Hallador Energy Company (HNRG) Investor presentation summary

Strategic positioning and growth initiatives

• Operates a 1 GW power plant with 100% owned interconnection, ensuring high barriers to entry and future renewable integration potential.

• Owns Sunrise Coal, producing 3.6 million tons annually, securing fuel supply and cost control.

• $1.2 billion forward contracted sales book, excluding a new 12-year PPA expected to add $1 billion in revenue from 2028-2040.

• MISO ERAS application accepted for a 515 MW natural gas expansion, increasing capacity by ~50%.

• Longstanding relationships with major utilities and data center developers.

Market dynamics and demand drivers

• MISO region faces a 4.7 GW summer shortfall from 2026-2031, with surging data center demand driving price escalation.

• NERC rates the region as "Elevated Risk" in 2027 and "High Risk" in 2028, with shortfalls expected under normal peak conditions.

• Amazon's $15B investment in Indiana will add 2.4 GW of data center capacity, fueling sustained demand growth.

• Capacity markets are tightening, with repricing as accredited supply becomes critical for large-load customers.

Contracted revenue and financial visibility

• Executed two multi-year PPAs totaling ~$1.1B in contracted capacity revenue through mid-2040, locking in 14 years of forward sales.

• Recent 3-year and 12-year PPAs secure revenue through 2040, with pricing at 2x historical levels and increasing contracted volumes.

• 90% of variable costs are controlled via owned fuel, mitigating supply volatility and market risk.

• Retained merchant energy exposure preserves upside as energy prices rise.