News & Events zu Hallador Energy Co (HNRG)HNRGHallador Energy Co

Hallador Energy Signs $6 Billion Agreements with Utility

Hallador Energy's wholly owned subsidiary Hallador Power has executed six-year capacity and energy agreements with an investment-grade MISO Zone 6 utility covering deliveries from the Merom Generating Station from June 1, 2029, through May 31, 2035. The agreements are effective upon signing and require no regulatory approval. The capacity agreement, Hallador's third announced in 2026, is priced at the highest capacity price the company has contracted to date and more than 20% above the capacity contract announced in March. The agreements increase Hallador's total forward sales book to $3B at the segment level and leave a majority of Merom's expected production through 2040, contracted to investment-grade counterparties. These agreements come as Hallador continues to advance its 460 MW Turtle Creek natural gas project which would expand the company's total generating capacity by over 40%. The utility will purchase an annual average of 225 MW of Merom's accredited capacity for approximately $271M of capacity revenue over the term. The company estimates the energy agreement would generate approximately $422M of revenue over the term. With these agreements, approximately 95% of Merom's accredited capacity is under contract through 2035 and approximately two-thirds contracted for 2036 through 2040.

Hallador Reports Q2 Revenue of $101.5M, Beating Expectations

Reports Q2 revenue $101.5M, consensus $90.04M. "Since our strategic update in June, we have made significant progress across key elements of the Turtle Creek project," said Brent Bilsland, Chairman and Chief Executive Officer. "We recently completed a site visit to get a firsthand update of the disassembly of the turbine equipment, which is underway with a substantial Siemens workforce on site, and we continue to be pleased with both the progress of the disassembly efforts and the condition of the turbine equipment. Shipment of the equipment remains on schedule for September, and the generator interconnection process is also advancing. As the equipment, restoration and construction scopes become more defined, the project economics have become even more compelling, and we now expect total project cost to be below $800 million, or approximately $1,700/kW - which we believe is a significant cost advantage relative to competing new-build capacity - while moving forward our targeted commercial operation timeframe to the second half of 2028, a timeline we believe is materially ahead of comparable projects. This progress moves us closer to a final investment decision on a 460 MW peaking project that would meaningfully expand and diversify our dispatchable generation platform. At the same time, the market backdrop continues to validate the strategic rationale for that investment. We are seeing robust demand for accredited capacity and energy from a growing and increasingly diverse set of counterparties, and are working towards additional forward sales before the end of the year. With $2.4 billion of revenue already contracted through 2040, and potentially more sales on the way, we believe Hallador offers investors a degree of revenue visibility that we believe is among the strongest in the sector."

Hallador Energy Secures $27.2M Federal Funding

Hallador Energy Company announced that its subsidiary, Hallador Power Company, was selected by the U.S. Department of Energy's Hydrocarbons and Geothermal Energy Office to begin award negotiations for up to $27.2M, in potential federal funding to modernize the Merom Generating Station located in Merom, Indiana. Total project cost is estimated to be approximately $56.9M. The comprehensive modernization project is designed to upgrade MGS's water management systems to position the plant for future federal Effluent Limitation Guidelines requirements. This project will help modernize the delivery of reliable and flexible energy to MISO zone 6. "First and foremost, we'd like to thank President Donald J. Trump, the National Energy Dominance Council, and the DOE for progressing this initiative, and their understanding of the importance of dispatchable resources and their critical role in providing reliability to the power grid," said Brent Bilsland, Chairman and Chief Executive Officer. "Modernizing the Merom Generating Station will enhance the capabilities of our 1,080 MW rated facility for decades to come, helping power consumers, businesses, and infrastructural enhancements to the region."