Business
Hallador Energy Company Reports Second Quarter 2020 Financial and Operating Results
TERRE HAUTE, Ind., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported income of $0.25 million, $0.01 per share and
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported income of $0.25 million, $0.01 per share and adjusted EBITDA of $13.2 million.\n Brent Bilsland, President and Chief Executive Officer, stated, \"Hallador was profitable, despite the pandemic which wreaked havoc on energy markets. We further lowered our cost structure and debt levels, while focusing on helping customers manage inventory levels. We are cautiously optimistic as coal shipments, energy markets and hopefully the world have begun a recovery.\" During Q2 2020, production costs fell to $28.94 per ton, a 9% reduction over the prior quarter, even as shipment delays resulted in lower sales volumes.In the first half of 2020, bank debt was reduced by $19 million, and operating cash flow was $17.2 million, in spite of coal inventories increasing by $13.8 million. We anticipate shipments to improve in the second half of the year and inventory levels to decline, improving operating cash flow.As of June 30, 2020, our liquidity was $52.6 million and our leverage ratio remained below 3.0X, which is comfortably within our covenant of 4.0X. Solid Sales Position Through 2022 ° Due 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. Contracted Estimated Tons Priced Year (millions)* per ton 2020 (Q3 – Q4) 3.7 $40.10 2021 5.2 $40.10 2022 5.3 $40.60 14.2 _____________ * 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. The table below represents some of our critical metrics (in thousands except for per ton data): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net Income (loss) $254 $(3,344) $(3,406) $3,656 Total Revenues $52,081 $72,310 $114,619 $161,623 Tons Sold 1,244 1,807 2,770 3,937 Average Price per Ton $40.57 $39.35 $40.58 $39.71 Bank Debt $161,113 $173,100 $161,113 $173,100 Operating Cash Flow $918 $2,864 $17,174 $23,711 Adjusted EBITDA* $13,175 $16,423 $27,074 $41,658 Adjusted Free Cash Flow ** $6,281 $5,943 $13,094 $20,595 *Defined as EBITDA plus stock-based compensation, ARO accretion, change in fair value of fuel hedges, less the effects of our equity method i...