Hallador Energy swings to Q2 loss
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Terre Haute-based Hallador Energy Co. is reporting a second quarter net loss of $13.2 million, compared to net income of $18.5 million during the same period last year.
CEO Brent Bilsland cited a challenging market for spot electricity sales as a contributor to the results, but noted the company is making progress toward its efforts to increase value.
Bilsland said in a news release that record natural gas production last year combined with the second-warmest winter in 25 years led to a surplus in natural gas inventory.
“This imbalance has driven down both gas and electricity prices, resulting in an energy market where pricing was above our cost structure only 40% of the time during the first half of the year,” he said.
Hallador acquired the Merom Generating Station in Sullivan County in 2022 and has expanded its offerings from fuel production to wholesale electricity sales, Bilsland said.
Earlier this year, the company signed a memorandum of understanding with Bloomington-based Hoosier Energy and WIN Energy REMC to market the Merom site to high-density power users, including data centers.
“Since that time, we have carried out a data center targeted Request for Proposal that has received a robust response and is in active negotiations, further strengthening our conviction that power is in critical demand and that we possess a crucial component to the success of these data centers,” he said.
Bilsland noted that as natural gas inventories decrease and prices recover later this year, the company will be well positioned to “drive future power sales that can reshape Hallador’s financial profile.”
You can connect to the full earnings report by clicking here.