Financial Performance - Q2 2021 net loss was $3.0 million, with adjusted EBITDA of $11.3 million [79] - Operating cash flow for Q2 was $9.9 million, with bank debt reduced by $5.9 million, resulting in a leverage ratio of 2.76X [80] - Cash provided by operations was $12.9 million for the six months ended June 30, 2021, down from $17.2 million in 2020 [91] - Operating margins from coal decreased by $3.9 million in the first six months of 2021 compared to the same period in 2020, with margins at $9.39 per ton [91] - Interest expense decreased by approximately $4.5 million in the first half of 2021, attributed to a reduction in non-cash expenses from interest rate swaps and a declining bank debt balance [98] - The effective tax rate for the first half of 2021 was estimated at ~25%, down from ~45% in the same period of 2020, due to the use of a discrete period method for tax calculations [104] Production and Shipments - Shipments improved to a 5.6 million ton annualized pace in Q2 2021, with expectations of ~7.0 million tons in the last half of 2021 [80] - In the first six months of 2021, the company sold 2,577,000 tons at an average price of $38.99 per ton, compared to 2,770,000 tons at $40.58 per ton in the same period of 2020, reflecting a decrease in average price per ton due to contract mix changes [94] - In Q2 2021, the company sold 1,403,000 tons at an average price of $38.92 per ton, compared to 1,244,000 tons at $40.57 per ton in Q2 2020, indicating a continued decrease in average price per ton [100] - Contracted tons for Q3-Q4 2021 are 3.6 million at $39.00 per ton, and for 2022, 5.1 million at $39.25 per ton [83] Costs and Expenditures - Q2 production costs were $30.20 per ton, a $1.32 increase from Q1 2021 and a $1.26 increase from Q2 2020 [80] - Operating costs for all coal mines averaged $29.60 per ton in the first half of 2021, down from $30.45 per ton in 2020, and are expected to remain within the guidance of $29-$30 per ton for the remainder of 2021 [95] - Operating costs for Q2 2021 averaged $30.20 per ton, slightly above the prior guidance of $29-$30 per ton, but expected to fall below $30 for the remainder of the year [101] - Capital expenditures for the first six months of 2021 totaled $10.8 million, with $6.0 million allocated for maintenance capex [92] Revenue and Other Income - Other revenues increased by $0.9 million in the first six months of 2021, primarily due to storage income and scrap sales [96] - Coal export prices have increased, with API 4 (Asia) prices rising to ~$130/tonne by August 2, 2021 [85] Workforce and Employment - The company employed 716 individuals and contractors as of June 30, 2021, an increase from 677 in the same period of 2020 [99] Strategic Initiatives - The company plans to develop up to 1000 MW of renewable power in partnership with Hoosier Energy, with 200 MW expected from solar and battery storage by 2025 [87] Accounting Estimates - The company identified critical accounting estimates related to coal reserves, interest rate swaps, and inventory valuation, which could significantly impact financial results if materially misstated [107]

Hallador Energy Company (NASDAQ:HNRG) Q1 2021 Earnings Conference Call May 4, 2021 2:00 PM ET Company Participants Becky Palumbo - Director, Investor Relations Larry Martin - Chief Financial Officer Brent Bilsland - President and Chief Executive Officer Conference Call Participants Lucas Pipes - B. Riley Securities Rob Lietzow - Lakeway Capital Operator Good day and welcome to the Hallador Energy Company First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator I ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number:001-34743 "COAL KEEPS YOUR LIGHTS ON" "COAL KEEPS YOUR LIGHTS ON" HALLADOR ENERGY COMPANY (www.halladorenergy.com) Colorado (State of incorporation) 84-1014610 ...

