Hallador Energy Company Reports Fourth Quarter and Full Year 2024 Financial and Operating Results
Hallador Energy Company (HNRG) reported Q4 2024 financial results, with total revenue of $94.2 million and full-year revenue of $404.4 million. Q4 operating cash flow increased to $32.5 million, with FY'24 at $65.9 million. Q4 Adjusted EBITDA grew approximately 3x year-over-year to $6.2 million.
The company is transitioning from a bituminous coal producer to a vertically integrated independent power producer (IPP). In Q4, electric sales represented 74% of total revenue at $69.7 million, while coal sales decreased to 23.4 million. The company reduced coal production by 40% and recorded a $215 million non-cash write-down of its Sunrise Coal subsidiary.
Hallador signed an exclusive commitment agreement with a global data center developer, effective January 2025, potentially selling majority power production for over a decade. The company reduced bank debt by over 50% to $44 million and maintained total liquidity of $37.8 million at year-end.
Hallador Energy Company (HNRG) ha riportato i risultati finanziari del Q4 2024, con un fatturato totale di 94,2 milioni di dollari e un fatturato annuo di 404,4 milioni di dollari. Il flusso di cassa operativo del Q4 è aumentato a 32,5 milioni di dollari, con un totale per l'anno fiscale 2024 di 65,9 milioni di dollari. L'EBITDA rettificato del Q4 è cresciuto di circa 3 volte rispetto all'anno precedente, raggiungendo 6,2 milioni di dollari.
L'azienda sta passando da produttore di carbone bituminoso a produttore indipendente di energia (IPP) integrato verticalmente. Nel Q4, le vendite elettriche hanno rappresentato il 74% del fatturato totale, pari a 69,7 milioni di dollari, mentre le vendite di carbone sono diminuite a 23,4 milioni di dollari. L'azienda ha ridotto la produzione di carbone del 40% e ha registrato una svalutazione non monetaria di 215 milioni di dollari della sua controllata Sunrise Coal.
Hallador ha firmato un accordo di impegno esclusivo con uno sviluppatore globale di data center, efficace da gennaio 2025, per la vendita potenziale della maggior parte della produzione di energia per oltre un decennio. L'azienda ha ridotto il debito bancario di oltre il 50%, portandolo a 44 milioni di dollari, e ha mantenuto una liquidità totale di 37,8 milioni di dollari a fine anno.
Hallador Energy Company (HNRG) informó los resultados financieros del cuarto trimestre de 2024, con ingresos totales de 94,2 millones de dólares y unos ingresos anuales de 404,4 millones de dólares. El flujo de efectivo operativo del cuarto trimestre aumentó a 32,5 millones de dólares, con un total para el año fiscal 2024 de 65,9 millones de dólares. El EBITDA ajustado del cuarto trimestre creció aproximadamente 3 veces en comparación con el año anterior, alcanzando 6,2 millones de dólares.
La compañía está en transición de ser un productor de carbón bituminoso a un productor independiente de energía (IPP) integrado verticalmente. En el cuarto trimestre, las ventas eléctricas representaron el 74% de los ingresos totales, alcanzando los 69,7 millones de dólares, mientras que las ventas de carbón disminuyeron a 23,4 millones de dólares. La empresa redujo la producción de carbón en un 40% y registró una depreciación no monetaria de 215 millones de dólares de su subsidiaria Sunrise Coal.
Hallador firmó un acuerdo de compromiso exclusivo con un desarrollador global de centros de datos, efectivo a partir de enero de 2025, para la venta potencial de la mayor parte de la producción de energía durante más de una década. La empresa redujo su deuda bancaria en más del 50%, dejándola en 44 millones de dólares, y mantuvo una liquidez total de 37,8 millones de dólares al final del año.
