Aug 10, 2026, 5:00 PM ETBasic Materials

Hallador Energy — Q2 2026 Earnings Summary

HNRGHALLADOR ENERGY CO

Financial Performance

Total revenue decreased to $101.5 million in Q2 2026 from $102.8 million in Q2 2025, driven by lower delivered energy sales partially offset by higher accredited capacity revenue and third-party coal sales.
Net loss was $15.2 million in Q2 2026 compared to net income of $8.2 million in Q2 2025.
Adjusted EBITDA was $(2.9) million in Q2 2026 compared to $3.4 million in Q2 2025.
Operating cash flow was $(23.9) million in Q2 2026 compared to $11.4 million in Q2 2025.
Capital expenditures were $26.3 million in Q2 2026, up from $13.1 million in Q2 2025, driven by reliability upgrades and Turtle Creek project expenditures.
Total liquidity was $84.2 million at June 30, 2026, compared to $97.5 million at March 31, 2026 and $42.0 million at June 30, 2025.
Total bank debt was $45.0 million at June 30, 2026, compared to no outstanding debt at March 31, 2026 and $30.0 million at December 31, 2025.
Cash and cash equivalents were $28.979 million at June 30, 2026, compared to $10.070 million at December 31, 2025.
Total assets were $468.044 million at June 30, 2026, compared to $408.053 million at December 31, 2025.
Total liabilities were $277.712 million at June 30, 2026, compared to $248.220 million at December 31, 2025.
Stockholders' equity was $190.332 million at June 30, 2026, compared to $159.833 million at December 31, 2025.

The Company expects total project cost for the Turtle Creek Gas project to be below $800 million, or approximately $1,700/kW.
Commercial operation date (COD) for Turtle Creek is targeted for the second half of 2028, a timeline the Company believes is materially ahead of comparable projects.
The Company targets a final investment decision on the 460 MW peaking project and execution of a generator interconnection agreement in September 2026.
The Company expects to receive results of the MISO Expedited Resource Addition Study, including system upgrade costs, in mid-August 2026.
Management expects generation volumes to improve sequentially in the third quarter following the completion of the scheduled outage and reliability investments.
The Company is working towards additional forward sales before the end of the year.

The Merom Generating Station completed major reliability upgrades on Unit 1 during the scheduled spring outage to address unplanned downtime experienced in recent quarters.
Unit 2 performed well during the quarter, though limited unplanned downtime coincided with elevated market prices, requiring the purchase of power to meet delivery obligations.
The Company is finalizing the construction scope and advancing financing discussions for the Turtle Creek project to minimize equity dilution.
As of June 30, 2026, the Company had $1.8 billion of contracted revenue from delivered energy, accredited capacity, and third-party coal sales, including commitments extending through 2040.
Including intercompany coal sales, total contracted revenue at the segment level reached $2.4 billion.
The Company continues to execute its contracting strategy to increase long-term revenue visibility and monetize its dispatchable generation platform.

The Company observes robust demand for accredited capacity and energy from a growing and increasingly diverse set of counterparties.
The Company believes the expected project cost of Turtle Creek offers a significant cost advantage relative to competing new-build capacity.
The market backdrop continues to validate the strategic rationale for the investment in dispatchable generation.

Q2 2026 results were negatively impacted by higher maintenance costs associated with the annual planned outage at Merom Unit 1 and higher purchased power costs resulting from limited unplanned downtime at Unit 2 during periods of elevated power prices.
Forward-looking statements regarding the Turtle Creek project involve risks including construction, operational, financial, regulatory, and legal risks that could impact the project's viability and timeline.
The project's interconnection application is subject to MISO approval and system upgrade costs.
Certain contracted forward sales positions are subject to approval by the Indiana Utility Regulatory Commission, expected on or before November 15, 2026.
Actual revenue related to forward sales positions may differ materially due to unit contingencies, price adjustment features, volume optionality provisions, and potential force majeure events.

Brent Bilsland, Chairman and CEO, stated that significant progress has been made across key elements of the Turtle Creek project, including the disassembly and shipment of turbine equipment scheduled for September.
Management expressed satisfaction with the progress of disassembly efforts and the condition of the turbine equipment.
Management noted that as project scopes become more defined, the project economics have become more compelling.
Management believes the Merom plant is positioned to run more reliably going forward following the completion of reliability investments.
Management highlighted that the Company offers investors a degree of revenue visibility among the strongest in the sector due to the $2.4 billion in contracted segment-level revenue.

On May 15, 2026, Hallador drew $45.0 million under its delayed draw term loan and used a portion of the proceeds to repay $8.0 million on the Company's revolving credit facility.
The Company raised $53.764 million from a public offering, net of issuance costs, during the six months ended June 30, 2026.
The Company raised $189,000 from an ATM offering, net of issuance costs, during the six months ended June 30, 2026.
The Company issued 47,144,000 shares of common stock as of June 30, 2026, up from 43,817,000 shares as of December 31, 2025.
The Company expects to receive MISO study results in mid-August 2026, which will include required system upgrade costs.
The Company is evaluating the appropriate capital structure for the Turtle Creek project with the objective of minimizing equity dilution.