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Hallador Energy Company (HNRG)
NASDAQ:HNRG
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Hallador Energy Company
(NASDAQ:HNRG)
Rating:55Neutral
Price Target:
$18.00
▲( 3.15% Upside)
Hallador Energy Company (HNRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$749.93M
Dividend YieldN/A
Average Volume (3M)892.11K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-27.04%
EPS Growth-892.84%
CountryUS
Employees615
SectorEnergy
Sector Strength45
IndustryCoal
Share Statistics
EPS (TTM)0.23
Shares Outstanding42,976,180
10 Day Avg. Volume1,256,253
30 Day Avg. Volume892,112
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)6.26
Price to Sales (P/S)0.00
P/FCF Ratio52.36
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda12.13
Forecast
1Y Price Target
$20.67Price Target Upside18.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 |
| -157.81M | 131.98M | 78.31M | 45.31M | 45.20M | Net Income Common Stockholders |
| -226.14M | 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
17.45
Price Trends
14.27
Positive
12.62
Positive
11.02
Positive
Market Momentum
1.41
Negative
58.24
Neutral
75.94
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 17.45 is above the 20-day moving average (MA) of 16.58, above the 50-day MA of 14.27, and above the 200-day MA of 11.02, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 75.94 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.38B | 12.36 | 14.71% | 10.64% | -8.53% | -53.44% | |
68 Neutral | $1.27B | 9.27 | 31.98% | 3.11% | -19.21% | -30.92% | |
62 Neutral | $487.21M | 43.10 | -0.08% | 4.55% | -10.23% | -100.04% | |
61 Neutral | $1.51B | 57.45 | 1.66% | 0.36% | -23.34% | -95.18% | |
59 Neutral | $2.38B | 22.50 | 5.20% | 0.71% | -21.04% | -75.78% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
55 Neutral | $749.93M | ― | -107.44% | ― | -27.04% | -892.84% |
* Energy Sector Average
Performance Comparison
HNRG
Hallador Energy Company
17.45
10.09
137.09%
ARLP
Alliance Resource
26.32
4.79
22.25%
NRP
Natural Resource PRN
96.46
10.12
11.72%
AMR
Alpha Metallurgical Resources
115.96
-193.77
-62.56%
METC
Ramaco Resources
9.07
-4.55
-33.41%
HCC
Warrior Met Coal
45.29
-20.66
-31.33%
Hallador Energy Company Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 14.88%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with notable achievements in revenue growth, improved net income, and debt reduction. However, some caution is warranted due to the decline in coal sales and uncertainty in ongoing negotiations.Q1-2025 Updates
Positive Updates
Return to Top-Line Growth
The company experienced a return to top-line growth with total operating revenue increasing to $117.8 million for the first quarter compared to $94.8 million in Q4 and $111.6 million in the prior year period.
Improved Bottom Line and Cash Flow
Net income for the first quarter improved to $10 million compared to net losses of $215.8 million in Q4 and $1.7 million in the prior year period. Operating cash flow increased to $38.4 million from $32.5 million in Q4 and $16.4 million in the prior year period.
Debt Reduction
Total bank debt was reduced to $23 million compared to $44 million at December 31, 2024 and $77 million at March 31, 2024.
Forward Sales Position and Energy Pricing
The forward energy and capacity sales position was $630.4 million as of March 31, 2025. Forward indicators continue to trend positively with strong indications for energy and capacity prices in 2025 and beyond.
Strategic Shift to Vertically Integrated Power Production
The strategic shift to a vertically integrated independent power producer is underscoring growth, with significant progress in negotiations with a leading global data center developer.
Negative Updates
Decline in Coal Sales
Coal sales were $54.8 million for the first quarter compared to $66 million in the prior year period, driven by a decision to reduce coal production as part of restructuring.
Uncertainty in Negotiations
There is uncertainty around executing definitive agreements with a leading global data center developer before the current exclusivity period expires.
Company Guidance
In the Hallador Energy's First Quarter 2025 Earnings Conference Call, the management highlighted several key metrics and strategic initiatives. The company reported a total operating revenue increase to $117.8 million, up from $94.8 million in Q4 2024, driven by electric sales of $85.9 million and coal sales of $54.8 million. Net income improved to $10 million from a net loss of $215.8 million in Q4, primarily due to a non-cash asset impairment previously recorded. Operating cash flow rose to $38.4 million, supported by strong energy pricing and enhanced coal mining margins, while adjusted EBITDA jumped to $19.3 million. The company also reduced bank debt to $23 million and increased liquidity to $69 million. Hallador is progressing on negotiations with a global data center developer for a long-term energy supply, and is considering extending an exclusivity period. They are also evaluating the addition of natural gas co-firing at the Merom plant to enhance operational flexibility. The forward sales book stood at approximately $1.5 billion, indicating strong future revenue prospects, while contracted approximately 3 million megawatt hours for 2025 at $37.20 per MWh and 3.4 million megawatt hours for 2026 at $44.43 per MWh.Hallador Energy Company Corporate Events
Business Operations and Strategy
Hallador Energy’s Agreement Terminated by Counterparty
Negative
May 22, 2025
On May 19, 2025, Hallador Energy Company announced that its Conversion Transaction Commitment Agreement, effective January 2, 2025, with a global datacenter developer was terminated by the counterparty. Despite this setback, the company continues to engage in discussions for an additional exclusivity period and is exploring opportunities with other interested third parties, which it believes will enhance its strategic positioning and deliver long-term value to shareholders.
The most recent analyst rating on (HNRG) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Hallador Energy Company stock, see the HNRG Stock Forecast page.
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.