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Hallador Energy Company (HNRG)
NASDAQ:HNRG
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Hallador Energy Company
(NASDAQ:HNRG)
39Underperform
Hallador Energy Company (HNRG) vs. S&P 500 (SPY)
Market Cap
$554.05M
Dividend YieldN/A
Average Volume (3M)803.87K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-37.38%
EPS Growth-494.24%
CountryUS
Employees615
SectorEnergy
Sector Strength52
IndustryCoal
Share Statistics
EPS (TTM)-5.34
Shares Outstanding42,619,347
10 Day Avg. Volume934,174
30 Day Avg. Volume803,874
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.35
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside28.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Hallador Energy Company Business Overview & Revenue Model
Company DescriptionHallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown, Indiana; and Ace in the Hole mine located near Clay City, Indiana. It is also involved in gas exploration activities in Indiana. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.
How the Company Makes MoneyHallador Energy Company generates revenue primarily through the mining and sale of steam coal. The company's key revenue streams include long-term supply contracts with electric utilities, which provide a stable income base. Hallador Energy capitalizes on its strategic location in the Illinois Basin, which allows for cost-effective transportation and competitive pricing. Additionally, the company may engage in spot market sales when favorable market conditions arise. Factors that contribute to its earnings include operational efficiency, adherence to safety and environmental standards, and maintaining strong relationships with utility customers. The company's financial performance is also influenced by coal market prices, regulatory developments, and energy demand trends.
Hallador Energy Company Financial Statement Overview
Summary
Hallador Energy Company faces significant financial challenges, with declining revenues and profitability, high leverage, and negative equity. The company's cash flow situation is concerning, indicating potential liquidity issues. Strategic financial restructuring may be necessary to stabilize operations.Income Statement
The income statement shows volatile performance. Gross profit margins have improved over time but net profit margins have been inconsistent, with a significant loss in 2024. Revenue growth was strong until 2023 but declined sharply in 2024. The EBIT and EBITDA margins turned negative in 2024, indicating operational inefficiencies.35
Negative
Balance Sheet
The balance sheet reveals financial distress, with negative stockholders' equity in 2024 and no cash reserves. The debt-to-equity ratio is concerning due to high liabilities relative to equity. The equity ratio turned negative, indicating insolvency risk.20
Very Negative
Cash Flow
Cash flow analysis shows declining free cash flow, with a significant drop in 2024. Operating cash flow to net income ratio is not meaningful due to zero operating cash flow in 2024. The lack of positive free cash flow poses liquidity challenges.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 94.75M | 634.48M | 361.99M | 247.67M | 242.08M | Gross Profit |
| 49.37M | 161.09M | 48.51M | 8.85M | 16.48M | EBIT |
| -218.31M | 65.01M | 30.43M | -6.66M | 5.55M | EBITDA |
| -202.60M | 131.98M | 78.31M | 45.31M | 45.20M | Net Income Common Stockholders |
| -215.79M | 44.79M | 18.11M | -3.75M | -6.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 2.84M | 3.01M | 2.55M | 8.04M | Total Assets |
| 369.12M | 589.78M | 630.55M | 353.98M | 384.13M | Total Debt |
| 53.05M | 119.69M | 101.74M | 107.77M | 141.62M | Net Debt |
| 45.82M | 112.57M | 98.73M | 105.22M | 133.58M | Total Liabilities |
| 264.83M | 321.19M | 415.53M | 167.75M | 194.87M | Stockholders Equity |
| 104.28M | 268.59M | 215.02M | 182.24M | 185.26M |
| Cash Flow | Free Cash Flow | |||
| 12.57M | -15.94M | 149.00K | 19.92M | 31.89M | Operating Cash Flow |
| 65.93M | 59.41M | 54.17M | 47.97M | 52.58M | Investing Cash Flow |
| -46.47M | -75.29M | -53.37M | -27.52M | -18.19M | Financing Cash Flow |
| -14.43M | 16.57M | -207.00K | -26.69M | -35.63M |
Hallador Energy Company Technical Analysis
Positive
12.50
Price Trends
11.02
Positive
11.58
Positive
9.83
Positive
Market Momentum
0.57
Negative
56.83
Neutral
39.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNRG, the sentiment is Positive. The current price of 12.5 is above the 20-day moving average (MA) of 12.06, above the 50-day MA of 11.02, and above the 200-day MA of 9.83, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 56.83 is Neutral, neither overbought nor oversold. The STOCH value of 39.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNRG.
