Business
Hallador Energy Company Reports Third Quarter 2022 Financial and Operating Results, Pays Down 34% of Outstanding Bank Debt
TERRE HAUTE, Ind., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported a net income of $1.6 million, $.05 per share,
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) today reported a net income of $1.6 million, $.05 per share, adjusted EBITDA of $18.4 million for the quarter ended September 30, 2022. Brent Bilsland, President and Chief Executive Officer, stated, \"Q3 was a transitional quarter for Hallador. We signed materially higher priced contracts and expanded our production capacity to take advantage of higher market prices. Subsequent to Q3, in October, we completed the acquisition of the Merom Generating Station which positions Hallador uniquely by providing new revenue streams and a platform for future potential investment including new generation and energy storage. During the quarter and subsequently, we were also able to fulfill our goal of deleveraging our balance sheet by reducing our bank debt by $44 million, 34% of our outstanding balance.\" Below are highlights for the quarter and first nine months of 2022: The Company returned to profitability on the strength of shipments of higher priced coal contracts. Margins improved $3.16 per ton in Q3 over Q2 on the strength of ~$49 average sales prices, despite production costs increasing to $37.46 per ton. Production and shipments of 1.7 million tons for the quarter. Higher priced contracts accelerate future deleveraging of Hallador's Balance Sheet With the 2.2 million tons of average priced ~$125 per ton contracts sold in Q2, the Company projects to be net debt free in 2023. The Merom Generating Station acquisition was completed on October 21, 2022, resulting in Hallador receiving net payments of $34 million. The Company reduced its debt by $17 million in Q3 and paid an additional $27 million from the proceeds of the Merom acquisition in October, resulting in a decrease of $44 million since Q2 reporting; lowering total bank debt to $87 million following October payments. The Company continues to be well positioned with contracted tons for the next few years. Contracted Estimated Tons Priced Year (millions)* per ton 2022 (Q4) 2.5 $49.00 2023 (annual) 6.7 $58.00 2024 - 2027 (total) 7.0 ** 16.2 ___________________*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 an option exists in the customer contract.**Unpriced or partially priced to...