Business
Hallador Energy Company Reports Record Net Income and Adjusted EBITDA for First Half of 2023; Leverage Ratio moves below 1.0X
TERRE HAUTE, Ind., Aug. 07, 2023 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) reports first half 2023 and second quarter net income of $39.0
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., Aug. 07, 2023 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) reports first half 2023 and second quarter net income of $39.0 million and $16.9 million, basic earnings per share of $1.18 and $0.51, operating cash flow of $44.2 million and $18.1 million, and adjusted EBITDA of $69.3 million and $35.3 million, all respectively. Brent Bilsland, President and Chief Executive Officer, stated, \"Record profitability and continued debt reduction has helped de-lever our balance sheet to less than 1.0 times EBITDA, which is a top priority for Hallador. Our team was also successful in closing a $140 million credit agreement, increasing our liquidity to $56.9 million as of June 30, 2023. Hallador Power completed its obligation of selling 100% of its output to Merom’s original owner and is now available to sell power to other markets.\" Below are highlights for the second quarter of 2023: The Company reported net income of $16.9 million and operating cash flow of $18.1 million on the continued strength of shipments of higher-priced coal contracts and another full quarter of operations at the Merom Generating Station. Coal Q2 2023 margins improved to $23.92 per ton, which represents an increase of $6.85 per ton over Q1 2023 and an increase of $15.53 per ton over Q2 2022. Margins for the quarter were $20.96 per ton after eliminations for coal sold to the Merom Power Plant. The Company shipped 1.7 million tons for the quarter, with approximately 0.3 million tons shipped to the Merom Power Plant. The Company closed on a $140 million credit facility on August 2, 2023 extending the maturity to 2026. Bank Debt was reduced by $1 million during the quarter, bringing our outstanding balance to $74.2 million in addition to $11.2 million in Letters of Credit as of June 30, 2023.The continued efforts to reduce debt, coupled with the higher adjusted EBITDA, resulted in our debt-to-adjusted EBITDA ratio falling to 0.94X as of June 30, 2023, and our liquidity growing to $56.9 million as of June 30, 2023 under the terms of the August 2, 2023 amendment. The Merom Generating Station continues to show positive results and increased interest from customers. The Company continues to be well-positioned with contracted coal tons and electric generation. 2023 (Q3/Q4) 2024 2025 Coal Priced tons (in millions) 4.0 3.4 1.3 Average price pe...