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1. Company Snapshot

1.a. Company Description

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry.The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown, Indiana; and Ace in the Hole mine located near Clay City, Indiana.It is also involved in gas exploration activities in Indiana.


Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.

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1.b. Last Insights on HNRG

Hallador Energy Company's recent performance was driven by strong Q4 2024 earnings, with total revenue reaching $94.2 million and operating cash flow increasing to $32.5 million. The company's adjusted EBITDA also surged approximately three times year-over-year to $6.2 million. Additionally, a proposed 620MW datacenter deal is imminent, which is expected to contract most of HNRG's generation capacity for 10+ years, potentially driving annual net income to $129m and EPS to $3.03 by FY 2027.

1.c. Company Highlights

2. Hallador Energy Shines with Strong Q3 2025 Results

Hallador Energy Company's third-quarter 2025 financial performance was impressive, with revenue increasing 40% year-over-year to $146.8 million, driven by a 29% rise in electric sales to $93.2 million and a 42% increase in coal sales to $68.8 million. The company's net income saw a significant 14-fold jump to $23.9 million, while adjusted EBITDA rose 1.6 times to $24.9 million. Earnings per share (EPS) came in at $0.55, significantly beating estimates of $0.06. The strong financial performance was a testament to the company's operational efficiency and favorable market conditions.

Publication Date: Nov -19

📋 Highlights
  • Revenue & Net Income Surge:: 40% YoY revenue growth to $146.8M and 14x net income increase to $23.9M driven by strong coal and electric sales.
  • Electric & Coal Sales Growth:: Electric sales rose 29% to $93.2M, while coal sales jumped 42% to $68.8M, reflecting diversified revenue streams.
  • 525 MW Gas Generation Expansion:: ERAS program application aims to grow generation by 50%, aligning with long-term market demand and strategic growth goals.
  • Forward Sales Position:: $1.3B in combined energy ($571.7M) and coal ($350M) forward sales underscores strong off-take commitments and future cash flow visibility.
  • Long-Term Agreement Momentum:: Advanced discussions with data centers and utilities for decade-long capacity deals, mirroring the $20M prepaid 2027 power contract, signal scalable growth potential.

Operational Highlights

Hallador Power, the company's subsidiary, delivered 1,600,000 megawatt hours during the quarter at an average sales price of $49.29 per megawatt hour. The company also executed a $20 million prepaid forward power sales contract with delivery scheduled through 2027, indicating a strong demand for its energy offerings. As Brent Bilsland, President and CEO, noted, "We're excited about the opportunities that are in front of us," highlighting the company's growth prospects.

Growth Strategy and Outlook

The company is pursuing a growth strategy focused on expanding its generation portfolio, driven by strong market signals and interest in long-term arrangements. Hallador has submitted an application to the MISO expedited resource addition study (ERAS) program to add 525 megawatts of gas generation at its Meramec site, which could potentially be part of a long-term agreement. With a forward energy and capacity sales position of $571.7 million and third-party forward coal sales of $350 million, totaling approximately $1.3 billion, the company is well-positioned for future growth.

Valuation and Next Steps

With a P/E Ratio of -4.44 and an EV/EBITDA of -6.72, the market is pricing in significant challenges for the company. However, the strong Q3 2025 results and growth prospects suggest that the company is on a path to recovery. Analysts estimate a revenue decline of 0.7% for next year, but the company's diversified revenue streams and growth initiatives could help mitigate this decline. The company's total liquidity of $40.4 million and relatively stable bank debt of $44 million provide a comfortable financial cushion.

Refinancing Plans

Hallador is currently in discussions with its existing bank group and other potential lenders to refinance its credit agreement, with its revolving credit facility maturing in August 2026 and term loan in March 2026. This refinancing is expected to provide the company with the necessary financial flexibility to pursue its growth plans.

