Sep 30, 2024

Hallador Energy Q3 2024 Earnings Report

Hallador Energy's financial performance improved in Q3 2024, marked by increased revenue and a return to profitability.

Key Takeaways

Hallador Energy Company reported a positive financial turnaround in Q3 2024, with total revenue increasing to $105.0 million and net income reaching $1.6 million, or $0.04 earnings per share. The company signed a non-binding term sheet with a data center developer and focused on strengthening its balance sheet through debt reduction.

Total revenue increased by 12% to $105 million, driven by a 21% increase in electric sales.

Net income increased to $1.6 million, a significant improvement from the previous quarter's loss.

Signed a non-binding term sheet with a leading global data center developer to supply power for 10+ years.

Strengthened balance sheet by executing a $60 million prepaid power purchase agreement and reducing bank debt.

Total Revenue
$105M
Previous year: $166M
-36.6%
EPS
$0.04
Previous year: $0.44
-90.9%
Adjusted EBITDA
$9.6M
Gross Profit
$28.7M
Previous year: $30.5M
-6.0%
Cash and Equivalents
$9.64M
Previous year: $66.4M
-85.5%
Free Cash Flow
-$24.5M
Previous year: $17.1M
-242.7%
Total Assets
$580M
Previous year: $585M
-0.9%

Hallador Energy

Hallador Energy

Hallador Energy Revenue by Segment

Forward Guidance

Hallador Energy is focused on securing its energy position through forward sales and is poised to exit 2024 on solid footing.

Positive Outlook

  • The Company secured a $60 million prepaid PPA.
  • Total bank debt was $23.5 million at October 31, 2024.
  • Total liquidity was $53.8 million at October 31, 2024.
  • Hallador had total forward energy, capacity and coal sales to 3rd party customers of $937.2 million through 2029.
  • The company signed a non-binding term sheet with a leading global data center developer.

Challenges Ahead

  • The completion of the proposed transaction is subject to the negotiation and execution of definitive agreements.
  • There can be no assurance that definitive agreements will be entered into.
  • There can be no assurance that the proposed transaction will be consummated on the terms or timeframe currently contemplated.
  • There can be no assurance that the proposed transaction will be consummated at all.
  • Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management and involve various risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income