Hallador Energy pany(HNRG) - 2024 Q3 - Quarterly Report

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$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$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$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$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$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].