Hallador Energy Company (HNRG)는 2024년 4분기 재무 결과를 보고했으며, 총 수익은 9,420만 달러, 연간 수익은 4억 4백만 달러에 달합니다. 4분기 운영 현금 흐름은 3,250만 달러로 증가했으며, 2024 회계연도 전체는 6,590만 달러입니다. 4분기 조정 EBITDA는 전년 대비 약 3배 증가하여 620만 달러에 달했습니다.
회사는 비트uminous 석탄 생산자에서 수직적으로 통합된 독립 전력 생산자(IPP)로 전환하고 있습니다. 4분기 동안 전기 판매는 총 수익의 74%를 차지하며 6,970만 달러에 달했고, 석탄 판매는 2,340만 달러로 감소했습니다. 회사는 석탄 생산을 40% 줄였고, 자회사인 Sunrise Coal의 2억 1,500만 달러 비현금 자산 감소를 기록했습니다.
Hallador는 2025년 1월부터 발효되는 글로벌 데이터 센터 개발자와 독점 약정 계약을 체결하여 10년 이상 주요 전력 생산을 판매할 가능성이 있습니다. 회사는 은행 부채를 50% 이상 줄여 4,400만 달러로 낮추었고, 연말에 총 유동성은 3,780만 달러를 유지했습니다.
Hallador Energy Company (HNRG) a annoncé les résultats financiers du quatrième trimestre 2024, avec un chiffre d'affaires total de 94,2 millions de dollars et un chiffre d'affaires annuel de 404,4 millions de dollars. Le flux de trésorerie opérationnel du Q4 a augmenté à 32,5 millions de dollars, avec un total pour l'année fiscale 2024 de 65,9 millions de dollars. L'EBITDA ajusté du Q4 a crû d'environ 3 fois par rapport à l'année précédente, atteignant 6,2 millions de dollars.
L'entreprise est en train de passer d'un producteur de charbon bitumineux à un producteur d'énergie indépendant intégré verticalement (IPP). Au quatrième trimestre, les ventes d'électricité ont représenté 74% du chiffre d'affaires total, soit 69,7 millions de dollars, tandis que les ventes de charbon ont diminué à 23,4 millions de dollars. L'entreprise a réduit sa production de charbon de 40% et a enregistré une dépréciation non monétaire de 215 millions de dollars de sa filiale Sunrise Coal.
Hallador a signé un accord d'engagement exclusif avec un développeur mondial de centres de données, effectif à partir de janvier 2025, pour la vente potentielle de la majorité de la production d'énergie pendant plus d'une décennie. L'entreprise a réduit sa dette bancaire de plus de 50% à 44 millions de dollars et a maintenu une liquidité totale de 37,8 millions de dollars à la fin de l'année.
Hallador Energy Company (HNRG) hat die finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, mit einem Gesamtumsatz von 94,2 Millionen Dollar und einem Jahresumsatz von 404,4 Millionen Dollar. Der operative Cashflow im 4. Quartal stieg auf 32,5 Millionen Dollar, während der Gesamtbetrag für das Geschäftsjahr 2024 bei 65,9 Millionen Dollar lag. Das angepasste EBITDA im 4. Quartal wuchs im Vergleich zum Vorjahr um etwa das Dreifache auf 6,2 Millionen Dollar.
Das Unternehmen befindet sich im Übergang von einem Produzenten von Steinkohle zu einem vertikal integrierten unabhängigen Stromerzeuger (IPP). Im 4. Quartal machten die Elektrizitätsverkäufe 74% des Gesamtumsatzes aus, was 69,7 Millionen Dollar entspricht, während die Kohleverkäufe auf 23,4 Millionen Dollar sanken. Das Unternehmen reduzierte die Kohleproduktion um 40% und verzeichnete eine nicht zahlungswirksame Abschreibung von 215 Millionen Dollar für seine Tochtergesellschaft Sunrise Coal.
Hallador hat einen exklusiven Verpflichtungsvertrag mit einem globalen Rechenzentrumsentwickler unterzeichnet, der ab Januar 2025 wirksam wird und potenziell die Mehrheit der Stromproduktion über ein Jahrzehnt verkaufen könnte. Das Unternehmen hat die Bankverschuldung um über 50% auf 44 Millionen Dollar reduziert und die Gesamtliquidität zum Jahresende bei 37,8 Millionen Dollar gehalten.
