Hallador Energy pany(HNRG) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operating Results Management Commentary Management reported strong Q2 results with increased revenue and net income, driven by improved coal cost efficiency and active pursuit of a long-term PPA - The company delivered strong Q2 results, including increased revenue and net income, despite a scheduled outage at a generating unit and seasonal softness in the energy market[2] - Coal operations benefited from improved cost efficiency and stronger recovery rates, leading to higher inventory levels that position the company for a strong second half[2] - Hallador is seeing increased momentum in its strategy to secure a long-term PPA, engaging with a broad range of potential partners, including utilities, in a market with ramping demand for accredited capacity and baseload power[2] Second Quarter 2025 Highlights Q2 2025 highlights include 10% revenue growth to $102.9 million, $8.2 million net income, and $11.4 million operating cash flow Q2 2025 Key Financial Metrics (YoY, $ in Millions) | Metric | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $102.9 Million | +10% | | Net Income | $8.2 Million | Increase from loss | | Adjusted EBITDA | $3.4 Million | Increase from loss | | Operating Cash Flow | $11.4 Million | - | Debt and Liquidity (as of June 30, 2025, $ in Millions) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | Total Bank Debt | $45.0 Million | $23.0 Million | $44.0 Million | | Total Liquidity | $42.0 Million | $69.0 Million | $37.8 Million | - In June 2025, the company amended its credit agreement to enhance operating flexibility by redefining covenants and deferring a debt repayment from October 2025 to January 2026[5] - Capital expenditures for Q2 2025 were $13.1 million, nearly flat compared to $13.2 million in the same period last year[6] Financial Summary and Outlook Financial Summary Q2 2025 saw total revenue rise to $102.9 million, a turnaround to $8.2 million net income, and positive $3.4 million Adjusted EBITDA Q2 Financial Summary ($ in Millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Electric Sales | $60.0 | $60.0 | | Coal Sales - 3rd Party | $38.1 | $32.8 | | Total Sales and Operating Revenue | $102.9 | $93.8 | | Net Income (Loss) | $8.2 | ($10.2) | | Operating Cash Flow | $11.4 | $23.5 | | Adjusted EBITDA | $3.4 | ($5.8) | Reconciliation of GAAP to non-GAAP "Adjusted EBITDA" This section reconciles GAAP Net Income to non-GAAP Adjusted EBITDA, showing a positive $3.4 million in Q2 2025 from $8.2 million net income Adjusted EBITDA Reconciliation - Q2 (In $ Thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | NET INCOME (LOSS) | $8,248 | ($10,204) | | Interest expense | $3,819 | $3,735 | | Income tax expense (benefit) | — | ($3,011) | | Depreciation, depletion and amortization | $5,542 | $13,649 | | EBITDA | $17,609 | $4,169 | | Other Adjustments | ($14,211) | ($9,965) | | Adjusted EBITDA | $3,398 | ($5,796) | Forward Sales Position Hallador holds a strong forward sales position with $1.0 billion in total contracted third-party revenues through 2029 - At quarter-end, Hallador had total forward energy, capacity, and coal sales to 3rd party customers of $1.0 billion through 2029[7] Total Contracted Revenue (Consolidated, in Millions) | Year | 2025 | 2026 | 2027 | 2028 | 2029 | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $197.33 | $361.59 | $290.53 | $124.58 | $17.24 | $991.27 | Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $409.5 million, total liabilities to $287.4 million, and equity to $122.2 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $139,874 | $104,858 | | Total assets | $409,513 | $369,120 | | Total current liabilities | $209,255 | $152,903 | | Total liabilities | $287,360 | $264,835 | | Total stockholders' equity | $122,153 | $104,285 | Condensed Consolidated Statements of Operations Q2 2025 total revenues reached $102.9 million, resulting in $8.2 million net income or $0.19 diluted EPS, a significant improvement year-over-year Statement of Operations Summary - Q2 (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total sales and operating revenues | $102,889 | $93,825 | | Total operating expenses | $91,019 | $101,111 | | Income (Loss) from Operations | $11,870 | ($7,286) | | Net Income (Loss) | $8,248 | ($10,204) | | Diluted EPS | $0.19 | ($0.27) | Condensed Consolidated Statements of Cash Flows For H1 2025, operating cash flow was $49.8 million, with $24.9 million used in investing and $4.7 million in financing, ending with $32.4 million cash Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $49,783 | $39,891 | | Net cash used in investing activities | ($24,897) | ($25,570) | | Net cash used in financing activities | ($4,669) | ($10,716) | | Cash, cash equivalents, and restricted cash, end of period | $32,370 | $10,728 | Other Information About Hallador Energy Company & Contact Information Hallador Energy is an Indiana-based vertically-integrated IPP, operating the Merom Generating Station and Sunrise Coal for power and fuel production - Hallador Energy is a vertically-integrated IPP with two core businesses: Hallador Power Company, LLC (electricity production) and Sunrise Coal, LLC (fuel production and supply)[14] Conference Call and Forward-Looking Statements A conference call is scheduled for August 11, 2025, to discuss results, with the report also containing forward-looking statements - Management will host a conference call and webcast on August 11, 2025, at 5:00 p.m. Eastern time to discuss the financial and operational results[13] - The press release includes forward-looking statements concerning the company's ability to secure a long-term PPA and unlock asset value, which are subject to risks and uncertainties[12]