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] Company Overview - Hallador Energy Company is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana [3] - The company operates two main businesses: Hallador Power Company, LLC, which produces electricity at its one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which supplies fuel to the Merom Generating Station and other companies [3]

Core Points - Hallador Energy Company announced a Conversion Transaction Commitment Agreement with a global data center developer, effective January 2, 2025, marking a significant milestone in their collaboration [1][2] - The Agreement grants exclusivity in negotiations for 105 Business Days and includes cumulative payments of up to $5 million to Hallador Power Company, LLC, with specific payment schedules outlined [2][3] - The proposed transaction aims to secure energy and capacity for a potential data center development in Indiana, with expectations to contract the majority of the Company's energy at prices above the forward curve for over a decade [2][3] Company Overview - Hallador Energy Company is a vertically-integrated Independent Power Producer based in Terre Haute, Indiana, operating Hallador Power Company, LLC, which produces electricity at the Merom Generating Station, and Sunrise Coal, LLC, which supplies fuel [4]

Financial Data and Key Metrics Changes - In Q3 2024, consolidated revenue was $105 million, up from $93.5 million in Q2 and down from $165.8 million in the prior year period [18] - Net income for the quarter was $1.6 million, compared to a net loss of $10.2 million in Q2 and net income of $16.1 million in the prior year period [18] - Adjusted EBITDA was $9.6 million for Q3, compared to a negative $5.8 million in Q2 and $35.9 million in the prior year period [19] - Operating cash used was $12.9 million, down from operating cash flow of $23.5 million in Q2 and $35.3 million in the prior year period [18] - Total liquidity at September 30, 2024, was $34.9 million, increasing to $53.8 million by the end of October [21] Business Line Data and Key Metrics Changes - Hallador Power generated 1.1 million megawatt hours in Q3, up from 800,000 megawatt hours in Q2 [12] - Electric sales for the quarter were $71.7 million, compared to $59.4 million in Q2 and $67.4 million in the prior year period [17] - Coal sales were $48.3 million for the quarter, compared to $45.7 million in Q2 and $134.4 million in the prior year period, reflecting a strategic reduction in coal production [17] Market Data and Key Metrics Changes - The supply response from the accredited capacity market remains restricted, with MISO reducing capacity accreditation for intermittent resources like wind and solar [9] - The company holds a considerable portion of the remaining unsold accredited capacity in MISO Zone 6, where demand continues to grow [8] Company Strategy and Development Direction - The company signed a non-binding term sheet with a leading global data center developer, aiming to secure long-term contracts for a substantial portion of its plant's energy and capacity [6][7] - The restructuring of the Sunrise Coal division is ongoing, with improvements aimed at increasing efficiency and reducing operational costs [14] - The company is optimistic about the surge in demand from data centers and industrial users, viewing it as a meaningful opportunity for long-term financial transformation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finalizing long-term agreements with data center partners, citing Indiana's favorable business climate [8] - The company believes that the credit capacity it holds will remain valuable due to regulatory challenges faced by other energy sources [10][11] - Management noted that the energy environment remains challenging but is encouraged by improvements in pricing and dispatch rates [12] Other Important Information - The company executed a $60 million prepaid power purchase agreement (PPA) after the quarter, following a $45 million PPA signed in Q2 [13] - Total forward energy and capacity sales position was $616.9 million, down from $664.1 million at the end of Q2 but up from $516 million as of September 30, 2023 [19] Q&A Session Summary Question: Can you quantify the magnitude of the non-binding term sheet agreement? - Management indicated it would cover the majority of the plant's output, significant but did not provide specific percentages [23][25] Question: What is the pricing structure for the agreement? - Management stated that pricing would be above the curve, but specifics were complex due to various factors involved [24][25] Question: What is the magnitude and coverage of the recent PPA? - The $60 million PPA covers power sold in 2025 and 2026 [29] Question: What were the coal production costs per ton during the quarter? - Management noted that costs were elevated but expected improvements in tons per man hour and cost structure [30][31] Question: What is the outlook for coal production and sales? - Management indicated a significant reduction in coal volumes, focusing on the power side of the business while still selling coal to third parties [32][33]