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Insights
Hallador Energy's Q4 and full-year 2024 results reflect a company in strategic transition, with both promising operational improvements and significant restructuring costs. The 32.5% year-over-year increase in Q4 operating cash flow to $32.5 million is particularly noteworthy, showing improved operational efficiency despite challenging market conditions. Similarly, Q4 Adjusted EBITDA tripled year-over-year to $6.2 million, indicating the company's transformation efforts are yielding positive operational results.
The company's aggressive debt reduction from $91.5 million to $44.0 million (down 52% year-over-year) strengthens the balance sheet and reduces interest burden, creating greater financial flexibility. This deleveraging, coupled with improved liquidity of $37.8 million (up 44% from year-end 2023), provides a important buffer as Hallador navigates its strategic pivot.
However, the $215 million non-cash write-down of Sunrise Coal assets, while non-cash, represents a substantial accounting acknowledgment that coal's future valuation prospects have diminished significantly. The 40% reduction in coal production volume reflects management's recognition of structural shifts in energy markets rather than cyclical weakness.
Most compelling is Hallador's revenue transformation - electric sales now comprise 74% of Q4 revenue ($69.7 million) versus just 31% a year earlier, while coal revenue decreased to 25% from 68%. This fundamental business model shift toward power generation aligns with market valuation preferences for more predictable revenue streams with higher margins compared to commodity production.
The potential data center partnership represents a significant growth catalyst that could lock in power offtake at premium pricing for over a decade, though investors should note this remains in negotiation with no guarantees of completion.
Hallador's strategic pivot from coal mining to independent power production represents a textbook case of adaptative strategy in a transitioning energy landscape. The company is essentially moving up the value chain from being a commodity supplier to becoming a critical grid infrastructure provider - a move that typically commands higher valuation multiples and more stable cash flows.
The timing of this transition is particularly apt. As the power generation mix shifts toward intermittent renewables, the scarcity value of dispatchable power plants like Hallador's Merom facility increases substantially. This dynamic explains management's confidence in securing forward energy and capacity sales of $1.1 billion through 2029, reflecting a 17% increase from Q3's $937.2 million contracted value.
The substantial non-cash impairment of coal assets, while painful on paper, demonstrates management's clear-eyed assessment of market realities. By concentrating production on lower-cost reserves and reducing overall volume by 40%, Hallador is effectively optimizing its remaining coal operations to primarily support its own generation facility rather than compete in an increasingly challenging merchant coal market.
The potential data center partnership exemplifies how traditional power assets can be repositioned to serve the explosive growth in computing infrastructure. Data centers require 24/7 reliable power that matches perfectly with Hallador's generation profile. The $5 million commitment during the exclusivity period indicates genuine interest from the counterparty.
The company's expressed interest in acquiring additional dispatchable generators suggests management sees this transition not as a one-time pivot but as a new strategic direction with expansion opportunities. This could create meaningful scale advantages in operations, maintenance, and power marketing capabilities that weren't available in its previous coal-focused business model.
- Q4 2024 Total Revenue of
- Q4 2024 Operating Cash Flow up Materially to
- Q4 2024 Adjusted EBITDA up ~3x YoY to
TERRE HAUTE, Ind., March 17, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the fourth quarter and full year ended December 31, 2024.
