0001104659-26-056375
SEC filingEquipment issues at Merom drove a 24.3% revenue decline in Electric Operations, partially offset by higher capacity prices and a strong $1.2B forward contracted backlog.
For the three months ended March 31, 2026, Hallador Energy reported a consolidated net loss per share of $(0.20), compared to income of $0.23 in the prior year period. The decline was driven primarily by a 24.3% decrease in Electric Operations revenue to $65.1 million and a 15.3% decrease in Coal Operations revenue to $46.4 million. The electric segment experienced a 27.9% drop in MWh sold due to equipment issues at the Merom Power Plant, which reduced generation by 0.5 million MWh. Accredited capacity revenue increased 12.5% to $15.5 million, partially offsetting energy revenue declines. Fuel costs decreased 27.7% in the segment, in line with lower generation. Higher maintenance and purchased power costs (up 95.6% and 117.3%, respectively) further pressured electric segment EBITDA, which fell from $26.1 million to $4.3 million. Coal Operations EBITDA declined from $5.7 million to $0.9 million as tons sold dropped 20.3%, though average sales price rose to $54.35 per ton. Depreciation, depletion, and amortization in coal decreased 57.1% following prior impairment.
Electric Operations: The segment generated 938,000 MWh vs 1,422,000 last year, with purchased MWh increasing to 183,000 to fulfill sales commitments. Delivered energy price per MWh fell 4.8% to $44.21, while accredited capacity price per MWh rose from $8.88 to $13.86. The capacity revenue increase reflects higher contracted capacity volumes and prices. The unit is scheduled for a major maintenance outage beginning May 2026 to improve performance.
Coal Operations: Sales to third parties increased 16.2% (by $4.9 million) due to 7.2% more tons sold and 8.4% higher average price, partially offsetting lower intercompany sales to Merom. Average cost per ton sold rose to $50.66 from $43.65 in Q1 2025, driven by higher labor costs per ton ($22.55 vs $17.63) and mine expansion costs. Capital expenditures in coal were $3.8 million, down from $6.2 million.
Management's forward contracted revenue position totals $1.2 billion through 2029, with $305.4 million in the remaining nine months of 2026 and $359.4 million in 2027. Accredited capacity backlog shows increasing average prices ($246/MWd in 2026 to $398/MWd in 2029), while energy contracted MWh and coal tons are weighted toward near years. The company expects 2026 capital expenditures to remain broadly stable versus 2025, excluding the ERAS project. Liquidity was strengthened by a new $75 million revolving credit facility and $45 million delayed draw term loan, yielding total liquidity of $97.5 million at March 31. Management continues to seek margin expansion through contract negotiations and potential expansion of electric generation capabilities via MISO's ERAS program or acquisitions. The major maintenance outage at Merom beginning May 2026 is expected to improve plant reliability and performance thereafter.
As of March 31, 2026, Hallador held $36.8M in cash and cash equivalents (up from $10.1M at December 31, 2025) and had no outstanding bank debt after fully repaying its prior credit facility. The new $75M revolving credit facility remained undrawn, with $60.8M available (net of $14.2M letters of credit), providing total liquidity of $97.5M. Total debt was $5.6M, consisting only of lease financing. Shareholders' equity increased to $205.6M from $159.8M, driven by a $53.8M public equity offering in January 2026.
Contract liabilities totaled $162.3M, reflecting prepayments from customers under long-term power and coal sales agreements. The company disclosed $859.6M in remaining performance obligations as of March 31, 2026, broken down as: delivered energy ($349.4M), accredited capacity ($221.8M), and coal revenue ($288.4M). These obligations extend through 2029, with 2026 representing $305.4M. The subsequent event on May 1, 2026, noted a new capacity PPA expected to generate cumulative revenue over $1.0B from late 2028 to mid-2040.
During Q1 2026, Hallador repaid $30.0M in bank debt (net), paid $3.2M on lease financing, and invested $7.7M in capital expenditures (split $3.9M Electric, $3.8M Coal). The company raised $53.8M through a public offering (3.2M shares at $18.00) and an additional $0.2M via the now-terminated ATM program. No share repurchases or dividends were noted. Debt issuance costs of $5.8M related to the new credit facility were capitalized.
Electric Operations contributed 58% of total segment revenue ($65.2M) but only 82% of segment EBITDA ($4.3M), reflecting a 6.5% margin. Coal Operations revenue was $47.6M (42% of total), with segment EBITDA of $0.9M (1.9% margin), including intercompany sales of $11.3M to Merom. Coal sales to third-party Indiana customers totaled $25.9M, with other customers at $9.2M.