Hallador Energy Company Reports Second Quarter 2025 Financial and Operating Results
11-Aug-2025 16:05:12 EDT
Hallador Energy Company Reports Second Quarter 2025 Financial and Operating Results
GlobeNewswire August 11, 2025
– 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 2024
Electric 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 EBITDAplus 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
2024
NET 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
Total
Power
Energy
Contracted MWh (in millions)
2.53
4.00
1.78
1.09
0.27
9.67
Average 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
—
6.72
Avg 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
—
8.57
Avg 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, 2025 Time: 5:00 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.
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/.
Hallador Energy Company Condensed 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 Company Condensed 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 Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
Six Months Ended June 30,
2025
2024
CASH 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
