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Dec 31, 2024
Hallador Energy Q4 2024 Earnings Report
Hallador Energy reported a significant net loss in Q4 2024, driven by a major non-cash write-down, while revenue shifted towards electricity sales.
Key Takeaways
Hallador Energy faced a challenging Q4 2024, reporting a substantial net loss due to a $215M non-cash write-down of its coal subsidiary. Revenue declined YoY as the company continued shifting towards power generation. However, adjusted EBITDA improved significantly, reflecting better operational efficiency. The company also made progress in securing long-term energy contracts, including an agreement with a data center developer.
Q4 revenue was $94.2M, down significantly from the prior year.
Net loss of $215.8M due to a $215M non-cash write-down on coal assets.
Adjusted EBITDA improved to $6.2M, nearly three times YoY.
Electric sales made up 74% of revenue, reflecting Hallador’s transition to power generation.
Hallador Energy
Hallador Energy
Hallador Energy Revenue by Segment
Revenue by Segment
Electric Sales Revenue
CapyFin.comCoal Sales Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Hallador Energy is focusing on power generation, securing new long-term contracts, and expanding energy sales, but faces challenges from declining coal demand and debt obligations.
Positive Outlook
- Company shifting towards power generation, securing new contracts.
- Exclusive agreement with a data center developer in progress.
- Electric sales now account for the majority of revenue.
- Operational cost reductions improving financial flexibility.
- Bank debt reduced by more than 50% to $44M.
Challenges Ahead
- Large net loss due to coal asset write-down.
- Declining coal demand impacting overall revenue.
- Significant decrease in coal sales revenue YoY.
- Uncertainty regarding the execution of new power contracts.
- Continued industry shift away from dispatchable power sources.