Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results
Rhea-AI Summary
Hallador Energy (Nasdaq: HNRG) reported Q1 2026 results and announced a 12-year capacity agreement running 2028–2040 expected to generate more than $1 billion of contracted revenue. Q1 revenue was $101.8M, operating cash flow $20.5M, net loss $(9.3)M and adjusted EBITDA $5.5M.
The capacity-only sale covers ~2/3 of accredited capacity from 2029–2040, doubles forward sales book, and is subject to customary regulatory approvals expected H2 2026.
Positive
- 12-year capacity agreement expected to generate >$1 billion contracted revenue
- Total revenue of $101.8 million in Q1 2026
- Operating cash flow of $20.5 million in Q1 2026
- Forward sales book nearly doubled by new agreements
Negative
- Net loss of $9.3 million in Q1 2026
- Adjusted EBITDA declined to $5.5 million from $19.3 million year-ago
- Reduced electric sales due to Merom availability constraints
News Market Reaction – HNRG
In the May 7 session, HNRG gained 1.73%, reflecting a mild positive market reaction. Argus tracked a peak move of +34.9% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | FY25 earnings | Positive | -11.5% | Reported FY25 revenue and cash flow growth with large forward commitments and ERAS progress. |
| Nov 10 | Q3 2025 earnings | Positive | +19.0% | Strong Q3 2025 results with higher power prices and robust coal shipments. |
| Aug 11 | Q2 2025 earnings | Positive | -6.9% | Q2 2025 revenue and earnings growth with increased coal sales and solid liquidity. |
| May 12 | Q1 2025 earnings | Positive | +21.4% | Q1 2025 revenue and cash flow growth as electric sales dominated the mix. |
| Mar 17 | FY24 earnings | Positive | +4.1% | Q4 and FY24 results showing IPP transition, higher electric sales, and debt reduction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases are generally positive operationally, but price reactions have been mixed, with three prior earnings rallies and two notable selloffs despite strong fundamentals and growing contracted revenue.
Recent earnings updates show Hallador scaling as an independent power producer, with revenue and Adjusted EBITDA growth in 2024–2025 and expanding forward commitments above $900M–$1.3B through 2029. Prior reports highlighted rising electric sales, declining bank debt, and ERAS-backed gas expansion at Merom. Today’s Q1 2026 results, combined with a long-dated capacity contract, extend that visibility but contrast with weaker near-term profitability.
Key Terms
adjusted EBITDA financial
operating cash flow financial
non-GAAP financial
EBITDA financial
asset retirement obligations accretion financial
loss on extinguishment of debt financial
equity method loss financial
capacity agreement technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Q1 Total Revenue of
- Q1 Net Loss of
- On May 1, Hallador Signed a Capacity Agreement, for years 2028 – 2040, at More Than 2x Historical Capacity Pricing, Expected to Generate Over
TERRE HAUTE, Ind., May 06, 2026 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial and operating results for the first quarter ended March 31, 2026. The Company is also announcing a newly signed 12-year capacity agreement with a subsidiary of a utility, which is further detailed below.
“In the last few months, we have made significant progress advancing our long-term contracting strategy, together with the three-year capacity agreement we announced in March for planning years 2026, 2027 and 2028, culminating now with the execution of a 12-year capacity agreement selling approximately 2/3rds of our accredited capacity starting in late 2028 through mid-2040. Together, these two capacity-only sales total approximately
“From an operating standpoint, first quarter results were generally in-line with expectations and reflect the impact of our previously disclosed availability constraints at Merom. With our planned plant outage now underway, emphasizing key reliability upgrades, we expect a meaningful improvement in performance as we move through the year and into the peak demand seasons.”
