Business
Hallador Energy Company Reports First Quarter 2020 Financial And Operating Results
Proactive steps taken to enhance liquidity, protect employee health and ensure supply to the nation's critical infrastructure. TERRE HAUTE, Ind., May 11, 2020
About this update from Hallador Energy Company
[{"type":"text","content":"Proactive steps taken to enhance liquidity, protect employee health and ensure supply to the nation's critical infrastructure.\n\n\nTERRE HAUTE, Ind., May 11, 2020 /PRNewswire/ -- Hallador Energy Company (NASDAQ – HNRG) today reported a net loss of $3.7 Million, ($0.12) Per Share. \nNet income was reduced $3.9 million by non-cash adjustments (interest rate swap and fuel hedge) in Q1. Impacts of delayed shipments and the permanent closure costs of the Carlisle Mine contributed to increased operating costs per ton of $2.43/ton over Q1 2019. Brent Bilsland, President and Chief Executive Officer, stated, \"Thermal export prices collapsed in the 2nd half of 2019, pressuring domestic steam coal pricing. Natural gas prices marked their lowest levels in 21 years during Q1 2020. Additionally, most of the United States and developed world closed and sheltered in place for 8-10 weeks during part of the 1st and 2nd quarter. The culmination of these extreme events led us to take proactive steps to plan for the future of Hallador's customers, investors and employees. Our actions are designed to increase our financial abilities so that we can ensure consistency at a time when the world is experiencing great volatility.\"\nIn anticipation of shipment delays and potential production interruptions, Hallador has:\nAmended its credit facility to increase its allowable leverage ratios, providing $55.4 million in liquidity. Suspended its dividend until Debt to EBITDA leverage ratio falls below 2.0X. Received $10 million loan under the Paycheck Protection Program (PPP). Hallador plans to utilize the PPP funds to pay two months of payroll and other covered expenses. Under the terms of the CARES Act, the company expects a portion of the loan to be forgiven by maintaining current staffing levels through June 30, 2020.Solid Sales Position Through 2022\nDue to the impacts and economic uncertainty of COVID-19, the Company is suspending sales guidance, but still carries a strong contracted sales position through 2022. \nContracted\nEstimated\nTons\nPriced\nYear\n(millions)*\nper ton\n2020 (Q2 – Q4)\n5.0\n$ 40.25\n2021\n5.1\n$ 39.65\n2022\n5.3\n$ 40.25\n15.4\n* Contracted tons are subject to adjustment due to the exercise of customer options to either take additional tons or reduce tonnage if such options exist in the customer contract. \nThe table below repr...