Hallador Energy Reports $9.98 Million Net Income in Q1 2025, Significant Turnaround from Loss

Hallador Energy Company reported a net income of $9.98 million for the first quarter of 2025, a significant turnaround from a net loss of $1.70 million in the same period last year. The company generated total sales and operating revenues of $117.79 million, up from $111.57 million in the first quarter of 2024. This increase was primarily driven by a 47.5% rise in electric sales, which reached $85.94 million, compared to $60.68 million in the prior year. However, coal sales decreased to $30.19 million from $49.63 million, reflecting a decline in both volume and average sales price.

The company's financial performance showed marked improvement compared to the previous fiscal period, with operating income rising to $13.94 million from $2.73 million a year earlier. Hallador's adjusted EBITDA for the quarter was $19.3 million, an increase of $12.5 million year-over-year. The company attributed these positive results to higher energy prices and improved coal production, as well as the benefits of its restructuring efforts initiated in 2024.

Operationally, Hallador has made strategic moves to enhance its market position. The company has focused on transitioning from a coal producer to an integrated independent power producer (IPP). This includes ongoing negotiations with a global data center developer for a long-term energy supply agreement, which could significantly impact future revenues. Additionally, Hallador has reduced its workforce by approximately 12% as part of its reorganization plan, which is expected to yield operational savings and higher margins in its coal operations.

As of March 31, 2025, Hallador reported total assets of $366.1 million, a slight decrease from $369.1 million at the end of 2024. The company’s total liabilities also decreased to $250.75 million from $264.84 million, primarily due to a reduction in bank debt, which fell by $21 million during the quarter. Hallador's liquidity position remains strong, with total liquidity of $69 million, including $6.89 million in cash and cash equivalents.

Looking ahead, Hallador Energy is optimistic about its future prospects, particularly in light of the increasing demand for reliable energy sources amid a shifting energy landscape. The company plans to continue exploring opportunities for geographic expansion and additional dispatchable generation assets. Hallador aims to produce approximately 3.8 million tons of coal in 2025 and is actively evaluating options to enhance its operational flexibility, including the potential for co-firing natural gas with coal at its Merom Power Plant.