Capacity Agreement Overview
Hallador signed a 12-year agreement to sell a substantial portion of its accredited capacity to a subsidiary of a utility for planning years 2028 through 2040. The agreement initially covers a smaller volume of accredited capacity in 2028, increasing to approximately 2/3rds of the company’s accredited capacity beginning in 2029 through 2040. The sale is priced above the recent three-year agreement signed in March, and pricing is the same for all 12 years of the contract. Hallador expects to generate more than
First Quarter 2026 Highlights
- First quarter results reflected previously disclosed availability constraints at Merom, partially offset by continued strength in accredited capacity pricing and forward sales execution.
- Total revenue was
$101.8 million in the first quarter of 2026 compared to$117.7 million in the prior year period, driven by lower electric sales due to reduced generation at Merom, partially offset by higher accredited capacity revenue and improved coal pricing. - Net loss was
$(9.3) million compared to net income of$10.0 million in the prior year period, and adjusted EBITDA was$5.5 million compared to$19.3 million in the prior year period.
- Total revenue was
- The Company generated
$20.5 million of operating cash flow in the first quarter, which was partially used to fund capex.
- Hallador had no outstanding bank debt at March 31, 2026, compared to
$29.7 million at December 31, 2025 and$23.0 million at March 31, 2025. - Total liquidity was
$97.5 million at March 31, 2026, following the signing of its new credit facility in early March, compared to$38.8 million at December 31, 2025, and$69.0 million at March 31, 2025. - Capital expenditures in the first quarter were
$7.7 million compared to$11.7 million in the year-ago period.
- Hallador had no outstanding bank debt at March 31, 2026, compared to
- Hallador continues to execute on its contracting strategy, increasing long-term revenue visibility and monetizing its dispatchable generation platform.
-
- Subsequent to quarter-end, the Company entered into a 12-year capacity agreement expected to generate more than
$1 billion of contracted revenue through 2040, nearly doubling its forward sales book. - As of March 31, 2026, Hallador had approximately
$1.2 billion of total forward energy, capacity and coal sales commitments through 2029, or$859.6 million excluding the coal sales to Merom. Neither of these totals include the recently signed 12-year capacity agreement.
- Subsequent to quarter-end, the Company entered into a 12-year capacity agreement expected to generate more than
Financial Summary ($ in Millions and Unaudited)
| Q1 2026 | Q1 2025 | ||||||
| Electric Sales | $ | 65.1 | $ | 85.9 | |||
| Coal Sales- 3rdParty | $ | 35.1 | $ | 30.2 | |||
| Other Revenue | $ | 1.6 | $ | 1.6 | |||
| Total Sales and Operating Revenue | $ | 101.8 | $ | 117.7 | |||
| Net Income (Loss) | $ | (9.3) | $ | 10.0 | |||
| Operating Cash Flow | $ | 20.5 | $ | 38.4 | |||
| Adjusted EBITDA* | $ | 5.5 | $ | 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 loss on extinguishment of debt and 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 operations.
Reconciliation of GAAP "Net Income (Loss)" to non-GAAP "Adjusted EBITDA"
(In $ Thousands and Unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| NET INCOME (LOSS) | $ | (9,321) | $ | 9,979 | ||||
| Interest expense | 3,970 | 3,723 | ||||||
| Income tax expense (benefit) | (504) | — | ||||||
| Depreciation, depletion and amortization | 10,606 | 14,977 | ||||||
| EBITDA | 4,751 | 28,679 | ||||||
