Core Viewpoint - Hallador Energy Company is actively participating in three investor conferences in May and June 2025, indicating its commitment to engaging with investors and enhancing visibility in the market [1]. Company Overview - Hallador Energy Company is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana, with two main business segments: Hallador Power Company, LLC, which operates the one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which supplies fuel to the Merom Generating Station and other clients [3]. Upcoming Conferences - The company will participate in the B. Riley Securities 25th Annual Investor Conference on May 21-22, where it will engage in an analyst-hosted roundtable and hold one-on-one meetings [4]. - Hallador will also attend the Jefferies Power Conference on June 5, conducting one-on-one meetings throughout the day [4]. - Additionally, the company is set to participate in the Northland Growth Conference, which will be held virtually on June 25, also featuring one-on-one meetings [4].

Hallador Energy Company (HNRG) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Sean Mansouri - Founder & CEOBrent Bilsland - President, CEO & ChairmanMarjorie Hargrave - Chief Financial Officer Conference Call Participants Nick Giles - Senior Research Analyst Operator Good afternoon. Thank you for attending Hallador Energy's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer ses ...

Hallador Energy Company (HNRG) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Sean Mansouri - Founder & CEOBrent Bilsland - President, CEO & ChairmanMarjorie Hargrave - Chief Financial Officer Conference Call Participants Nick Giles - Senior Research Analyst Operator Good afternoon. Thank you for attending Hallador Energy's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer ses ...

Financial Data and Key Metrics Changes - Total operating revenue for Q1 2025 increased to $117.8 million compared to $94.8 million in Q4 2024 and $111.6 million in the prior year period [17] - Net income improved to $10 million in Q1 2025 from a net loss of $215.8 million in Q4 2024 and a loss in the prior year period [17] - Operating cash flow increased to $38.4 million in Q1 2025 from $32.5 million in Q4 2024 and $16.4 million in the prior year period [17] - Adjusted EBITDA rose significantly to $19.3 million in Q1 2025 from $6.2 million in Q4 2024 and $6.8 million in the prior year period [17] - Total bank debt was reduced to $23 million as of March 31, 2025, down from $44 million at the end of Q4 2024 and $77 million a year earlier [18] Business Line Data and Key Metrics Changes - Electric sales for Q1 2025 increased to $85.9 million compared to $69.7 million in Q4 2024 and $60.7 million in the prior year period, driven by new contracts and higher energy pricing [16] - Coal sales were $54.8 million in Q1 2025, compared to $42.4 million in Q4 2024 and $66 million in the prior year period, reflecting a strategic reduction in coal production [16] Market Data and Key Metrics Changes - The forward power curves indicate increasing margins for energy produced at the Merum plant, with accredited capacity sold at prices exceeding $600 per megawatt day in the recent MISO auction [11] - Approximately 3 million megawatt hours have been contracted for the balance of 2025 at an average price of $37.20, and 3.4 million megawatt hours for 2026 at an average price of $44.43, indicating strong market demand [12] Company Strategy and Development Direction - The company is focusing on becoming a vertically integrated independent power producer and is exploring opportunities to acquire additional dispatchable assets to enhance scale and diversify revenue streams [9] - Ongoing negotiations with a leading global data center developer are progressing, with the potential for long-term supply agreements [6][7] - The company is evaluating the addition of natural gas co-firing capabilities at the Merum plant to provide fuel flexibility and better control operating expenses [10] Management's Comments on Operating Environment and Future Outlook - Management believes that the trend of retiring dispatchable generators in favor of non-dispatchable resources will lead to increased volatility in energy markets, enhancing the value of their subsidiary, Howard Power [9] - The company expects to produce approximately 3.8 million tons of coal in 2025, with the potential to increase production if market conditions justify it [13] - There is growing demand for reliable power, particularly as grid volatility increases, positioning the company well for sustained growth [14] Other Important Information - The company has not utilized its ATM program since Q2 2024, indicating a focus on reducing debt and maintaining liquidity [18] - Total liquidity as of March 31, 2025, was $69 million, up from $37.8 million at the end of Q4 2024 [18] Q&A Session Summary Question: Update on exclusivity period negotiations - Management is evaluating whether to grant an extension for the exclusivity period with the current counterparty while considering other unsolicited offers [21][23] Question: Final steps in negotiations with the initial counterparty - Most major points have been negotiated, and the focus is now on finalizing details with the hyperscaler and ensuring alignment among all parties involved [24][25] Question: Timing and capital intensity for co-firing with natural gas - The company is analyzing the feasibility of co-firing and expects to provide updates on capital costs and timing in the future [26][28] Question: Structure of long-term deals with hyperscalers - The structure has been negotiated to be on a unit contingent basis for over a decade in length [29][30]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number:001-34743 HALLADOR ENERGY COMPANY Registrant's telephone number, including area code: 812.299.2800 (www.halladorenergy.com) Colorado 84-1014610 (State of incor ...

