fuel escalation provisions contained in certain of our coal supply contracts that provide for a change in the price per coal ton sold in the event of changes in diesel fuel pricing. As of June 30, 2015, we had such price protection with respect to 93.4% of our expected diesel fuel purchases for the remainder of 2015.

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Item 4.Controls and Procedures

As required by Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, management has evaluated, with the participation of our chief executive officer and chief financial officer, the effectiveness of our disclosure controls and procedures as of June 30, 2015. Disclosure controls and procedures are designed to provide reasonable assurance that material information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding our required disclosure. Based on that evaluation, our management, including our chief executive officer and chief financial officer, concluded that the disclosure controls and procedures were effective as of such date.

Additionally, there have been no changes in internal control over financial reporting that occurred during the six months ended June 30, 2015, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

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Item 1.Legal Proceedings

We are subject, from time-to-time, to various proceedings, lawsuits, disputes, and claims (“Actions”) arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are subject to uncertainties. We cannot predict with assurance the outcome of Actions brought against us. Accordingly, adverse developments, settlements, or resolutions may occur and may result in a negative impact on income in the quarter of such development, settlement, or resolution. However, we do not believe that the outcome of any current Action would have a material adverse effect on our financial results.

In November 2014 we entered into a plea agreement regarding, and in December 2014 the United States filed and we pleaded guilty to, a single count misdemeanor information in the United States District Court for the Southern District of Ohio, Eastern Division. The information filing alleged negligent violation of a condition and limitation of a National Pollutant Discharge Elimination System permit. This matter arose from our voluntary disclosure of the filing of false reports by a rogue employee who was terminated shortly after his false reporting was discovered. We are subject to a probationary period of 6-12 months and are paying a fine of $500,000 and community service payments of $150,000 which were accrued for in 2014.

Item 1A.     Risk Factors

We have disclosed under the heading “Risk Factors” in our 2014 Form 10-K, the risk factors that we believe materially affect our business, financial condition or results of operations. There have been no material changes from the risk factors previously disclosed. You should carefully consider the risk factors set forth in the 2014 Form 10-K and the other information set forth elsewhere in this Quarterly Report on Form 10-Q. You should be aware that these risk factors and other information may not describe every risk that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and or operating results.

32

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

.

Item 4.Mine Safety Disclosures

On July 21, 2010, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act. Section 1503(a) of the Dodd-Frank Act contains reporting requirements regarding mine safety. Mine safety violations and other regulatory matters, as required by Section 1503(a) of the Dodd-FrankAct and Item 104 of Regulation S-K, are included as Exhibit 95.1 to this report on Form 10-Q.

Item 6.     Exhibits

The exhibits listed in the Exhibit Index are incorporated herein by reference.

33

SIGNATURES

   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 thereunto duly authorized.

		WESTMORELAND RESOURCE PARTNERS, LP
		By:	WESTMORELAND RESOURCES GP, LLC, its general partner
Date:	July 28, 2015	By:	/s/ KEVIN A. PAPRZYCKI
			Kevin A. Paprzycki
			Chief Financial Officer and Treasurer
			(Principal Financial Officer and A Duly Authorized Officer)
Date:	July 28, 2015	By:	/s/ MICHAEL J. MEYER
			Michael J. Meyer
			Controller
			(Principal Accounting Officer and A Duly Authorized Officer)

91

WESTMORELAND RESOURCE PARTNERS, LP AND SUBSIDIARIES

.

Indexto Exhibits

Exhibit Number	Description
3.1	Certificate of Limited Partnership of Westmoreland Resource Partners, LP (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 (Commission File No. 333-165662) filed on March 24, 2010)
3.1A	Certificate of Amendment to Certificate of Limited Partnership of Westmoreland Resource Partners, LP executed as of December 23, 2014 to be effective December 30, 2014 (incorporated by reference to Exhibit 3.1A to the Annual Report on Form 10-K (Commission File No. 001-34815) for the year ended December 31, 2014 filed on March 6, 2015)
3.2	Fourth Amended and Restated Agreement of Limited Partnership of Westmoreland Resource Partners, LP dated December 31, 2014 (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K (Commission File No. 001-34815) for the year ended December 31, 2014 filed on March 6, 2015)
3.3	Certificate of Formation of Westmoreland Resources GP, LLC (incorporated by reference to Exhibit 3.3 to Amendment No. 1 to the Registration Statement on Form S-1 (Commission File No. 333-165662) filed on April 21, 2010)
3.3A	Certificate of Amendment to Certificate of Formation of Westmoreland Resources GP, LLC executed as of December 23, 2014 to be effective December 30, 2014 (incorporated by reference to Exhibit 3.3A to the Annual Report on Form 10-K (Commission File No. 001-34815) for the year ended December 31, 2014 filed on March 6, 2015)
3.4	Third Amended and Restated Limited Liability Company Agreement of Westmoreland Resources GP, LLC dated January 1, 2012 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K (Commission File No. 001-34815) filed on January 4, 2011)
3.4A	First Amendment to Third Amended and Restated Limited Liability Company Agreement of Westmoreland Resources GP, LLC dated June 24, 2013 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K (Commission File No. 001-34815) filed on June 25, 2013)
3.4B	First Amendment to Third Amended and Restated Limited Liability Company Agreement of Westmoreland Resources GP, LLC executed as of March 12, 2014 to be effective as of June 24, 2013, entered into to correct, clarify, supersede and replace in its entirety the First Amendment to Third Amended and Restated Limited Liability Company Agreement of Westmoreland Resources GP, LLC dated June 24, 2013 (incorporated by reference to Exhibit 3.4B to the Quarterly Report on Form 10-Q (Commission File No. 001-34815) for the quarter ended March 31, 2014 filed on May 6, 2014)
10.1*†	Coal Purchase and Sale Agreement No. 10-62-15-900, dated as of February 26, 2015, by and between Oxford Mining Company, LLC and AEP Generation Resources, Inc.
10.2	Services Agreement, dated as of March 13, 2015, by and between Westmoreland Resources GP, LLC and Westmoreland Resource Partners, LP (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (Commission File No. 001-34815) filed on March 16, 2015)
10.3	Amendment No. 1 to Financing Agreement, dated as of March 13, 2015, by and among Oxford Mining Company, LLC, Westmoreland Resource Partners, LP and each of its subsidiaries, the lenders party there to and U.S. Bank National Association (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K (Commission File No. 001-34815) filed on March 16, 2015)
10.4*	Award Agreement for Grant of Phantom Units to Non-Employee Directors dated March 2, 2015 under the Westmoreland Resource Partners, LP Amended and Restated Long-Term Incentive Plan.
31.1*	Certification of Keith E. Alessi, Chief Executive Officer of Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP, for the June 30, 2015 Quarterly Report on Form 10-Q, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Kevin A. Paprzycki, Chief Financial Officer and Treasurer of Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP, for the June 30, 2015 Quarterly Report on Form 10-Q, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32*	Certification of Keith E. Alessi, Chief Executive Officer of Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP, and Kevin A. Paprzycki, Chief Financial Officer and Treasurer of Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP, for the June 30, 2015 Quarterly Report on Form 10-Q, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95*	Mine Safety Disclosure
101*	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) our Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014; (ii) our Condensed Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014; (iii) our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014; (iv) our Condensed Consolidated Statements of Partners’ Capital for the three months ended March 31, 2015; and (v) the notes to our Condensed Consolidated Financial Statements (this information is furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, as amended, and Section 18 of the Securities Exchange Act of 1934, as amended)
*	Filed herewith (or furnished in the case of Exhibits 32 and 101).
#	Compensatory plan or arrangement.
†	Certain portions have been omitted pursuant to a confidential treatment request. Omitted information has been filed separately with the Securities and Exchange Commission.

92

EX-31.1

Exhibit 31.1

Certification

I, Keith E. Alessi, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Westmoreland Resource Partners, LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 28, 2015	/s/ Keith E. Alessi
		Name:	Keith E. Alessi
		Title:	Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification

I, Kevin A. Paprzycki, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Westmoreland Resource Partners, LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 28, 2015	/s/ Kevin A. Paprzycki
		Name:	Kevin A. Paprzycki
		Title:	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32

Statement Pursuant to 18 U.S.C. § 1350

Pursuant to 18 U.S.C. § 1350, each of the undersigned certifies that this Quarterly Report on Form 10-Q for the period ended June 30, 2015, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Westmoreland Resource Partners, LP.

