Hallador Energy Company (HNRG) Investor presentation summary

Business overview and strategic positioning

• Vertically integrated power producer with a 1 GW Merom Power Plant and owned coal supply, ensuring cost control and supply security.

• $1.3 billion forward contracted sales with investment-grade counterparties, providing long-term revenue visibility.

• Active negotiations for multi-year PPAs with utilities and data center developers to secure predictable cash flows.

• MISO ERAS application accepted for a 515 MW natural gas expansion, targeting a ~50% increase in capacity and diversification.

• Legacy low-priced contract renewal at market rates boosts margins.

Market dynamics and growth drivers

• MISO region faces a projected 4.7 GW summer generation shortfall from 2026–2031, driving up power prices.

• Data center demand is surging, with Amazon investing $15B in Indiana for 2.4 GW of new capacity.

• NERC rates the region as "Elevated Risk" in 2027 and "High Risk" in 2028, highlighting the need for reliable baseload power.

• AI and onshoring trends are expected to sustain long-term demand growth.

Financial performance and capital structure

• FY 2025 revenue reached $470M, with $56M in adjusted EBITDA and $81.1M in operating cash flow.

• Over $230M reinvested in the business since 2022, while reducing debt by $65M.

• Total liquidity at year-end 2025 was $39M, with $15M in cash and $38M in bank debt and lease finance.

• Closed a new $120M, 3-year senior secured credit facility in March 2026, maturing in 2029.