Loading...
•
Dec 31, 2019
Hallador Energy Q4 2019 Earnings Report
Hallador Energy reported mixed results with strong shipments but a net loss due to asset impairments.
Key Takeaways
Hallador Energy Company reported its financial and operating results for the year ended December 31, 2019. The company experienced strong shipments in Q4 and decided to permanently close the Carlisle Mine. However, the company reported a net loss of $59.9 million after $77.9 million in asset impairments.
Adjusted EBITDA was $16.7 million for the quarter and $68.7 million for the year.
2.0 million tons of coal were shipped in the 4th quarter.
The Carlisle Mine is being permanently closed.
A net loss of $1.7 million was reported before the effects of impairments.
Forward Guidance
Hallador Energy is forecasting 6.7 million tons of coal shipments going forward and expects to generate $20 million in cash from lowering coal and parts inventories throughout 2020.
Positive Outlook
- Concentrating production on lower cost Oaktown Mines, returning cost structure to $28-$30/ton.
- Moving $23 million in equipment and infrastructure to Oaktown, decreasing companywide capex to ~$20 million in 2020.
- Leading to capex reductions in future years.
- Generating $20 million in cash from lowering coal and parts inventories throughout 2020.
- 2020 = 100% contracted at 6.7 million ton pace.
Challenges Ahead
- Permanently closing the Carlisle Mine.
- Impairment of $65.7 million was recorded as a result of permanently closing the Carlisle mine.
- Bulldog reserve was impaired by $9.2 million.
- Hourglass Sands project was impaired by $2.9 million.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...