Financial Performance - Hallador Energy reported a net income of $1.6 million for Q3 2024, with Electric Operations generating $71.9 million in operating revenues, equating to $60.78 per MWh sold, a 41.0% increase in total MWh sold compared to Q2 2024[107]. - The company generated 1,074,000 MWh in Q3 2024, up from 780,000 MWh in Q2 2024, with operating costs improving to $44.42 per MWh from $62.98 per MWh[96]. - Revenues from electric operations increased by $4.4 million, or 6.5%, compared to Q3 2023, driven by new delivered energy and capacity contracts[120]. - Income from operations increased by $22.0 million, or 823.3%, with an increase of $18.39 per MWh sold compared to Q3 2023[122]. - Cash provided by operations for the nine months ended September 30, 2024, was $27.0 million, down from $79.5 million in the same period of 2023[114]. Coal Operations - Coal Operations shipped 0.9 million tons of coal in Q3 2024, with operating revenues of $49.3 million, or $53.27 per ton, and operating expenses of $66.43 per ton, reflecting a $1.59 decrease from Q2 2024[109]. - Operating revenues for coal operations decreased to $49.3 million in Q3 2024 from $134.9 million in Q3 2023[127]. - Income from operations for coal operations was a loss of $12.2 million in Q3 2024 compared to a profit of $24.8 million in Q3 2023[127]. - Segment operating revenues from coal operations decreased by $85.6 million, or 63.4%, compared to Q3 2023[129]. - For the nine months ended September 30, 2024, segment operating revenues from coal operations decreased by $180.6 million, or 52.6%[132]. Cost Management - The restructuring of Sunrise Coal has led to a decrease in operating costs to $66.43 per ton produced, down $1.59 from Q2 2024, following a workforce reduction of over 25%[97]. - Fuel costs decreased by $21.1 million, or 41.6%, compared to Q3 2023, primarily due to reduced electricity sales and lower coal market pricing[121]. - Other operating and maintenance costs increased by $9.3 million, or 56.0%, primarily due to a planned maintenance outage[126]. - Other operating and maintenance costs decreased by $32.7 million, or 54.7%, and labor costs decreased by $10.6 million, or 35.3%, from Q3 2023[130]. Future Outlook - Hallador Power aims to generate approximately 1,500,000 MWh quarterly, with 2,670,000 MWh generated in the first nine months of 2024, achieving 59.3% of its annual target[98]. - The company anticipates continued demand growth for power due to data centers, electric vehicles, and onshoring, particularly in MISO Zone 6, where it holds significant unsold accredited capacity[93]. - Contracted power revenue is projected to total $616.89 million from 2024 to 2029, with a peak of $163.79 million in 2026[113]. - Total contracted revenue is expected to reach $1,420.14 million over the same period, with $365.35 million anticipated in 2026[113]. Debt and Liquidity - The company executed a prepaid forward power sale of $60.0 million, with proceeds used to pay down $20.0 million on its Term Loan, reducing future quarterly payments[94]. - Bank debt was reduced by $21.5 million during the nine months ended September 30, 2024, leaving a total bank debt of $70.0 million[114]. - Total liquidity as of September 30, 2024, was reported at $34.9 million[115]. - The company has an additional borrowing capacity of $31.1 million as of September 30, 2024[115]. Asset Management - The company has recorded a present value of reclamation obligations of $17.1 million, with surety bonds totaling $30.8 million in place to cover these obligations[116]. - The Company is reviewing its Oaktown mining facilities and future mining plans, which may lead to potential impairment of certain mining assets[147]. - The carrying amount of the Company's mining assets is material to its condensed consolidated balance sheet as of September 30, 2024[147]. - Any future impairment of mining assets could be material, but the amount is currently not estimable[147]. Internal Controls - There have been no material changes to the Company's internal control over financial reporting during the quarter ended September 30, 2024[151]. - The Company's disclosure controls and procedures have been evaluated and deemed effective by the CEO and CFO[150].