Date:	July 28, 2015	/s/ Keith E. Alessi
		Name:	Keith E. Alessi
		Title:	Chief Executive Officer
			(Principal Executive Officer)
Date:	July 28, 2015	/s/ Kevin A. Paprzycki
		Name:	Kevin A. Paprzycki
		Title:	Chief Financial Officer and Treasurer
			(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Westmoreland Resource Partners, LP and will be retained by Westmoreland Resource Partners, LP and furnished to the Securities and Exchange Commission or its staff upon request.

EX-95.1

Exhibit 95

Mine Safety Disclosure

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Section 104 of Regulation S-K, is included in this Exhibit 95.

For each coal mine for which we or a subsidiary of ours was an operator within the meaning of Section 3 of the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) during the three months ended June 30, 2015, we include the following table that sets forth: (A) the total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under Section 104 of the Mine Act for which we received a citation from the Mine Safety and Health Administration (“MSHA”); (B) the total number of failure to abate orders issued under Section 104(b) of the Mine Act; (C) the total number of citations and orders for unwarrantable failure to comply with mandatory health or safety standards under Section 104(d) of the Mine Act; (D) the total number of flagrant violations under Section 110(b)(2) of the Mine Act; (E) the total number of imminent danger orders issued under Section 107(a) of the Mine Act; (F) the total dollar value of the proposed MSHA assessments under the Mine Act; and (G) the total number of mining-related fatalities.

In addition, no coal mine for which we or a subsidiary of ours was the operator received written notice from MSHA of a pattern of violations, or the potential to have such a pattern, of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards under Section 104(e) of the Mine Act.

The total number of legal actions pending before the Federal Mine Safety and Review Commission (the “FMSR Commission”) as of June 30, 2015 was zero (0). The aggregate number of legal actions during the period covered by this report instituted (either by MSHA or by us) was two (2) and resolved (meaning final order entered and not appealed) was five (5). Of the legal actions pending before the FMSR Commission as of December 31, 2014, the number of such legal actions that fall into each of the following categories was as follows: (a) contests of citations and orders: zero (0); (b) contests of proposed penalties: zero (0); (c) complaints for compensation under Section 111 of the Mine Act: zero (0); (d) complaints of discharge, discrimination or interference under Section 105 of the Mine Act: zero (0); (e) applications for temporary relief under Section 105(b)(2) of the Mine Act: zero (0); and (f) appeals of judges' decisions or orders to the FMSR Commission: zero (0).

1

Oxford Complex	MSHA Mine ID	MSHA Mine Name	(A) Section 104 S&S Citations (#)	(B) Section 104(b) Orders (#)	(C) Section 104(d) Citations & Orders (#)	(D) Section 110(b)(2) Violations (#)	(E) Section 107(a) Orders (#)	(F) Total Value of Proposed MSHA Assessments1 ($)		(G) Fatalities (#)
Muhlenberg	1518134	Halls Creek	—	—	—	—	—	—		—
	1518912	Island Dock	—	—	—	—	—	—		—
	1519365	Schoate Preparation Plant	—	—	—	—	—	—		—
	1519452	Star	—	—	—	—	—	—		—
	1519466	Rose France	—	—	—	—	—	—		—
	1519655	Geibel	—	—	—	—	—	—		—
Belmont	3300965	Rice #1	—	—	—	—	—	—		—
	3302937	Loading Dock	—	—	—	—	—	—		—
	3303758	Valley Mining Inc. Auger #1	—	—	—	—	—	—		—
Cadiz	3304413	Standing Stone Mine	—	—	—	—	—	—		—
	3304414	Snyder Mine	—	—	—	—	—	100		—
	3304538	Dairy Jean	1	—	—	—	—	560		—
	4609067	Crosscreek Mine	—	—	—	—	—	—		—
Harrison	3304577	Harrison Resources, LLC Sexton 2 Pit	—	—	—	—	—	100		—
New Lexington	3304336	Oxford Mining #3	—	—	—	—	—	—		—
	3304637	Athens	—	—	—	—	—	—		—
Noble	3303770	Rice #2	—	—	—	—	—	—		—
	3304624	King Crum	—	—	—	—	—	—		—
	3304624	Oxford Guemsey	—	—	—	—	—	—		—
Plainfield	3303288	Rice #7	—	—	—	—	—	—		—
	3303907	Conesville Plant	—	—	—	—	—	—		—
	3304180	Coshocton Strip	—	—	—	—	—	—		—
	3304213	Oxford Mining #2	—	—	—	—	—	—		—
Tuscarawas	3303930	Lisbon Mine	—	—	—	—	—	—		—
	3304179	Tuscarawas Strip	—	—	—	—	—	485		—
	3304181	Stark Strip	—	—	—	—	—	—		—
TOTAL			1	—	—	—	—	$	1,245	—

¹The total dollar value of proposed MSHA assessments is the amount issued during the current reporting period for all citations, orders or violations, not just those indicated herein, and does not necessarily relate to the citations, orders or violations issued by MSHA during the current reporting period or to the pending legal actions reported in Exhibit 95.

2

XML

Long-Term Debt - Deferred Financing Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Successor [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs	$ 400		$ 817
Predecessor [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs		$ 1,000		$ 1,923

XML

Segment Information (Details) - 6 months ended Jun. 30, 2015	subsidiary business_segment
Segment Reporting [Abstract]
Number of business segments | business_segment	1
Number of operating subsidiaries	3

XML

Earnings (Losses) Per Unit (Details) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2014 $ / shares	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 USD ($) $ / shares shares	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 USD ($) $ / shares shares	Dec. 31, 2014 $ / shares
Successor [Member]
Limited partner units
Average units outstanding basic and diluted (shares) | shares		5,878,187		5,878,187
Net loss allocated to limited partners basic and diluted | $		$ (6,354)		$ (16,597)
Net loss per limited partner unit basic and diluted (dollars per share)		(1.08)		(2.82)
General partner units
Average units outstanding basic and diluted (shares) | shares		35,291		35,291
Net loss allocated to general partners basic and diluted | $		$ (38)		$ (100)
Net loss per general partner unit basic and diluted (dollars per share)		(1.08)		(2.82)
Distribution per limited partner unit (dollars per share)	$ 0.2	$ 0.200		$ 0.2
Distribution per general partner unit (dollars per share)	$ 0.2	$ 0.2		$ 0.2
Predecessor [Member]
Limited partner units
Average units outstanding basic and diluted (shares) | shares			2,062,834		2,058,912
Net loss allocated to limited partners basic and diluted | $			$ (2,848)		$ (12,862)
Net loss per limited partner unit basic and diluted (dollars per share)			(1.32)		(6.24)
General partner units
Average units outstanding basic and diluted (shares) | shares			35,291		35,291
Net loss allocated to general partners basic and diluted | $			$ (49)		$ (221)
Net loss per general partner unit basic and diluted (dollars per share)			(1.32)		(6.24)
Distribution per limited partner unit (dollars per share)			$ 0		$ 0	$ 0
Distribution per general partner unit (dollars per share)			$ 0		$ 0	$ 0

XML

Inventory (Details) - Successor [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Coal	$ 7,188	$ 6,590
Fuel inventory	1,583	1,860
Materials and supplies	6,099	5,563
Total	$ 14,870	$ 14,013

XML

Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets consisted of the following: 

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Prepaid Insurance	$	1,649	$	418
Other	615		899
Total	$	2,264	$	1,317

XML

Asset Retirement Obligations - Schedule of Activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Successor [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligation, beginning period	$ 31,685
Accretion of asset retirement obligations	1,630
Changes resulting from additional mines	1,541
Changes due to amount and timing of reclamation	992
Payments	(2,962)
Asset retirement obligation, ending period	32,886
Less current portion	(11,547)		$ (7,783)
Asset retirement obligations, less current portion	$ 21,339
Predecessor [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligation, beginning period		$ 31,654
Accretion of asset retirement obligations		1,125
Changes resulting from additional mines		2,702
Changes due to amount and timing of reclamation		149
Payments		(2,345)
Asset retirement obligation, ending period		33,285
Less current portion		(9,086)
Asset retirement obligations, less current portion		$ 24,199

