Hallador Reports Q2 2026 Results; Gas Project Budget Reduced Below $800 Million

- Turtle Creek COD Expedited to the Second Half of 2028 -

- Contracted Forward Sales Reach $2.4 Billion at the Segment Level -

- Management to Host Conference Call Today at 5:00 p.m. ET -

TERRE HAUTE, Ind., Aug. 10, 2026 (GLOBE NEWSWIRE) --  Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial and operating results for the second quarter ended June 30, 2026. The Company is also providing an update on the continued advancement of its Merom natural gas generation project, now formally named Turtle Creek Gas (“Turtle Creek”), including progress on equipment procurement, financing and interconnection.

“Since our strategic update in June, we have made significant progress across key elements of the Turtle Creek project,” said Brent Bilsland, Chairman and Chief Executive Officer. “We recently completed a site visit to get a firsthand update of the disassembly of the turbine equipment, which is underway with a substantial Siemens workforce on site, and we continue to be pleased with both the progress of the disassembly efforts and the condition of the turbine equipment. Shipment of the equipment remains on schedule for September, and the generator interconnection process is also advancing. As the equipment, restoration and construction scopes become more defined, the project economics have become even more compelling, and we now expect total project cost to be below $800 million, or approximately $1,700/kW — which we believe is a significant cost advantage relative to competing new-build capacity — while moving forward our targeted commercial operation timeframe to the second half of 2028, a timeline we believe is materially ahead of comparable projects. This progress moves us closer to a final investment decision on a 460 MW peaking project that would meaningfully expand and diversify our dispatchable generation platform. At the same time, the market backdrop continues to validate the strategic rationale for that investment. We are seeing robust demand for accredited capacity and energy from a growing and increasingly diverse set of counterparties, and are working towards additional forward sales before the end of the year. With $2.4 billion of revenue already contracted through 2040, and potentially more sales on the way, we believe Hallador offers investors a degree of revenue visibility that we believe is among the strongest in the sector.”

"Operationally, the second quarter is traditionally our lightest period of the year, as we take one of Merom's two units offline each spring for an approximately 60-day scheduled maintenance outage. During this year's outage at Unit 1, we completed major reliability upgrades designed to address the unplanned downtime the unit experienced in recent quarters. Unit 2 performed well over the course of the quarter; however, the limited unplanned downtime it did experience coincided with periods of elevated market prices, which magnified the financial impact by requiring us to purchase power at high prices to meet our delivery obligations. Together, these factors weighed on our second quarter results but do not, in our view, reflect the earning power of the plant. With the scheduled outage behind us and the reliability investments in place, we believe Merom is positioned to run more reliably going forward, and we expect generation volumes to improve sequentially in the third quarter."

Turtle Creek Update

The project’s interconnection application entered MISO’s Expedited Resource Addition Study (“ERAS”) process on June 2, 2026. Hallador expects to receive the results of that process, including the required system upgrade costs, in mid-August and, following its review, is targeting a final investment decision of the project and execution of a generator interconnection agreement in September. Indications to date from the study process have been encouraging.

In parallel, the Company is finalizing the construction scope and advancing financing discussions as it evaluates the appropriate capital structure for the project, with the objective of financing the project while minimizing equity dilution. Together, the interconnection, construction, and financing workstreams are among the principal remaining steps toward a final investment decision. The Company is now targeting commercial operation in the second half of 2028.

Second Quarter 2026 Highlights 

• • Second quarter results reflected higher maintenance costs associated with the annual planned outage at Merom Unit 1, during which the Company completed significant reliability upgrades, and higher purchased power costs resulting from limited unplanned downtime at Unit 2 that coincided with periods of elevated power prices, requiring the Company to purchase power to meet its delivery obligations. These impacts were partially offset by higher accredited capacity revenue and third-party coal sales.
    
    
  • Total revenue decreased to $101.5 million in the second quarter of 2026 from $102.8 million in the prior year period. The decrease was primarily driven by lower delivered energy sales, partially offset by higher accredited capacity revenue and third-party coal sales.
    
    
  • Net loss was $15.2 million in Q2 2026 compared to net income of $8.2 million in the prior-year period. Adjusted EBITDA was $(2.9) million in the second quarter of 2026 compared to $3.4 million in the prior-year period.
    
    
• Hallador continued to invest in Merom while positioning its balance sheet to support its strategic priorities.  
  
  
  • On May 15, 2026, Hallador drew $45.0 million available under its delayed draw term loan and used a portion of the proceeds to repay $8.0 million on the Company’s revolving credit facility. Total bank debt was $45.0 million at June 30, 2026, compared to no outstanding bank debt at March 31, 2026 and $30.0 million at December 31, 2025.
    
