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Hallador Energy Company Reports Full-Year 2021 Financial and Operating Results
TERRE HAUTE, Ind., March 28, 2022 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net loss of $3.8 million, ($.12) per share. Brent
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., March 28, 2022 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net loss of $3.8 million, ($.12) per share. Brent Bilsland, President and Chief Executive Officer, stated, \"The announcement of the acquisition of the Merom Generation Station is an absolute game changer for Hallador Energy Company. This transaction is an example of how Hallador can help its customers transition to renewables. Providing critical capacity to them in the near term, to maintain grid reliability, while creating a path to renewables through a PPA in the future.” On February 15th, 2022, Hallador Energy announced its new wholly owned subsidiary, Hallador Power Company, LLC, will acquire Hoosier Energy’s 1-Gigawatt Merom Generating Station (“Merom”), located in Sullivan County, Indiana, in return for assuming certain decommissioning costs and environmental responsibilities. The transaction, which includes a 3.5-year power purchase agreement (PPA), is scheduled to close in mid-July 2022 upon obtaining required governmental and financial approvals.We expect Hallador Power to contribute little to Hallador Energy profits in 2022. However, this acquisition is significant starting next year as we believe Hallador Power will double Hallador Energy's adjusted EBITDA starting in 2023.At the end of the plant's useful life, Hallador and Hoosier expect to finalize a PPA to allow for renewable energy. In 2021, we generated $48.0 million in operating cash flow which we utilized to pay down our bank debt by $26.0 million. As of December 31, 2021, our bank debt was $111.7 million, bringing our liquidity to $35.9 million and our leverage ratio to 2.34X, within our covenant of 3.0X.On March 25, 2022, we executed an amendment to our credit facility to maintain our leverage covenant at 3.0X. We anticipate adding even more liquidity to our balance sheet to facilitate the acquisition of the Merom Generating Station in mid-July of this year. Success in executing 5.8 million tons of new coal sales contracts were made in 2021: Increasing 2022 volumes to 6.8 million tons.Increasing 2023 volumes to 7.0 million tons (assumes completion of Merom acquisition) Improvement of 2023 average sales price by $3.29 over 2022. Solid Sales Position Through 2023 and Beyond: Contracted Estimated tons priceYear (millions)* per ton2022 (annual) 6.8 $39.81...