XML

Long-Term Debt - Schedule (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Financing Agreement 2014 [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Paid-in-kind interest	$ 1,337	$ 2,664
Total first lien debt			$ 175,000
Successor [Member]
Debt Instrument [Line Items]
Long-term Debt	175,870	175,870	175,035
Notes payable	32	32	35
Less current portion	(6)	(6)	(6)
Long-term debt, less current installments	175,864	175,864	175,029
Successor [Member] | First Lien Financing Agreement [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Long-term Debt	173,174	173,174	175,000
Successor [Member] | Financing Agreement 2014 [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Paid-in-kind interest		2,664	0
Total first lien debt	$ 175,838	$ 175,838	$ 175,000

XML

Related Party Transactions (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 31, 2007	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Notice period for terminating service agreement	30 days
Fixed annual fee for administrative services			$ 500,000
Automatic renewal of service agreement, renewal term			1 year
Accounts payable, related parties, current		$ 800,000	$ 800,000	$ 600,000
Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Revenues included in Receivables - trade		2,900,000	2,900,000
Royalty Revenue from Coal [Member] | Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Revenue from related parties		1,600,000	3,400,000
Coal Revenue [Member] | Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Revenue from related parties		6,500,000	18,700,000
Non-Coal Revenue [Member] | Subsidiary of Common Parent [Member]
Related Party Transaction [Line Items]
Revenue from related parties		$ 100,000	$ 2,400,000

XML

Inventory

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Inventory consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Coal	$	7,188	$	6,590
Fuel inventory	1,583		1,860
Materials and supplies	6,099		5,563
Total	$	14,870	$	14,013

XML

Unit-Based Compensation - Schedule of Compensation Expense (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Successor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition of fair value of restricted common units over the vesting period	$ 63		$ 84
Predecessor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition of fair value of restricted common units over the vesting period		$ 465		$ 921

XML

Earnings (Losses) Per Unit (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings (Losses) per Unit

The computation of basic and diluted earnings (losses) per unit under the two class method for limited partner units and general partner units is presented as follows:

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP			Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)			(Successor)			(Predecessor)
	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Limited partner units
Average units outstanding basic and diluted1, 2	5,878,187			2,062,834			5,878,187			2,058,912
Net loss allocated to limited partners basic and diluted2	$	(6,354	)	$	(2,848	)	$	(16,597	)	$	(12,862	)
Net loss per limited partner unit basic and diluted2	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
General partner units
Average units outstanding basic and diluted	35,291			35,291			35,291			35,291
Net loss allocated to general partners basic and diluted2	$	(38	)	$	(49	)	$	(100	)	$	(221	)
Net loss per general partner unit basic and diluted	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
Distribution paid per limited partner unit	$	0.20		$	—		$	0.20		$	—
Distribution paid per general partner unit	$	0.20		$	—		$	0.20		$	—

¹Unvested LTIP units are not dilutive units for the years and periods presented herein, but could be in the future.Anti-dilutive units are not used in calculating diluted average units.

²Reflects the impact of the outstanding common unit warrants for the three and six months ended June 30, 2015 and 2014, respectively..

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Unit-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Recognized Compensation Expense

We recognized compensation expense from unit-based arrangements shown in the following table:

	Westmoreland Resource Partners, LP		Oxford Resource Partners, LP		Westmoreland Resource Partners, LP		Oxford Resource Partners, LP
	(Successor)		(Predecessor)		(Successor)		(Predecessor)
	Three Months Ended   June 30, 2015		Three Months Ended   June 30, 2014		Six Months Ended   June 30, 2015		Six Months Ended   June 30, 2014
Recognition of fair value of restricted common units over the vesting period	$	63	$	465	$	84	$	921

Summary of Restricted Common Unit Award Activity

A summary of restricted common unit award activity for the six months ended June 30, 2015 is as follows:

	Westmoreland Resource Partners, LP (Successor)
	Units	Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense
				(in thousands)
Non-vested at December 31, 2014	—	$	—
Granted	21,930	11.40
Vested	—	—
Non-vested at June 30, 2015	21,930	$	11.40	$	167	1

¹Expected to be recognized over the next 8 months.

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Unit-Based Compensation - Summary of Restricted Common Units (Details) - Jun. 30, 2015 - Successor [Member] - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at the beginning of the period (units)	0
Granted (units)	21,930
Vested (units)	0
Non-vested at the end of the period (units)	21,930
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested at the beginning of the period	$ 0.00
Granted	11.40
Vested	0.00
Non-vested at the end of the period	$ 11.40
Unamortized Compensation Expense	$ 167
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	8 months

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Basis of Presentation - Narrative (Details)		1 Months Ended	6 Months Ended
	Jul. 23, 2015	Jan. 31, 2015 shares	Jun. 30, 2015 period
Subsequent Event [Line Items]
Number of reporting periods			2
Common Units [Member]
Subsequent Event [Line Items]
Common unit distributions (units) | shares		206,543
Unit dividend		25.00%
Subsequent Event [Member] | Common Units [Member]
Subsequent Event [Line Items]
Ownership interest	78.00%

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Acquisition and Pushdown Accounting - Narrative (Details) - USD ($) $ in Millions	Jun. 01, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Cash paid		$ 33.5
Total estimated purchase consideration		239.2
Total estimated fair value of liabilities assumed		$ 194.9
Westmoreland Kemmerer, LLC [Member] | Westmoreland Coal Company [Member]
Business Acquisition [Line Items]
Cash paid	$ 230.0
Percent of equity owned	100.00%
Capital Units [Member]
Business Acquisition [Line Items]
Percent of equity owned		100.00%
Subordinated [Member]
Business Acquisition [Line Items]
Percent of equity owned		100.00%
Warrant [Member]
Business Acquisition [Line Items]
Percent of equity owned		100.00%

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Acquisition and Pushdown Accounting

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisition and Pushdown Accounting

ACQUISITION AND PUSHDOWN ACCOUNTING

Westmoreland Coal Company's Acquisition of our General Partner

On December 31, 2014, pursuant to a Purchase Agreement dated October 16, 2014, WCC acquired, for $33.5 million in cash, 100% of the equity of our GP from (i) the holders of all of our GP’s outstanding Class A Units, AIM Oxford Holdings, LLC ("AIM") and C&T Coal, Inc. ("C&T"), (ii) the holders of all of our GP’s outstanding Class B Units, certain former executives of our GP, and (iii) the holders of all of the outstanding warrants for our GP’s Class B Units (the "Warrantholders"). At the same time, WCC also acquired, for no additional consideration, (i) 100% of the Partnership’s outstanding subordinated units from AIM and C&T, which subordinated units were then converted to liquidation units, and (ii) 100% of the Partnership’s outstanding warrants for subordinated units from the Warrantholders, which warrants were then canceled by WCC.

The purchase consideration for our GP and control of our GP’s consolidated subsidiaries is estimated at $239.2 million, which included $33.5 million paid in cash, plus the assumption of approximately $194.9 million of liabilities. In the second quarter of 2015 we made an immaterial adjustment to the purchase accounting assumptions. Given, the immaterial nature of the adjustment, previously issued financial statements have not been adjusted.

The acquisition of our GP was accounted for by WCC under the acquisition method of accounting that requires the total purchase consideration to be allocated to the assets acquired and liabilities assumed based on estimates of fair value. We have elected to apply pushdown accounting to our consolidated financial statements. By applying pushdown accounting, our financial statements also reflect these adjustments to fair value with a portion allocated to noncontrolling interest for the portion of us that is not owned directly by WCC.

The allocation of the purchase price is preliminary pending the completion of various analyses and the finalization of estimates. During the measurement period (which is not to exceed one year from the acquisition date), additional assets or liabilities may be recognized if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets or liabilities as of that date. The preliminary allocation may be adjusted after obtaining additional information regarding, among other things, asset valuations, liabilities assumed and revisions of previous estimates. These adjustments may be significant and will be accounted for retrospectively.

