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]

– Q1 Total Revenue up 6% YoY to $117.8 Million –– Q1 Net Income up Materially YoY to $10.0 Million or $0.23 Earnings per Share –– Q1 Operating Cash Flow up ~2x YoY to $38.4 Million –– Q1 Adjusted EBITDA up ~3x YoY to $19.3 Million – TERRE HAUTE, Ind., May 12, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the first quarter ended March 31, 2025. “We are pleased with our first quarter performance as we returned to top line ...

TERRE HAUTE, Ind., April 28, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”), will host a conference call on Monday, May 12, 2025, at 5:00 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2025. The Company’s results will be reported in a press release prior to the call. Hallador’s management will host the conference call, followed by a question-and-answer period. Interested parties may submit questions prior to the call by ...

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]

Hallador Energy Company (HNRG) Q4 2024 Earnings Call March 17, 2025 05:30 PM ET Company Participants Sean Mansouri - Founder & CEOBrent Bilsland - President, CEO & ChairmanMarjorie Hargrave - Chief Financial Officer Conference Call Participants Nick Giles - Senior Research AnalystJeff Grampp - Senior AnalystNone - Analyst Operator Good afternoon. Thank you for attending Hallador Energy's Fourth Quarter and Full Year twenty twenty four Earnings Conference Call. At this time, all participants are in listen on ...

Financial Performance - Q4 2024 total revenue reached $94.2 million, with FY'24 total revenue at $404.4 million[1] - Total sales and operating revenues decreased to $404.394 million in 2024 from $634.878 million in 2023, a decline of approximately 36%[18] - Net loss for 2024 was $226.138 million, compared to a net income of $44.793 million in 2023, representing a significant turnaround in performance[18] Cash Flow and Assets - Q4 2024 operating cash flow increased to $32.5 million, while FY'24 operating cash flow totaled $65.9 million[1] - Cash and cash equivalents rose to $7.232 million in 2024 from $2.842 million in 2023, an increase of over 154%[22] - Net cash provided by operating activities was $65.934 million in 2024, compared to $59.414 million in 2023, indicating improved cash flow from operations[20] Sales Breakdown - Electric sales in Q4 2024 were $69.7 million, accounting for 74% of total revenue, compared to $37.1 million or 31% in the same period last year[4][5] - Coal sales in Q4 2024 were $23.4 million, representing 25% of total revenue, down from $81.3 million or 68% in the prior year[5] Debt and Liabilities - Total bank debt decreased by over 50% to $44 million at year-end 2024, down from $91.5 million at the end of 2023[11] - Total liabilities decreased to $264.835 million in 2024 from $321.192 million in 2023, a reduction of approximately 17.5%[16] Capital Expenditures and Impairments - Capital expenditures were reduced to $53.367 million in 2024 from $75.352 million in 2023, a decrease of approximately 29%[22] - The company reported a significant asset impairment charge of $215.136 million in 2024, compared to no such charge in 2023[18] Equity and Shares - The weighted average shares outstanding increased to 39.504 million in 2024 from 33.133 million in 2023, reflecting a dilution in share value[18] - The company’s total stockholders' equity decreased to $104.285 million in 2024 from $268.588 million in 2023, a decline of approximately 61%[16] Strategic Initiatives - Hallador has secured total forward energy, capacity, and coal sales to third-party customers of $1.1 billion through 2029, up from $937.2 million at the end of Q3 2024[11] - The company is actively pursuing opportunities to acquire additional dispatchable generators to enhance its electric operations[2] - Hallador signed an exclusive commitment agreement with a leading global data center developer, marking a significant milestone in its transformation strategy[11] Production Adjustments - The company reduced coal production volume by approximately 40% in 2024, leading to a non-cash write-down of approximately $215 million for Sunrise Coal[3] EBITDA Performance - Q4 2024 adjusted EBITDA surged approximately 3x year-over-year to $6.2 million, with FY'24 adjusted EBITDA at $16.8 million[1]

