Hallador Energy Company Reports Second Quarter 2025 Financial and Operating Results

August 11, 2025 16:05 ET | Source: Hallador Energy Company - Q2 Total Revenue up 10% YoY to $102.9 Million -- Q2 Net Income Increases to $8.2 Million or $0.19 Earnings per Share –- Q2 Operating Cash Flow of $11.4 Million -- Q2 Adjusted EBITDA increases to $3.4 Million - TERRE HAUTE, Ind., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the second quarter ended June 30, 2025. “We delivered a strong second quarter highlighted by gains across the P&L, including increased revenue, net income and adjusted EBITDA, along with another period of positive cash flow from operations,” said Brent Bilsland, President and Chief Executive Officer. “Our performance reflects the operational resilience of our platform, particularly as we navigated seasonal spring softness in the energy market and a scheduled outage at one of our generating units. The strength of our remaining unit and higher-than-expected market pricing in late June helped offset those headwinds, while our coal operations benefited from improved cost efficiency and stronger recovery rates. As a result of these operational enhancements and our planned outage at Merom, inventory levels rose in the quarter, positioning us for an active second half as both units return to full dispatch and coal customer shipments accelerate.” Bilsland continued, “We’re also seeing increased momentum in our commercial strategy to secure a long-term power purchase agreement (PPA). Since concluding exclusive discussions with a major data center developer in May, we’ve engaged with a broader slate of potential partners, including utilities whose proposals offer compelling scale and execution benefits. The current market backdrop, characterized by ramping demand for accredited capacity and resilient baseload power, presents a significantly more attractive landscape than when we initiated our RFP process last year. We remain optimistic that these conversations will culminate in a long-term agreement that enhances value for our shareholders.” “Looking ahead, we remain focused on unlocking the full value of our dispatchable generation assets while continuing to evaluate strategic acquisitions and enhancements. The momentum we're seeing across federal and state policy, combined with growing interest from potential partners for a long-term PPA, reinforces our confidence in the path ahead. We believe Hallador is uniquely positioned to capitalize on the secular trends that are reshaping the energy sector.” Second Quarter 2025 Highlights Despite our planned maintenance outage and typical seasonal softness in the energy market early in the quarter, the Company generated growth on both the top and bottom line. Total revenue increased 10% year-over-year to $102.9 million, driven by a strong increase in coal sales to $38.1 million. Net income and Adjusted EBITDA increased year-over-year to $8.2 million and $3.4 million, respectively. The Company generated $11.4 million in operating cash flow during the second quarter, which was used to partially fund capex. Total bank debt was $45.0 million at June 30, 2025, compared to $23.0 million at March 31, 2025, and $44.0 million at December 31, 2024. The expected increase from March 31, 2025 was driven by a higher revolver balance related to the planned maintenance outage.In June 2025, Hallador amended its credit agreement to enhance operating flexibility for the remainder of the year. The amendment redefined covenants, deferred certain covenant requirements until the third quarter and moved the scheduled October 2025 debt repayment to January 2026. During the second quarter, Hallador entered into a $35.0 million prepaid power sales agreement and at the Company’s request it was permitted to deposit $19.0 million from that transaction into a money market account as a compensating balance to the Term Loan in lieu of immediately paying it off. These changes support improved liquidity management and provide optionality as the Company evaluates refinancing alternatives for the current credit facility prior to their maturities over the course of 2026. Total liquidity was $42.0 million at June 30, 2025, compared to $69.0 million at March 31, 2025, and $37.8 million at December 31, 2024. Capital expenditures in the second quarter were $13.1 million compared to $13.2 million in the year-ago period. Hallador continues to focus on forward sales to secure its energy position. At quarter-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of $1.0 billion through 2029. Financial Summary($ in Millions and Unaudited) Q2 2025 Q2 2024Electric Sales $60.0 $60.0 Coal Sales- 3rdParty $38.1 $32.8 Other Revenue $4.8 $1.0 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) * Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses. 