Financial Performance - Q1 2025 total revenue increased by 6% year-over-year to $117.8 million, driven by a 73% contribution from electric sales, which rose to $85.9 million[1][3] - Q1 net income significantly improved to $10.0 million, with adjusted EBITDA up approximately 3x year-over-year to $19.3 million[1][3] - Total sales and operating revenues for Q1 2025 were $117,787,000, an increase of 5.4% compared to $111,574,000 in Q1 2024[17] - Electric sales increased to $85,943,000 in Q1 2025 from $60,681,000 in Q1 2024, representing a growth of 41.5%[17] - Net income for Q1 2025 was $9,979,000, a significant improvement from a net loss of $1,696,000 in Q1 2024[17] - Basic net income per share for Q1 2025 was $0.23, compared to a loss of $0.05 per share in Q1 2024[17] - Cash provided by operating activities in Q1 2025 was $38,419,000, up from $16,369,000 in Q1 2024[19] Cash Flow and Debt Management - Operating cash flow for Q1 2025 was $38.4 million, supporting debt repayment and capital expenditures, which totaled $11.7 million[1][3] - Total bank debt was reduced to $23.0 million as of March 31, 2025, down from $44.0 million at the end of 2024[3] - Payments on bank debt in Q1 2025 totaled $33,000,000, compared to $26,500,000 in Q1 2024[21] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $16,207,000, an increase from $6,372,000 at the end of Q1 2024[21] Capital Expenditures and Resource Allocation - Capital expenditures in Q1 2025 were lower than the previous year, reflecting a focus on efficient resource allocation[3] - Capital expenditures for Q1 2025 were $11,693,000, down from $14,874,000 in Q1 2024[21] Future Growth and Strategic Initiatives - Hallador has secured $1.1 billion in forward energy, capacity, and coal sales to third-party customers through 2029, indicating strong future revenue potential[3][9] - The company is negotiating a long-term supply agreement with a leading global data center developer, which could enhance future capacity and energy supply[2][10] - Hallador's strategic shift to a vertically integrated independent power producer is expected to drive sustained growth amid rising demand for reliable power[2][10] - Hallador's evaluation of dual-fuel capabilities and potential acquisitions of dispatchable generation assets reflects confidence in long-term growth opportunities[2][10] Liquidity and Current Liabilities - The company reported a total liquidity of $69.0 million as of March 31, 2025, compared to $37.8 million at the end of 2024[3] - Total current liabilities increased to $177,052,000 in Q1 2025 from $152,903,000 in Q4 2024[15] - Total assets decreased slightly to $366,097,000 in Q1 2025 from $369,120,000 in Q4 2024[15]