    
  • Total liquidity was $84.2 million at June 30, 2026, compared to $97.5 million at March 31, 2026 and $42.0 million at June 30, 2025. 
    
    
  • Capital expenditures were $26.3 million in Q2 2026 compared to $13.1 million in the prior-year period, primarily driven by reliability upgrades completed during the planned outage and expenditures for the Turtle Creek project. 
    
    
• Hallador continues to execute its contracting strategy, increasing long-term revenue visibility and monetizing its dispatchable generation platform.
  
  
  • As of June 30, 2026, Hallador had $1.8 billion of contracted revenue from delivered energy, accredited capacity and third-party coal sales, including accredited capacity commitments extending through 2040. Including intercompany coal sales, total contracted revenue at the segment level was $2.4 billion.
    

Financial Summary ($ in Millions and Unaudited)

     Q2 2026    Q2 2025Electric Sales $59.5  $60.0Coal Sales - 3rd Party $40.6  $38.1Other Revenue $1.4  $4.7Total Sales and Operating Revenue $101.5  $102.8Net Income (Loss) $(15.2) $8.2Operating Cash Flow $(23.9) $11.4Adjusted EBITDA* $(2.9) $3.4

* Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus loss on extinguishment of debt and other reclassifications such as special non-recurring project expenses.

Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies. Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our operations.

Reconciliation of Adjusted EBITDA to Net Income (Loss)
(In $ Thousands and Unaudited)      Three Months Ended     Six Months Ended      June 30,     June 30,      2026     2025     2026     2025  ADJUSTED EBITDA  $(2,864) $3,398  $2,643  $22,708 Stock-based compensation  (1,408)  (475)  (2,543)  (1,559)Asset retirement obligations accretion  (416)  (437)  (824)  (864)Other amortization (1)  2,251   13,032   3,202   24,366 Gain (loss) on disposal or abandonment of assets, net  (15)  55   186   76 Loss on extinguishment of debt  —   —   (230)  — Equity method investment (loss)  (244)  197   (365)  (39)Other reclassifications  (22)  1,839   (36)  1,600  EBITDA   (2,718)  17,609   2,033   46,288 Interest expense  (3,776)  (3,819)  (7,746)  (7,542)Income tax (expense) benefit  1,164   —   1,668   — Depreciation, depletion and amortization  (9,905)  (5,542)  (20,511)  (20,519) NET INCOME (LOSS) $(15,235) $8,248  $(24,556) $18,227 

 (1)   Other amortization relates to the non-cash amortization of the Hoosier PPA entered into and parts and supplies inventory acquired in connection with the acquisition of the Merom Power Plant in 2022.

Forward Sales Position - (unaudited)*

  2026 2027 2028 2029 2030 2031 - 2040 TotalPower                     Accredited Capacity                     Average daily contracted accredited capacity MW  765  789  768  608  500  500   Average contracted accredited capacity price per MWd $249 $262 $324 $461 $480 $480   Contracted accredited capacity revenue (in millions) $34.99 $75.31 $90.95 $102.37 $87.54 $824.78 $1,215.94                      Energy                     Contracted MWh (in millions)  2.59  3.59  1.92  0.71  —  —  8.81Average contracted price per MWh $44.15 $44.64 $45.08 $40.75 $— $—   Contracted revenue (in millions) $114.35 $160.26 $86.55 $28.93 $— $— $390.09Total Accredited Capacity & Energy Revenue (in millions) $149.34 $235.57 $177.50 $131.30 $87.54 $824.78 $1,606.03                      Coal                     Priced tons - 3rd party (in millions)  1.37  2.30  0.50  —  —  —  4.17Avg price per ton - 3rd party $55.72 $56.80 $59.00  —  —  —   Contracted coal revenue - 3rd party (in millions) $76.34 $130.64 $29.50 $— $— $— $236.48TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED $225.68 $366.21 $207.00 $131.30 $87.54 $824.78 $1,842.51                      Priced tons - Intercompany (in millions)  1.87  1.50  2.02  2.02  2.02  —  9.43Avg price per ton - Intercompany $51.00 $55.00 $56.00  57.00  58.00  —   Contracted coal revenue - Intercompany (in millions) $95.37 $82.50 $113.12 $115.14 $117.16 $— $523.29                      TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT $321.05 $448.71 $320.12 $246.44 $204.70 $824.78 $2,365.80