Regulatory Environment - The regulatory burden on fossil fuel industries has increased operational costs, adversely affecting profitability [21]. - Compliance with environmental laws and regulations has significantly raised the costs of electric power generation and coal mining for domestic producers [22]. - The Black Lung Benefits Act imposes an excise tax of up to $1.10 per ton for underground-mined coal, which could impact overall expenses [43]. - The Federal Mine Safety and Health Act imposes extensive safety and health standards, significantly affecting operating costs [30]. - The permitting process for electric power generation and mining operations can extend over several years, potentially delaying operations [25][28]. - The company has not had any electric power generating or mining permits suspended or revoked due to violations, and penalties assessed have not been material [26][29]. - Future operating results may be adversely affected if accruals for asset retirement obligations and mine closing costs are insufficient [23]. - The company is subject to increased civil penalties for regulatory violations following the passage of the MINER Act [32]. - The implementation of new regulations regarding respirable coal mine dust exposure has increased operational costs due to the need for new equipment and personnel [34]. - The company has made adequate provisions for expected reclamation and other costs associated with mine closures, but future results could be impacted if these provisions are insufficient [23]. - The Abandoned Mine Lands Program imposes a reclamation fee of $0.224 per ton for surface-mined coal and $0.096 per ton for underground-mined coal, reauthorized through September 30, 2034 [51]. - The company has accrued estimated costs for reclamation and mine closing, including treatment of mine water discharge when necessary [51]. - Compliance with the Clean Air Act (CAA) requires installation of emissions control equipment, which increases operational costs for coal-fired power plants [55]. - The EPA's Acid Rain Program regulates sulfur dioxide emissions, requiring affected facilities to purchase or trade emissions allowances [56]. - The Mercury and Air Toxic Standards (MATS) rule has led to capital investments for retrofitting power plants, potentially reducing coal demand [58]. - The EPA's new source review program may require existing coal-fired power plants to install stricter emissions control equipment, affecting coal demand [59]. - The company is subject to regulations that may impose additional emissions control expenditures due to revised National Ambient Air Quality Standards (NAAQS) [58]. - The company is in compliance with reclamation regulations but cannot assure that claims related to ownership or control of third-party violations will not arise in the future [52]. - Surety bond costs have increased, and the company may face challenges in securing new bonds without posting collateral, impacting coal production and profitability [54]. - The company continues to evaluate the potential impacts of regulatory changes on its business and financial condition [58]. - The EPA's final rule requires coal-fired power plants operating after 2039 to achieve emissions reductions equivalent to 90% capture of CO2 through carbon capture and sequestration (CCS) [63]. - The Biden Administration aims for a 50-52% reduction in economy-wide net GHG emissions from 2005 levels by 2030, but the new Trump Administration has indicated intentions to withdraw from the Paris Agreement, potentially altering these targets [64]. - The Regional Greenhouse Gas Initiative (RGGI) has established a cap and trade program for carbon dioxide emissions, with auctions for allowances starting in September 2008, impacting fossil fuel demand [68]. - The EPA's final rule in May 2024 established more stringent requirements for flue gas desulfurization wastewater and combustion residual leachate, which may affect coal product markets and electric power operations [77]. - The U.S. Supreme Court's decision in Sackett v. EPA limited federal jurisdiction over wetlands, potentially reducing regulatory burdens but leaving future permitting requirements uncertain [72]. - Environmental advocacy groups are challenging federal agency environmental analyses under the National Environmental Policy Act (NEPA), claiming inadequate consideration of climate change impacts [67]. - The Clean Water Act (CWA) imposes permitting requirements for discharges, and any changes to TMDL allocations could increase water treatment costs, adversely affecting coal production [76]. - The EPA has statutory veto power over Section 404 permits, which could create uncertainty regarding current permits and impose additional costs on future operations [74]. - Future regulations on GHG emissions could lead to increased costs for fossil fuel production, potentially reducing demand for coal and adversely affecting the company's operations [70]. - The EPA finalized regulations under RCRA for the management and disposal of coal combustion residuals (CCR) on April 17, 2015, classifying CCR as "non-hazardous" waste, which avoids stricter regulations [85]. - The revised CCR rule mandates closure of unlined impoundments with deadlines between 2021 and 2028, potentially increasing operating costs for customers and affecting coal demand [85]. Workforce and Operations - As of December 31, 2024, Hallador employed 615 full-time employees, with 582 directly involved in coal mining or washing processes [99]. - Hallador's coal workforce is entirely union-free, while the operator at its power plant employs represented workers, which could lead to operational disruptions [99]. - Hallador has invested in employee health and safety, exceeding mandated guidelines, and has a private mine rescue team ready for emergencies [100]. - The company provides comprehensive health insurance with low-cost deductibles and co-pays, along with a private health and wellness clinic for employees [101]. - The Illinois Basin (ILB) coal mining operations cover over 50,000 square miles and are strategically located near major coal-consuming regions [93]. - The U.S. coal industry is highly competitive, with Hallador competing against large producers like Peabody Energy Corporation and Alliance Resource Partners [97]. Market and Strategic Outlook - Recent regulatory developments under the new Trump Administration may impact the market for coal products and electric power operations, creating uncertainty [103]. - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act present potential opportunities for Hallador, aligning with its future strategy [90].