A summary of the estimated purchase consideration and a preliminary allocation of the estimated purchase consideration is as follows (in millions):

Estimated purchase consideration
Market value of limited partners' units	$	10.8
Cash paid	33.5
Total consideration	$	44.3
Estimated fair value of liabilities assumed:
Debt	$	160.1
Asset retirement obligations	31.7
Other liabilities	1.1
Warrants	2.0
Total estimated fair value of liabilities assumed	194.9
Total estimated purchase consideration:	$	239.2
Preliminary allocation of estimated purchase consideration:
Working capital	$	14.7
Land and mineral rights	39.5
Plant and equipment	134.0
Advanced coal royalties	9.2
Restricted investments and bond collateral	10.6
Intangible asset	31.0
Other assets	0.2
Total preliminary allocation of estimated purchase consideration:	$	239.2

Kemmerer Drop-down

On June 1, 2015, we entered into a Contribution Agreement (the “Contribution Agreement”) with WCC pursuant to which, upon satisfaction or waiver of the conditions set forth in the Contribution Agreement, WCC would make a contribution (the “Contribution”) to us of all of the outstanding equity interests in Westmoreland Kemmerer, LLC, a Delaware limited liability company (formerly Westmoreland Kemmerer, Inc., or “Kemmerer”) for aggregate consideration of approximately $230 million. Upon closing the Contribution, WMLP would own 100%of the outstanding equity interests in Kemmerer, which owns and operates the Kemmerer Mine in Lincoln County, Wyoming.

We expect to close the Contribution in the third quarter of 2015. However, there can be no assurance that the Contribution will be completed within the anticipated timeframe, or at all, or that the anticipated benefits will be realized.

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Acquisition and Pushdown Accounting - Summary of Estimated Purchase Consideration (Details) - Dec. 31, 2014 - USD ($) $ in Millions	Total
Estimated purchase consideration
Market value of limited partners' units	$ 10.8
Cash paid	33.5
Total consideration	44.3
Estimated fair value of liabilities assumed:
Debt	160.1
Asset retirement obligations	31.7
Other liabilities	1.1
Warrants	2.0
Total estimated fair value of liabilities assumed	194.9
Total estimated purchase consideration:	239.2
Preliminary allocation of estimated purchase consideration:
Working capital	14.7
Land and mineral rights	39.5
Plant and equipment	134.0
Advanced coal royalties	9.2
Restricted investments and bond collateral	10.6
Intangible asset	31.0
Other assets	0.2
Total preliminary allocation of estimated purchase consideration:	$ 239.2

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Fair Value of Financial Instruments (Details) - Jun. 30, 2015 - Warrant [Member]	$ / shares $ / item
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value of each warrant	$ 9.03
Fair value assumption, spot price per unit | $ / item	9.15
Fair value assumption, exercise price per unit	$ 0.12
Fair value assumption, expected term	3 years
Fair value assumption, expected volatility rate	90.40%
Fair value assumption, three-year treasury rate	1.00%

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Condensed Consolidated Balance Sheets - Successor [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 12,766	$ 5,921
Receivables:
Trade	14,020	22,710
Other	0	116
Receivables, Net, Current	14,020	22,826
Inventory	14,870	14,013
Other current assets	2,264	1,317
Total current assets	43,920	44,077
Property, plant and equipment:
Property, Plant and Equipment, Gross	210,085	205,744
Less accumulated depreciation, depletion and amortization	(19,170)	0
Net property, plant and equipment	190,915	205,744
Advanced coal royalties	10,645	9,153
Restricted investments and bond collateral	8,307	10,621
Intangible assets, net of accumulated amortization of $1.0 million and $0 in June 30, 2015 and December 31, 2014, respectively	29,967	31,000
Deferred financing costs, net	6,195	6,993
Total Assets	289,949	307,588
Current liabilities:
Current installments of long-term debt	6	6
Accounts payable and accrued expenses:
Trade	20,392	19,135
Production taxes	903	1,033
Accrued compensation	767	1,531
Asset retirement obligations	11,547	7,783
Other current liabilities	1,382	4,007
Total current liabilities	34,997	33,495
Long-term debt, less current installments	175,864	175,029
Asset retirement obligations, less current portion	21,339	23,902
Warrants	1,504	1,981
Other liabilities	1,020	160
Total liabilities	234,724	234,567
Partners' capital:
Limited partners (5,711,630 and 5,505,087 units outstanding as of June 30, 2015 and December 31, 2014, respectively)	21,863	39,549
General partner (35,291 units outstanding as of June 30, 2015 and December 31, 2014)	33,362	33,472
Total partners’ capital	55,225	73,021
Total liabilities and partners’ capital	289,949	307,588
Land and Mineral Rights [Member]
Property, plant and equipment:
Property, Plant and Equipment, Gross	75,794	71,715
Property, Plant and Equipment [Member]
Property, plant and equipment:
Property, Plant and Equipment, Gross	$ 134,291	$ 134,029

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Commitments and Contingencies (Details) - Jun. 30, 2015 - USD ($) $ in Millions	Total
Loss Contingencies [Line Items]
Surety bonds outstanding	$ 32.7
Collateral amount	6.9
Road bonds, total	0.5
Performance bonds outstanding	2.9
Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	0.6
Loss contingency, accrual, current	$ 0.1
Minimum [Member]
Loss Contingencies [Line Items]
Remaining terms of long-term contract	1 year
Maximum [Member]
Loss Contingencies [Line Items]
Remaining terms of long-term contract	3 years

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Successor [Member]
Cash flows from operating activities:
Net loss	$ (16,697)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization	19,743
Accretion of asset retirement obligations	1,630
Restructuring charges	656
Equity-based compensation	84
Loss (gain) on sale/disposal of assets	1,685
Non-cash interest expense	2,664
Amortization of deferred financing costs	817
Other	(477)
Changes in operating assets and liabilities:
Receivables, net	8,807
Inventories	(857)
Accounts payable and accrued expenses	1,127
Accrued compensation	(765)
Asset retirement obligations	(2,415)
Other assets and liabilities	(2,077)
Net cash provided by operating activities	13,925
Cash flows from investing activities:
Additions to property, plant, equipment and other	(6,434)
Change in restricted investments and bond collateral	2,258
Net proceeds from sales of assets	126
Net cash used in investing activities	(4,050)
Cash flows from financing activities:
Repayments of long-term debt	(1,829)
Borrowings on revolving lines of credit	0
Repayment on revolving lines of credit	0
Debt issuance costs and other refinancing costs	(18)
Cash distributions to partners	(1,183)
Net cash used in by financing activities	(3,030)
Net increase (decrease) in cash	6,845
Cash and cash equivalents, beginning of the year	5,921
Cash and cash equivalents, end of the year	12,766
Supplemental disclosures of cash flow information:
Cash paid for interest	8,170
Non-cash transactions:
Asset retirement obligations capitalized in mine development	2,533
Market value of common units vested in LTIP	$ 0
Predecessor [Member]
Cash flows from operating activities:
Net loss		$ (13,925)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization		21,296
Accretion of asset retirement obligations		1,125
Restructuring charges		75
Equity-based compensation		921
Loss (gain) on sale/disposal of assets		(559)
Non-cash interest expense		3,786
Amortization of deferred financing costs		1,923
Other		(1,470)
Changes in operating assets and liabilities:
Receivables, net		(1,850)
Inventories		(505)
Accounts payable and accrued expenses		(1,123)
Accrued compensation		(2,196)
Asset retirement obligations		(2,115)
Other assets and liabilities		258
Net cash provided by operating activities		5,641
Cash flows from investing activities:
Additions to property, plant, equipment and other		(5,864)
Change in restricted investments and bond collateral		506
Net proceeds from sales of assets		3,599
Net cash used in investing activities		(1,759)
Cash flows from financing activities:
Repayments of long-term debt		(1,947)
Borrowings on revolving lines of credit		13,500
Repayment on revolving lines of credit		(15,000)
Debt issuance costs and other refinancing costs		9
Cash distributions to partners		0
Net cash used in by financing activities		(3,438)
Net increase (decrease) in cash		444
Cash and cash equivalents, beginning of the year		3,089
Cash and cash equivalents, end of the year		3,533
Supplemental disclosures of cash flow information:
Cash paid for interest		8,243
Non-cash transactions:
Asset retirement obligations capitalized in mine development		2,880
Market value of common units vested in LTIP		$ 217