3. NewsRoom

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American Century Companies Inc. Purchases 146,514 Shares of Hallador Energy Company $HNRG

Dec -03

Source: defenseworld.net

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Best Momentum Stocks to Buy for Nov. 25

Nov -25

Source: zacks.com

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Are Oils-Energy Stocks Lagging Hallador Energy (HNRG) This Year?

Nov -25

Source:

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New Strong Buy Stocks for Nov. 25: HNRG, NEM, and More

Nov -25

Source: zacks.com

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Why Hallador Energy Stock Soared Today

Nov -11

Source: fool.com

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Hallador Energy Company (HNRG) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Hallador Energy (HNRG) Surpasses Q3 Earnings and Revenue Estimates

Nov -11

Source: zacks.com

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Hallador Energy Company Reports Third Quarter 2025 Financial and Operating Results

Nov -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.68%)

6. Segments

Coal

Expected Growth: 4.83%

Hallador Energy Company's 4.83% growth in coal segment is driven by increasing demand from utilities, rising natural gas prices, and growing exports. Additionally, the company's focus on low-cost production, operational efficiencies, and strategic acquisitions have contributed to its growth momentum.

Electric

Expected Growth: 4.65%

Hallador Energy Company's 4.65% growth in Electric segment is driven by increasing demand for renewable energy, favorable government policies, and strategic acquisitions. Additionally, the company's focus on improving operational efficiency, reducing costs, and investing in infrastructure upgrades have contributed to the growth.

Corporate and Other and Eliminations

Expected Growth: 3.83%

Hallador Energy's Corporate and Other segment growth of 3.83% is driven by increased investments in renewable energy projects, cost savings from operational efficiencies, and strategic acquisitions. Additionally, the company's focus on diversifying its revenue streams and expanding into new markets has contributed to this growth.

7. Detailed Products

Coal Mining

Hallador Energy Company is engaged in the mining, production, and sale of coal from its surface and underground mines in Indiana and Illinois.

Electricity Generation

The company generates electricity through its coal-fired power plants, providing power to the grid and selling it to utilities, cooperatives, and municipalities.

Coal Trading

Hallador Energy Company trades coal with other companies, utilities, and industrial consumers, facilitating the supply of coal to meet energy demands.

Land Management

The company manages and leases land for coal mining, oil and gas exploration, and other industrial activities.

Oil and Gas Exploration

Hallador Energy Company explores and develops oil and gas reserves, providing a diversified energy portfolio.

8. Hallador Energy Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Hallador Energy Company operates in the coal mining industry, which has few substitutes. However, the increasing adoption of renewable energy sources and natural gas could pose a threat to the company's operations.

Bargaining Power Of Customers

Hallador Energy Company's customers are primarily utilities and industrial companies, which have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Hallador Energy Company relies on a few key suppliers for equipment and services, which gives them some bargaining power. However, the company's size and market position mitigate this risk.

Threat Of New Entrants

The coal mining industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.

Intensity Of Rivalry

The coal mining industry is highly competitive, with several established players competing for market share. Hallador Energy Company faces intense rivalry from other coal producers, which can lead to downward pressure on prices and margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.22%
Debt Cost 6.19%
Equity Weight 70.78%
Equity Cost 6.19%
WACC 6.19%
Leverage 41.28%

11. Quality Control: Hallador Energy Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Natural Resource Partners

A-Score: 6.8/10

Value: 4.2

Growth: 5.6

Quality: 7.7

Yield: 9.0

Momentum: 6.5

Volatility: 8.0

1-Year Total Return ->

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SunCoke Energy

A-Score: 6.3/10

Value: 8.7

Growth: 5.0

Quality: 4.8

Yield: 9.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.3

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Ramaco Resources

A-Score: 5.3/10

Value: 5.4

Growth: 7.2

Quality: 3.2

Yield: 5.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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American Resources

A-Score: 4.2/10

Value: 8.0

Growth: 3.2

Quality: 4.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Hallador Energy

A-Score: 3.8/10

Value: 5.5

Growth: 1.4

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.95$

Current Price

19.95$

Potential

-0.00%

Expected Cash-Flows