Hallador Energy Company

Hallador Executes $700M Sale, Record Price Lifts Forward Sales to $3 Billion

Hallador executed six-year capacity and energy agreements with an investment-grade MISO Zone 6 utility worth roughly $700 million, covering Merom Generating Station deliveries from June 2029 through May 2035. The deal is priced at the company's highest capacity price to date, more than 20% above its March contract, and lifts the total forward sales book to $3 billion at the segment level with ~95% of Merom's accredited capacity contracted through 2035. Contracted capacity and energy revenue per MWh rises from $46 for 2026 to $73 by 2030 and $75 for 2031-2035, supporting Hallador's ongoing transformation into a multi-fuel independent power producer alongside the 460-MW Turtle Creek gas project.

•1mo ago

Hallador Secures Up to $675 Million Debt Financing for Turtle Creek Gas

Hallador Energy closed a $600 million senior secured term loan on September 15, 2026 and has the ability to add a $75 million super-priority revolver, creating a financing package of up to $675 million to fund the 460-megawatt Turtle Creek Gas project, which carries an expected total cost below $800 million. About $550 million was funded at closing with a $50 million delayed draw available for up to 12 months, and roughly $120 million of proceeds repays the existing $45 million term loan and $75 million revolver. Kennedy Lewis Investment Management provided the term loan, with PEI Global Partners advising. Management says the facilities, a $2.4 billion contracted forward sales position, and expected operating cash flow give it a credible path to fully fund Turtle Creek with little to no equity dilution, though the CEO acknowledged the debt carries a higher rate than traditional bank project financing and expects to refinance once the plant reaches commercial operation.

•1mo ago

Hallador Selected by Department of Energy for ~$27.2 Million Award Negotiations

Hallador Energy’s subsidiary, Hallador Power, was selected by the U.S. Department of Energy to begin negotiations for up to $27.2 million in federal funding. The funds are intended to modernize the water management systems at the 1,080 MW Merom Generating Station in Indiana, with a total project cost estimated at $56.9 million. The company stated it does not anticipate the DOE funding will provide a material benefit to its 2026 financial results and noted that receipt of the funding is not guaranteed.

•5mo ago

Hallador Energy Acquires 460 MW of Siemens Turbines for $350 Million, Accelerating Merom Natural Gas Generation Project

Hallador Energy has entered into an agreement to acquire 460 MW of Siemens gas turbines and related equipment from Energy World Corporation for $350 million, with total delivered costs reaching $450 million including refurbishment and logistics. The acquisition secures critical long-lead equipment for the proposed Merom simple cycle natural gas project, which is currently advancing through MISO’s ERAS interconnection process. Management believes this de-risks the project timeline by bypassing current supply constraints and extended lead times for new turbine manufacturing. Hallador expects the facility to begin generating revenue between late 2028 and mid-2029. The company cites a contracted sales book exceeding $2.1 billion and a $1 billion capacity agreement as supporting its financing capacity, while noting it will pursue project-level financing to minimize equity dilution.

•5mo ago

Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results

Hallador announced a transformative 12-year capacity agreement for planning years 2028-2040, expected to generate over $1 billion in contracted revenue at more than 2x historical pricing levels. The deal covers approximately two-thirds of the company's accredited capacity and nearly doubles its forward sales book, providing significant long-term revenue visibility and balance sheet support. Despite a Q1 net loss of $9.3 million and revenue decline to $101.8 million due to availability constraints at the Merom plant, the company ended the quarter with no bank debt and total liquidity of $97.5 million.

•6mo ago