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. Reconciliation of GAAP "Income (Loss) before Income Taxes" to non-GAAP "Adjusted EBITDA"(In $ Thousands and Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024NET INCOME (LOSS) $8,248 $(10,204) $18,227 $(11,900)Interest expense 3,819 3,735 7,542 7,672 Income tax expense (benefit) — (3,011) — (3,621)Depreciation, depletion and amortization 5,542 13,649 20,519 29,092 EBITDA 17,609 4,169 46,288 21,243 Other operating revenue — 6 — 13 Stock-based compensation 475 1,581 1,559 2,247 Asset retirement obligations accretion 437 399 864 798 Other amortization (1) (13,032) (13,923) (24,366) (26,143)(Gain) loss on disposal or abandonment of assets, net (55) (222) (76) (246)Loss on extinguishment of debt — 1,937 — 2,790 Equity method (investment) loss (197) 257 39 506 Other reclassifications (1,839) — (1,600) — Adjusted EBITDA $3,398 $(5,796) $22,708 $1,208 (1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022. Solid Forward Sales Position - Segment Basis, Before Intercompany Eliminations (unaudited): 2025 2026 2027 2028 2029 TotalPower Energy Contracted MWh (in millions) 2.53 4.00 1.78 1.09 0.27 9.67Average contracted price per MWh $37.75 $43.05 $54.65 $52.98 $51.00 Contracted revenue (in millions) $95.51 $172.22 $97.28 $57.75 $13.77 $436.53 Capacity Average daily contracted capacity MW 716 733 623 454 100 Average contracted capacity price per MWd $224 $230 $226 $225 $230 Contracted capacity revenue (in millions) $29.46 $61.54 $51.40 $37.33 $3.47 $183.20 Total Energy & Capacity Revenue Contracted Power revenue (in millions) $124.97 $233.76 $148.68 $95.08 $17.24 $619.73 Coal Priced tons - 3rd party (in millions) 1.42 2.30 2.50 0.50 — 6.72Avg price per ton - 3rd party $50.96 $55.58 $56.74 $59.00 $— Contracted coal revenue - 3rd party (in millions) $72.36 $127.83 $141.85 $29.50 $— $371.54 TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED $197.33 $361.59 $290.53 $124.58 $17.24 $991.27 Priced tons - Intercompany (in millions) 1.67 2.30 2.30 2.30 — 8.57Avg price per ton - Intercompany $51.00 $51.00 $51.00 $51.00 $— Contracted coal revenue - Intercompany (in millions) $85.17 $117.30 $117.30 $117.30 $— $437.07 TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT $282.50 $478.89 $407.83 $241.88 $17.24 $1,428.34 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 secure a long-term power purchase agreement, to unlock the full value of our dispatchable generation assets and to identify, evaluate and execute potential strategic acquisitions and enhancements. 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 today, August 11, 2025 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period. Date: Monday, August 11, 2025Time: 5:00 p.m. Eastern timeDial-in registration link: hereLive 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. 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 Todd E. Telesz Chief Financial OfficerTTelesz@halladorenergy.com Investor Relations Contact Sean Mansouri, CFAElevate IR(720) 330-2829HNRG@elevate-ir.com Hallador Energy CompanyCondensed Consolidated Balance Sheets(in thousands, except per share data)(unaudited) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $9,228 $7,232 Restricted cash 23,142 4,921 Accounts receivable 18,742 15,438 Inventory 43,570 36,685 Parts and supplies 42,755 39,104 Prepaid expenses 2,437 1,478 Total current assets 139,874 104,858 Property, plant and equipment: Land and mineral rights 70,307 70,307 Buildings and equipment 446,278 429,857 Mine development 96,764 92,458 Finance lease right-of-use assets 13,034 13,034 Total property, plant and equipment 626,383 605,656 Less - accumulated depreciation, depletion and amortization (363,704) (347,952) Total property, plant and equipment, net 262,679 257,704 Equity method investments 2,889 2,607 Other assets 4,071 3,951 Total assets $409,513 $369,120 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of bank debt, net $17,139 $4,095 Accounts payable and accrued liabilities 51,952 44,298 Current portion of lease financing 7,229 6,912 Contract liabilities - current 132,935 97,598 Total current liabilities 209,255 152,903 Long-term liabilities: Bank debt, net 26,000 37,394 Long-term lease financing 5,052 8,749 Asset retirement obligations 15,822 14,957 Contract liabilities - long-term 29,216 49,121 Other 2,015 1,711 Total long-term liabilities 78,105 111,932 Total liabilities 287,360 264,835 Commitments and contingencies (Note 16) Stockholders' equity: Preferred stock, $.10 par value, 10,000 