Hallador Energy Company reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Hallador's total sales and operating revenues decreased to $105.0 million from $165.8 million in the same period of 2023. This decline was primarily driven by a substantial drop in coal operations revenue, which fell to $31.7 million from $97.4 million year-over-year. In contrast, electric operations revenue increased to $71.7 million from $67.4 million, reflecting a 6.5% rise. However, the overall income from operations for the quarter decreased to $4.7 million from $23.8 million in the prior year, with net income dropping to $1.6 million from $16.1 million.

For the nine months ended September 30, 2024, Hallador reported a net loss of $10.3 million, a stark contrast to a net income of $55.0 million for the same period in 2023. The decline in profitability was attributed to reduced coal production and sales, with coal operations revenue decreasing by 52.6% year-over-year. Electric operations also saw a revenue decline, with total revenues for the segment falling to $192.4 million from $231.1 million.

Strategically, Hallador initiated a reorganization plan in February 2024, resulting in a workforce reduction of approximately 110 employees, or 12% of its coal operations workforce. This restructuring aimed to enhance operational efficiency and reduce costs, particularly in higher-cost surface mines, which were idled. The company also executed a First Amendment to its Credit Agreement in September 2024, providing short-term covenant relief and additional flexibility for its financial operations.

As of September 30, 2024, Hallador's total assets were reported at $579.7 million, down from $589.8 million at the end of 2023. Total stockholders' equity increased to $318.8 million from $268.6 million, reflecting improved liquidity and capital management. The company reported cash and cash equivalents of $3.8 million, alongside restricted cash of $5.8 million, contributing to total liquidity of $34.9 million.

In terms of operational performance, Hallador Power generated 1,074,000 MWh in Q3 2024, a significant increase from the previous quarter, attributed to stronger power pricing and operational efficiency. The company is also progressing towards becoming an independent power producer, with ongoing negotiations to finalize agreements with data center developers in a market experiencing supply shortages.