Hallador Energy pany(US:HNRG)2024-11-12 21:55Financial 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].