Core Insights - The company is experiencing strong demand for reliable dispatchable generation in the MISO region, leading to elevated prices for energy and capacity sales [1][4] - The company has made significant progress in its transformation into a vertically integrated independent power producer, with total revenue increasing by 16% year over year to $469.5 million in 2025 [4] - The company is actively pursuing opportunities to expand its generation capacity, particularly through a natural gas expansion project expected to come online around 2029 [6][43] Market Environment - There is a tightening supply condition in the MISO region due to electricity demand growth and the retirement of dispatchable assets, increasing the value of accredited capacity [1] - The company has received competitive offers for its accredited capacity, indicating a robust market environment [1] Operational Performance - Coal sales increased by 8% year over year to $148.7 million, supporting both internal fuel needs and third-party customers [3] - The Merum power plant faced operational challenges in Q4 2025, impacting availability, but overall performance remained strong throughout the year [3][12] Financial Performance - Net income improved to $41.9 million, and adjusted EBITDA increased approximately threefold to $56 million in 2025 [4] - Operating cash flow increased by 23% to $81.1 million, reflecting improved power market conditions [4] Capital Expenditures and Investments - Capital expenditures in 2025 totaled $69.2 million, with a focus on maintenance and operational improvements [13][14] - The company plans to increase capital expenditures modestly in 2026, excluding potential developments related to the ARRIS project [7][36] Strategic Initiatives - The company has filed an application in MISO's expedited resource adequacy study program, securing a slot for potential addition of up to 515 megawatts of natural gas generation [5] - The company is negotiating with multiple counterparties for equipment related to the gas expansion project, emphasizing the speed-to-market advantage of the Merum site [6][28] Leadership Changes - The company has strengthened its board with the addition of Barbara Sugg and Daniel, who bring valuable expertise in power operations and energy investments [10][11]