Hallador Energy Co (NASDAQ: HNRG) is an integrated energy company that mines thermal coal and generates wholesale electricity. It makes money through two operating segments: Sunrise Coal, which sells coal mined from the Illinois Basin to power plants across the Midwest and Southeast United States, and Hallador Power, which sells wholesale electricity capacity and energy into the MISO grid through power purchase agreements, bilateral transactions, and spot market sales. The power generation asset is the Merom Power Plant in Indiana, a 1,080 MW coal-fired station with two steam turbine generators that entered commercial operations in 1982 and 1983. The coal segment sold 4,311 thousand tons in FY2025 at an average realized price of $51.27 per ton, compared to 3,864 thousand tons at $52.41 per ton in FY2024. Merom ran at a 56% net capacity factor in FY2025, up from 44% in FY2024. The company is capital-intensive, carries interest-bearing debt, and operates in a regulatory environment covering mine safety, environmental compliance, and MISO interconnection rules.

Revenue model

Transactional and contract-based. Coal segment revenue comes from per-ton sales of clean recoverable coal under bilateral contracts. Power segment revenue comes from capacity sales through PPAs and bilateral transactions, plus energy sales in MISO day-ahead and real-time spot markets.

Products and services

Thermal coal mined from the Illinois Basin (Indiana V seam), sold at an average of $51.27 per ton in FY2025. Wholesale electric capacity sold as accredited capacity within the MISO system. Wholesale energy sold through PPAs, bilateral transactions, and MISO spot markets. The Merom Power Plant has 1,080 MW nameplate capacity and 775 MW accredited capacity (FY2025 average).

Customers and end markets

Utilities, generation and transmission cooperatives, and other energy market participants within the MISO interconnection system. Coal customers are power plants in the Midwest and Southeast United States. End markets are wholesale power generation and thermal coal supply.

Value-chain role

Vertically integrated from underground coal mining through coal-fired power generation. Sunrise Coal supplies coal to Merom and to third-party power plants. Hallador Power dispatches electricity into the MISO grid.

Geographic exposure

Operations concentrated in Indiana. The Oaktown Mining Complex (Oaktown Fuels No. 1 and No. 2 mines) mines Indiana V seam coal in the Illinois Basin. The Merom Power Plant is located in Indiana and dispatches power through the MISO interconnection covering the Midwest.

Competitors

Other Illinois Basin coal suppliers, Natural gas-fired power plants within MISO, Other dispatchable capacity providers within MISO

Source: SEC 10-K, filed 2026-03-12

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