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Restructuring Charges - Schedule of Charges Incurred (Details) - Jun. 30, 2015 - Successor [Member] - USD ($) $ in Thousands	Total	Total
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 103	$ 656
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	103	656
Restructuring and Related Cost, Cost Incurred to Date	3,439	3,439
Restructuring and Related Cost, Expected Cost	$ 3,439	$ 3,439

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Acquisition and Pushdown Accounting (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Summary of Estimated Purchase Consideration and Preliminary Allocations

A summary of the estimated purchase consideration and a preliminary allocation of the estimated purchase consideration is as follows (in millions):

Estimated purchase consideration
Market value of limited partners' units	$	10.8
Cash paid	33.5
Total consideration	$	44.3
Estimated fair value of liabilities assumed:
Debt	$	160.1
Asset retirement obligations	31.7
Other liabilities	1.1
Warrants	2.0
Total estimated fair value of liabilities assumed	194.9
Total estimated purchase consideration:	$	239.2
Preliminary allocation of estimated purchase consideration:
Working capital	$	14.7
Land and mineral rights	39.5
Plant and equipment	134.0
Advanced coal royalties	9.2
Restricted investments and bond collateral	10.6
Intangible asset	31.0
Other assets	0.2
Total preliminary allocation of estimated purchase consideration:	$	239.2

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Other Current Assets (Details) - Successor [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Current Assets [Line Items]
Prepaid Insurance	$ 1,649	$ 418
Other	615	899
Other current assets	$ 2,264	$ 1,317

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Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Charges

WCC Transactions restructuring accrual activity is summarized as follows:

	Westmoreland Resource Partners, LP (Successor)
	As of December 31, 2014		Six Months Ended June 30, 2015					As of June 30, 2015
	Liability		Charges		Payments			Liability
Severance and other termination costs	$	2,783	$	656	$	(3,188	)	$	251

The following table summarizes the total WCC Transactions restructuring charges incurred over the course of the restructuring:

	Westmoreland Resource Partners, LP (Successor)
	Charges
	For the Six Months Ended June 30, 2015		Incurred Through June 30, 2015		Total Expected Restructuring Expenses
Severance and other termination costs	$	656	$	3,439	$	3,439

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Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include the accounts and operations of Westmoreland Resources Partners, LP, or the Partnership, and its consolidated subsidiaries and are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and require use of management's estimates. The financial information contained in this Form 10-Q is unaudited, but reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial information for the periods shown. Such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015.

Westmoreland Coal Company's ("WCC") cost of acquiring our General Partner, Westmoreland Resources GP, LLC, ("GP") has been pushed-down to establish a new accounting basis for us beginning in the last minutes of the year ended December 31, 2014, in accordance with ASC 805. Accordingly, the accompanying condensed consolidated financial statements are presented for two periods, Predecessor and Successor, which relate to the accounting periods preceding and succeeding the completion of the transaction. The Predecessor and Successor periods have been separated by a vertical line on the face of the condensed consolidated financial statements to highlight the fact that the financial information for such periods has been prepared under two different historical-cost bases of accounting.

Significant Relationships Referenced in Notes to Consolidated Financial Statements

• “We,” “us,” “our,” “or the "Partnership” means the business and operations of Westmoreland Resource Partners, LP, the parent entity, as well as its consolidated subsidiaries.

• Our “GP” means Westmoreland Resources GP, LLC, the general partner of Westmoreland Resource Partners, LP.

Organization

Westmoreland Resource Partners, LP is a Delaware limited partnership formed in August 2007. We are a low-cost producer and marketer of high-value thermal coal to United States (“U.S.”) utilities and industrial users, and we are the largest producer of surface‑mined coal in Ohio. We market our coal primarily to large electric utilities with coal-fired, base-load scrubbed power plants under long-term coal sales contracts. We focus on acquiring thermal coal reserves that we can efficiently mine with our large-scale equipment. Our reserves and operations are strategically located to serve our primary market area of the Midwest and northeastern United States. Additionally, we hold a fee simple interest in coal reserves in Lincoln County, Wyoming, for which we have entered into a coal mining lease with a subsidiary of WCC pursuant to which we earn a per ton royalty as these coal reserves are mined.

We operate in a single business segment and have four operating subsidiaries, Oxford Mining Company, LLC(“Oxford Mining”), Oxford Mining Company-Kentucky, LLC (“Oxford Mining Kentucky”), Westmoreland Kemmerer Fee Coal Holdings, LLC ("WKFCH") and Harrison Resources, LLC (“Harrison Resources”). Our operating subsidiaries are primarily in the business of utilizing surface mining techniques to mine domestic coal and prepare it for sale to our customers or leasing our controlled coal reserves to others to mine.

We are managed by WCC through our GP, and all executives, officers and employees who provide services to us are employed by either WCC or our GP. WCC directly owns our GP. WCC’s common stock trades on the NASDAQ Global Market under the symbol “WLB.”

As of July 23, 2015, WCC and its consolidated subsidiaries owned, through their limited and general partner interests in us, an approximate 78% of our common units on a fully diluted basis and, indirectly, all of our incentive distribution rights.

Significant Accounting Policies

There were no changes to our significant accounting policies from those disclosed in the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014 (the "2014 Form 10-K").

Special Distribution to Public Unitholders

In January 2015, as previously announced, we made a one-time special distribution of 206,543 common units, representing an approximate 25% distribution, to our public unitholders on a pro rata basis.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-9, Revenue From Contracts With Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to receive in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In April 2015, the FASB agreed to propose a one-year deferral of the revenue recognition standard's effective date. The new guidance is now effective for the interim and annual periods beginning after December 15, 2017; early application is permitted, but not before the original effective date (annual reporting periods beginning after December 15, 2016). We are currently assessing the impact that this standard will have on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted for financial statements that have not been previous issued. Management projects the impact to the financial statements resulting in balance sheet reclassification for which the Deferred financing costs, net account is recharacterized as a contra-liability reducing the Long-term debt, less current installments balance for each of the respective periods upon adoption.

In April 2015, the FASB issued ASU 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions a consensus of the Emerging Issues Task Force) (a consensus of the Emerging Issues Task Force). ASU 2015-06 requires a master limited partnership (MLP) to allocate the earnings or losses of a transferred business for periods before the date of a dropdown of net assets accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit (EPU). The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. The guidance is applied retrospectively and earlyadoption is permitted.

In April 2014, the FASB issued ASU 2014-8, Presentation of Financial Statements and Property, Plant and Equipment, which changes the presentation of discontinued operations on the statements of operations and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new guidance is effective for interim and annual periods beginning after December 15, 2014. We adopted ASU 2014-8 effective January 1, 2015.

In August 2014, the FASB issued ASU 2014-17, Pushdown Accounting, which allows entities to elect pushdown of purchase accounting each time there is a change-in-control event in which an acquirer obtains control of an acquiree. If an acquiree does not initially elect to apply pushdown accounting upon a change-in-control event, it can subsequently elect to apply pushdown accounting to its most recent change-in-control event in a later reporting period as a change in accounting principle. Once made, the election to apply pushdown accounting is irrevocable. Entities applying pushdown accounting are required to measure the individual assets and liabilities of the acquired entity based on the measurement guidance in ASC 805, including the recognition of goodwill. However, any bargain purchase gain recognized by the acquirer should not be recognized in the acquiree’s income statement, but rather as an adjustment to additional paid-in capital. Acquisition-related debt is recognized by the acquiree only if the acquired entity is required to recognize a liability for debt in accordance with other applicable guidance. See our application of ASU 2014-17 in Note 2.

Reclassifications

Certain prior-year amounts have been reclassified in our condensed statements of operations and statements of cash flows for the six months ended June 30, 2014 to conform with the financial statement line items used by our GP's parent, WCC.

