Business
Hallador Energy Company Reports Third Quarter 2021 Financial and Operating Results
TERRE HAUTE, Ind., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $8.0 million, $.26 per share,
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported net income of $8.0 million, $.26 per share, adjusted EBITDA of $20.5 million. Brent Bilsland, President and Chief Executive Officer, stated, \"An extremely strong coal market is creating opportunities for Hallador to ramp up to full production and increase our average selling price for the next few years. We will experience approximately $3 per ton price increase next quarter alone. Additionally, record shipments during the quarter led us to pay down a healthy $15.2 million of bank debt.\" Below are highlights for the quarter and first nine months of 2021: On shipments of 2.04 million tons, Hallador generated $14.6 million in Adjusted Free Cash Flow and paid down $15.2 million of bank debt during Q3. As of September 30, 2021, bank debt was reduced to $114.9 million. Liquidity increased to $41.7 million. Our $10 million PPP Loan was forgiven in its entirety during July. The forgiveness of the PPP loan was recognized in the quarter. Average price decreased 5% and production costs increased 13% year over year. Prices are expected to increase by ~$3 per ton in Q4 and production cost pressures are expected to dissipate throughout 2022. Solid Sales Position Through 2023 We expect to add tons later in the year for 2023 and beyond as the market is currently very short of coal supply. Contracted Estimated Tons Priced Year (millions)* per ton 2021 (Q4) 1.6 $41.40 2022 6.8 $39.50 2023 3.8 $41.30 12.2 *Shipments are subject to adjustment within certain coal contracts due to the exercise of customer options to either take additional tons or fewer tons 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net Income (loss) $7,986 $1,923 $3,990 $(1,483)Total Revenues $79,822 $65,247 $182,155 $178,580 Tons Sold 2,042 1,585 4,619 4,355 Average Price per Ton $38.71 $40.85 $38.86 $40.68 Bank Debt $114,925 $146,925 $114,925 $146,925 Operating Cash Flow $24,143 $16,935 $37,031 $34,109 Adjusted EBITDA* $20,516 $17,077 $43,234 $44,151 Adjusted Free Cash Flow ** $14,642 $11,557 $26,440 $24,651 *Defined as EBITDA plus stock-based compensation and ARO accretion, less the effec...