Hallador Energy pany(US:HNRG)2025-11-10 22:24Financial Performance - In Q3 2025, the company generated $146.8 million in revenue and $23.9 million in net income, a significant increase from $105.2 million in revenue and $1.6 million in net income in the same period last year[113]. - Total Electric Sales were $93.2 million, an increase of $21.1 million or 29.3% compared to Q3 2024[153]. - Year-to-date 2025 Total Electric Sales were $239.2 million, an increase of $46.2 million or 23.9% compared to YTD 2024[156]. - Electric Operations income before income taxes in Q3 2025 was $18.3 million, a decrease of $0.9 million or 4.8% compared to Q3 2024[153]. - Year-to-date 2025 Electric Operations income before income taxes was $49.1 million, an increase of $8.2 million or 20.0% compared to YTD 2024[156]. - The company reported a basic earnings per share of $0.56 for Q3 2025, compared to a loss of $5.06 in Q4 2024[162]. Sales and Operations - The company sold 1.6 million MWh in Q3 2025, representing a 100% increase from Q2 2025, with electric sales averaging $59.09 per MWh[136]. - Total electric sales in Q3 2025 reached $93.2 million, a 55.3% increase from Q2 2025, while total electric operations expenses were $75.2 million, up 46% from the previous quarter[138]. - Delivered Energy revenue increased $21.5 million or 38.3% in Q3 2025, with 0.4 million more MWh sold, a 33.4% increase[153]. - Coal operations generated $68.8 million in sales in Q3 2025, a 51.2% increase from Q2 2025, with net income rising 335.7% to $6.1 million[139]. - In Q3 2025, Total Coal Sales were $68.8 million, an increase of $20.5 million or 42.4% compared to Q3 2024[159]. - Coal sales increased by $20.5 million, or 42.4%, compared to Q3 2024, with a total of $169.1 million in YTD 2025[160]. Expenses and Costs - Total Electric Operations expenses in Q3 2025 were $75.2 million, an increase of $22.1 million or 41.6% compared to Q3 2024[153]. - Fuel costs increased $14.6 million or 48.3% in Q3 2025, with a per MWh increase of $2.85 or 11.2%[153]. - Total Coal Operations Expenses in Q3 2025 were $66.7 million, an increase of $2.7 million or 4.2% compared to Q3 2024[159]. - Other operating and maintenance costs rose by $8.0 million, or 29.7%, compared to Q3 2024, totaling $173.4 million in YTD 2025[160]. - Labor costs decreased by $8.6 million, or 12.9%, compared to the first nine months of 2024, due to organizational restructuring[160]. - Interest expense for the nine months ended September 30, 2025, was $6.21 million, compared to $0.51 million in 2024, reflecting a significant increase[148]. Capacity and Contracts - The company achieved an accredited capacity utilization of 93% in Q3 2025, compared to 59% in Q3 2024[130]. - The company has contracted approximately $58.1 million or 89.4% of its target for forward capacity sales in 2025, aiming for annual sales of around $65 million[131]. - Contracted revenue for Power and Coal segments totaled $921.70 million, with $571.72 million from Power and $349.98 million from Coal[140]. - Average daily contracted capacity was 668 MW in Q4 2025, with an average contracted capacity price per MWd of $211[140]. - The company entered into a $20 million prepaid forward power sales contract with deliveries scheduled through the first half of 2027, aimed at improving liquidity and securing long-term power purchase agreements[115]. Future Projections and Developments - The company expects to produce approximately 3.8 million tons of coal in 2025, with an average contracted sales price in 2026 projected to be $4.00 per ton higher than in 2025[125][124]. - Hallador Power submitted an application to add 525 MW of gas generation at the Merom site, targeting generation to come online by late 2028[120]. - The company is in advanced discussions with data center developers and load-serving entities, anticipating positive progress towards long-term agreements by early 2026[116]. Cash Flow and Liquidity - Cash provided by operations was $73.0 million for the nine months ended September 30, 2025, compared to $27.0 million for the same period in 2024, indicating a year-over-year increase of 170.4%[147]. - Total liquidity as of September 30, 2025, was $46.4 million, with an additional borrowing capacity of $33.8 million[147]. - The effective tax rate for the nine months ended September 30, 2025, is estimated at ~0% compared to ~24% for the same period in 2024[163]. Reclamation and Obligations - The company recorded a present value of reclamation obligations of $17.7 million, with surety bonds totaling $30.9 million in place to cover asset retirement obligations[143].