* Actual revenue related to forward sales positions may differ materially for various reasons, including unit contingencies, price adjustment features for coal quality and cost escalations, volume optionality provisions, including rollover of unfulfilled coal commitments into future periods, and potential force majeure events. Certain contracted forward sales positions included above are subject to approval by the Indiana Utility Regulatory Commission, which the Company expects on or before November 15, 2026. Forward sales figures in the 2026 column are for the period from July 1, 2026 through December 31, 2026. The table above reflects contracted balances as of June 30, 2026.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "guidance," "target," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to participate in the ERAS program (which ultimately requires the approval of MISO of our application and is a capital intensive project subject to construction, operational, financial, regulatory and legal risks that could impact the project’s viability and/or timeline) and achieve the expected benefits thereof, the anticipated timing of turbine equipment shipment, project cost expectations and expected cost and timing advantages relative to other projects, our expectations regarding additional forward sales, our ability to finance the Turtle Creek project on anticipated terms, including with little to no equity dilution, our ability and the ability of our counterparties to obtain regulatory approvals, including approval by the Indiana Utility Regulatory Commission of contracted capacity agreements, our ability to secure agreements in support of the development and construction of planned projects, including the expansion of our Merom Generating Station, and our expectations with respect to potential accelerating demand for accredited capacity. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2025, and other Securities and Exchange Commission filings. You should not place undue reliance on these forward-looking statements. The forward-looking statements in this release speak only as of the date of this release. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Conference Call and Webcast

Hallador management will host a conference call today, August 10, 2026, at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

Date: Monday, August 10, 2026
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at www.halladorenergy.com.

About Hallador Energy Company

Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and provides accredited capacity at its one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at www.halladorenergy.com.

Company Contact

Todd E. Telesz
Chief Financial Officer
[email protected]

Investor Relations Contact

Sean Mansouri, CFA

Elevate IR
(720) 330-2829
[email protected] 

Hallador Energy Company
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)     June 30,     December 31,   2026  2025 ASSETS      Current assets:      Cash and cash equivalents $28,979  $10,070 Restricted cash  5,950   5,302 Accounts receivable  14,396   13,989 Inventory  47,841   42,534 Parts and supplies  51,326   45,854 Prepaid expenses  1,507   5,638 Total current assets  149,999   123,387 Property, plant and equipment:        Land and mineral rights  69,952   69,952 Buildings and equipment  447,072   421,037 Mine development  102,302   102,302 Construction work in progress  57,955   39,671 Finance lease right-of-use assets  12,591   12,591 Total property, plant and equipment  689,872   645,553 Less - accumulated depreciation, depletion and amortization  (384,551)  (367,775)Total property, plant and equipment, net  305,321   277,778 Equity method investments  2,284   2,647 Operating lease right-of-use assets  2,734   — Other noncurrent assets  7,706   4,241 Total assets $468,044  $408,053        LIABILITIES AND STOCKHOLDERS' EQUITY        Current liabilities:        Current portion of bank debt, net $3,747  $— Accounts payable  31,632   12,594 Accrued liabilities and other  33,008   29,254 Current portion of lease financing  3,849   7,411 Contract liabilities - current  136,457   103,343 Total current liabilities  208,693   152,602 Long-term liabilities:        Bank debt, net  39,183   29,678 Long-term lease financing  310   1,338 Deferred income taxes  165   1,833 Asset retirement obligations  16,065   15,241 Contract liabilities - long-term  10,000   45,714 Other  3,296   1,814 Total long-term liabilities  69,019   95,618 Total liabilities  277,712   248,220 Commitments and contingencies (Note 14)        Stockholders' equity:        Preferred stock, $.10 par value, 10,000 shares authorized; none issued  —   — Common stock, $.01 par value, 100,000 shares authorized; 47,144 and 43,817 issued and outstanding, as of June 30, 2026 and December 31, 2025, respectively  471   438 Additional paid-in capital  257,985   202,963 Retained deficit  (68,124)  (43,568)Total stockholders’ equity  190,332   159,833 Total liabilities and stockholders’ equity $468,044  $408,053 

See accompanying notes to the condensed consolidated financial statements.

