Recent Updates — HNRG
Hallador Power Company, a subsidiary of Hallador Energy, executed six-year agreements with Duke Energy Indiana covering deliveries from the Merom Generating Station from June 2029 through May 2035. The transactions include a $271 million capacity agreement and an estimated $422 million energy contract, bringing total forward sales to approximately $700 million for this deal and lifting the company's overall contracted book to $3 billion. The agreements secure investment-grade revenue streams while leaving a majority of Merom’s production through 2040 contracted.
Hallador Energy Company closed a $600 million senior secured term loan facility on September 15, 2026, with Kennedy Lewis Investment Management LLC acting as lender. The facility includes $550 million funded at closing and a $50 million delayed draw commitment available for 12 months. Additionally, the company has the ability to establish a super-priority revolving credit facility of up to $75 million, creating a total financing package of up to $675 million. Proceeds will primarily fund the construction of the proposed 460-megawatt Turtle Creek Gas project, with approximately $120 million allocated to repay existing indebtedness under Texas Capital Bank facilities. The term loan matures in three years with an optional two-year extension and carries interest rates tied to SOFR plus a spread, subject to financial covenants including debt service coverage and leverage ratios. Hallador Energy Company operates as a vertically integrated independent power producer focused on electricity generation and coal mining.
Hallador Energy Company reported a net loss of $15.2 million for the second quarter ended June 30, 2026, compared to net income of $8.2 million in the prior-year period. Total revenue decreased to $101.5 million from $102.8 million, driven by lower delivered energy sales despite higher accredited capacity and third-party coal revenues. Adjusted EBITDA was negative $2.9 million versus positive $3.4 million previously. The company drew $45.0 million under a delayed draw term loan, resulting in total bank debt of $45.0 million at quarter-end. Capital expenditures rose to $26.3 million due to reliability upgrades and Turtle Creek project costs. Management updated the Turtle Creek Gas project timeline to commercial operation in the second half of 2028 with an estimated cost below $800 million. Contracted forward sales reached $2.4 billion at the segment level through 2040. Hallador Energy Company operates as a vertically-integrated independent power producer and coal supplier.
Hallador Energy Company entered into a Second Amendment to its Credit Agreement with Texas Capital Bank and various lenders to revise financial maintenance covenants. The amendment, effective for quarters ending on or after June 30, 2026, adjusts the total leverage ratio limit to 4.25 to 1.0 and establishes a stepped-down schedule for senior secured leverage ratios from 3.00 to 1.0 by June 30, 2026, down to 2.50 to 1.0 by June 30, 2027. Hallador Energy Company is an energy company involved in the production and management of energy resources.
On June 8, 2026, Hallador Energy Company appointed Matthew Bradford White as Chief Legal Officer. Mr. White's compensation package includes an annual base salary of $500,000, a target annual performance bonus of $175,000 (maximum $350,000), a one-time RSU grant valued at $200,000 vesting over three years, and a $100,000 signing bonus paid in immediately vesting RSUs. Additionally, he is entitled to a retention bonus upon a Change of Control consisting of $1,250,000 plus 2.5 times his prior year's annualized performance bonus and a prorated current year bonus. The company operates in the energy industry, focusing on oil and gas exploration and production.