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	Hallador Energy Company	5.17	0.05	0.98%
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TERRE HAUTE, Ind., March 13, 2024 (GLOBE NEWSWIRE) -- Hallador Energy Company (NASDAQ – HNRG) reports full year 2023 net income of $44.8 million, $1.35 basic earnings per share, operating cash flow of $59.4 million, and adjusted EBITDA of $107 million, all respectively.

Brent Bilsland, President and Chief Executive Officer, stated, "Hallador had a solid year as a company. Our coal division had near record margins for the full year, the continued integration of Hallador Power shows tremendous promise for future sales of energy and capacity and our recent MOU with Hoosier Energy and WIN REMC will allow us to market our Merom site to data centers, AI providers and other high-density power users to more efficiently operate the plant and drive increased margins to what we are seeing today. While the fourth quarter presented challenges in all sectors, we believe that our recent restructuring in our coal division, agreements like the MOU and the momentum that we are seeing in forward power sales will all continue to improve the long-term outlook for the company."

Below are highlights for the full year results of 2023:

• We increased Net Income, Operating Cash Flow and Adjusted EBITDA for the Year
  • Net income increased by approximately $27 million to $45 million for 2023.
    
  • Operating Cash Flow increased by approximately $5 million to $59.4 million for 2023.
    
  • Adjusted EBITDA* improved to $107 million for the year, an increase of approximately $51 million.

• Since January 1, 2023, We Secured Nearly $500 Million in New Long-Term Capacity and Energy Contracts
  • We have secured approximately $225 million in new capacity deals through 2028.
    
  • We have secured approximately $275 million in new energy deals through 2028.

• We Restructured our Coal Division to Increase Margins and Adjust to Current Market Conditions
  • The restructuring will reduce capital expenditure at the Oaktown Mining Complex by $10 million.
  • Maintains 4.5 million tons of annual production of our highest margin coal.
  • Reduced employee headcount by 110.
  • Idled highest cost surface mines.

• We Raised Approximately $19 Million Through ATM and Unsecured Notes to Support Liquidity
  • ATM raised $7.3 million in December and $6.6 million in January.
  • Raised $5 million in unsecured one-year notes from members of the Board of Directors in March 2024.
  • Capital used to support liquidity and accelerate strategic initiatives.

• We Signed Memorandum of Understanding (MOU) with Hoosier Energy and WIN REMC to Provide Opportunities for Non-Traditional Energy Sales at the Merom Site
  • Allows us to potentially capture additional margins above our traditional wholesale energy markets.
  • Allows us to market industrial users of power, such as data centers, AI providers and power dense manufacturers, to the Merom property.
  • We believe utilizing our plant to help supply these large users of energy with reliable, resilient electricity should allow us to operate more efficiently in a volatile power environment, generate increased margins and support the fragile power grid as it navigates the challenges of transition to new sources of energy in the coming decades.

The table below represents some of our critical metrics (in thousands, except for per ton data):

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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 liquidity and is a key component of certain material covenants contained within our Credit Agreement, specifically a maximum leverage ratio and a debt service coverage ratio. Noncompliance with the leverage ratio or debt service coverage ratio covenants could result in our lenders requiring the Company to immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the assessment of our liquidity. The required amount of Adjusted EBITDA is a variable based on our debt outstanding and/or required debt payments at the time of the quarterly calculation based on a rolling prior 12-month period.

Reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to cash provided by operating activities, the most comparable GAAP measure, is as follows (in thousands) for the years ended December 31, 2023 and 2022, respectively.

Reconciliation of GAAP "Cash provided by operating activities" to non-GAAP "Adjusted EBITDA" (in thousands)

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 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, 2022 and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Conference Call

As previously announced, the Company will host a live conference call on Thursday, March 14, 2024 at 2:00 p.m. Eastern Time. For US callers dial (833)-470-1428 and use access code 135892.

A replay of the conference call will be available for seven days. For US callers to listen to the replay, dial (866) 813-9403 and use access code 573916.

The conference call will also be available via a live listen-only webcast on the Company's website at www.halladorenergy.com.

Hallador is headquartered in Terre Haute, Indiana and through its wholly-owned subsidiaries, Sunrise Coal, LLC and Hallador Power, LLC, produces coal and electricity in the Illinois Basin for the electric power generation industry. To learn more about Hallador, visit our website at www.halladorenergy.com.