Financial Data and Key Metrics Changes - Hallador Energy incurred a net loss of $4.7 million for Q4 2020, equating to a loss of $0.15 per share, and a total annual loss of $6.2 million or $0.20 per share [6] - Free cash flow for Q4 was $2.9 million, while for the year it was $27.6 million [6] - Adjusted EBITDA was $9.4 million for the quarter and $53.5 million for the year [6] - Bank debt decreased by $9.2 million in Q4 and $42.4 million for the year, with total bank debt at $137.7 million as of December 31, 2020 [6] Business Line Data and Key Metrics Changes - Shipments for the quarter were 1.6 million tons, with coal inventories reduced year-over-year by $2.8 million [10] - Cost per ton increased slightly to $31.07 in 2020 from $30.69 in 2019, while Oaktown costs rose to $29.84 from $28.35 [10] Market Data and Key Metrics Changes - The forward strip on natural gas prices increased by 44% year-over-year [12] - Illinois Basin utility inventory levels returned to 48 days of full load burn, down from the low 60s in May 2020 [12] Company Strategy and Development Direction - Hallador is focused on debt reduction, having paid down $42.4 million of bank debt, representing 24% of outstanding debt [9] - The company anticipates a return to lower operational costs in 2021, projecting costs to return to the lower end of $29 to $30 per ton [11] - The management believes coal will continue to play an important role in supporting the grid for many decades, despite the transition to carbon-free electricity [13][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the global pandemic caused significant disruptions in energy markets, but Hallador demonstrated resilience with strong operating cash flow of $52.6 million [9] - The company expects coal sales to be stronger in 2022 compared to 2021, driven by customer demand and mine closures [17] - Management highlighted the importance of maintaining baseload power plants, such as coal plants, to ensure reliable electricity supply [13][22] Other Important Information - Hallador received a $10 million loan under the Paycheck Protection Program, which is expected to be forgiven [9] - The company has built a rail facility in Princeton, Indiana, designed to store coal for customers if needed [43] Q&A Session Summary Question: What is the outlook for coal burn this year and next year? - Management indicated that coal inventory levels have been declining and the market has improved, expecting stronger sales in 2022 compared to 2021 [17] Question: Is there an increased appetite for M&A in the current environment? - Management believes continued M&A efforts will occur as the market gets smaller, with a focus on consolidating high-cost production to low-cost production [18] Question: What is the analysis on natural gas prices and their impact on coal competitiveness? - Management noted that natural gas prices have risen significantly, which will likely lead to increased coal burn as coal plants become more competitive [21] Question: Can the company flex production up, and what is the marginal cost? - The company can flex production up to over 8 million tons, with incremental costs expected to be negative as costs would decrease with higher production [24] Question: Why are contracted prices lower this year despite rising natural gas prices? - Contracts for 2021 were entered into before the increase in natural gas prices, which is why they are lower [42] Question: Any updates on the storage facility in Indiana? - The facility is designed and permitted for coal storage but currently does not have any coal stored for customers [43]