| Stock-based compensation | 1,135 | 1,084 | ||||||
| Asset retirement obligations accretion | 408 | 427 | ||||||
| Other amortization (1) | (951) | (11,334) | ||||||
| Gain on disposal or abandonment of assets, net | (201) | (21) | ||||||
| Loss on extinguishment of debt | 230 | — | ||||||
| Equity method loss | 121 | 236 | ||||||
| Other reclassifications | 14 | 239 | ||||||
| ADJUSTED EBITDA | $ | 5,507 | $ | 19,310 | ||||
| (1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into and parts and supplies inventory acquired in connection with the acquisition of the Merom Power Plant in 2022. |
Forward Sales Position - (unaudited)*
| 2026 | 2027 | 2028 | 2029 | Total | |||||||||||
| Power | |||||||||||||||
| Accredited Capacity | |||||||||||||||
| Average daily contracted accredited capacity MW | 781 | 782 | 668 | 340 | |||||||||||
| Average contracted accredited capacity price per MWd | $ | 246 | $ | 264 | $ | 300 | $ | 398 | |||||||
| Contracted accredited capacity revenue (in millions) | $ | 52.82 | $ | 75.26 | $ | 73.28 | $ | 20.44 | $ | 221.80 | |||||
| Energy | |||||||||||||||
| Contracted MWh (in millions) | 3.10 | 3.06 | 1.09 | 0.27 | 7.52 | ||||||||||
| Average contracted price per MWh | $ | 43.74 | $ | 46.50 | $ | 52.94 | $ | 51.33 | |||||||
| Contracted revenue (in millions) | $ | 135.59 | $ | 142.29 | $ | 57.70 | $ | 13.86 | $ | 349.44 | |||||
| Total Accredited Capacity & Energy Revenue (in millions) | $ | 188.41 | $ | 217.55 | $ | 130.98 | $ | 34.30 | $ | 571.24 | |||||
| Coal | |||||||||||||||
| Priced tons - 3rd party (in millions) | 2.10 | 2.50 | 0.50 | 5.10 | |||||||||||
| Avg price per ton - 3rd party | $ | 55.73 | $ | 56.74 | $ | 59.00 | |||||||||
| Contracted coal revenue - 3rd party (in millions) | $ | 117.03 | $ | 141.85 | $ | 29.50 | $ | — | $ | 288.38 | |||||
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED | $ | 305.44 | $ | 359.40 | $ | 160.48 | $ | 34.30 | $ | 859.62 | |||||
| Priced tons - Intercompany (in millions) | 2.08 | 2.30 | 3.17 | 7.55 | |||||||||||
| Avg price per ton - Intercompany | $ | 51.00 | $ | 51.00 | $ | 51.00 | |||||||||
| Contracted coal revenue - Intercompany (in millions) | $ | 106.08 | $ | 117.30 | $ | 161.67 | $ | — | $ | 385.05 | |||||
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT | $ | 411.52 | $ | 476.70 | $ | 322.15 | $ | 34.30 | $ | 1,244.67 | |||||
* Actual revenue related to forward sales positions may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions, including rollover of unfulfilled coal commitments into future periods, and potential force majeure events. Forward sales figures in the 2026 column are for the period from April 1, 2026 through December 31, 2026. The table above reflects contracted balances as of March 31, 2026 and does not include the recently signed 12-year capacity agreement.
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 ultimately requires the approval of MISO of our application and is a capital intensive project subject to construction, operational, financial, regulatory and legal risks that could impact the project’s viability and/or timeline) and achieve the expected benefits thereof, our ability to secure agreements in support of the development and construction of planned projects, including the expansion of our Merom Generating Station, and our expectations with respect to potential accelerating demand for accredited capacity. 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, 2025, 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, May 6, 2026 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.
