Hallador Energy Company Reports Fourth Quarter and Full Year 2025 Financial and Operating Results

Hallador Energy Company Reports Fourth Quarter and Full Year 2025 Financial and Operating Results March 12, 2026 - FY’25 Total Revenue Up 16% YoY to $469.5 Million - - FY’25 Operating Cash Flow Up 23% YoY to $81.1 Million - - FY ‘25 Net Income Increased to $41.9 Million, with Adj. EBITDA up 3x to $56.0 Million - - MISO Accepted ERAS Application for 515MW Gas Generation Expansion - TERRE HAUTE, Ind., March 12, 2026 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial and operating results for the fourth quarter and full year ended December 31, 2025. “Hallador delivered strong 2025 financial results with double-digit growth across revenue and operating cash flow, and a 3x improvement in Adjusted EBITDA,” said Brent Bilsland, President and Chief Executive Officer. “We have recently received additional competitive offers to acquire our accredited capacity for over a decade in length. We are excited by what we are seeing in the market as Hallador is in a strong, long capacity position that continues to get better with time. We hope to be making more announcements on this topic in the near future.” “In December, we were fortunate to be awarded one of the 50 ERAS application slots, and our application was accepted with our ~$14 million deposit advancing our proposed 515 MW natural gas generator project at the Merom site. With our application now accepted into the ERAS process, we have cleared another important milestone in that review. If successfully executed, the ERAS expansion would represent a nearly 50% increase in power generation capabilities for the company. We believe Merom’s existing infrastructure and interconnection position us competitively in a market that continues to show growing demand for accredited capacity, and we are advancing commercial discussions, equipment planning and financing initiatives as we target completion by the third quarter of 2029.” Bilsland added, “Subsequent to year-end, we were excited to add Barbara Sugg, former CEO of Southwest Power Pool, Inc. (SPP) and Daniel Hudson, founder of Woodlands Energy Management, LLC to Hallador’s Board of Directors. At SPP, Barbara was responsible for managing the power grid for 14 states and led the expansion of SPP into additional western states. During Dan’s career, he has developed 25 power plants and successfully completed over $35.0 billion in asset acquisitions and financings. Both Barbara and Dan will be tremendous resources to help guide Hallador’s growth plans moving forward.” Fourth Quarter & Full Year 2025 Highlights A constructive power pricing environment and continued production optimization at Sunrise Coal supported full-year growth, although fourth quarter results were impacted by power plant availability at Merom.Total revenue in 2025 increased 16% year-over-year to $469.5 million, driven by electric sales of $310.7 million (+19% year-over-year) and coal sales of $148.7 million (+8% year-over-year).Net income in 2025 increased to $41.9 million and Adjusted EBITDA for the year increased ~3x year-over-year to $56.0 million, driven by improved electric segment performance and stronger coal segment results following production optimization and cost restructuring. Full year operating cash flow increased 23% year-over-year to $81.1 million, primarily driven by improved earnings that was supplemented by cash proceeds received under prepaid forward power sales contracts. Total bank debt declined to $30.0 million at December 31, 2025, compared to $44.0 million at both September 30, 2025 and December 31, 2024. Total liquidity was $38.8 million at December 31, 2025, consisting of $28.8 million of additional borrowing capacity and cash and cash equivalents, compared to $46.4 million at September 30, 2025, and $37.8 million at December 31, 2024. Capital expenditures in the fourth quarter were $24.9 million, bringing full-year capital expenditures to $69.2 million, which includes the ~$14 million deposit paid to MISO for the ERAS expansion at Merom. Hallador’s forward sales momentum provides long-term revenue visibility and certainty, lowering the Company’s overall risk profile. As of December 31, 2025, Hallador had approximately $1.3 billion of forward energy, capacity and coal sales commitments through 2029.As of December 31, 2025, the Company had $866.9 million of contracted third-party revenue through 2029. Hallador