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Condensed Consolidated Balance Sheets (Parentheticals) - Successor [Member] - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Accumulated amortization	$ 1.0	$ 0.0
Limited partner capital account, units outstanding	5,711,630	5,505,087
General partner capital account, units outstanding	35,291	35,291

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Earnings (Losses) Per Unit

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings (Losses) Per Unit

EARNINGS (LOSSES) PER UNIT

The computation of basic and diluted earnings (losses) per unit under the two class method for limited partner units and general partner units is presented as follows:

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP			Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)			(Successor)			(Predecessor)
	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Limited partner units
Average units outstanding basic and diluted1, 2	5,878,187			2,062,834			5,878,187			2,058,912
Net loss allocated to limited partners basic and diluted2	$	(6,354	)	$	(2,848	)	$	(16,597	)	$	(12,862	)
Net loss per limited partner unit basic and diluted2	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
General partner units
Average units outstanding basic and diluted	35,291			35,291			35,291			35,291
Net loss allocated to general partners basic and diluted2	$	(38	)	$	(49	)	$	(100	)	$	(221	)
Net loss per general partner unit basic and diluted	$	(1.08	)	$	(1.32	)	$	(2.82	)	$	(6.24	)
Distribution paid per limited partner unit	$	0.20		$	—		$	0.20		$	—
Distribution paid per general partner unit	$	0.20		$	—		$	0.20		$	—

¹Unvested LTIP units are not dilutive units for the years and periods presented herein, but could be in the future.Anti-dilutive units are not used in calculating diluted average units.

²Reflects the impact of the outstanding common unit warrants for the three and six months ended June 30, 2015 and 2014, respectively..

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 23, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Westmoreland Resource Partners, LP
Entity Central Index Key	0001412347
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		5,711,630

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Related Party Transactions

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

In connection with our formation in August 2007, the Partnership and Oxford Mining entered into an administrative and operational services agreement (the “Services Agreement”) with our GP, which agreement was amended in February 2015. The Services Agreement is terminable by either party upon thirty days’ written notice. Under the terms of the Services Agreement, our GP provides services through its employees to us and is reimbursed for all related costs incurred on our behalf. Pursuant to the Agreement, the Partnership engaged the GP to continue providing administrative, engineering, operating and other services to the Partnership. Administrative services include without limitation legal, accounting, treasury, insurance administration and claims processing, risk management, health, safety and environmental, information technology, human resources, credit, payroll, internal audit and tax. The Partnership pays the GP a fixed annual fee of $500,000 for certain administrative services, and reimburses the GP at cost for other expenses and expenditures. The term of the Services Agreement expires on December 31, 2015, and automatically renews for successive one year periods unless terminated. The primary reimbursements to our GP under the Service Agreement during the three and six months ended June 30, 2015, were for costs related to payroll. Reimbursable costs under the Services Agreement totaling $0.8 million and $0.6 million were included in accounts payable as of June 30, 2015 and December 31, 2014, respectively.

Additionally, in December 2014 we entered into a coal mining lease, with a subsidiary of WCC, to mine fee simple interest coal reserves we control at WCC’s Kemmerer Mine in Lincoln County, Wyoming. Under this lease, we earn a per ton royalty as these coal reserves are mined. For the three and six months ended June 30, 2015, we recognized $1.6 million and $3.4 million, respectively, in coal royalty revenue, of which $1.6 million was included in Receivables - trade at June 30, 2015.

Finally, we sold coal to and performed various transportation and operational services for a subsidiary of WCC, which generated $6.5 million and $18.7 million in coal revenues and less than $0.1 million and $2.4 million in non-coal revenues for the three and six months ended June 30, 2015, respectively. As of June 30, 2015 revenues totaling $2.9 million were included in Receivables - trade.

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Successor [Member]
Revenues:
Coal revenues	$ 55,036		$ 116,786
Royalty revenues	1,651		3,521
Non-coal revenues	2,828		6,775
Total Revenues	59,515		127,082
Costs and expenses:
Cost of coal revenues (excluding depreciation, depletion and amortization)	46,866		101,517
Cost of non-coal revenues	235		3,390
Depreciation, depletion and amortization	9,563		19,743
Selling and administrative	3,065		5,613
Loss (gain) on sale/disposal of assets	651		1,685
Restructuring charges	103		656
Total cost and expenses	60,483		132,604
Operating (loss) income	(968)		(5,522)
Other (expense) income:
Interest expense	(5,872)		(11,652)
Interest income	0		0
Change in fair value of warrants	448		477
Total other expenses	(5,424)		(11,175)
Net loss	(6,392)		(16,697)
Less net loss attributable to noncontrolling interest	0		0
Net loss attributable to unitholders	(6,392)		(16,697)
Less net loss allocated to general partner	(40)		(103)
Net loss allocated to limited partners	$ (6,352)		$ (16,594)
Net loss per limited partner unit:
Basic (dollars per share)	$ (1.08)		$ (2.82)
Diluted (dollars per share)	$ (1.08)		$ (2.82)
Weighted average number of limited partner units outstanding:
Basic (shares)	5,878,187		5,878,187
Diluted (shares)	5,878,187		5,878,187
Distribution per limited partner unit (dollars per share)	$ 0.200		$ 0.2
Distribution per general partner unit (dollars per share)	$ 0.2		$ 0.2
Predecessor [Member]
Revenues:
Coal revenues		$ 79,586		$ 156,356
Royalty revenues		85		184
Non-coal revenues		2,330		3,465
Total Revenues		82,001		160,005
Costs and expenses:
Cost of coal revenues (excluding depreciation, depletion and amortization)		67,295		133,021
Cost of non-coal revenues		369		771
Depreciation, depletion and amortization		10,072		21,296
Selling and administrative		3,270		6,926
Loss (gain) on sale/disposal of assets		(763)		(559)
Restructuring charges		0		75
Total cost and expenses		80,243		161,530
Operating (loss) income		1,758		(1,525)
Other (expense) income:
Interest expense		(7,003)		(13,873)
Interest income		2		3
Change in fair value of warrants		1,885		1,470
Total other expenses		(5,116)		(12,400)
Net loss		(3,358)		(13,925)
Less net loss attributable to noncontrolling interest		461		842
Net loss attributable to unitholders		(2,897)		(13,083)
Less net loss allocated to general partner		(57)		(259)
Net loss allocated to limited partners		$ (2,840)		$ (12,824)
Net loss per limited partner unit:
Basic (dollars per share)		$ (1.32)		$ (6.24)
Diluted (dollars per share)		$ (1.32)		$ (6.24)
Weighted average number of limited partner units outstanding:
Basic (shares)		2,062,834		2,058,912
Diluted (shares)		2,062,834		2,058,912
Distribution per limited partner unit (dollars per share)		$ 0		$ 0
Distribution per general partner unit (dollars per share)		$ 0		$ 0

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Long-Term Debt

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Long-Term Debt

LONG-TERM DEBT

Debt consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,			December 31,
	2015			2014
First lien debt:
Term loan	$	173,174		$	175,000
Paid-in-kind interest	2,664			—
Total first lien debt	175,838			175,000
Notes payable	32			35
Total debt	175,870			175,035
Less current portion	(6		)	(6		)
Long-term debt	$	175,864		$	175,029

Credit Facilities

On December 31, 2014, we closed on a credit facility under a Financing Agreement (the “2014 Financing Agreement”) with the lenders party thereto and U.S. Bank National Association as Administrative and Collateral Agent. The 2014 Financing Agreement includes a $175 million term loan, with an option for up to $120 million in additional term loans for acquisitions if requested by us and approved by the issuing lenders. The credit facility under the 2014 Financing Agreement matures in matures in December 2018. The 2014 Financing Agreement contains customary financial and other covenants. Borrowings under the 2014 Financing Agreement are secured by substantially all of our physical assets. Our initial borrowings under the 2014 Financing Agreement in December 2014 were used to retire our then-existing first and second lien credit facilities and to pay fees and expenses related to the 2014 Financing Agreement, with the remaining amount available as working capital.