Hallador Energy Company
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)   Three Months Ended June 30, Six Months Ended June 30,  2026  2025  2026  2025 SALES AND OPERATING REVENUES:            Electric sales $59,509  $59,976  $127,286  $145,919 Coal sales  40,601   38,147   75,681   68,332 Other revenues  1,395   4,702   3,026   6,298 Total sales and operating revenues  101,505   102,825   205,993   220,549 EXPENSES:            Fuel  15,451   15,063   30,414   30,273 Other operating and maintenance costs  39,132   28,955   68,288   57,344 Cost of purchased power  8,633   2,172   23,496   9,012 Utilities  3,960   4,507   9,974   8,659 Labor  28,812   26,799   56,200   53,828 Depreciation, depletion and amortization  9,905   5,542   20,511   20,519 Asset retirement obligations accretion  416   437   824   864 Exploration costs  287   98   371   119 General and administrative  7,552   7,501   14,410   14,326 (Gain) loss on disposal or abandonment of assets, net  15   (55)  (186)  (76)Total operating expenses  114,163   91,019   224,302   194,868              INCOME (LOSS) FROM OPERATIONS  (12,658)  11,806   (18,309)  25,681              Interest income  279   64   426   127 Interest expense (1)  (3,776)  (3,819)  (7,746)  (7,542)Loss on extinguishment of debt  —   —   (230)  — Equity method investment (loss)  (244)  197   (365)  (39)NET INCOME (LOSS) BEFORE INCOME TAXES  (16,399)  8,248   (26,224)  18,227              INCOME TAX EXPENSE (BENEFIT):            Current  —   —   —   — Deferred  (1,164)  —   (1,668)  — Total income tax expense (benefit)  (1,164)  —   (1,668)  —              NET INCOME (LOSS) $(15,235) $8,248  $(24,556) $18,227              NET INCOME (LOSS) PER SHARE:            Basic $(0.32) $0.19  $(0.52) $0.43 Diluted $(0.32) $0.19  $(0.52) $0.42              WEIGHTED AVERAGE SHARES OUTSTANDING            Basic  47,133   42,619   46,831   42,798 Diluted  47,133   43,048   46,831   43,434              (1) Interest Expense:            Interest on bank debt $978  $1,404  $1,840  $2,898 Other interest  2,270   1,891   5,104   3,623 Amortization of debt issuance costs  528   524   802   1,021 Total interest expense $3,776  $3,819  $7,746  $7,542 

See accompanying notes to the condensed consolidated financial statements.

Hallador Energy Company
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)      Six Months Ended June 30,      2026     2025 CASH FLOWS FROM OPERATING ACTIVITIES:      Net income (loss) $(24,556) $18,227 Adjustments to reconcile net income (loss) to net cash provided by operating activities:      Deferred income tax (benefit)  (1,668)  — Equity method investment loss  365   39 Depreciation, depletion and amortization  20,511   20,519 Gain on disposal or abandonment of assets, net  (186)  (76)Loss on extinguishment of debt  230   — Amortization of debt issuance costs  802   1,021 Asset retirement obligations accretion  824   864 Cash paid on asset retirement obligation reclamation  (332)  (311)Stock-based compensation  2,543   1,559 Amortization of contract liabilities  (69,505)  (65,597)Accretion on contract liabilities  5,104   3,215 Amortization of right-of-use assets  319   — Other  1,465   284 Change in current assets and liabilities:      Accounts receivable  (407)  (3,304)Inventory  (5,307)  (6,885)Parts and supplies  (5,472)  (3,651)Prepaid expenses  (452)  1,003 Accounts payable and accrued liabilities  10,527   5,062 Contract liabilities  61,801   77,814 Net cash (used in) provided by operating activities  (3,394)  49,783 CASH FLOWS FROM INVESTING ACTIVITIES:        Capital expenditures  (33,941)  (24,737)Proceeds from sale of equipment  200   162 Investment in equity method investments  —   (322)Net cash used in investing activities  (33,741)  (24,897)CASH FLOWS FROM FINANCING ACTIVITIES:       Payments on bank debt  (79,200)  (44,000)Borrowings of bank debt  94,200   45,000 Payments on lease financing  (4,631)  (3,421)Debt issuance costs  (6,189)  (330)Proceeds from ATM offering, net of issuance costs  189   — Proceeds from public offering, net of issuance costs  53,764   — Taxes paid on vesting of RSUs  (1,441)  (1,918)Net cash (used in) provided by financing activities  56,692   (4,669)Increase in cash, cash equivalents, and restricted cash  19,557   20,217 Cash, cash equivalents, and restricted cash, beginning of period  15,372   12,153 Cash, cash equivalents, and restricted cash, end of period $34,929  $32,370 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:       Cash and cash equivalents $28,979  $9,228 Restricted cash  5,950   23,142   $34,929  $32,370 SUPPLEMENTAL CASH FLOW INFORMATION:       Cash paid for interest $1,435  $2,768 SUPPLEMENTAL NON-CASH FLOW INFORMATION:      Non-cash change in capital expenditures included in accounts payable and prepaid expense $14,773  $843 Right-of-use asset additions $2,407  $— 

See accompanying notes to the condensed consolidated financial statements.