Hallador Energy (NASDAQ:HNRG) Announces Earnings Results, Misses Estimates By $0.18 EPS

Key Points

• Hallador Energy reported a quarterly loss of $0.10 per share, missing the $0.08-per-share consensus estimate by $0.18, despite revenue of $130.25 million beating estimates. Revenue and adjusted EBITDA declined year over year, and operating cash flow was negative $21.8 million.
• Merom’s availability improved to 80% in August and September after maintenance, and about 95% of its accredited capacity is contracted through 2035.
• The planned Turtle Creek project could be a major growth opportunity, but it still lacks signed offtake and interconnection agreements, and Hallador has not secured all required capital. Management is targeting a final investment decision before year-end and commercial operation in the second half of 2028.

Hallador Energy (NASDAQ:HNRG - Get Free Report) posted its earnings results on Monday. The energy company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.08 by ($0.18), FiscalAI reports. The firm had revenue of $130.25 million during the quarter, compared to analyst estimates of $118.25 million. Hallador Energy had a negative net margin of 0.20% and a negative return on equity of 0.52%.

Here are the key takeaways from Hallador Energy's conference call:

• Merom generated more than 1.4 million MWh in the quarter, and availability reached 80% in August and September after its major maintenance outage. Hallador said it is investing in reliability as energy and capacity prices rise; about 95% of Merom’s accredited capacity is contracted through 2035, with blended capacity and energy prices increasing to $59/MWh in 2027.
• Third-quarter results weakened year over year: revenue fell to $130.3 million from $146.6 million, Hallador recorded a $4.5 million net loss versus net income of $23.9 million, and adjusted EBITDA declined to $17.3 million from $24.9 million. Operating cash flow was negative $21.8 million, with higher power-purchase costs contributing to the EBITDA decline.
• Hallador is targeting a final investment decision on Turtle Creek before year-end and commercial operation in the second half of 2028; the turbines have been exported and the MISO interconnection study is complete. Management estimates the roughly $800 million project could reach about $1.6 billion in value after contracting and construction, but this is an estimate, not guidance.
• Turtle Creek still lacks a signed offtake agreement and executed interconnection agreement, and Hallador has not secured all the additional capital needed. The $600 million construction facility includes $550 million funded at closing, carries a 3.5% cash interest rate on drawn funds, and management expects reported losses to widen before the plant operates; the company may use additional debt, equity, project financing, or a partial asset sale.

Hallador Energy Stock Performance

HNRG traded up $0.49 on Monday, hitting $10.59. 1,750,043 shares of the stock traded hands, compared to its average volume of 840,582. The business has a fifty day moving average price of $13.50 and a two-hundred day moving average price of $16.28. The company has a current ratio of 0.72, a quick ratio of 0.24 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $499.21 million, a PE ratio of 529.50 and a beta of 0.47. Hallador Energy has a 52 week low of $8.85 and a 52 week high of $24.70.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on HNRG. Weiss Ratings downgraded Hallador Energy from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Tuesday, August 18th. Wall Street Zen cut Hallador Energy from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 15th. Zacks Research downgraded Hallador Energy from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 12th. Alliance Global Partners raised shares of Hallador Energy to a "strong-buy" rating in a research report on Friday, August 14th. Finally, Northland Securities set a $27.00 target price on shares of Hallador Energy in a research note on Tuesday, October 6th. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Hallador Energy presently has a consensus rating of "Moderate Buy" and an average price target of $24.88.

About Hallador Energy

Hallador Energy Company NASDAQ: HNRG is an energy company focused primarily on the production and sale of thermal coal. Through its subsidiaries, the company operates coal mining assets in the Illinois Basin, supplying coal to electric power generators and other utility customers.

Hallador's principal operations have included Sunrise Coal, which manages underground and surface mining activities in Indiana. The company's coal products are used mainly for electricity generation, with sales serving utility markets in the Midwestern United States.

In addition to coal mining, Hallador has expanded into power generation through its ownership of the Merom Generating Station in Indiana.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.