Date: Wednesday, May 6, 2026
Time: 5:00 p.m. Eastern time
Toll-free dial-in number: (800) 715-9871
International dial-in number: (646) 307-1963
Conference ID: 8503380
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 provides accredited 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 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
Hallador Energy Company
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
| March 31, | December 31, | ||||||||
| 2026 | 2025 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 36,778 | $ | 10,070 | |||||
| Restricted cash | 6,585 | 5,302 | |||||||
| Accounts receivable | 9,152 | 13,989 | |||||||
| Inventory | 47,164 | 42,534 | |||||||
| Parts and supplies | 47,893 | 45,854 | |||||||
| Prepaid expenses | 1,604 | 5,638 | |||||||
| Other current assets | 1,927 | — | |||||||
| Total current assets | 151,103 | 123,387 | |||||||
| Property, plant and equipment: | |||||||||
| Land and mineral rights | 69,952 | 69,952 | |||||||
| Buildings and equipment | 440,682 | 421,037 | |||||||
| Mine development | 102,302 | 102,302 | |||||||
| Construction work in progress | 35,788 | 39,671 | |||||||
| Finance lease right-of-use assets | 12,591 | 12,591 | |||||||
| Total property, plant and equipment | 661,315 | 645,553 | |||||||
| Less - accumulated depreciation, depletion and amortization | (376,481) | (367,775) | |||||||
| Total property, plant and equipment, net | 284,834 | 277,778 | |||||||
| Equity method investments | 2,528 | 2,647 | |||||||
| Operating lease right-of-use assets | 2,315 | — | |||||||
| Other noncurrent assets | 7,852 | 4,241 | |||||||
| Total assets | $ | 448,632 | $ | 408,053 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 19,818 | $ | 12,594 | |||||
| Accrued liabilities and other | 35,078 | 29,254 | |||||||
| Current portion of lease financing | 4,981 | 7,411 | |||||||
| Contract liabilities - current | 130,170 | 103,343 | |||||||
| Total current liabilities | 190,047 | 152,602 | |||||||
| Long-term liabilities: | |||||||||
| Bank debt, net | — | 29,678 | |||||||
| Long-term lease financing | 617 | 1,338 | |||||||
| Deferred income taxes | 1,329 | 1,833 | |||||||
| Asset retirement obligations | 15,649 | 15,241 | |||||||
| Contract liabilities - long-term | 32,148 | 45,714 | |||||||
| Other | 3,268 | 1,814 | |||||||
| Total long-term liabilities | 53,011 | 95,618 | |||||||
| Total liabilities | 243,058 | 248,220 | |||||||
| Commitments and contingencies (Note 14) | |||||||||
| Stockholders' equity: | |||||||||
| Preferred stock, $.10 par value, 10,000 shares authorized; none issued | — | — | |||||||
| Common stock, $.01 par value, 100,000 shares authorized; 47,132 and 43,817 issued and outstanding, as of March 31, 2026 and December 31, 2025, respectively | 471 | 438 | |||||||
| Additional paid-in capital | 257,992 | 202,963 | |||||||
| Retained deficit | (52,889) | (43,568) | |||||||
| Total stockholders’ equity | 205,574 | 159,833 | |||||||
| Total liabilities and stockholders’ equity | $ | 448,632 | $ | 408,053 | |||||
Hallador Energy Company
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
| Three Months Ended March 31, | |||||||||
| 2026 | 2025 | ||||||||
| SALES AND OPERATING REVENUES: | |||||||||
| Electric sales | $ | 65,096 | $ | 85,943 | |||||
| Coal sales | 35,080 | 30,185 | |||||||
| Other revenues | 1,631 | 1,596 | |||||||
| Total sales and operating revenues | 101,807 | 117,724 | |||||||
| EXPENSES: | |||||||||
| Fuel | 14,963 | 15,210 | |||||||
| Other operating and maintenance costs | 29,156 | 28,389 | |||||||
| Cost of purchased power | 14,863 | 6,840 | |||||||
| Utilities | 3,333 | 4,152 | |||||||
| Labor | 27,388 | 27,029 | |||||||
| Depreciation, depletion and amortization | 10,606 | 14,977 | |||||||
| Asset retirement obligations accretion | 408 | 427 | |||||||
| Exploration costs | 84 | 21 | |||||||
| General and administrative | 6,858 | 6,825 | |||||||
