Hallador Energy Advances Expansion into Natural Gas Power Generation through ERAS Application

Rhea-AI Summary

Hallador Energy (Nasdaq: HNRG) finalized its application to the Expedited Resource Addition Study (ERAS) program on Dec. 16, 2025, and made deposits totaling approximately $13 million as required.

The ERAS filing seeks an expedited pathway for up to 515 MW of natural gas generation adjacent to Hallador’s Merom Generating Station. The company said it is evaluating financing options, expects to secure generating infrastructure while the ERAS application is under review, and filed a prospectus supplement to raise up to $50 million of common stock under its existing ATM program.

Positive

• ERAS application filed for up to 515 MW natural gas capacity
• Deposits of $13 million submitted to satisfy ERAS process requirements
• Filed prospectus supplement to raise up to $50 million via ATM

Negative

• Potential dilution from up to $50 million equity raise
• Project remains subject to ERAS review; approval not guaranteed

Key Figures

Planned generation 515 MW Natural gas generation adjacent to Merom Generating Station via ERAS

Equity raise size $50 million Common stock under existing ATM program per prospectus supplement

Q3 2025 revenue $146.8M Third quarter 2025 total revenue from recent earnings release

Q3 2025 net income $23.9M Third quarter 2025 net income from 10-Q

Forward contracted revenue $921.7M Contracted revenue to third parties through 2029 from prior release

Q2 2025 revenue $102.9M Second quarter 2025 total revenue

Prepaid power agreement $35.0M Prepaid power sales agreement highlighted in Q2 2025 results

Planned share sale (Form 144) 139,089 shares Shares planned for open-market sale per Form 144 filing

Market Reality Check

$20.42 Last Close

Volume Volume 432,350 is below the 20-day average of 533,009, suggesting muted pre-news activity. normal

Technical Price at $21.21 is trading above the 200-day MA of $16.88, indicating a pre-news uptrend.

Peers on Argus

HNRG was down 4.89% while peers showed mixed moves: NC up 0.81%, NRP down 1.55%, BTU down 5.22%, ARLP down 2.53%, and CNR roughly flat at -0.04%. The decline appears more company-specific than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 10	Q3 2025 earnings	Positive	+1.7%	Strong Q3 revenue and earnings with ERAS gas-generation plans at Merom.
Oct 27	Earnings call setup	Neutral	+0.2%	Scheduled Q3 2025 results call with Q&A and webcast access details.
Aug 11	Q2 2025 earnings	Positive	-6.9%	Q2 revenue growth, positive net income, liquidity and long-term contracts.
Jul 28	Earnings call setup	Neutral	+3.9%	Announced schedule for Q2 2025 earnings release and conference call.

Pattern Detected

Recent earnings releases have been strong operationally, but price reactions have been mixed, including one notable selloff on positive Q2 results.

Recent Company History

Over the last several months, Hallador reported strong quarterly results, with Q2 2025 revenue of $102.9M and Q3 2025 revenue of $146.8M, alongside meaningful net income and EBITDA. The company has been expanding into power generation, including an earlier ERAS application to add 525 MW at Merom targeting Q4 2028. Conference call announcements in July and October framed these earnings updates. Today’s ERAS and financing news continues this shift toward a larger power-generation footprint while building on existing contracted revenues through 2029.

Market Pulse Summary

This announcement highlights Hallador’s continued pivot toward power generation, with an ERAS application enabling up to 515 MW of natural gas capacity at Merom. To support development while the application is reviewed, the company plans to raise up to $50M in common stock under its ATM program. In context of prior quarters where revenue reached $146.8M and contracted revenue totaled $921.7M through 2029, investors may watch execution on ERAS milestones and capital-raising impacts on ownership.

Key Terms

prospectus supplement regulatory

"the Company filed a prospectus supplement to its existing shelf registration statement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

atm program financial

"to raise up to $50 million of common stock under its existing ATM program"

An ATM program is a plan or arrangement that allows a company to sell its shares directly to investors over time, often through automated systems like online platforms. It provides a flexible way for companies to raise money gradually without needing a full public offering each time. For investors, it can offer easier access to buying or selling shares and can help companies manage their fundraising more efficiently.

shelf registration statement regulatory

"filed a prospectus supplement to its existing shelf registration statement"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

AI-generated analysis. Not financial advice.

TERRE HAUTE, Ind., Dec. 16, 2025 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today announced that the Company has finalized its application into the Expedited Resource Addition Study (ERAS) program and has made deposits totaling approximately $13 million as required under the application process. The application provides an expedited pathway for up to 515 MW of natural gas generation adjacent to Hallador’s Merom Generating Station.

“Finalizing our application represents a meaningful step forward in our plans to add power generation at the Merom site,” said Brent Bilsland, President and Chief Executive Officer. “With each additional milestone achieved through the ERAS program, we move closer to expanding the range of customers and end-markets we can serve within the high demand energy sector. In parallel, we are taking prudent steps to position ourselves to advance development activities while the application is under review.”

Hallador is also evaluating financing options and expects to secure generating infrastructure while the ERAS application is under review. To prepare for these ERAS project development efforts, the Company filed a prospectus supplement to its existing shelf registration statement to raise up to $50 million of common stock under its existing ATM program.

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 participate in the ERAS program (which requires acceptance of our application by ERAS) and achieve the expected benefits thereof. 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.

Hallador has filed a shelf registration statement (including a prospectus supplement) with the SEC for its existing ATM program. Current and potential investors should read the prospectus in the registration statement, and the prospectus supplements relating to the ATM program and other documents Hallador has filed with the SEC for more complete information about Hallador and the ATM program. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.

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 Officer
TTelesz@halladorenergy.com

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
HNRG@elevate-ir.com

FAQ

What did Hallador Energy announce on Dec. 16, 2025 about HNRG and ERAS?

Hallador finalized its ERAS application, made about $13 million in deposits, and seeks expedited approval for up to 515 MW at Merom.

How much capacity is Hallador seeking under the ERAS filing for HNRG?

The ERAS application requests an expedited pathway for up to 515 MW of natural gas generation adjacent to Merom.

How is Hallador planning to finance the ERAS project announced Dec. 16, 2025?

The company is evaluating financing options and filed a prospectus supplement to raise up to $50 million of common stock under its ATM.

What cash commitment did Hallador make as part of the ERAS application for HNRG?

Hallador made deposits totaling approximately $13 million required under the ERAS application process.

Will Hallador secure generating equipment while the ERAS application is under review?

The company expects to secure generating infrastructure while the ERAS application is under review.

What investor impact should shareholders expect from Hallador's Dec. 16, 2025 filings?

Investors may face dilution risk from the up to $50 million equity raise and should note the ERAS project awaits approval.