Core Insights - Hallador Energy Company reported a strong financial performance in Q1 2025, with total revenue increasing by 6% year-over-year to $117.8 million, driven primarily by a significant rise in electric sales [1][5] - The company achieved a net income of $10.0 million, translating to earnings per share of $0.23, marking a substantial improvement compared to the previous year [1][5] - Operating cash flow surged approximately 2x year-over-year to $38.4 million, while adjusted EBITDA rose nearly 3x year-over-year to $19.3 million [1][5] Financial Performance - Total revenue for Q1 2025 was $117.8 million, up 6% from Q1 2024 and 24% from Q4 2024, with electric sales contributing $85.9 million, representing 73% of the revenue mix [4][5] - Net income increased to $10.0 million from a loss of $1.7 million in Q1 2024, with adjusted EBITDA rising to $19.3 million from $6.8 million in the same period last year [6][20] - Operating cash flow for the quarter was $38.4 million, compared to $16.4 million in Q1 2024, supporting debt repayment and capital expenditures [5][23] Strategic Developments - The company is negotiating with a leading global data center developer for a long-term supply of capacity and energy, with significant investments made by the partner [2] - Hallador is focusing on dual-fuel capabilities and potential acquisitions of dispatchable generation assets to enhance its growth prospects [2] - The company has a robust contracted sales book, with total forward energy, capacity, and coal sales to third-party customers amounting to $1.1 billion through 2029 [5][10] Debt and Liquidity - Total bank debt was reduced to $23.0 million as of March 31, 2025, down from $44.0 million at the end of 2024 and $77.0 million a year earlier [5][6] - Total liquidity increased to $69.0 million at the end of Q1 2025, compared to $37.8 million at the end of 2024 [5][6] Capital Expenditures - Capital expenditures in Q1 2025 were $11.7 million, a decrease from $14.9 million in the same period last year [5][26]

Core Viewpoint - Hallador Energy Company will host a conference call on May 12, 2025, to discuss its financial results for Q1 2025, with results to be reported in a press release prior to the call [1][2]. Company Overview - Hallador Energy Company is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana, with two core businesses: Hallador Power Company, LLC, which operates the one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which supplies fuel to the Merom Generating Station and other companies [3]. Conference Call Details - The conference call will take place on May 12, 2025, at 5:00 p.m. Eastern time, and will include a question-and-answer period [2]. - Interested parties can submit questions via email to the investor relations team [2]. - The call will be broadcast live and available for replay on the company's investor relations website [2].

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $94.8 million, down from $104.8 million in Q3 and $119.2 million in the prior year period [28] - The net loss for Q4 was $215.8 million, compared to net income of $1.6 million in Q3 and a net loss of $10.2 million in the prior year period, primarily due to a non-cash impairment charge of $215 million related to the Sunrise Coal subsidiary [28][29] - Operating cash flow increased to $38.9 million in Q4, compared to cash used of $12.9 million in Q3 and $20.1 million in the prior year period [29] - Adjusted EBITDA for Q4 was $6.2 million, down from $9.6 million in Q3 but up from $2.1 million in the prior year period [30] Business Line Data and Key Metrics Changes - Electric sales in Q4 were $69.7 million, down from $71.7 million in Q3 and up from $37.1 million in the prior year period, while coal sales were $23.4 million, down from $31.7 million in Q3 and $91.7 million in the prior year period [27] - Hallador Power generated 1.16 million megawatt hours in Q4, up 5% from 1.1 million megawatt hours in Q3 [23] Market Data and Key Metrics Changes - The forward energy and capacity sales position increased to $685.7 million as of December 31, 2024, compared to $616.9 million at the end of Q3 [31] - Total liquidity at December 31, 2024, was $37.8 million, up from $34.9 million at September 30, 2024 [32] Company Strategy and Development Direction - The company is transitioning from a coal producer to a vertically-integrated power producer, aligning with market trends favoring the IPP model [7][8] - A significant milestone was reached with a non-binding term sheet signed with a global data center developer, indicating a strategic partnership that could drive long-term value [8][9] - The company is actively evaluating additional strategic transactions to expand electric operations and enhance scale [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the transition from dispatchable to non-dispatchable generation increases the value of Hallador Power due to its reliability [10] - There are expectations for favorable pricing trends in 2025 and beyond, particularly related to data center development in Indiana [12][15] - The company anticipates that energy price volatility could increase over the next decade, sustaining a premium in forward power prices [16][17] Other Important Information - The company invested $13.8 million in capital expenditures during Q4, with total CapEx for 2024 at $53.4 million [31] - The company reduced total bank debt to $44 million in Q4, down from $70 million at the end of Q3 [32] Q&A Session Summary Question: Regulatory and review process with the grid operator - Management highlighted multiple access requests from developers, indicating a favorable environment for potential sales [36][37] Question: Remaining items before reaching a definitive agreement - Management indicated that they are encouraged by the progress made and the financial commitments from counterparties [41][42] Question: Capital intensity of upgrades at Merom - Management confirmed that studies are underway to assess the feasibility of coal firing with natural gas by 2032 [44][45] Question: Acquisition of other power assets - Management stated that they are exploring opportunities across various states and evaluating them on a case-by-case basis [49][50] Question: Pricing expectations for deals - Management expects a premium to the forward curves due to increasing demand from data centers and hyperscalers [68] Question: Control over fuel supply for future assets - Management noted that while control over fuel supply is advantageous, it is not a strict requirement for future acquisitions [63][64]