Hallador Energy Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.41B | 9.57 | 19.34% | 10.55% | -4.60% | -42.35% | |
78 Outperform | $1.49B | 4.54 | 10.41% | 2.45% | -14.50% | -46.36% | |
75 Outperform | $31.07B | 9.99 | 12.65% | ― | 5.89% | 27.09% | |
74 Outperform | $3.74B | 7.29 | 19.67% | 0.86% | -13.20% | -51.56% | |
72 Outperform | $2.44B | 14.16 | 12.64% | 0.74% | -17.03% | -78.54% | |
57 Neutral | $7.72B | 4.32 | -3.75% | 6.33% | -0.11% | -64.75% | |
39 Underperform | $554.05M | ― | -121.29% | ― | -37.38% | -494.24% |
* Energy Sector Average
Performance Comparison
HNRG
Hallador Energy Company
12.50
7.79
165.39%
ARLP
Alliance Resource
26.35
7.51
39.86%
ARCH
Arch Resources
134.83
-20.50
-13.20%
CNC
Centene
62.39
-8.34
-11.79%
BTU
Peabody Energy Comm
11.23
-11.53
-50.66%
CNR
Core Natural Resources
67.66
-15.46
-18.60%
Hallador Energy Company Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: 12.51% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Hallador's strategic shift to a power producer and progress in securing a significant partnership, alongside financial strategy improvements. However, the call also revealed considerable financial challenges, including a large impairment charge and declining coal sales.Highlights
Transformation to Vertically-Integrated Power Producer
In 2024, Hallador transitioned from a traditional coal producer to a vertically-integrated power producer (IPP). This shift aligns with market trends and aims to unlock long-term shareholder value.
Strategic Partnership Progress
Signed a non-binding term sheet and an exclusivity agreement with a global data center developer, with financial commitments up to $5 million during the exclusivity period, indicating progress towards a definitive agreement.
Power Generation and Sales Growth
Increased megawatt hours generated in Q4 by 5% from Q3, with improving pricing trends and higher dispatch rates. Contracted 4.25 million megawatt hours for 2025 at $37.24 per MWh.
Reduction in Bank Debt
Reduced total bank debt from $91.5 million to $44 million by the end of 2024, strengthening the balance sheet.
Lowlights
Significant Non-Cash Impairment Charge
Recorded a $215.1 million non-cash impairment charge for Sunrise Coal's long-lived assets, impacting Q4 results.
Decline in Coal Sales
Coal sales decreased to $23.4 million in Q4 from $91.7 million in the prior year period due to reduced coal production.
Net Loss in Q4
Reported a net loss of $215.8 million in Q4, compared to a net income of $1.6 million in Q3.
Company Guidance
During Hallador Energy's fourth quarter and full year 2024 earnings conference call, President and CEO Brent Bilsland detailed the company's strategic shift from coal production to a vertically-integrated independent power producer (IPP) model, which aligns with evolving market conditions. A notable milestone was achieved in October 2024 with a non-binding term sheet and subsequent exclusivity agreement with a global data center developer, potentially worth up to $5 million. Hallador Power's Merom plant generated 3.8 million megawatt hours at $48.62 per MWh in 2024, with contracted sales for 2025 and 2026 at 4.25 million MWh and 3.4 million MWh, respectively. The company reported a Q4 net loss of $215.8 million, impacted by a $215.1 million non-cash impairment charge on Sunrise Coal assets. Operating cash flow improved to $38.9 million, and capital expenditures for 2025 are projected at $66 million, including $14.8 million for EPA compliance. As of December 31, 2024, Hallador reduced bank debt to $44 million and increased forward energy and capacity sales to $685.7 million, contributing to a total $1.6 billion forward sales book. The company continues to explore opportunities for expanding its electric operations through strategic acquisitions of dispatchable generation assets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.