Key Points
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Hallador swung to a third-quarter net loss of $4.5 million, from $23.9 million in profit a year earlier. Revenue declined to $130.3 million, while adjusted EBITDA fell to $17.3 million, pressured by lower third-party coal sales and a $9 million increase in purchased-power costs.
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Merom generation rebounded after scheduled maintenance, and an October agreement with an investment-grade utility adds an estimated $700 million in capacity and energy value over six years starting in 2029. Management says about 95% of Merom’s accredited capacity is contracted through 2035.
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Hallador is targeting a year-end investment decision on its roughly $800 million Turtle Creek gas power project, aiming for operations in the second half of 2028. The project has no signed output contract yet; funding options include debt, project financing, equity, or selling part of the project, with management seeking to limit shareholder dilution.
Hallador Energy (NASDAQ:HNRG) reported a third-quarter loss as lower coal sales and higher purchased-power costs weighed on results, while executives said they were working toward a year-end investment decision on the Turtle Creek gas power project.
The company reported a net loss of $4.5 million for the quarter, compared with net income of $23.9 million a year earlier. Revenue fell to $130.3 million from $146.6 million, although it rose 28% from the second quarter as delivered energy sales increased.
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Chairman and Chief Executive Officer Brent Bilsland said the Merom power plant generated more than 1.4 million megawatt hours during the quarter, despite one unit being offline for scheduled maintenance into July. He also highlighted an October power agreement with an investment-grade utility and the company’s plans to develop Turtle Creek.
Merom Contracts and Reliability
Merom’s generation increased 77% from the second quarter after the maintenance outage ended. Chief Financial Officer Todd Telesz said availability was 74% for the third quarter and 80% in August and September.
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Bilsland said the company is investing in the plant’s mechanical systems, staffing and technology to improve reliability. Hallador is introducing artificial intelligence tools that use real-time data to help identify potential problems and reduce downtime, he said.