Financial Data and Key Metrics Changes - In Q4 2024, consolidated revenue was $94.8 million, down from $104.8 million in Q3 and $119.2 million in the prior year period [19] - The net loss for Q4 was $215.8 million, compared to a net income of $1.6 million in Q3 and a net loss of $10.2 million in the prior year period, primarily due to a non-cash impairment charge of approximately $215 million related to the Sunrise coal subsidiary [20] - Operating cash flow increased to $38.9 million in Q4 from an operating cash used of $12.9 million in Q3 [20] - Adjusted EBITDA for Q4 was $6.2 million, down from $9.6 million in Q3 [20] Business Line Data and Key Metrics Changes - Electric sales in Q4 were $69.7 million, down from $71.7 million in Q3 and up from $37.1 million in the prior year period [19] - Coal sales were $23.4 million in Q4, down from $31.7 million in Q3 and $91.7 million in the prior year period, reflecting a strategic reduction in coal production [19] - Hallador Power generated 1,160,000 megawatt hours in Q4, a 5% increase from 1,100,000 megawatt hours in Q3 [17] Market Data and Key Metrics Changes - The forward energy and capacity sales position increased to $685.7 million as of December 31, 2024, compared to $616.9 million at the end of Q3 [21] - Total forward sales book as of December 31, 2024, was $1.6 billion, up from $1.4 billion at the end of Q3 [21] Company Strategy and Development Direction - The company is transitioning from a traditional coal producer to a vertically integrated power producer, aligning with market trends favoring the IPP model [6] - Strategic partnerships are being pursued, including a non-binding term sheet with a global data center developer, which is expected to drive long-term value [6][7] - The company is actively evaluating additional strategic transactions to expand electric operations and enhance scale [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted the ongoing trend of retiring dispatchable generation in favor of non-dispatchable resources, which could enhance the value of Hallador Power [8] - The company anticipates favorable pricing trends for power sales in 2025 and beyond, driven by data center development efforts [10][12] - Management expressed optimism about capturing higher prices and energy volumes in the future, despite current market volatility [13] Other Important Information - The company completed its annual impairment analysis, resulting in a non-cash long-lived asset impairment charge of $215.1 million [9] - Capital expenditures for 2024 totaled $53.4 million, with expectations of approximately $66 million for 2025 [20][21] Q&A Session Summary Question: Regulatory and review process with the grid operator - Management highlighted multiple access requests from developers, indicating a favorable environment for potential sales [24][25] Question: Remaining items before a definitive agreement - Management indicated that while progress has been made, a deal is not finalized until signed, with an exclusivity agreement in place until June [27] Question: Co-firing requirements and capital intensity - Current laws require coal-fired plants to co-fire with natural gas by 2032, and feasibility studies are underway [29] Question: Acquisition of generating assets - Management is exploring opportunities across various states, emphasizing a case-by-case evaluation of potential acquisitions [33][44] Question: Pricing expectations for deals - Management expects to maintain a premium to forward curves due to increasing demand from data centers and hyperscalers [51] Question: Capacity payments in long-term agreements - Capacity payments are expected to cover fixed costs of the plant, estimated at around $60 million [62]