“2024 was a transformative year for Hallador as we continued our evolution from a bituminous coal producer to a vertically integrated independent power producer (“IPP”), while also advancing our products and services up the energy value chain,” said Brent Bilsland, President and Chief Executive Officer. “This deliberate transition aligns with market trends and reflects our conviction in the superior economics of the IPP business model. In fall 2024, we reached an important milestone in our transformation by signing a non-binding term sheet with a leading global data center developer on a transaction that would, if completed, sell a majority of our power production and accredited capacity at enhanced margins for more than a decade to come. We are making meaningful progress toward finalizing definitive agreements for this transaction within the exclusivity period that runs from January through early June 2025, further strengthened by our partner’s commitment to pay up to
“The ongoing industry shift from dispatchable generators, such as coal and natural gas, to non-dispatchable resources like wind and solar, has increased the value of our Hallador Power subsidiary due to the enhanced reliability, resilience and consistency that we provide over the less predictable non-dispatchables. At the same time, the retirement of coal-based generation has reduced demand for coal supply, impacting the value of our Sunrise Coal subsidiary. In anticipation of these market dynamics, we proactively reduced production volume and shifted our focus away from the higher cost coal reserves, which lowered our operational cash costs in the fourth quarter. These strategic actions along with lower long-term coal price projections resulted in a fourth-quarter non-cash write-down of Sunrise Coal’s carrying value by approximately
Bilsland continued, “Looking ahead, our focus remains on maximizing the value of our Merom Power Plant while actively pursuing opportunities to acquire additional dispatchable generators that can add durability, scale, and geographic expansion to our electric operations. Additionally, we are forging strong relationships with sophisticated counterparties to secure favorable collateral terms and effectively manage our forward power sales in 2025 and 2026, which we believe will enhance our financial flexibility in the short to medium term. During 2024, we also reduced our bank debt by more than
Fourth Quarter 2024 Highlights
- Hallador advanced its restructuring efforts for its subsidiary Sunrise Coal, focusing on production optimization and cost reductions to strengthen its operations.
- During 2024, the Company reduced its coal production volume by approximately
40% and shifted its focus away from the higher cost portions of its coal reserves. This optimization of coal production reduced Hallador’s operational cash cost structure to better align its coal strategy to support its internal electric generation. - As a result of reducing coal production, optimizing its reserve base, and the declining price of contracted coal sales, Hallador realized an approximate
$215 million non-cash write down in the fourth quarter associated with the carrying value of its Sunrise Coal subsidiary.
- During 2024, the Company reduced its coal production volume by approximately
- The Company continues to shift its revenue mix to prioritize electric sales as an independent power producer.
- Fourth quarter electric sales were
$69.7 million or74% of total Q4 revenue, compared to$37.1 million or31% of total Q4 revenue in the year-ago period. - Fourth quarter Coal sales were
$23.4 million or25% of total revenue, compared to$81.3 million or68% of total revenue in the year-ago period.
- Fourth quarter electric sales were
- Hallador continues to focus on forward sales to secure its energy position.
- At year-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of
$1.1 billion through 2029, up from$937.2 million at the end of the third quarter. - Subsequent to year end, Hallador signed an exclusive commitment agreement with a leading global data center developer, effective January 2, 2025. This agreement is in furtherance of the previously announced non-binding term sheet signed during the third quarter of 2024, reflecting an important milestone as both the Company and the developer seek to finalize a definitive transaction agreement to support the delivery of energy and capacity (through a utility partner) to a potential data center development within the State of Indiana. The completion of this proposed transaction is subject to, among other matters, the negotiation and execution of definitive agreements and there can be no assurance that definitive agreements will be entered into or that the proposed transaction will be consummated on the terms or timeframe currently contemplated, or at all.
- At year-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of
- The Company continues to strengthen its balance sheet.
- Total bank debt was
$44.0 million at December 31, 2024, compared to$70.0 million at September 30, 2024 and$91.5 million at December 31, 2023. - Total liquidity was
$37.8 million at December 31, 2024 compared to$34.9 million at September 30, 2024 and$26.2 million at December 31, 2023.