| Gain on disposal or abandonment of assets, net | (201) | (21) | |||||||
| Total operating expenses | 107,458 | 103,849 | |||||||
| INCOME (LOSS) FROM OPERATIONS | (5,651) | 13,875 | |||||||
| Interest income | 147 | 63 | |||||||
| Interest expense (1) | (3,970) | (3,723) | |||||||
| Loss on extinguishment of debt | (230) | — | |||||||
| Equity method investment (loss) | (121) | (236) | |||||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | (9,825) | 9,979 | |||||||
| INCOME TAX EXPENSE (BENEFIT): | |||||||||
| Current | — | — | |||||||
| Deferred | (504) | — | |||||||
| Total income tax expense (benefit) | (504) | — | |||||||
| NET INCOME (LOSS) | $ | (9,321) | $ | 9,979 | |||||
| NET INCOME (LOSS) PER SHARE: | |||||||||
| Basic | $ | (0.20) | $ | 0.23 | |||||
| Diluted | $ | (0.20) | $ | 0.23 | |||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||
| Basic | 46,519 | 42,619 | |||||||
| Diluted | 46,519 | 43,462 | |||||||
| (1) Interest Expense: | |||||||||
| Interest on bank debt | $ | 862 | $ | 1,494 | |||||
| Other interest | 2,834 | 1,732 | |||||||
| Amortization of debt issuance costs | 274 | 497 | |||||||
| Total interest expense | $ | 3,970 | $ | 3,723 | |||||
Hallador Energy Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | (9,321) | $ | 9,979 | ||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Deferred income tax (benefit) | (504) | — | ||||||
| Equity method investment loss | 121 | 236 | ||||||
| Depreciation, depletion and amortization | 10,606 | 14,977 | ||||||
| Gain on disposal or abandonment of assets, net | (201) | (21) | ||||||
| Loss on extinguishment of debt | 230 | — | ||||||
| Amortization of debt issuance costs | 274 | 497 | ||||||
| Asset retirement obligations accretion | 408 | 427 | ||||||
| Cash paid on asset retirement obligation reclamation | (148) | (156) | ||||||
| Stock-based compensation | 1,135 | 1,084 | ||||||
| Amortization of contract liabilities | (36,447) | (35,669) | ||||||
| Accretion on contract liabilities | 2,834 | 1,560 | ||||||
| Amortization of right-of-use assets | 87 | — | ||||||
| Other | 1,533 | 3,224 | ||||||
| Change in current assets and liabilities: | ||||||||
| Accounts receivable | 4,837 | 2,856 | ||||||
| Inventory | (4,630) | 367 | ||||||
| Parts and supplies | (2,039) | (1,033) | ||||||
| Prepaid expenses | (2,580) | (330) | ||||||
| Accounts payable and accrued liabilities | 7,427 | 3,124 | ||||||
| Contract liabilities | 46,874 | 37,297 | ||||||
| Net cash provided by operating activities | 20,496 | 38,419 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (7,681) | (11,693) | ||||||
| Proceeds from sale of equipment | 201 | 21 | ||||||
| Net cash used in investing activities | (7,480) | (11,672) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payments on bank debt | (56,700) | (33,000) | ||||||
| Borrowings of bank debt | 26,700 | 12,000 | ||||||
| Payments on lease financing | (3,172) | (1,693) | ||||||
| Debt issuance costs | (5,780) | — | ||||||
| Proceeds from ATM offering, net of issuance costs | 201 | — | ||||||
| Proceeds from public offering, net of issuance costs | 53,764 | — | ||||||
| Taxes paid on vesting of RSUs | (38) | — | ||||||
| Net cash (used in) provided by financing activities | 14,975 | (22,693) | ||||||
| Increase in cash, cash equivalents, and restricted cash | 27,991 | 4,054 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 15,372 | 12,153 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 43,363 | $ | 16,207 | ||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | ||||||||
| Cash and cash equivalents | $ | 36,778 | $ | 6,891 | ||||
| Restricted cash | 6,585 | 9,316 | ||||||
| $ | 43,363 | $ | 16,207 | |||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest | $ | 1,002 | $ | 1,830 | ||||
| Non-cash change in capital expenditures included in accounts payable and prepaid expense | $ | 9,981 | $ | (1,649) | ||||
| Right-of-use asset additions | $ | 2,402 | $ | — | ||||
