Core Viewpoint - Hallador Energy reported strong financial performance in 2025, driven by increased electric sales and improved market conditions, despite operational challenges at the Merom power plant [3][5]. Financial Performance - Total revenue rose 16% year-over-year to $469.5 million in 2025, with net income improving to $41.9 million and adjusted EBITDA increasing to $56 million [2][5]. - Electric sales were the primary contributor to revenue growth, increasing about 19% to $310.7 million compared to 2024, while coal sales increased 8% to $148.7 million [1][5]. Operational Challenges - The Merom power plant faced operational failures that reduced generation in Q4 2025 and into Q1 2026, leading to a planned 60-day maintenance outage starting in May [5][7]. - Management expects Q1 2026 results to be similar to Q4 2025 due to these operational issues [7]. Future Capacity and Expansion Plans - Hallador was awarded an ERAS slot for up to 515 MW of potential natural gas capacity, with approximately $14 million in refundable deposits [4][13]. - The company is engaging multiple parties for long-term Power Purchase Agreements (PPAs) and has seen increased interest from utilities and industrial users [10][11]. Capital Expenditures and Liquidity - Capital expenditures for Q4 2025 were $24.99 million, bringing full-year 2025 capex to $69.2 million, with expectations for a modest increase in 2026 [16]. - The company has bolstered liquidity through a $120 million credit facility and a public offering that raised approximately $57.5 million [4][16]. Market Position and Sales - Hallador's forward energy and capacity sales position was $540 million as of December 31, 2025, combined with third-party forward coal sales of $323.5 million [17]. - The company is positioned as a vertically integrated independent power producer, benefiting from tightening supply conditions and rising value for accredited capacity in the MISO market [3][10].