- Total bank debt was
| Financial Summary ($ in Millions and Unaudited) | ||||||||||||||||
| Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | |||||||||||||
| Electric Sales | $ | 60.7 | $ | 59.4 | $ | 71.7 | $ | 69.7 | ||||||||
| Coal Sales- 3rd Party | $ | 49.6 | $ | 32.8 | $ | 31.7 | $ | 23.3 | ||||||||
| Other Revenue | $ | 1.3 | $ | 1.0 | $ | 1.4 | $ | 1.8 | ||||||||
| Total Operating Revenue | $ | 111.6 | $ | 93.2 | $ | 104.8 | $ | 94.8 | ||||||||
| Net Income (Loss) | $ | (1.7 | ) | $ | (10.2 | ) | $ | 1.6 | $ | (215.8 | ) | |||||
| Operating Cash Flow | $ | 18.5 | $ | 26.1 | $ | (11.2 | ) | $ | 32.5 | |||||||
| Adjusted EBITDA* | $ | 6.8 | $ | (5.8 | ) | $ | 9.6 | $ | 6.2 | |||||||
_________________________________
* Non-GAAP financial measure, defined as operating cash flows less effects of certain subsidiary and equity method investment activity, plus bank interest, less effects of working capital period changes, plus other amortization
Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies.
Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity and is a key component of certain material covenants contained within our Credit Agreement, specifically the minimum quarterly EBITDA. Noncompliance with the covenants could result in our lenders requiring the Company to immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the assessment of our liquidity. The required amount of Adjusted EBITDA is a variable based on our debt outstanding and/or required debt payments at the time of the quarterly calculation based on a rolling prior 12-month period.
Reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to Income (Loss) before Income taxes, the most comparable GAAP measure, is as follows (in thousands) for the twelve months ended December 31, 2024 and 2023, respectively.
| Reconciliation of GAAP "Income (Loss) before Income Taxes" to non-GAAP "Adjusted EBITDA" (In $ Thousands and Unaudited) | ||||||||
| Year Ended | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| NET INCOME (LOSS) | $ | (226,138 | ) | $ | 44,793 | |||
| Interest expense | 13,850 | 13,711 | ||||||
| Income tax expense (benefit) | (9,404 | ) | 4,465 | |||||
| Depreciation, depletion and amortization | 65,626 | 67,211 | ||||||
| EBITDA | (156,066 | ) | 130,180 | |||||
| Other operating revenue | (275 | ) | 10 | |||||
| Stock-based compensation | 4,454 | 3,554 | ||||||
| Asset impairment | 215,136 | — | ||||||
| Asset retirement obligations accretion | 1,628 | 1,804 | ||||||
| Other amortization | (46,310 | ) | (30,613 | ) | ||||
| (Gain) loss on disposal or abandonment of assets, net | (50 | ) | 398 | |||||
| Loss on extinguishment of debt | 2,790 | 1,491 | ||||||
| Equity method investment (loss) | 746 | 552 | ||||||
| Settlement of litigation | 2,750 | — | ||||||
| Other reclassifications | (8,043 | ) | — | |||||
| Adjusted EBITDA | $ | 16,760 | $ | 107,376 | ||||
| Solid Forward Sales Position - Segment Basis, Before Intercompany Eliminations (unaudited): | ||||||||||||||||||||||||
| 2025 | 2026 | 2027 | 2028 | 2029 | Total | |||||||||||||||||||
| Power | ||||||||||||||||||||||||
| Energy | ||||||||||||||||||||||||
| Contracted MWh (in millions) | 4.25 | 3.36 | 1.78 | 1.09 | 0.27 | 10.75 | ||||||||||||||||||
| Average contracted price per MWh | $ | 37.24 | $ | 44.43 | $ | 54.66 | $ | 52.94 | $ | 51.33 | ||||||||||||||
| Contracted revenue (in millions) | $ | 158.27 | $ | 149.28 | $ | 97.29 | $ | 57.70 | $ | 13.86 | $ | 476.40 | ||||||||||||
| Capacity | ||||||||||||||||||||||||