Regulatory Environment - The coal mining industry faces extensive regulations that increase operational costs and affect profitability, with potential for significant monetary penalties and liabilities [15]. - Compliance with federal and state laws has substantially increased the cost of coal mining for domestic producers, although specific compliance costs have not been quantified [16]. - The permitting process for mining operations can extend over several years, potentially delaying or preventing the commencement of operations due to regulatory challenges [19]. - The Federal Mine Safety and Health Act imposes extensive safety and health standards, significantly affecting operating costs due to compliance requirements [21]. - Recent regulations have lowered the allowable respirable coal mine dust exposure limits, increasing operational costs related to monitoring and compliance [26]. - Federal and state laws require bonds to secure obligations for land reclamation used in mining, with increasing difficulty in securing new surety bonds without posting collateral [40]. - The Clean Air Act (CAA) imposes permitting requirements and emissions control measures on coal mining operations, potentially increasing operational costs and affecting the attractiveness of fossil fuels [41]. - Environmental advocacy groups are challenging permits for coal activities, claiming inadequate environmental analyses under the National Environmental Policy Act (NEPA) [50]. - The EPA is required to periodically re-evaluate National Ambient Air Quality Standards (NAAQS), which may impose additional emissions control requirements on coal-fired power plants [44]. - The EPA's veto power over Section 404 permits could create operational uncertainties and additional costs for coal mining operations [57]. Financial Impacts - The Black Lung Benefits Act imposes a tax of $1.10 per ton for underground-mined coal and $0.55 per ton for surface-mined coal, impacting overall operational costs [31]. - The company has accrued estimated costs for asset retirement obligations and mine closing, which could adversely affect future operating results if these accruals are insufficient [17]. - The Abandoned Mine Lands Program imposes a reclamation fee of $0.28 per ton for surface-mined coal and $0.12 per ton for underground-mined coal, which is scheduled to be in effect until September 30, 2021 [37]. - The EPA's Acid Rain Program regulates sulfur dioxide emissions from electric generating facilities, requiring affected facilities to purchase or trade emissions allowances [42]. - The Cross-State Air Pollution Rule (CSAPR) requires 28 states to reduce power plant emissions, but its relevance is decreasing due to ongoing coal plant retirements [42]. - The Mercury and Air Toxic Standards (MATS) regulate emissions of mercury and other pollutants from coal-fired power plants, leading to capital investments and potential premature retirements of older units [42]. - Future regulation of greenhouse gas (GHG) emissions could arise from new domestic legislation or EPA regulations, impacting demand and prices for fossil fuels [43]. - Future GHG emissions control initiatives may increase costs for fossil fuel production, potentially leading to customer shifts to alternative fuels [54]. - New TMDL regulations may require more costly water treatment, adversely affecting coal production [58]. Operational Aspects - Approximately 96% of the company's production capacity involves underground room and pillar mining, while 4% involves surface mining, adhering to the Surface Mining Control and Reclamation Act standards [35]. - The company has never had a permit suspended or revoked due to violations, and penalties assessed for violations have not been material [20]. - The company has obtained all necessary permits under CWA Section 404, but future mitigation requirements may increase costs and uncertainty [55]. - The Illinois Basin (ILB) has over 50,000 square miles of coal mining operations, centrally located near major coal-consuming regions [68]. Workforce and Safety - Hallador Energy employs 690 full-time employees, with a focus on competitive wages and comprehensive health benefits [73]. - The company maintains a robust safety program, with performance metrics at or below national averages in safety categories [74]. - Hallador Energy invests in employee education and training, covering all continuing education costs and offering tuition reimbursement [76]. - The company has no significant patents or trademarks, focusing on coal mining operations [78].

Hallador Energy Company (NASDAQ:HNRG) Q3 2020 Results Earnings Conference Call November 3, 2020 2:00 PM ET Company Participants Becky Palumbo - Director, Investor Relations Brent Bilsland - President and CEO Larry Martin - Chief Financial Officer Conference Call Participants Lucas Pipes - B. Riley Securities Mark Kaufman - MLK Investment Management Eric Fredback - Pacific Value Operator Good day. And welcome to Hallador Energy Third Quarter 2020 Earnings Conference Call. All participants will be in listen-o ...

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 September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number:001-34743 "COAL KEEPS YOUR LIGHTS ON" "COAL KEEPS YOUR LIGHTS ON" HALLADOR ENERGY COMPANY (www.halladorenergy.com) Colorado (State of incorporation) 84-101461 ...

Hallador Energy Company (NASDAQ:HNRG) Q2 2020 Earnings Conference Call August 4, 2020 2:00 PM ET Company Participants Rebecca Palumbo - Director, IR Brent Bilsland - President, CEO & Chairman Larry Martin - EVP & CFO Conference Call Participants Operator Good day, and welcome to Hallador Energy's Second Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask question. [Operator Instructions] ...

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: June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number:001-34743 "COAL KEEPS YOUR LIGHTS ON" "COAL KEEPS YOUR LIGHTS ON" HALLADOR ENERGY COMPANY (www.halladorenergy.com) Colorado (State of incorporation) 84-101461 ...

Hallador Energy Co (NASDAQ:HNRG) Q1 2020 Earnings Conference Call May 12, 2020 2:00 PM ET Company Participants Rebecca Palumbo - Director, IR Lawrence Martin - EVP & CFO Brent Bilsland - President, CEO & Chairman Conference Call Participants Lucas Pipes - B. Riley FBR, Inc. Douglas Dethy - D.C. Capital Advisors Operator Good afternoon, and welcome to Hallador Energy's First Quarter 2020 Earnings Conference Call. [Operator Instructions]. I'd now like to turn the conference over to Becky Palumbo, Director of ...