Hallador Energy signs exclusive agreement with global data center developer

Hallador Energy (HNRG) announced that its wholly owned subsidiary, Hallador Power Company, executed a Conversion Transaction Commitment Agreement with a leading global data center developer, effective January 2, 2025. This Agreement is in furtherance of the previously announced non-binding term sheet signed during the third quarter of 2024, reflecting an important milestone as both the Company and the developer seek to finalize a definitive transaction agreement to support the delivery of energy and capacity to a potential data center development within the State of Indiana. The Agreement provides exclusivity in negotiations to the counterparty for a period of 105 Business Days and cumulative payments of up to $5 million to Hallador Power Company, LLC, with $1 million due in January, $2 million of payments due in March, if the parties have not satisfied certain conditions precedent to the proposed transaction, and an additional $2 million in June if such conditions precedent have not been satisfied by the end of the Exclusivity Period.