| Average daily contracted capacity MWh | 773 | 727 | 623 | 454 | 100 | |||||||||||||||||||
| Average contracted capacity price per MWd | $ | 201 | $ | 230 | $ | 226 | $ | 225 | $ | 230 | ||||||||||||||
| Contracted capacity revenue (in millions) | $ | 55.95 | $ | 61.12 | $ | 51.40 | $ | 37.33 | $ | 3.47 | $ | 209.27 | ||||||||||||
| Total Energy & Capacity Revenue | ||||||||||||||||||||||||
| Contracted Power revenue (in millions) | $ | 214.22 | $ | 210.40 | $ | 148.69 | $ | 95.03 | $ | 17.33 | $ | 685.67 | ||||||||||||
| Coal | ||||||||||||||||||||||||
| Priced tons - 3rd party (in millions) | 2.95 | 2.50 | 2.50 | 0.50 | — | 8.45 | ||||||||||||||||||
| Avg price per ton - 3rd party | $ | 51.04 | $ | 55.49 | $ | 56.74 | $ | 59.00 | $ | — | ||||||||||||||
| Contracted coal revenue - 3rd party (in millions) | $ | 150.57 | $ | 138.73 | $ | 141.85 | $ | 29.50 | $ | — | $ | 460.65 | ||||||||||||
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED | $ | 364.79 | $ | 349.13 | $ | 290.54 | $ | 124.53 | $ | 17.33 | $ | 1,146.32 | ||||||||||||
| Priced tons - Intercompany (in millions) | 2.30 | 2.30 | 2.30 | 2.30 | — | 9.20 | ||||||||||||||||||
| Avg price per ton - Intercompany | $ | 51.00 | $ | 51.00 | $ | 51.00 | $ | 51.00 | $ | — | ||||||||||||||
| Contracted coal revenue - Intercompany (in millions) | $ | 117.30 | $ | 117.30 | $ | 117.30 | $ | 117.30 | $ | — | $ | 469.20 | ||||||||||||
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT | $ | 482.09 | $ | 466.43 | $ | 407.84 | $ | 241.83 | $ | 17.33 | $ | 1,615.52 | ||||||||||||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "guidance," "target," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to execute definitive agreements with respect to the non-binding term sheet with a leading global data center developer. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2024, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.
Conference Call and Webcast
Hallador management will host a conference call on Monday, March 17, 2025 at 5:30 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Monday, March 17, 2025
Time: 5:30 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at www.halladorenergy.com.
| Hallador Energy Company Condensed Consolidated Balance Sheets As of December 31, (in thousands) (unaudited) | ||||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,232 | $ | 2,842 | ||||
| Restricted cash | 4,921 | 4,281 | ||||||
| Accounts receivable | 15,438 | 19,937 | ||||||
| Inventory | 36,685 | 23,075 | ||||||
| Parts and supplies | 39,104 | 38,877 | ||||||
| Prepaid expenses | 1,478 | 2,262 | ||||||
| Assets held-for-sale | — | 1,540 | ||||||
| Total current assets | 104,858 | 92,814 | ||||||
| Property, plant and equipment: | ||||||||
| Land and mineral rights | 70,307 | 115,486 | ||||||
| Buildings and equipment | 429,857 | 537,131 | ||||||
| Mine development | 92,458 | 158,642 | ||||||
| Finance lease right-of-use assets | 13,034 | 12,346 | ||||||
| Total property, plant and equipment | 605,656 | 823,605 | ||||||
| Less - accumulated depreciation, depletion and amortization | (347,952 | ) | (334,971 | ) | ||||
| Total property, plant and equipment, net | 257,704 | 488,634 | ||||||
| Equity method investments | 2,607 | 2,811 | ||||||
| Other assets | 3,951 | 5,521 | ||||||
| Total assets | $ | 369,120 | $ | 589,780 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of bank debt, net | $ | 4,095 | $ | 24,438 | ||||
| Accounts payable and accrued liabilities | 44,298 | 62,908 | ||||||
| Current portion of lease financing | 6,912 | 3,933 | ||||||