further de-risked its financial profile through the closing of a new $120 million, 3-year senior secured credit facility in March 2026 that matures in 2029. Financial Summary($ in Millions and Unaudited) Q1 2025 Q2 2025 Q3 2025 Q4 2025Electric Sales $85.9 $60.0 $93.2 $71.6 Coal Sales- 3rdParty $30.2 $38.1 $51.3 $29.1 Other Revenue $1.6 $4.7 $2.1 $1.7 Total Operating Revenue $117.7 $102.8 $146.6 $102.4 Net Income (Loss) $10.0 $8.2 $23.9 $(0.2)Operating Cash Flow $38.4 $11.4 $23.2 $8.1 Adjusted EBITDA* $19.3 $3.4 $24.9 $8.4 * 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. Reconciliation of GAAP "Net Income (Loss)" to non-GAAP "Adjusted EBITDA"(In $ Thousands and Unaudited) Year Ended December 31, 2025 2024 NET INCOME (LOSS) $41,871 $(226,138)Interest expense 16,896 13,850 Income tax expense (benefit) 1,833 (9,404)Depreciation, depletion and amortization 41,222 65,626 EBITDA 101,822 (156,066) Stock-based compensation 3,529 4,454 Asset impairment — 215,136 Asset retirement obligations accretion 1,764 1,628 Other amortization(1) (48,315) (46,310)(Gain) loss on disposal or abandonment of assets, net (2,489) (50)Loss on extinguishment of debt 608 2,790 Equity method investment loss 450 746 Settlement of litigation — 2,750 Other reclassifications (1,417) (8,318)Adjusted EBITDA $55,952 $16,760 (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. Forward Sales Position (unaudited) 2026 2027 2028 2029 TotalPower Energy Contracted MWh (in millions) 4.06 3.06 1.09 0.27 8.48Average contracted price per MWh $43.32 $46.50 $52.94 $51.33 Contracted revenue (in millions) $175.88 $142.29 $57.70 $13.86 $389.73 Accredited Capacity Average daily contracted accredited capacity MW 733 623 454 100 Average contracted accredited capacity price per MWd $230 $226 $225 $230 Contracted accredited capacity revenue (in millions) $61.54 $51.40 $37.33 $3.47 $153.74 Total Energy & Accredited Capacity Revenue Contracted Power revenue (in millions) $237.42 $193.69 $95.03 $17.33 $543.47 Coal Priced tons - 3rd party (in millions) 2.73 2.50 0.50 — 5.73Avg price per ton - 3rd party $55.72 $56.74 $59.00 $— Contracted coal revenue - 3rd party (in millions) $152.12 $141.85 $29.50 $— $323.47 TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED $389.54 $335.54 $124.53 $17.33 $866.94 Priced tons - Intercompany (in millions) 2.30 2.30 3.17 — 7.77Avg price per ton - Intercompany $51.00 $51.00 $51.00 $— Contracted coal revenue - Intercompany (in millions) $117.30 $117.30 $161.67 $— $396.27 TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT $506.84 $452.84 $286.20 $17.33 $1,263.21  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, March 12, 2026 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period. Date: Thursday, March 12, 2026 Time: 5:00 p.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. 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 [email protected] Investor Relations Contact Sean Mansouri, CFA Elevate IR (720) 330-2829 [email protected] Hallador Energy CompanyCondensed Consolidated Balance Sheets(in thousands, except per share data)(unaudited) 2025 2024 ASSETS Current assets: Cash and cash equivalents $10,070 $7,232 Restricted cash 5,302 4,921 Accounts receivable 13,989 15,438 Inventory 42,534 36,685 Parts and supplies 45,854 39,104 Prepaid expenses 5,638 1,478 Total current assets 123,387 104,858 Property, plant and equipment: Land and mineral rights 69,952 70,307 Buildings and equipment 421,037 402,649 Mine development 102,302 92,458 Construction work in process 39,671 27,208 Finance lease right-of-use assets 12,591 13,034 Total property, plant and equipment 645,553 605,656 Less - accumulated depreciation, depletion and amortization (367,775) (347,952)Total property, plant and equipment, net 277,778 257,704 Equity method investments 2,647 2,607 Other assets 4,241 3,951 Total assets $408,053 $369,120 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of bank debt, net $— $4,095 Accounts payable and accrued liabilities 41,848 44,298 Current portion of lease financing 7,411 6,912 Contract liabilities - current 103,343 97,598 Total current liabilities 152,602 152,903 Long-term liabilities: Bank debt, net 29,678 37,394 Long-term lease financing 1,338 8,749 Deferred income taxes 1,833 — Asset retirement obligations 15,241 14,957 Contract liabilities - long-term 45,714 49,121 Other 1,814 1,711 Total long-term liabilities 95,618 111,932 Total liabilities 248,220 264,835 Commitments and contingencies (Note 22) Stockholders' equity: Preferred stock, $.10 par value, 10,000 shares authorized; none issued — — Common stock, $.01 par value, 100,000 shares authorized; 43,817 and 42,621 issued and outstanding, as of December 31, 2025 and December 31, 2024, respectively 438 426 Additional paid-in capital 202,963 189,298 Retained deficit (43,568) (85,439)Total stockholders’ equity 159,833 104,285 Total liabilities and stockholders’ equity $408,053 $369,120 Hallador Energy CompanyCondensed Consolidated Statements of Operations(in thousands, except per share data) 2025 2024 SALES AND OPERATING REVENUES: Electric sales $310,737 $261,527 Coal sales 148,655 137,448 Other revenues 10,074 5,184 Total sales and operating revenues 469,466 404,159 EXPENSES: Fuel 63,854 49,343 Other operating and maintenance costs 129,246 118,364 Cost of purchased power 20,892 10,888 Utilities 16,801 15,914 Labor 110,678 116,164 Depreciation, depletion and amortization 41,222 65,626 Asset retirement obligations accretion 1,764 1,628 Exploration costs 216 260 General and administrative 26,226 26,527 Gain on disposal or abandonment of assets, net (2,489) (50)Asset impairment — 215,136 Settlement of litigation — 2,750 Total operating expenses 408,410 622,550 INCOME (LOSS) FROM OPERATIONS 61,056 (218,391) Interest income 602 235 Interest expense (1) (16,896) (13,850)Loss on extinguishment of debt (608) (2,790)Equity method investment (loss) (450) (746)NET INCOME (LOSS) BEFORE INCOME TAXES 43,704 (235,542) INCOME TAX EXPENSE (BENEFIT): Current — (169)Deferred 1,833 (9,235)Total income tax expense (benefit) 1,833 (9,404) NET INCOME (LOSS) $41,871 $(226,138) NET INCOME (LOSS) PER SHARE: Basic $0.98 $(5.72)Diluted $0.96 $(5.72) WEIGHTED AVERAGE SHARES OUTSTANDING Basic 42,932 39,504 Diluted 43,432 39,504 (1) Interest Expense: Interest on bank debt $5,806 $9,286 Other interest 9,097 2,817 Amortization of debt issuance costs 1,993 1,747 Total interest expense $16,896 $13,850 Hallador Energy CompanyCondensed Consolidated Statements of Cash Flows(in thousands) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $41,871 $(226,138)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income tax (benefit) 1,833 (9,235)Equity method investment loss 450 746 Depreciation, depletion and amortization 41,222 65,626 Asset impairment — 215,136 Loss on extinguishment of debt 608 2,790 (Gain) loss on disposal or abandonment of assets, net (2,489) (50)Amortization of debt issuance costs 1,993 1,747 Asset retirement obligations accretion 1,764 1,628 Cash paid on asset retirement obligation reclamation (727) (1,407)Stock-based compensation 3,529 4,454 Accretion on contract liabilities 8,408 1,170 Amortization of contract liabilities (99,683) (70,203)Director fees paid in stock 192 150 Change in current assets and liabilities: Accounts receivable 1,449 4,499 Inventory (5,849) (13,610)Parts and supplies (6,750) (227)Prepaid expenses 1,910 784 Accounts payable and accrued liabilities (2,154) (14,580)Contract liabilities 93,613 102,011 Other (56) 643 Net cash provided by operating activities $81,134 $65,934 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures $(69,215) $(53,367)Proceeds from sale of equipment 3,158 4,239 Proceeds from held-for-sale assets — 3,200 Investment in equity method investments (490) (542)Net cash used in investing activities $(66,547) $(46,470)CASH FLOWS FROM FINANCING ACTIVITIES: Payments on bank debt $(106,000) $(147,000)Borrowings of bank debt 92,000 99,500 Payments on lease financing (6,994) (5,633)Proceeds from sale and leaseback arrangement — 5,134 Issuance of related party notes payable — 5,000 Payments on related party notes payable — (5,000)Debt issuance costs (330) (673)ATM offering 13,510 34,515 Taxes paid on vesting of RSUs (3,554) (277)Net cash used in financing activities $(11,368) $(14,434)Increase in cash, cash equivalents, and restricted cash 3,219 5,030 Cash, cash equivalents, and restricted cash, beginning of year 12,153 7,123 Cash, cash equivalents, and restricted cash, end of year $15,372 $12,153 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Cash and cash equivalents $10,070 $7,232 Restricted cash 5,302 4,921 $15,372 $12,153 SUPPLEMENTAL CASH FLOW DISCLOSURES: Cash paid for interest $6,705 $10,511 Non-cash change in capital expenditures related to accounts payable and prepaid expenses $7,232 $356 Stock issued on redemption of convertible notes and interest $— $22,993 Source: Hallador Energy Company