Hallador's Merom Deal Locks Record Capacity Pricing, Lifts Sales Book to $3B
HNRG is trading near its 52-week low of $13.19 (12% above the low) on elevated volume (2.3× avg).
Summary
Hallador's six-year capacity and energy agreements with Duke Energy Indiana for Merom Generating Station carry record capacity pricing, more than 20% above the March contract. The deals add roughly $700 million in expected revenue and push the forward sales book to $3 billion, with 95% of Merom's accredited capacity now contracted through 2035. Contracted revenue per MWh climbs from $46 in 2026 to $73 in 2030, a step-change in pricing power. This follows the $600 million Kennedy Lewis term loan closed in September to fund the Turtle Creek gas project, which would boost total generating capacity by over 40%. Shares rose 9% on the news, reflecting the improved long-term revenue visibility. Next earnings report is estimated for November 9.
At the time of this announcement, HNRG was trading at $14.79 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $697.3M. 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: Benzinga.