| Contract liabilities - current | 97,598 | 66,316 | ||||||
| Total current liabilities | 152,903 | 157,595 | ||||||
| Long-term liabilities: | ||||||||
| Bank debt, net | 37,394 | 63,453 | ||||||
| Convertible notes payable | — | 10,000 | ||||||
| Convertible notes payable - related party | — | 9,000 | ||||||
| Long-term lease financing | 8,749 | 8,157 | ||||||
| Deferred income taxes | — | 9,235 | ||||||
| Asset retirement obligations | 14,957 | 14,538 | ||||||
| Contract liabilities - long-term | 49,121 | 47,425 | ||||||
| Other | 1,711 | 1,789 | ||||||
| Total long-term liabilities | 111,932 | 163,597 | ||||||
| Total liabilities | 264,835 | 321,192 | ||||||
| Commitments and contingencies (Note 22) | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $.10 par value, 10,000 shares authorized; none issued | — | — | ||||||
| Common stock, $.01 par value, 100,000 shares authorized; 42,621 and 34,052 issued and outstanding, as of December 31, 2024 and December 31, 2023, respectively | 426 | 341 | ||||||
| Additional paid-in capital | 189,298 | 127,548 | ||||||
| Retained earnings (deficit) | (85,439 | ) | 140,699 | |||||
| Total stockholders’ equity | 104,285 | 268,588 | ||||||
| Total liabilities and stockholders’ equity | $ | 369,120 | $ | 589,780 | ||||
| Hallador Energy Company Condensed Consolidated Statements of Operations For the years ended December 31, (in thousands, except per share data) (unaudited) | ||||||||
| 2024 | 2023 | |||||||
| SALES AND OPERATING REVENUES: | ||||||||
| Electric sales | $ | 261,527 | $ | 267,927 | ||||
| Coal sales | 137,448 | 361,926 | ||||||
| Other revenues | 5,419 | 5,025 | ||||||
| Total sales and operating revenues | 404,394 | 634,878 | ||||||
| EXPENSES: | ||||||||
| Fuel | 49,343 | 103,388 | ||||||
| Other operating and maintenance costs | 118,364 | 199,855 | ||||||
| Cost of purchased power | 10,888 | — | ||||||
| Utilities | 15,914 | 17,730 | ||||||
| Labor | 116,164 | 152,417 | ||||||
| Depreciation, depletion and amortization | 65,626 | 67,211 | ||||||
| Asset retirement obligations accretion | 1,628 | 1,804 | ||||||
| Exploration costs | 260 | 904 | ||||||
| General and administrative | 26,527 | 26,159 | ||||||
| Asset impairment | 215,136 | — | ||||||
| (Gain) loss on disposal or abandonment of assets, net | (50 | ) | 398 | |||||
| Settlement of litigation | 2,750 | — | ||||||
| Total operating expenses | 622,550 | 569,866 | ||||||
| INCOME (LOSS) FROM OPERATIONS | (218,156 | ) | 65,012 | |||||
| Interest expense (1) | (13,850 | ) | (13,711 | ) | ||||
| Loss on extinguishment of debt | (2,790 | ) | (1,491 | ) | ||||
| Equity method investment (loss) | (746 | ) | (552 | ) | ||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | (235,542 | ) | 49,258 | |||||
| INCOME TAX EXPENSE (BENEFIT): | ||||||||
| Current | (169 | ) | (164 | ) | ||||
| Deferred | (9,235 | ) | 4,629 | |||||
| Total income tax expense (benefit) | (9,404 | ) | 4,465 | |||||
| NET INCOME (LOSS) | $ | (226,138 | ) | $ | 44,793 | |||
| NET INCOME (LOSS) PER SHARE: | ||||||||
| Basic | $ | (5.72 | ) | $ | 1.35 | |||
| Diluted | $ | (5.72 | ) | $ | 1.25 | |||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| Basic | 39,504 | 33,133 | ||||||
| Diluted | 39,504 | 36,827 | ||||||
| Hallador Energy Company Condensed Consolidated Statements of Cash Flows For the years ended December 31, (in thousands) (unaudited) | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | (226,138 | ) | $ | 44,793 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Deferred income tax (benefit) | (9,235 | ) | 4,629 | |||||
