Hallador Energy Q2 2024 Earnings Report
Key Takeaways
Hallador Energy Company reported a Q2 total revenue of $90.9 million and a net loss of $10.2 million, or $(0.27) earnings per share. The company generated $23.5 million in operating cash flow and faced challenges due to low natural gas and electricity prices.
Generated $23.5 million in operating cash flow during the second quarter.
Total bank debt was $45.5 million with total liquidity of $60.7 million at June 30, 2024.
The company's leverage ratio was 2.12x at June 30, 2024.
Capital expenditures were $13.2 million for the second quarter.
Hallador Energy
Hallador Energy
Hallador Energy Revenue by Segment
Forward Guidance
Hallador is focused on transforming the company and capturing increased value by expanding its offerings in the power sector, including potential long-term contracts for data centers. They anticipate that natural gas inventories will decrease and prices will recover later this year.
Positive Outlook
- Signed an 11-month, $45 million forward power purchase agreement (PPA).
- Negotiations continue to advance in response to the Company’s data center targeted RFP, with the potential to sign a long-term contract.
- Strengthened balance sheet by reducing debt.
- Improved total liquidity to $60.7 million at quarter-end.
- Focusing on forward sales to hedge its energy position.
Challenges Ahead
- Facing a challenging market for spot electricity sales.
- Record natural gas production last year, combined with the second warmest winter in 25 years, has led to a surplus in natural gas inventory.
- This imbalance has driven down both gas and electricity prices.
- Energy market pricing was above cost structure only 40% of the time during the first half of the year.
- Decrease in electric and coal sales due to market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income