As of June 30, 2015, we had a term loan of $175.8 million outstanding under the 2014 Financing Agreement. Borrowings on such term loan bear interest at a variable rate per annum equal to, at our option, the London Interbank Offered Rate (“LIBOR”) (floor of 0.75% plus 8.5%) or the Reference Rate (as defined in the 2014 Financing Agreement). As of June 30, 2015, the 2014 Financing Agreement had a cash interest rate of 9.25%, consisting of the LIBOR floor (0.75%) plus 8.5%.

The 2014 Financing Agreement also provides for “PIK Interest” (as defined in the 2014 Financing Agreement) at a variable rate per annum between 1.00% and 3.00% based on our Consolidated Total Net Leverage Ratio (as defined in the 2014 Financing Agreement). The rate of PIK Interest is recalculated on a quarterly basis with the PIK Interest added quarterly to the then-outstanding principal amount of the term loan under the 2014 Financing Agreement. PIK Interest under the 2014 Financing Agreement was $1.3 million and $2.7 million for the three and six months ended June 30, 2015, respectively. The outstanding term loan amount represents the principal balance of $173.2 million, plus PIK Interest of 2.7 million.

During the three months ended June 30, 2015, we paid down $1.8 million of the first lien term loan with proceeds from oil and gas royalties received and the granting of a pipeline right-of-way to a third party. The Financing Agreements require mandatory prepayment of principal with proceeds from such events.

As of June 30, 2015, we were in compliance with all covenants under the terms of the 2014 Financing Agreement.

Deferred Financing Costs

We capitalized costs that represented fees paid to lenders and advisors and for legal services included in Deferred financing costs, net. Deferred financing costs are amortized over the life of the agreement, included in interest expense, using the effective interest rate method. Amortization of deferred financing costs was $0.4 million and $0.8 million for the three and six months ended June 30, 2015, respectively and $1.0 million and $1.9 million for the three and six months ended June 30, 2014, respectively.

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Other Current Assets

6 Months Ended

Jun. 30, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

OTHER CURRENT ASSETS

Other current assets consisted of the following: 

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Prepaid Insurance	$	1,649	$	418
Other	615		899
Total	$	2,264	$	1,317

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Inventory (Tables)

6 Months Ended

Jun. 30, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,		December 31,
	2015		2014
Coal	$	7,188	$	6,590
Fuel inventory	1,583		1,860
Materials and supplies	6,099		5,563
Total	$	14,870	$	14,013

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Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We operate in one business segment. We operated surface coal mines in the Illinois Basin through December 2013, and we operate surface coal mines in Northern Appalachia and sell high-value thermal coal to utilities, industrial customers, municipalities and other coal-related entities primarily in the Midwest and northeastern United States. Our operating and executive management makes its decisions based on consolidated reports. Three of our operating subsidiaries extract coal utilizing surface-mining techniques and prepare it for sale to their customers. Such operating subsidiaries share customers and a particular customer may receive coal from any one of such operating subsidiaries. We also lease or sublease coal reserves to others through Oxford Mining and WKFCH in exchange for a per ton royalty rate.

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Unit-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Unit-Based Compensation

UNIT-BASED COMPENSATION

We grant employees and non-employee directors restricted common units under our Long-Term Incentive Plan (“LTIP”).

We recognized compensation expense from unit-based arrangements shown in the following table:

	Westmoreland Resource Partners, LP		Oxford Resource Partners, LP		Westmoreland Resource Partners, LP		Oxford Resource Partners, LP
	(Successor)		(Predecessor)		(Successor)		(Predecessor)
	Three Months Ended   June 30, 2015		Three Months Ended   June 30, 2014		Six Months Ended   June 30, 2015		Six Months Ended   June 30, 2014
Recognition of fair value of restricted common units over the vesting period	$	63	$	465	$	84	$	921

A summary of restricted common unit award activity for the six months ended June 30, 2015 is as follows:

	Westmoreland Resource Partners, LP (Successor)
	Units	Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense
				(in thousands)
Non-vested at December 31, 2014	—	$	—
Granted	21,930	11.40
Vested	—	—
Non-vested at June 30, 2015	21,930	$	11.40	$	167	1

¹Expected to be recognized over the next 8 months.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The book values of cash, accounts receivable, restricted investment and bond collateral, and accounts payable are considered to be representative of their respective fair values because of the immediate short-term maturity of these financial instruments. The fair value of the restricted investment and bond collateral and warrants were determined based upon a market approach and approximates the carrying value at June 30, 2015.

The warrants are fair valued at each balance sheet date using the Black-Scholes model. As of June 30, 2015, the fair value of each warrant was $9.03, based on the following assumptions: spot price of $9.15 per unit, exercise price of $0.12 per unit, term of 3.00 years, volatility of 90.4% and a three-year treasury rate of 1.0%.

The fair value of the restricted investment and bond collateral are Level 1 and warrants are a Level 2 measurement.

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Asset Retirement Obligations

6 Months Ended

Jun. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS

As of June 30, 2015, our asset retirement obligation ("ARO") totaled $32.9 million, including amounts reported as current liabilities. While the precise amount of these future costs cannot be determined with certainty, we estimate that, as of June 30, 2015, the aggregate undiscounted cost of our final ARO is $42.8 million. 

Changes in the Partnership's asset retirement obligations were as follows: 

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)
	Six Months Ended   June 30, 2015			Six Months Ended   June 30, 2014
Asset retirement obligations, January 1,	$	31,685		$	31,654
Accretion	1,630			1,125
Changes resulting from additional mines	1,541			2,702
Changes due to amount and timing of reclamation	992			149
Payments	(2,962		)	(2,345		)
Asset retirement obligations, June 30,	32,886			33,285
Less current portion	(11,547		)	(9,086		)
Asset retirement obligations, less current portion	$	21,339		$	24,199

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Coal Sales Contracts

We are committed under long-term contracts to sell coal that meets certain quality requirements at specified prices. Many of these prices are subject to cost pass-through or cost adjustment provisions that mitigate some risk from rising costs. Quantities sold under some of these contracts may vary from year to year within certain limits at the option of the customer or us. As of June 30, 2015, the remaining terms of our long-term contracts range from one to three years.

Purchase Commitments

From time to time, we purchase coal from third parties in order to meet quality or delivery requirements under our customer contracts. We buy coal on the spot market, and the cost of that coal is dependent upon the market price and quality of the coal.

Surety andPerformance Bonds

As of June 30, 2015, we had $32.7 million in surety bonds outstanding to secure certain reclamation obligations which were collateralized by cash deposits of $6.9 million. Such cash collateral is included in Restricted investments and bond collateral on our consolidated balance sheets and Change in restricted investments and bond collateral within investing activities on our consolidated statements of cash flow. Additionally, we had road bonds totaling $0.5 million and performance bonds totaling $2.9 million outstanding to secure contractual performance. We believe these bonds will expire without any claims or payments thereon and therefore will not have a material adverse effect on our financial position, liquidity or operations.

Legal

From time to time, we are involved in various legal proceedings arising in the ordinary course of business. We accrue for such liabilities when it is probable that future costs (including legal fees and expenses) will be incurred and such costs can be reasonably estimated. Accruals are based on developments to date; management's estimates of the outcomes of these matters; our experience in contesting, litigating and settling similar matters; and any related insurance coverage. While the ultimate outcome of these proceedings cannot be predicted with certainty, we have accrued $0.6 million to resolve various claims as of June 30, 2015, of which $0.1 million, net, was accrued during 2015.

Guarantees

Our GP and the Partnership guarantee certain obligations of our subsidiaries. We believe that these guarantees will expire without any liability to the guarantors, and therefore will not have a material adverse effect on our financial position, liquidity or operations.

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Restructuring Charges - Accrual Activity (Details) - Successor [Member] - Employee Severance [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2015 USD ($)
Restructuring Reserve [Roll Forward]
Beginning Liability	$ 2,783
Charges	656
Payments	(3,188)
Ending Liability	$ 251

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-9, Revenue From Contracts With Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The ASU is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to receive in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. In April 2015, the FASB agreed to propose a one-year deferral of the revenue recognition standard's effective date. The new guidance is now effective for the interim and annual periods beginning after December 15, 2017; early application is permitted, but not before the original effective date (annual reporting periods beginning after December 15, 2016). We are currently assessing the impact that this standard will have on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted for financial statements that have not been previous issued. Management projects the impact to the financial statements resulting in balance sheet reclassification for which the Deferred financing costs, net account is recharacterized as a contra-liability reducing the Long-term debt, less current installments balance for each of the respective periods upon adoption.

