Hallador Energy Company · NASDAQ:HNRG
Hallador Energy — Corporate Update (September 2014)
15 slides from Hallador Energy's corporate update, Sep 3, 2014
Slide 1: Hallador Energy Company Investor Relations Call
I HALLADOR ENERGY COMPANY INVESTOR RELATIONS CALL September 4, 2014 2:00 pm EST
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements”—that is, statements related to future, not past events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “ant
Slide 3: Participants
Participants Victor Stabio, Hallador Energy, Chairman of the Board Brent Bilsland, Hallador Energy, President & CEO Andy Bishop, Hallador Energy, Chief Financial Officer & Treasurer Larry Martin, Sunrise Coal, Chief Financial Officer 3
Slide 4: Agenda
Agenda Vectren Acquisition Closing Update Financing Acquisition Benefits Sunrise Coal Assets 230 MM Ton Complex Created Thick Reserves Sales/Cost Structure Familiar Customer Base Integration Timeline Q & A 4
Slide 5: Closing Update
Closing Update Closing occurred Friday, August 29, 2014 Closing price was $320 million Balance sheet adjustment true up to occur within 90 days of closing (coal inventory, parts inventory) New employee orientation occurred prior to closing. – Coal production commenced September 2, 2014. 5
Slide 6: Financing
Financing New Credit Facility – Lead Bank, PNC Capital Markets – 17 total participant banks 6
Slide 7: Acquisition Benefits
Acquisition Benefits Reduces operational risk and diversifies mine production Creates a 230 million ton contiguous reserve position Increases quality customer base (100% Investment Grade, 100% scrubbed, 100% “base load” plants) Enhances strong contract position through 2023 Expands market share to 2
Slide 8: Sunrise Coal Assets
Sunrise Coal Assets Sunrise is a wholly owned subsidiary of Hallador Energy Bulldog permit in 2015 War Eagle will now be mined through Oaktown 2 portal Setting the stage for 230 MM underground complex 8
Slide 9: Coal Assets
Coal Assets 9
Slide 10: MM ton Complex Created
230 MM ton Complex Created 10
Slide 11: Thick Reserves = Low Cost
Thick Reserves = Low Cost Identified Reserves (In Millions) Pine | capacity 2a Avs Thick | Ags Oaktown 1 32) 65 90% >5’ quired Reserves = ql Oaktown 2 3.2 30 sg Subtotal 6.4 95 5.9’ Carlisle ahah 57 Existing Reserves War Eagle (0) 78 Subtotal 3.3 135 49° Totals 9.7 230 HALLADOR ENERGY COMPANY ull
Slide 12: Sales / Cost Structure
Sales / Cost Structure Carlisle’s historical cost structure has been less than $30/ton cash cost 12
Slide 13: Familiar Customer Base
13 Familiar Customer Base 2013 Sunrise Customers 2013 Shared Customers 2013 Vectren Fuels Customers ® VECTREN ffm DUKE Meee ba VECTREN Se” ENERGY. a (Cayuga) ipl ouc g The Reliable One HOOSIERENERGY (Harding Street) (Stanton Energy) A erhe Enemy Coerive QED _ l (Frank E. Ratts) Hoosl SIERENERGY I DU
Slide 14: Integration Timeline
14 Integration Timeline PROSPERITY: PROSPERITY: PROSPERITY: Production idled 8/29 9/1-12/1 load out existing coal Fulfill remaining Prosperity contracts from Carlisle/Oaktown Complex inventory AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY @ e “@ “@ ‘ NEW EMPLOYEES: NEW EMPLOYEES: , OAKTOWN 1: O
Slide 15: Question & Answer
Question & Answer 15