Hallador Energy Company Reports First Quarter 2025 Financial and Operating Results

-- Q1 Total Revenue up 6% YoY to $117.8 Million --

-- Q1 Net Income up Materially YoY to $10.0 Million or $0.23 Earnings per Share --

-- Q1 Operating Cash Flow up 2x YoY to $38.4 Million --

-- Q1 Adjusted EBITDA up 3x YoY to $19.3 Million --

TERRE HAUTE, Ind., May 12, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) ("Hallador" or the "Company") today reported its financial results for the first quarter ended March 31, 2025.

"We are pleased with our first quarter performance as we returned to top line growth and saw material improvements to our bottom line and cash flow generation, underscoring the strength of our strategic shift to a vertically integrated independent power producer ('IPP')," said Brent Bilsland, President and Chief Executive Officer. "January and February offered a strong backdrop as the combination of colder weather and higher pricing enabled us to benefit from increased dispatch volumes."

"We are making meaningful progress in our negotiations with a leading global data center developer for the long-term supply of capacity and energy from our facility. Our partner has demonstrated their commitment through significant investments, including securing land, transmission capacity and equipment, in addition to the previously announced exclusivity agreement with us that runs through early June 2025. Given the inherent complexity of these multi-party agreements, it is uncertain that we will finalize terms before the exclusivity expires. However, we remain confident that we will execute a strategic transaction that delivers long-term value for our shareholders."

Bilsland continued, "We continue to see rising demand for reliable power, particularly as grid volatility grows with the retirement of dispatchable generation. That demand, paired with supportive regulatory sentiment and Hallador's ability to deliver dependable energy, positions us well for sustained growth. Our evaluation of dual-fuel capabilities and potential acquisitions of other dispatchable generation assets reflect our confidence in the long-term economics and viability of our platform. With a robust contracted sales book, strengthening fundamentals, and ongoing interest from high-demand end users, we believe we are well-positioned to materially strengthen our opportunities for growth and cash flow generation for many years to come."

First Quarter 2025 Highlights

   -- Hallador returned to growth on both the top and bottom line. 
 
          -- Total revenue increased 6% year-over-year and 24% 
             quarter-over-quarter to $117.8 million, driven by a strong 
             increase in electric sales to $85.9 million. Electric sales are 
             currently 73% of the Company's revenue mix, underscoring 
             Hallador's commitment to emphasizing electric sales as an IPP. 
 
          -- Net income increased materially to $10.0 million, with adjusted 
             EBITDA up 3x year-over-year and 78% quarter-over-quarter to $19.3 
             million. 
 
   -- The Company generated $38.4 million in operating cash flow during the 
      first quarter, which partially supported the repayment of debt and 
      funding capex. 
 
          -- Total bank debt was reduced to $23.0 million at March 31, 2025, 
             compared to $44.0 million at December 31, 2024, and $77.0 million 
             at March 31, 2024. 
 
          -- Total liquidity was $69.0 million at March 31, 2025, compared to 
             $37.8 million at December 31, 2024, and $39.5 million at March 31, 
             2024. 
 
          -- Capital expenditures in the first quarter were $11.7 million 
             compared to $14.9 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 $1.1 billion through 2029. 

Financial Summary ($ in Millions and Unaudited)

 
                        Q1 2024            Q4 2024        Q1 2025 
                    ----------------  -----------------  --------- 
Electric Sales         $   60.7          $    69.7       $  85.9 
Coal Sales -- 
 3(rd) Party           $   49.6          $    23.3       $  30.2 
                    ----  -----  ---  ----  ------  ---   ------ 
Other Revenue          $    1.3          $     1.8       $   1.7 
                    ----  -----  ---  ----  ------  ---   ------ 
Total Sales and 
 Operating 
 Revenue               $  111.6          $    94.8       $ 117.8 
                    ----  -----  ---  ----  ------  ---   ------ 
Net Income (Loss)      $   (1.7)         $  (215.8)      $  10.0 
                    ----  -----       ----  ------        ------ 
Operating Cash 
 Flow                  $   16.4          $    32.5       $  38.4 
                    ----  -----  ---  ----  ------  ---   ------ 
Adjusted EBITDA*       $    6.8          $     6.2       $  19.3 
                    ----  -----  ---  ----  ------  ---   ------ 
___________________________ 
(* 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 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 three months ended March 31, 2025 and 2024, respectively.

 
        Reconciliation of GAAP "Income (Loss) before Income 
                Taxes" to non-GAAP "Adjusted EBITDA" 
                   (In $ Thousands and Unaudited) 
 
                                                Three Months Ended 
                                                    March 31, 
                                              ---------------------- 
                                                2025        2024 
                                              ---------  ----------- 
NET INCOME (LOSS)                             $  9,979   $ (1,696) 
Interest expense                                 3,723      3,937 
Income tax expense (benefit)                        --       (610) 
Depreciation, depletion and amortization        14,977     15,443 
                                               -------    ------- 
   EBITDA                                       28,679     17,074 
Other operating revenue                             --          7 
Stock-based compensation                         1,084        666 
Asset retirement obligations accretion             427        399 
Other amortization (1)                         (11,334)   (12,401) 
(Gain) loss on disposal or abandonment of 
 assets, net                                       (21)       (24) 
Loss on extinguishment of debt                      --        853 
Equity method investment (loss)                    236        249 
Other reclassifications                            239         -- 
                                               -------    ------- 
   Adjusted EBITDA                            $ 19,310   $  6,823 
                                               -------    ------- 
 
(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)      3.04     3.36     1.78     1.09    0.27       9.54 
Average 
 contracted 
 price per MWh   $ 37.20  $ 44.43  $ 54.66  $ 52.94  $51.33 
                  ------   ------   ------   ------   -----   -------- 
Contracted 
 revenue (in 
 millions)       $113.09  $149.28  $ 97.29  $ 57.70  $13.86  $  431.22 
 
Capacity 
-------------- 
Average daily 
 contracted 
 capacity MW         784      733      623      454     100 
Average 
 contracted 
 capacity price 
 per MWd         $   211  $   230  $   226  $   225  $  230 
                  ------   ------   ------   ------   -----   -------- 
Contracted 
 capacity 
 revenue (in 
 millions)       $ 45.45  $ 61.54  $ 51.40  $ 37.33  $ 3.47  $  199.19 
 
Total Energy & 
Capacity 
Revenue 
-------------- 
 
Contracted 
 Power revenue 
 (in millions)   $158.54  $210.82  $148.69  $ 95.03  $17.33  $  630.41 
 
Coal 
-------------- 
Priced tons -- 

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