Hallador Energy initiated with a Buy at Texas Capital

Texas Capital analyst Matthew Key initiated coverage of Hallador Energy (HNRG) with a Buy rating and $23 price target The company operates the 1,080 MW Merom power plant in Sullivan County, Indiana, as well as a thermal coal mining complex, Oaktown, and since acquiring the plant in 2022, Hallador has shifted its strategy to becoming a leading vertically integrated power producer in the Midwest, with a large portion of its produced coal being consumed internally at the Merom Power Plant, the analyst tells investors in a research note. This vertically integrated structure allows the company to control the entire energy production process from mining to power generation, offering the company greater cost efficiencies and operational flexibility to balance supply and demand within the energy market, the firm added.