The following is a summary of the Hallador Energy Company (HNRG) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Hallador Power generated 1.1 million megawatt hours in Q3 2024, up from 800,000 megawatt hours in Q2.

• Electric sales for Q3 were $71.7 million, coal sales were $48.3 million.

• Overall, Q3 revenue was $105 million with a net income of $1.6 million.

• Gross margin for the Power segment improved significantly to $16.36 per megawatt hour sold.

• Completed a $60 million prepaid power purchase agreement post-quarter.

Business Progress:

• Signed a non-binding term sheet with a global data center developer for long-term contracts.

• Restructured mining operations at Sunrise Coal to increase efficiency and reduce operational costs.

• Implemented a project for 4 most productive units, introducing a split air system that improves efficiency.

Opportunities:

• Anticipates long-term data center transactions facilitated by Indiana's favorable tax policy.

• Possesses a substantial portion of accredited capacity in MISO Zone 6.

• Strengthened balance sheet supports significant growth and margin expansion opportunities.

Risks:

• Regulatory and environmental challenges impact dispatchable generation including gas.

• Reduced capacity accreditation for intermittent resources like wind and solar affects the market's ability to meet accredited capacity needs.

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