Business
Hallador Energy Company Reports Full-Year 2022 Financial and Operating Results
TERRE HAUTE, Ind., March 16, 2023 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $18.1 million, $0.57 per share for
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., March 16, 2023 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $18.1 million, $0.57 per share for the full year 2022. Brent Bilsland, President and Chief Executive Officer, stated, \"2022 was a transformational year for Hallador. The market price for coal approached all-time highs. We were successful in signing 2.2 million tons of new coal sales contracts at an average price of approximately $125 per ton in the summer of 2022, of which a small percentage of deliveries were completed in 2022 and will continue through 2025, with the majority contracted to be delivered in 2023. We are tremendously excited about the future of our company as shipments of higher priced coal increase, the benefits of the Merom acquisition ramp up and our debt leverage ratio continues to decrease.” In 2022, we generated $54.2 million in operating cash flow which, we utilized to pay down our bank debt by $26.5 million. As of December 31, 2022, our bank debt was $85.2 million, our liquidity was $32.1 million, and our leverage ratio was 2.05X. On March 13, 2023, we executed an amendment to our credit facility, which converted $35 million of the outstanding revolver to term debt with the final $5 million payment due in March 2024 and extended the maturity of the remaining $85 million revolver capacity to May 2024. We made significant capital investments in 2022 to allow for increased coal production to meet market demand and provide coal to Merom. We increased production of coal in 2022 to 6.5 million, up from 5.8 million in 2021, with the potential to produce as much as 7.5 million tons in 2023.We were able to increase our average coal sales price to $45.64 per ton in 2022, up from $39.51 in 2021. Our estimated average coal sales price in 2023 is $58.70 per ton. Our year end coal margins increased to $8.35 per ton compared to $7.35 per ton in 2021, despite inflationary pressures increasing operational costs in 2022. We completed the acquisition of Merom Generating Station, a one-Gigawatt coal-fired power plant on October 21, 2022. Merom provides flexibility for up to 40% of our coal production beginning in 2024 to allow for dynamic-decision making to capture the greatest value between the energy and coal markets.At current capacity pricing, we expect sale of capacity accreditation at the plant to ...