In April 2015, the FASB issued ASU 2015-06, Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions a consensus of the Emerging Issues Task Force) (a consensus of the Emerging Issues Task Force). ASU 2015-06 requires a master limited partnership (MLP) to allocate the earnings or losses of a transferred business for periods before the date of a dropdown of net assets accounted for as a common control transaction entirely to the general partner for purposes of calculating historical earnings per unit (EPU). The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years. The guidance is applied retrospectively and earlyadoption is permitted.

In April 2014, the FASB issued ASU 2014-8, Presentation of Financial Statements and Property, Plant and Equipment, which changes the presentation of discontinued operations on the statements of operations and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new guidance is effective for interim and annual periods beginning after December 15, 2014. We adopted ASU 2014-8 effective January 1, 2015.

In August 2014, the FASB issued ASU 2014-17, Pushdown Accounting, which allows entities to elect pushdown of purchase accounting each time there is a change-in-control event in which an acquirer obtains control of an acquiree. If an acquiree does not initially elect to apply pushdown accounting upon a change-in-control event, it can subsequently elect to apply pushdown accounting to its most recent change-in-control event in a later reporting period as a change in accounting principle. Once made, the election to apply pushdown accounting is irrevocable. Entities applying pushdown accounting are required to measure the individual assets and liabilities of the acquired entity based on the measurement guidance in ASC 805, including the recognition of goodwill. However, any bargain purchase gain recognized by the acquirer should not be recognized in the acquiree’s income statement, but rather as an adjustment to additional paid-in capital. Acquisition-related debt is recognized by the acquiree only if the acquired entity is required to recognize a liability for debt in accordance with other applicable guidance. See our application of ASU 2014-17 in Note 2.

Reclassifications

Reclassifications

Certain prior-year amounts have been reclassified in our condensed statements of operations and statements of cash flows for the six months ended June 30, 2014 to conform with the financial statement line items used by our GP's parent, WCC.

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Schedule of Long-Term Debt

Debt consisted of the following:

	Westmoreland Resource Partners, LP
	(Successor)
	June 30,			December 31,
	2015			2014
First lien debt:
Term loan	$	173,174		$	175,000
Paid-in-kind interest	2,664			—
Total first lien debt	175,838			175,000
Notes payable	32			35
Total debt	175,870			175,035
Less current portion	(6		)	(6		)
Long-term debt	$	175,864		$	175,029

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 17, 2015	Jun. 01, 2015	Dec. 31, 2014
Subsequent Event [Line Items]
Consideration			$ 33.5
Westmoreland Coal Company [Member] | Westmoreland Kemmerer, LLC [Member]
Subsequent Event [Line Items]
Consideration		$ 230.0
Percent of equity owned		100.00%
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distribution declared (per unit)	$ 0.20

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Asset Retirement Obligations - Narrative (Details) - Successor [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Asset Retirement Obligations [Line Items]
Asset retirement obligations	$ 32,886	$ 31,685
Estimated Final Reclamationand Mine Closure Cost [Member]
Asset Retirement Obligations [Line Items]
Aggregate undiscounted cost of final asset retirement obligations	$ 42,800

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Condensed Consolidated Statements of Partners' Capital - 6 months ended Jun. 30, 2015 - Successor [Member] - USD ($) $ in Thousands	Total	Limited Partners [Member]	Common Units [Member]	Liquidation [Member]	General Partner [Member]
Beginning balance at Dec. 31, 2014	$ 73,021	$ 39,549	$ 39,549	$ 0	$ 33,472
Beginning balance (units) at Dec. 31, 2014		6,361,785	5,505,087	856,698	35,291
Increase (Decrease) in Partners' Capital [Roll Forward]
Net loss	(16,697)	$ (16,594)	$ (16,594)	$ 0	$ (103)
Common unit distributions to unitholders (units)		206,543	206,543
Cash distribution to unitholders	(1,183)	$ (1,176)	$ (1,176)		(7)
Equity-based compensation	84	84	84	0
Ending balance at Jun. 30, 2015	$ 55,225	$ 21,863	$ 21,863	$ 0	$ 33,362
Ending balance (units) at Jun. 30, 2015		6,568,328	5,711,630	856,698	35,291

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Restructuring Charges

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring Charges

RESTRUCTURING CHARGES

Concurrent with the WCC transactions completed in December 2014 (the "WCC Transactions"), a restructuring plan was initiated to streamline operations and eliminate duplicate roles and responsibilities between us and WCC. As of December 31, 2014, we recorded restructuring charges for employee termination benefits of $2.8 million and incurred additional restructuring costs of $0.1 million and $0.7 million for the three and six months ended June 30, 2015.

WCC Transactions restructuring accrual activity is summarized as follows:

	Westmoreland Resource Partners, LP (Successor)
	As of December 31, 2014		Six Months Ended June 30, 2015					As of June 30, 2015
	Liability		Charges		Payments			Liability
Severance and other termination costs	$	2,783	$	656	$	(3,188	)	$	251

The following table summarizes the total WCC Transactions restructuring charges incurred over the course of the restructuring:

	Westmoreland Resource Partners, LP (Successor)
	Charges
	For the Six Months Ended June 30, 2015		Incurred Through June 30, 2015		Total Expected Restructuring Expenses
Severance and other termination costs	$	656	$	3,439	$	3,439

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Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2015

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Changes in Partnership's Asset Retirement Obligations

Changes in the Partnership's asset retirement obligations were as follows: 

	Westmoreland Resource Partners, LP			Oxford Resource Partners, LP
	(Successor)			(Predecessor)
	Six Months Ended   June 30, 2015			Six Months Ended   June 30, 2014
Asset retirement obligations, January 1,	$	31,685		$	31,654
Accretion	1,630			1,125
Changes resulting from additional mines	1,541			2,702
Changes due to amount and timing of reclamation	992			149
Payments	(2,962		)	(2,345		)
Asset retirement obligations, June 30,	32,886			33,285
Less current portion	(11,547		)	(9,086		)
Asset retirement obligations, less current portion	$	21,339		$	24,199

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Label	Element	Value
Predecessor [Member]
Depreciation, Depletion and Amortization, Nonproduction	us-gaap_DepreciationAndAmortization	$ 10,072
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ (3,358)

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Long-Term Debt - Credit Facilities (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Successor [Member]
Line of Credit Facility [Line Items]
Principal balance	$ 175,035	$ 175,870	$ 175,870	$ 175,035
Repayments of debt			$ 1,829
Financing Agreement 2014 [Member] | Secured Debt [Member]
Line of Credit Facility [Line Items]
Amount of term loan	175,000			175,000
Amount of unused borrowing capacity	$ 120,000			120,000
Fixed portion of the effective rate (percentage)			8.50%
Interest rate, effective percentage		9.25%	9.25%
Paid-in-kind interest		$ 1,337	$ 2,664
Financing Agreement 2014 [Member] | Secured Debt [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate, paid-in-kind	1.00%
Financing Agreement 2014 [Member] | Secured Debt [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate, paid-in-kind	3.00%
Financing Agreement 2014 [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.75%
Financing Agreement 2014 [Member] | Secured Debt [Member] | Successor [Member]
Line of Credit Facility [Line Items]
Amount of term loan	$ 175,000	175,838	$ 175,838	175,000
Paid-in-kind interest			2,664	0
Term Loan [Member] | First Lien Financing Agreement [Member] | Successor [Member]
Line of Credit Facility [Line Items]
Principal balance	$ 175,000	$ 173,174	173,174	$ 175,000
Repayments of debt			$ 1,829

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Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Cash Distribution

On July 17, 2015, our GP declared a cash distribution for all of our unitholders and warrant holders of $0.20 per unit for the second quarter ended June 30, 2015.  The distribution will be paid on August 14, 2015 to all unitholders and warrant holders of record as of the close of business on August 7, 2015.