Hallador Energy (HNRG) to add 460 MW Siemens turbines in $450M Merom gas project push
Rhea-AI Filing Summary
Hallador Energy Company entered into an Asset Purchase Agreement with Energy World Corporation to buy approximately 460 MW of Siemens gas turbines, generators, a steam turbine, and related equipment for $350 million. Hallador expects to spend an additional $100 million on transportation, refurbishment, insurance, and logistics, bringing the delivered equipment cost to $450 million, which represents more than half of the estimated total cost of its proposed Merom simple-cycle natural gas project.
The turbines have never been fired and are priced at about $760/kW. The project is advancing through MISO’s Expedited Resource Addition Study process, with potential revenue and cash flow from the facility targeted between late 2028 and mid-2029 if it proceeds. As of March 31, 2026, Hallador reported no outstanding bank debt, a $120 million credit facility, a 12-year capacity agreement valued at over $1 billion, and a contracted sales book of more than $2.1 billion, which the company cites as supporting its ability to finance the project.
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Insights
Large gas turbine purchase anchors Hallador’s proposed Merom gas project but requires substantial future capital.
Hallador Energy is committing $350 million for 460 MW of Siemens turbines plus about $100 million of related costs. Management notes these units are unused and priced around $760/kW, forming a $450 million delivered equipment package that is over half of the project’s estimated total cost.
The company ties this move to its shift toward a diversified, multi-fuel generation platform in MISO Zone 6. Advancement of the Merom gas project still depends on a favorable Generator Interconnection Agreement from MISO, long-term offtake contracts, permits, and financing, with targeted revenue between late 2028 and mid-2029.
Hallador highlights a clean balance sheet with no bank debt as of March 31, 2026, a $120 million credit facility, a 12-year capacity agreement valued at over $1 billion, and a contracted sales book above $2.1 billion. These figures underpin its expectation of using project-level and structured financing while aiming to limit equity dilution.
8-K Event Classification
Key Figures
Key Terms
Asset Purchase Agreement financial
simple cycle natural gas-fired combustion turbine project technical
MISO ERAS interconnection process technical
Generator Interconnection Agreement technical
project-level and structured financing financial
Independent Power Producer (IPP) financial
UNITED STATES
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Item 1.01 Entry into a Material Definitive Agreement.
On May 30, 2026, Hallador Energy Company (the “Company”) entered into an Asset Purchase Agreement (the “APA”) with Energy World Corporation Ltd., incorporated in Australia (“Seller”), to acquire approximately 460 MW of Siemens gas turbines, generators, a steam turbine, and ancillary equipment (the “Equipment”) for an aggregate purchase price of $350 million.
The foregoing description of the APA does not purport to be complete and is qualified in its entirety by reference to the full text of the APA, which is filed herewith as Exhibit 10.1.
Item 7.01 Regulation FD Disclosure.
On June 1, 2026, the Company issued a press release announcing the matters described in Item 1.01 of this Current Report on Form 8-K. A copy of the press release is furnished herewith as Exhibit 99.1.
The information furnished pursuant to Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 Asset Purchase Agreement Dated as of May 30, 2026, by and between Energy World Corporation Ltd. and Hallador Energy Company **
99.1 Press Release of Hallador Energy Company dated June 1, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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** | Portions of this exhibit have been redacted in compliance with Regulation S-K Item 601(b)(10). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 2, 2026 | By: | /s/ERIC VAN DEMAN |
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| Eric Van Deman Chief Accounting Officer |
EXHIBIT 99.1
Hallador Energy Acquires 460 MW of Siemens Turbines for $350 Million, Accelerating Merom Natural Gas Generation Project
Targeted to Begin Generating Revenue Between Late 2028 and Mid-2029 Following Siemens Restoration at U.S. Facilities.
