Business
Hallador Energy Reports 2019 Annual Financial And Operating Results
TERRE HAUTE, Ind., March 9, 2020 /PRNewswire/ -- Hallador Energy Company (Nasdaq: HNRG) reports financial and operating results for the year ended December
About this update from Hallador Energy Company
[{"type":"text","content":"TERRE HAUTE, Ind., March 9, 2020 /PRNewswire/ -- Hallador Energy Company (Nasdaq: HNRG) reports financial and operating results for the year ended December 31, 2019. Hallador filed its Form 10-K after the markets closed today.\nBrent Bilsland, President and Chief Executive Officer, commented, \"After experiencing negative free cash flow at Carlisle over the past 18 months, we have decided to permanently close Carlisle which will further reduce our overall cost structure, maximize per ton margins and, reduce current and future capex by utilizing Carlisle equipment and parts at Oaktown. As we reduce coal and parts inventories, we will generate significant cash to be utilized for debt reduction.\"\n$16.7 MILLION IN ADJUSTED EBITDA FOR THE QUARTER, $68.7 MILLION IN ADJUSTED EBITDA FOR THE YEAR. STRONG SHIPMENTS IN Q4, PERMANENTLY CLOSING CARLISLE, SHARPENING CASH FLOW FOCUS \n2.0 million tons of coal were shipped in the 4th quarter, a record 8.1 million tons sold in 2019. Forecasting 6.7 million tons of coal shipments going forward. 2020 = 100% contracted at 6.7 million ton pace. 2021 = 79% contracted at 6.7 million ton pace. Permanently closing the Carlisle Mine allowing Sunrise to: Concentrate production on our lower cost Oaktown Mines, returning cost structure to $28-$30/ton. Move $23 million in equipment and infrastructure to Oaktown, decreasing companywide capex to ~$20 million in 2020 and leading to capex reductions in future years. Generating $20 million in cash from lowering coal and parts inventories throughout 2020. \nNET LOSS OF $1.7 MILLION BEFORE THE EFFECTS OF IMPAIRMENTS Net Loss $59.9 million (after $77.9 million of Asset Impairments) \nAs a result of permanently closing the Carlisle mine we recorded an impairment of $65.7 million. Additionally, we impaired the Bulldog reserve by $9.2 million and our Hourglass Sands project by $2.9 million. These three impairments totaled $77.9 million.The table below represents some of our critical metrics (in thousands except for per ton data):\nYear Ended\nDecember 31,\n2019\n2018\nNet Income (loss)\n$\n(59,854)\n$\n7,621\nTotal Revenues\n$\n323,462\n$\n293,557\nTons Sold\n8,070\n7,365\nAverage Price per Ton\n$\n39.34\n$\n39.62\nBank Debt\n$\n180,150\n$\n188,463\nOperating Cash Flow\n$\n38,243\n$\n51,570\nAdjusted EBITDA*\n$\n68,761\n$\n74,085\nAdjusted Free Cash Flow **\n$\n29,75...