Core Insights - Hallador Energy Company reported a total revenue of $94.2 million for Q4 2024 and $404.4 million for FY 2024, with a significant increase in operating cash flow to $32.5 million in Q4 2024 and $65.9 million for the full year [1][2][3] - The company is transitioning from a bituminous coal producer to a vertically integrated independent power producer (IPP), aligning with market trends and focusing on electric sales [2][3] - A strategic partnership with a leading global data center developer is in progress, which could enhance margins for power production over the next decade [2][10] Financial Performance - Q4 2024 Adjusted EBITDA increased approximately threefold year-over-year to $6.2 million, with FY 2024 Adjusted EBITDA totaling $16.8 million [1][3] - The company reduced coal production volume by about 40% during 2024, leading to a non-cash write-down of approximately $215 million in the carrying value of its Sunrise Coal subsidiary [3][10] - Total bank debt decreased by over 50% to $44 million at year-end 2024, reflecting improved financial health [2][10] Revenue Composition - Electric sales accounted for $69.7 million or 74% of total Q4 revenue, a significant increase from $37.1 million or 31% in the same period last year [10] - Coal sales dropped to $23.4 million or 25% of total revenue in Q4 2024, down from $81.3 million or 68% in the prior year [10] - The company has secured total forward energy, capacity, and coal sales to third-party customers amounting to $1.1 billion through 2029, up from $937.2 million at the end of Q3 2024 [10] Strategic Focus - Hallador is prioritizing the optimization of its Merom Power Plant and seeking opportunities to acquire additional dispatchable generators to enhance its electric operations [2][3] - The company is actively managing forward power sales for 2025 and 2026 to improve financial flexibility [2][3] - The ongoing industry shift towards non-dispatchable resources like wind and solar has increased the value of Hallador's power subsidiary, while reducing demand for coal has prompted a strategic pivot [2][3]

Core Viewpoint - Hallador Energy Company (HNRG) is an independent power producer operating a 1GW coal plant in Indiana and has a coal mining business that is currently being de-emphasized [1] Group 1 - HNRG operates the Merom plant located in the MISO region of Sullivan County, Indiana [1] - The company has a significant focus on its coal plant operations while reducing emphasis on its coal mining business [1]

Core Viewpoint - Hallador Energy Company will host a conference call on March 17, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1][2] Group 1: Conference Call Details - The conference call is scheduled for March 17, 2025, at 5:30 p.m. Eastern time [2] - Interested parties can submit questions via email to the investor relations team prior to the call [2] - The call will be broadcast live and available for replay on the company's investor relations website [2] Group 2: Company Overview - Hallador Energy Company is a vertically-integrated Independent Power Producer based in Terre Haute, Indiana [3] - The company operates two core businesses: Hallador Power Company, which produces electricity at the one-Gigawatt Merom Generating Station, and Sunrise Coal, which supplies fuel to the Merom Generating Station and other companies [3]