Hallador Energy Co (HNRG) Reports Record Net Income and Adjusted EBITDA for First 9-Months of 2023
Hallador Energy Co (NASDAQ:HNRG) reports a net income of $55.0 million and adjusted EBITDA of $105.2 million for the first nine months of 2023.
The company secures $325 million in energy and capacity sales for the 2024-2028 timeframe.
Record profitability and continued debt reduction have helped de-lever the company's balance sheet to 0.71 times adjusted EBITDA.
The average cost per ton of coal was $42.57 for the nine months ending September 30, 2023.
On November 7, 2023, Hallador Energy Co (NASDAQ:HNRG) released its earnings report for the first nine months of 2023. The company reported a record net income of $55.0 million and adjusted EBITDA of $105.2 million. The company also secured $325 million in future energy and capacity sales, creating a profitable foundation for many years to come.
Financial Highlights
For the first nine months of 2023, Hallador Energy Co (NASDAQ:HNRG) reported a net income of $55.0 million and adjusted EBITDA of $105.2 million. The company's operating cash flow stood at $79.5 million. The company's balance sheet was de-levered to 0.71 times adjusted EBITDA, and liquidity increased to $66.4 million.
According to Brent Bilsland, President and Chief Executive Officer, "High coal sales prices coupled with large coal shipment volumes lead to record coal revenue. Our well-contracted sales book supported our revenue growth despite operational challenges, increasing our cost per ton during the quarter."
Future Energy and Capacity Sales
The company's sales team secured $325 million in energy and capacity sales for the 2024-2028 timeframe. This move is expected to create a profitable foundation for the company in the coming years.
Financial Tables Summary
The company's financial tables reveal that the average price per ton of coal was $42.57 for the nine months ending September 30, 2023. The total contracted tons for 2023 stood at 2.4 million, with 100% of the coal sold. The company's Power Capex Budget was $20 million.
Company Performance Analysis
Hallador Energy Co (NASDAQ:HNRG) has shown a strong financial performance in the first nine months of 2023, with record net income and adjusted EBITDA. The company's strategy of securing future energy and capacity sales is expected to provide a solid foundation for profitability in the coming years.
Despite operational challenges, the company has managed to increase its revenue growth, thanks to high coal sales prices and large coal shipment volumes. The company's continued debt reduction and record profitability have also contributed to the strengthening of its balance sheet.
However, it's important to note that the company's method of computing Adjusted EBITDA may not be the same as other companies. Therefore, it should not be considered an alternative to net income, income from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with GAAP.
Explore the complete 8-K earnings release (here) from Hallador Energy Co for further details.
This article first appeared on GuruFocus.
