TERRE HAUTE, Ind. - Hallador Energy Company (NASDAQ - HNRG) reported a net income of $1.6 million, $.05 per share, adjusted EBITDA of $18.4 million for the quarter ended September 30, 2022.
Brent Bilsland, President and Chief Executive Officer, stated, 'Q3 was a transitional quarter for Hallador. We signed materially higher priced contracts and expanded our production capacity to take advantage of higher market prices. Subsequent to Q3, in October, we completed the acquisition of the Merom Generating Station which positions Hallador uniquely by providing new revenue streams and a platform for future potential investment including new generation and energy storage. During the quarter and subsequently, we were also able to fulfill our goal of deleveraging our balance sheet by reducing our bank debt by $44 million, 34% of our outstanding balance.'
Below are highlights for the quarter and first nine months of 2022:
The Company returned to profitability on the strength of shipments of higher priced coal contracts.
Margins improved $3.16 per ton in Q3 over Q2 on the strength of ~$49 average sales prices, despite production costs increasing to $37.46 per ton.
Production and shipments of 1.7 million tons for the quarter.
Higher priced contracts accelerate future deleveraging of Hallador's Balance Sheet
With the 2.2 million tons of average priced ~$125 per ton contracts sold in Q2, the Company projects to be net debt free in 2023.
The Merom Generating Station acquisition was completed on October 21, 2022, resulting in Hallador receiving net payments of $34 million.
The Company reduced its debt by $17 million in Q3 and paid an additional $27 million from the proceeds of the Merom acquisition in October, resulting in a decrease of $44 million since Q2 reporting; lowering total bank debt to $87 million following October payments.
Conference Call
Our earnings conference call for financial analysts and investors will be held on Tuesday, November 15, 2022 at 2:00 pm eastern time.
The call will be webcast live on our website at www.halladorenergy.com under events and available for a limited time.
To participate in the conference call, please dial:
US dial-in number (Toll Free): 1 844 200 6205
US dial-in number: (Local): 1 646 904 5544
International: +1 929 526 1599
Access Code: 840309
A recording of the conference call will be available until Tuesday, November 22, 2022.
To listen to a replay of the conference call, please dial:
US Toll Free: 1 866 813 9403
US (Local): 1 929 458 6194
All other locations: +44 204 525 0658
Access Code: 147803
Hallador is headquartered in Terre Haute, Indiana and through its wholly owned subsidiary, Sunrise Coal, LLC, produces coal in the Illinois Basin for the electric power generation industry. To learn more about Hallador, visit our website at www.halladorenergy.com.
Contact:
Investor
T: (303) 839-5504
HALLADOR ENERGY COMPANY 