| Equity method investment (loss) | 746 | 552 | ||||||
| Cash distribution - equity method investment | — | 625 | ||||||
| Depreciation, depletion and amortization | 65,626 | 67,211 | ||||||
| Asset impairment | 215,136 | — | ||||||
| Loss on extinguishment of debt | 2,790 | 1,491 | ||||||
| (Gain) loss on disposal or abandonment of assets, net | (50 | ) | 398 | |||||
| Amortization of debt issuance costs | 1,747 | 3,233 | ||||||
| Asset retirement obligations accretion | 1,628 | 1,804 | ||||||
| Cash paid on asset retirement obligation reclamation | (1,407 | ) | (3,384 | ) | ||||
| Stock-based compensation | 4,454 | 3,554 | ||||||
| Amortization of contract asset and contract liabilities | (70,203 | ) | (97,018 | ) | ||||
| Director fees paid in stock | 150 | — | ||||||
| Change in current assets and liabilities: | ||||||||
| Accounts receivable | 4,499 | 9,952 | ||||||
| Inventory | (13,610 | ) | 15,548 | |||||
| Parts and supplies | (227 | ) | (10,582 | ) | ||||
| Prepaid expenses | 784 | 1,186 | ||||||
| Accounts payable and accrued liabilities | (14,580 | ) | (18,992 | ) | ||||
| Contract liabilities | 103,181 | 33,804 | ||||||
| Other | 643 | 610 | ||||||
| Net cash provided by operating activities | $ | 65,934 | $ | 59,414 | ||||
| Hallador Energy Company Condensed Consolidated Statements of Cash Flows For the years ended December 31, (in thousands) (continued) (unaudited) | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | $ | (53,367 | ) | $ | (75,352 | ) | ||
| Proceeds from sale of equipment | 4,239 | 62 | ||||||
| Proceeds from held-for-sale assets | 3,200 | — | ||||||
| Investment in equity method investments | (542 | ) | — | |||||
| Net cash used in investing activities | (46,470 | ) | (75,290 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payments on bank debt | (147,000 | ) | (59,713 | ) | ||||
| Borrowings of bank debt | 99,500 | 66,000 | ||||||
| Payments on lease financing | (5,633 | ) | — | |||||
| Proceeds from sale and leaseback arrangement | 5,134 | 11,082 | ||||||
| Issuance of related party notes payable | 5,000 | — | ||||||
| Payments on related party notes payable | (5,000 | ) | — | |||||
| Debt issuance costs | (673 | ) | (6,013 | ) | ||||
| ATM offering | 34,515 | 7,318 | ||||||
| Taxes paid on vesting of RSUs | (277 | ) | (2,101 | ) | ||||
| Net cash provided by (used in) financing activities | (14,434 | ) | 16,573 | |||||
| Increase in cash, cash equivalents, and restricted cash | 5,030 | 697 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of year | 7,123 | 6,426 | ||||||
| Cash, cash equivalents, and restricted cash, end of year | $ | 12,153 | $ | 7,123 | ||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | ||||||||
| Cash and cash equivalents | $ | 7,232 | $ | 2,842 | ||||
| Restricted cash | 4,921 | 4,281 | ||||||
| $ | 12,153 | $ | 7,123 | |||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest | $ | 10,511 | $ | 9,966 | ||||
| SUPPLEMENTAL NON-CASH FLOW INFORMATION: | ||||||||
| Change in capital expenditures included in accounts payable and prepaid expense | $ | 356 | $ | 1,882 | ||||
About Hallador Energy Company
Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and capacity at its one Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at http://www.halladorenergy.com/.
Company Contact
Marjorie Hargrave
Chief Financial Officer
(303) 917-0777
MHargrave@halladorenergy.com
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
HNRG@elevate-ir.com
FAQ
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