shares authorized; none issued — — Common stock, $.01 par value, 100,000 shares authorized; 42,978 and 42,621 issued and outstanding, as of June 30, 2025 and December 31, 2024, respectively 430 426 Additional paid-in capital 188,935 189,298 Retained deficit (67,212) (85,439) Total stockholders’ equity 122,153 104,285 Total liabilities and stockholders’ equity $409,513 $369,120 Hallador Energy CompanyCondensed Consolidated Statements of Operations(in thousands, except per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 SALES AND OPERATING REVENUES: Electric sales $59,976 $59,979 $145,919 $120,880 Coal sales 38,147 32,801 68,332 82,431 Other revenues 4,766 1,045 6,425 2,308 Total sales and operating revenues 102,889 93,825 220,676 205,619 EXPENSES: Fuel 15,063 12,370 30,273 20,929 Other operating and maintenance costs 28,955 33,981 57,344 70,963 Cost of purchased power 2,172 2,619 9,012 4,545 Utilities 4,507 3,910 8,659 8,504 Labor 26,799 26,555 53,828 61,723 Depreciation, depletion and amortization 5,542 13,649 20,519 29,092 Asset retirement obligations accretion 437 399 864 798 Exploration costs 98 47 119 117 General and administrative 7,501 7,803 14,326 13,747 Gain on disposal or abandonment of assets, net (55) (222) (76) (246) Total operating expenses 91,019 101,111 194,868 210,172 INCOME (LOSS) FROM OPERATIONS 11,870 (7,286) 25,808 (4,553) Interest expense (1) (3,819) (3,735) (7,542) (7,672) Loss on extinguishment of debt — (1,937) — (2,790) Equity method investment (loss) 197 (257) (39) (506) NET INCOME (LOSS) BEFORE INCOME TAXES 8,248 (13,215) 18,227 (15,521) INCOME TAX BENEFIT: Current — — — — Deferred — (3,011) — (3,621) Total income tax benefit — (3,011) — (3,621) NET INCOME (LOSS) $8,248 $(10,204) $18,227 $(11,900) NET INCOME (LOSS) PER SHARE: Basic $0.19 $(0.27) $0.43 $(0.32) Diluted $0.19 $(0.27) $0.42 $(0.32) WEIGHTED AVERAGE SHARES OUTSTANDING Basic 42,619 37,879 42,798 37,026 Diluted 43,048 37,879 43,434 37,026 (1) Interest Expense: Interest on bank debt $1,404 $2,779 $2,898 $5,584 Other interest 1,891 547 3,623 1,275 Amortization of debt issuance costs 524 409 1,021 813 Total interest expense $3,819 $3,735 $7,542 $7,672 Hallador Energy CompanyCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Six Months Ended June 30, 2025 2024CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $18,227 $(11,900)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax (benefit) — (3,621)Equity method investment loss 39 506 Depreciation, depletion and amortization 20,519 29,092 Loss on extinguishment of debt — 2,790 Gain on disposal or abandonment of assets, net (76) (246)Amortization of debt issuance costs 1,021 813 Asset retirement obligations accretion 864 798 Cash paid on asset retirement obligation reclamation (311) (602)Stock-based compensation 1,559 2,247 Amortization of contract liabilities (65,597) (46,524)Accretion on contract liabilities 3,215 — Other 284 1,402 Change in current assets and liabilities: Accounts receivable (3,304) 839 Inventory (6,885) (9,520)Parts and supplies (3,651) (582)Prepaid expenses 1,003 2,140 Accounts payable and accrued liabilities 5,062 (11,107)Contract liabilities 77,814 83,366 Net cash provided by operating activities $49,783 $39,891 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures $(24,737) $(28,044)Proceeds from sale of equipment 162 2,474 Investment in equity method investments (322) — Net cash used in investing activities (24,897) (25,570)CASH FLOWS FROM FINANCING ACTIVITIES: Payments on bank debt (44,000) (86,500)Borrowings of bank debt 45,000 40,500 Payments on lease financing (3,421) (2,665)Proceeds from sale and leaseback arrangement — 3,783 Issuance of related party notes payable — 5,000 Payments on related party notes payable — (5,000)Debt issuance costs (330) (76)ATM offering — 34,515 Taxes paid on vesting of RSUs (1,918) (273)Net cash used in financing activities (4,669) (10,716)Increase in cash, cash equivalents, and restricted cash 20,217 3,605 Cash, cash equivalents, and restricted cash, beginning of period 12,153 7,123 Cash, cash equivalents, and restricted cash, end of period $32,370 $10,728 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Cash and cash equivalents $9,228 $6,446 Restricted cash 23,142 4,282 $32,370 $10,728 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest $2,768 $6,312 SUPPLEMENTAL NON-CASH FLOW INFORMATION: Change in capital expenditures included in accounts payable and prepaid expense $843 $(1,694)Stock issued on redemption of convertible notes and interest $— $22,993

Hallador Energy Company Reports Second Quarter 2025 Financial and Operating Results

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