Hallador to Host Conference Call Tomorrow, June 2, at 8:30 a.m. Eastern Time
TERRE HAUTE, Ind., June 1, 2026 – Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today announced that it has entered into an Asset Purchase Agreement (“APA”) with Energy World Corporation (ASX:EWC) to acquire approximately 460 MW of Siemens gas turbines, generators, a steam turbine, and ancillary equipment for a total purchase price of $350 million, or approximately $760/kW. Hallador will also incur incremental costs for transportation, refurbishment, insurance, and logistics of approximately $100 million in connection with the delivery of the equipment to Siemens USA and then on to its Merom site. The turbines have never been previously fired and are being acquired at what the company believes to be an attractive valuation to comparable new equipment alternatives, particularly given the current delivery windows for new turbines.
The acquisition’s delivered price of $450 million represents more than half the estimated total project cost for Hallador’s proposed Merom simple cycle natural gas-fired combustion turbine project, which is currently advancing through MISO’s ERAS interconnection process. The transaction secures critical long-lead time equipment in a market characterized by significant supply constraints and extended lead times for new turbine deployment.
“This is an important advancement for Hallador,” said Brent Bilsland, Chairman and Chief Executive Officer. “Until you have equipment, you don’t have a project. We now have Siemens equipment — at what we believe is the right price, at the right time, and in a supply environment where availability has become increasingly limited. We are not waiting for turbines to be built; this equipment already exists. We believe securing equipment at this stage meaningfully reduces development timing risk and strengthens our positioning as we advance through the MISO expedited interconnection process.
“More broadly, this acquisition represents a meaningful step in Hallador’s evolution toward a more diversified, multi-fuel generation platform capable of serving the growing demand for reliable, dispatchable power in MISO Zone 6. We continue to see increasing interest from utilities and large-load customers seeking long-term power solutions in the region, and we believe this project positions Hallador to participate in that demand growth over time. If the project advances as currently anticipated, we believe the facility could begin generating revenue and cash flow between late 2028 and mid-2029.”
Financing
Hallador believes it is well positioned to finance the acquisition in accordance with the terms of the APA, which adheres to the Company’s stated goal of managing capital at risk prior to completing the MISO Expedited Resource Addition Study (ERAS). As of March 31, 2026, the Company had no outstanding bank debt and maintained a $120 million credit facility. The Company’s recently expanded portfolio of long-term agreements, including its previously announced 12-year capacity agreement valued at over $1 billion, materially enhances revenue visibility and supports the Company’s financing capacity. Hallador’s contracted sales book has grown meaningfully in 2026 to over $2.1 billion, further strengthening the Company’s financial position. The Company expects to pursue a combination of project-level and structured financing alternatives designed to preserve financial flexibility and minimize equity dilution while advancing the project.
Path Forward
Hallador is pursuing the proposed Merom project along the following path: (1) secure generating equipment (completed); (2) commence the MISO ERAS interconnection study (imminent); (3) continue marketing the proposed project’s output under long-term power purchase agreements (ongoing); and (4) upon completion of the MISO ERAS study, anticipated in September 2026, make a final investment decision.
Hallador retains the optionality to determine the path forward that best creates value for shareholders, including advancing the full project, selling the project together with the equipment, or selling the equipment on a standalone basis. Any decision remains subject to the receipt and evaluation of a Generator Interconnection Agreement (“GIA”) from MISO, long-term offtake agreements, financing arrangements, permitting, engineering, and other customary project development milestones.
Mr. Bilsland added, “We believe we have meaningfully de-risked the ERAS opportunity by securing the equipment at an attractive price and on a timeline that aligns with our expected GIA receipt. Combined with our advancing MISO interconnection efforts and our growing sales book, we believe we are building a stronger platform from which to accelerate the next phase of Hallador’s growth.”
Conference Call and Webcast
Hallador management will host a conference call tomorrow, June 2, 2026, at 8:30 a.m. Eastern time to discuss the transaction, followed by a question-and-answer period.
Date: Tuesday, June 2, 2026
Time: 8:30 a.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.
More information regarding the APA will be filed via 8-K with the SEC tomorrow and can subsequently be found in the investor relations section of the Company’s website.
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 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 the completion of the proposed natural gas project at Merom, receipt of a favorable GIA from MISO, the execution of long-term offtake agreements, project financing, and the Company’s ability to generate revenue from the project beginning in late 2028 or mid-2029. 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.
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 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