Hallador returns to positive ledger in 2022
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Terre Haute-based Hallador Energy Co. (Nasdaq: HNRG) is reporting full fiscal year net income of $18.1 million, compared to a $3.7 million loss the previous year. The company says it made significant capital investments in 2022 to allow for increased coal production to meet market demand.
Part of that demand goes to its own power plant. In October, the company completed the acquisition of coal-fired Merom Generating Station in Sullivan County. Hallador purchased the plant from Bloomington-based Hoosier Energy.
Hallador says the power plant provides flexibility for up to 40% of our coal production beginning in 2024, which it says will allow for “dynamic-decision making to capture the greatest value between the energy and coal markets.”
Hallador Energy President and CEO Brent Bilsland said 2022 was a transformational year for the company.
“The market price for coal approached all-time highs. We were successful in signing 2.2 million tons of new coal sales contracts at an average price of approximately $125 per ton in the summer of 2022, of which a small percentage of deliveries were completed in 2022 and will continue through 2025, with the majority contracted to be delivered in 2023,” said Bilsland. “We are tremendously excited about the future of our company as shipments of higher priced coal increase, the benefits of the Merom acquisition ramp up and our debt leverage ratio continues to decrease.”
Hallador says it increased production of coal in 2022 to 6.5 million, up from 5.8 million in 2021. The company says it has the potential to produce as much as 7.5 million tons in 2023.
Click here to access the earnings report.