Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results

Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results May 6, 2026 - Q1 Total Revenue of $101.8 Million, with Operating Cash Flow of $20.5 Million - - Q1 Net Loss of $9.3 Million, with Adj. EBITDA of $5.5 Million - - On May 1, Hallador Signed a Capacity Agreement, for years 2028 – 2040, at More Than 2x Historical Capacity Pricing, Expected to Generate Over $1 Billion of Contracted Revenue - 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 $1.1B, nearly doubling our forward sales book and making the Company substantially sold-forward on accredited capacity across the next fourteen consecutive years. We continue to see strong pricing signals for our remaining unsold capacity and continue to pursue opportunities in the market to add to our already substantial forward sales positions,” said Brent Bilsland, President and Chief Executive Officer. “These agreements provide durable revenue visibility and balance sheet support and are expected to convert to cash flow at a very high rate, enabling the company to focus on disciplined capital allocation across potential growth initiatives such as our proposed 515MW gas plant project and our dual-fuel ambitions for our existing 1-GW Merom Power Plant.” “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 $1 billion in cumulative revenue from the agreement, nearly doubling its forward sales book, and is expected to convert to free cash flow at a very high rate. The structure is capacity-only and does not include the sale of energy, allowing the Company to retain flexibility to optimize future energy sales. The agreement is subject to customary regulatory approvals anticipated to be received in the second half of 2026. 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. 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 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 $859.6 million excluding the coal sales to Merom. Neither of these totals include the recently signed 12-year capacity agreement. Financial Summary ($ in Millions and Unaudited) Q1 2026 Q1 2025Electric Sales $65.1 $85.9Coal Sales- 3rdParty $35.1 $30.2Other Revenue $1.6 $1.6Total Sales and Operating Revenue $101.8 $117.7Net Income (Loss) $(9.3) $10.0Operating Cash Flow $20.5 $38.4Adjusted 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 TotalPower 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 7.52Average contracted price per MWh $43.74 $46.50 $52.94 $51.33 Contracted revenue (in millions) $135.59 $142.29 $57.70 $13.86 $349.44Total 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 5.10Avg price per ton - 3rd party $55.73 $56.74 $59.00 Contracted coal revenue - 3rd party (in millions) $117.03 $141.85 $29.50 $— $288.38TOTAL 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 7.55Avg 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 [email protected] Investor Relations Contact Sean Mansouri, CFA Elevate IR (720) 330-2829 [email protected] 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 $— Source: Hallador Energy Company