We recently published a list of Why These 15 Energy Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where Hallador Energy Company (NASDAQ:HNRG) stands against other energy stocks that are up the most so far in 2025.

The energy sector has been volatile, and macro trends have led to fears of recession. The S&P 500 energy sector gained almost 9% from January till late March, but it has been dragged down by the broader market correction.

Brent futures have hit lows and sent many energy stocks into a tailspin. Yet, there are still some energy stocks that have defied the odds and have delivered solid gains. Midstream companies have been exceptionally resilient, and renewables have also been a bright spot in the energy sector.

Even during bear markets there are pockets of the market that perform exceptionally well. For instance, tech stocks have been in a bear market, but I recently identified 15 Tech Stocks that are Up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing energy stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A continuous supply of coal streaming out of the entrance of the underground mine.

Hallador Energy Company (NASDAQ:HNRG)

Number of Hedge Fund Holders In Q4 2024: 24

Hallador Energy Company (NASDAQ:HNRG) is a vertically integrated independent power producer that operates the Merom Generating Station and also produces coal through its Sunrise Coal subsidiary.

The most significant driver behind the stock’s sharp rise in 2025 is its strategic transformation from a coal producer to a power producer. It signed a non-binding term sheet with a leading global data center developer in late 2024.

This deal, if finalized, would lock in the sale of most of Hallador Energy Company (NASDAQ:HNRG)’s power generation at premium margins for more than a decade, and the exclusivity period for finalizing the agreement lasts through early June 2025. The data center partner has already committed up to $5 million during this period, signaling strong intent and confidence in the transaction.

Another major catalyst was Hallador Energy Company (NASDAQ:HNRG)’s report of robust Q4 and full-year 2024 financials, with Q4 operating cash flow jumping to $32.5 million and adjusted EBITDA nearly tripling year-over-year to $6.2 million. The company also reduced its bank debt by more than half, finishing 2024 with $44 million in debt, and secured a $60 million prepaid power purchase agreement that further improved its balance sheet.

The consensus price target of $16 implies 10.4% upside.

HNRG stock is up 26.38% year-to-date.

Overall, HNRG ranks 6th on our list of energy stocks that are up the most so far in 2025. While we acknowledge the potential of HNRG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HNRG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.