Hallador Inks $700M Power Deal at Record Price, Forward Sales Hit $3B
HNRG is trading near its 52-week low of $13.19 (9.5% above the low).
Summary
Hallador executed six-year capacity and energy agreements with Duke Energy Indiana covering Merom Generating Station output from 2029 through 2035. The capacity agreement covers 225 ZRCs per day for approximately $271 million, and the energy agreement has an annual average base energy quantity of 200 MW. The capacity price is the highest the company has contracted to date, more than 20% above the March contract. The deal adds roughly $700 million in contracted revenue and lifts total forward sales to $3 billion at the segment level. About 95% of Merom's accredited capacity is now contracted through 2035. This follows the $600M term loan closed in September to fund the Turtle Creek gas project, and the Q2 loss driven by a plant outage. The new contract locks in long-term revenue at favorable prices, reducing cash flow uncertainty and supporting the company's transformation into a multi-fuel IPP.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — The counterparty is Duke Energy Indiana; the energy agreement has an annual average base energy quantity of 200 MW, and the capacity agreement covers 225 ZRCs per day for approximately $271 million.
At the time of this announcement, HNRG was trading at $14.44 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $643.5M. The 52-week trading range was $13.19 to $24.70. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.