Financial Performance - Q3 2024 total revenue was $105.0 million, a 12% increase compared to the previous quarter, driven by a 21% rise in electric sales to $71.7 million[4]. - Q3 net income was $1.6 million, a significant improvement from a net loss of $10.2 million in Q2 2024, with adjusted EBITDA rising to $9.6 million from a loss of $5.8 million[5]. - Electric sales for Q3 2024 were $71,715,000, up from $67,403,000 in Q3 2023, while coal sales dropped to $31,662,000 from $97,420,000[18]. - Total sales and operating revenues for the nine months ended September 30, 2024, were $310,175,000, a decrease from $515,296,000 in the same period of 2023[18]. - Net income for Q3 2024 was $1,554,000, compared to $16,075,000 in Q3 2023, reflecting a significant decline[18]. - Operating expenses for the nine months ended September 30, 2024, totaled $310,016,000, down from $440,016,000 in the same period of 2023[18]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $26,985,000, compared to $79,527,000 in the same period of 2023[19]. - Capital expenditures for the nine months ended September 30, 2024, were $39,606,000, down from $48,746,000 in the same period of 2023[19]. - The company reported a net cash increase of $2,518,000 for the nine months ended September 30, 2024, compared to $290,000 in the same period of 2023[19]. Debt and Liquidity - Total bank debt decreased to $23.5 million by the end of October 2024, down from $91.5 million at the end of 2023, following a $60 million prepaid power purchase agreement[3]. - Total liquidity at the end of Q3 2024 was $34.9 million, down from $60.7 million at the end of Q2 2024[6]. - The company is focusing on strengthening its balance sheet without equity dilution, utilizing proceeds from the prepaid PPA to reduce debt[7]. Revenue Contracts and Sales - The company secured total forward energy, capacity, and coal sales to third-party customers amounting to $937.2 million through 2029, up from $871.7 million at the end of Q2 2024[8]. - Contracted revenue for total energy and capacity reached $937.17 million, with a significant increase from $73.99 million in 2024 to $238.63 million in 2025[14]. - Contracted coal revenue from third-party sources was $320.28 million, showing a consistent revenue stream from coal operations[14]. - The average price per ton for third-party coal increased from $48.02 in 2024 to $50.04 in 2025, reflecting rising market prices[14]. Operational Capacity and Strategy - Hallador's strategic positioning in MISO Zone 6 allows it to capitalize on the growing demand for energy capacity in Indiana and western Kentucky[3]. - The average daily contracted capacity increased from 716 MW in 2024 to 801 MW in 2025, suggesting expansion in operational capacity[14]. - Hallador signed a non-binding term sheet with a leading global data center developer to supply energy and capacity for over 10 years, pending definitive agreements[9]. - The company anticipates executing definitive agreements with a leading global data center developer, indicating potential future growth opportunities[15]. Balance Sheet and Assets - Total current assets rose to $99.80 million as of September 30, 2024, compared to $92.89 million at the end of 2023[17]. - Total liabilities decreased from $321.19 million in December 2023 to $260.93 million by September 30, 2024, reflecting improved financial health[17]. - The company reported a total stockholders' equity of $318.80 million, up from $268.59 million at the end of 2023, indicating strong retained earnings growth[17]. Cash Flow and Management - Operating cash flow for Q3 2024 was $(12.9) million, compared to $35.3 million in Q3 2023, indicating a need for improved cash management[10]. - The company’s cash and cash equivalents at the end of the period were $3,829,000, compared to $2,573,000 at the end of the same period in 2023[19]. Upcoming Events - The company plans to host a conference call on November 12, 2024, to discuss financial and operational results, providing an opportunity for investor engagement[16].

Hallador Energy (HNRG, Financial) experienced a significant stock price drop of 5.10%, bringing the share price to $10.05. The trading volume reached 293,186 shares with a turnover rate of 0.69% and a price fluctuation of 5.74%. The latest financial report reveals an operating income of $89.65 million but a net loss of $10.20 million, resulting in an earnings per share (EPS) of -$0.27. The gross profit stood at -$750,000, and the price-to-earnings (P/E) ratio was -67.60. Despite the negative earnings, 100% ...

Hallador Energy Company (NASDAQ:HNRG) Q2 2024 Earnings Conference Call August 6, 2024 5:00 PM ET Company Participants Sean Mansouri - IR Brent Bilsland - President and Chief Executive Officer Marjorie Hargrave - Chief Financial Officer Conference Call Participants Lucas Pipes - B. Riley Operator Good afternoon. Thank you for attending today's Hallador Energy's Second Quarter 2024 Conference Call. My name is Cole, and I'll be the moderator for today's call. [Operator Instructions] I'd now like to pass the ca ...

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 June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 HALLADOR ENERGY COMPANY (www.halladorenergy.com) Commission file number:001-34743 1183 East Canvasback Drive, Terre Haute, Indiana (Address of principal executive offices) 47802 (Zip Code) Registrant's ...

EXHIBIT 99.1 Hallador Energy Company Reports Second Quarter 2024 Financial and Operating Results - Q2 Total Revenue of $90.9 Million - - Q2 Net Loss of $10.2 Million or $(0.27) Earnings per Share - - Q2 Operating Cash Flow of $23.5 Million - - Q2 Adjusted EBITDA loss of $(5.8) Million - TERRE HAUTE, Ind., August 6, 2024 – Hallador Energy Company (Nasdaq: HNRG) ("Hallador" or the "Company"), today reported its financial results for the second quarter ended June 30, 2024. Brent Bilsland, President and Chief E ...

- Q2 Total Revenue of $90.9 Million - - Q2 Net Loss of $10.2 Million or $(0.27) Earnings per Share - - Q2 Operating Cash Flow of $23.5 Million - - Q2 Adjusted EBITDA loss of $(5.8) Million - TERRE HAUTE, Ind., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) ("Hallador" or the "Company"), today reported its financial results for the second quarter ended June 30, 2024. Brent Bilsland, President and Chief Executive Officer, stated, "We made progress during the quarter towards our strat ...