# EDGAR Filing Document

**Accession Number:** 0000788965
**File Stem:** 0001104659-26-056345
**Filing Date:** 2026-5
**Character Count:** 28725
**Document Hash:** 9f3d1de19ea33be5df842aa46fb14185
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-056345.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001104659-26-056345

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260506

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HALLADOR ENERGY CO
- **CENTRAL INDEX KEY:** 0000788965
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 841014610
- **STATE OF INCORPORATION:** CO
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34743
- **FILM NUMBER:** 26949512

**BUSINESS ADDRESS:**
- **STREET 1:** 1183 EAST CANVASBACK DRIVE
- **CITY:** TERRE HAUTE
- **STATE:** IN
- **ZIP:** 47802
- **BUSINESS PHONE:** 303-839-5504

**MAIL ADDRESS:**
- **STREET 1:** 1183 EAST CANVASBACK DRIVE
- **CITY:** TERRE HAUTE
- **STATE:** IN
- **ZIP:** 47802

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HALLADOR PETROLEUM CO
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KIMBARK OIL & GAS CO /CO/
- **DATE OF NAME CHANGE:** 19900102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KIMBARK INC
- **DATE OF NAME CHANGE:** 19860624

?xml version='1.0' encoding='ASCII'? Hallador Energy Company_May 6, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 8-K**

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): **May 6, 2026**

![Graphic](hnrg-20260506x8k001.jpg)

**Hallador Energy Company**

(Exact name of registrant as specified in its charter)

Colorado 001-34743 84-1014610 <br> (State or other jurisdictionof incorporation) (Commission File Number) (IRS EmployerIdentification No.)

1183 East Canvasback Drive, Terre Haute, Indiana 47802 <br> (Address, including zip code, of principal executive offices)

Registrant's telephone number, including area code: (812) 299-2800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

&nbsp;&nbsp;&nbsp;&nbsp;Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange<br>on which registered |
| Common Shares, $.01 par value | HNRG | Nasdaq |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 2.02 - Results of Operations and Financial Condition**

On May 6, 2026, Hallador Energy Company issued a press release announcing its first quarter 2026 financial and operating results. A copy of the press release is attached hereto as [Exhibit 99.1](hnrg-20260506xex99d1.htm) and is incorporated by reference herein.

The information included in this Current Report on Form 8-K, including [Exhibit 99.1](hnrg-20260506xex99d1.htm) hereto, that is furnished pursuant to this Item 2.02 shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, the information included in this Current Report on Form 8-K, including Exhibit 99.1 hereto, that is furnished pursuant to this Item 2.02 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.

**Item 9.01 – Financial Statements and Exhibits**

**(d) Exhibits**

99.1 – [**Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results**](hnrg-20260506xex99d1.htm)

104 – Cover Page Interactive Data File (embedded within the Inline XBRL document)

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| May 6, 2026 | By: | /s/ TODD E. TELESZ |
|  |  | Todd E. Telesz<br>CFO |

---

## Exhibit 99.1

#### EXHIBIT 99.1
![Graphic](hnrg-20260506xex99d1001.jpg)

**Hallador Energy Company Signs 12-Year Capacity Agreement for Over $1 Billion; Reports First Quarter 2026 Financial and Operating Results**

*- Q1 Total Revenue of $101.8 Million, with Operating Cash Flow of $20.5 Million -*

*- Q1 Net Loss of $9.3 Million, with Adj. EBITDA of $5.5 Million -*

*- On May 1, Hallador Signed a Capacity Agreement, for years 2028 – 2040, at More Than 2x Historical Capacity Pricing, Expected to Generate Over $1 Billion of Contracted Revenue -*

**TERRE HAUTE, Ind., May 6, 2026 –** Hallador Energy Company (Nasdaq: HNRG) ("Hallador" or the "Company") today reported its financial and operating results for the first quarter ended March 31, 2026. The Company is also announcing a newly signed 12-year capacity agreement with a subsidiary of a utility, which is further detailed below.

"In the last few months, we have made significant progress advancing our long-term contracting strategy, together with the three-year capacity agreement we announced in March for planning years 2026, 2027 and 2028, culminating now with the execution of a 12-year capacity agreement selling approximately 2/3<sup>rds</sup> of our accredited capacity starting in late 2028 through mid-2040. Together, these two capacity-only sales total approximately $1.1B, nearly doubling our forward sales book and making the Company substantially sold-forward on accredited capacity across the next fourteen consecutive years. We continue to see strong pricing signals for our remaining unsold capacity and continue to pursue opportunities in the market to add to our already substantial forward sales positions," said Brent Bilsland, President and Chief Executive Officer. "These agreements provide durable revenue visibility and balance sheet support and are expected to convert to cash flow at a very high rate, enabling the company to focus on disciplined capital allocation across potential growth initiatives such as our proposed 515MW gas plant project and our dual-fuel ambitions for our existing 1-GW Merom Power Plant."

"From an operating standpoint, first quarter results were generally in-line with expectations and reflect the impact of our previously disclosed availability constraints at Merom. With our planned plant outage now underway, emphasizing key reliability upgrades, we expect a meaningful improvement in performance as we move through the year and into the peak demand seasons."

**Capacity Agreement Overview**

Hallador signed a 12-year agreement to sell a substantial portion of its accredited capacity to a subsidiary of a utility for planning years 2028 through 2040. The agreement initially covers a smaller volume of accredited capacity in 2028, increasing to approximately 2/3<sup>rds</sup> of the company's accredited capacity beginning in 2029 through 2040. The sale is priced above the recent three-year agreement signed in March, and pricing is the same for all 12 years of the contract. Hallador expects to generate more than $1 billion in cumulative revenue from the agreement, nearly doubling its forward sales book, and is expected to convert to free cash flow at a very high rate. The structure is capacity-only and does not include the sale of energy, allowing the Company to retain flexibility to optimize future energy sales. The agreement is subject to customary regulatory approvals anticipated to be received in the second half of 2026.

**First Quarter 2026 Highlights** 

● First quarter results reflected previously disclosed availability constraints at Merom, partially offset by continued strength in accredited capacity pricing and forward sales execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Total revenue was $101.8 million in the first quarter of 2026 compared to $117.7 million in the prior year period, driven by lower electric sales due to reduced generation at Merom, partially offset by higher accredited capacity revenue and improved coal pricing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Net loss was $(9.3) million compared to net income of $10.0 million in the prior year period, and adjusted EBITDA was $5.5 million compared to $19.3 million in the prior year period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● The Company generated $20.5 million of operating cash flow in the first quarter, which was partially used to fund capex.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Hallador had no outstanding bank debt at March 31, 2026, compared to $29.7 million at December 31, 2025 and $23.0 million at March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Total liquidity was $97.5 million at March 31, 2026, following the signing of its new credit facility in early March, compared to $38.8 million at December 31, 2025, and $69.0 million at March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Capital expenditures in the first quarter were $7.7 million compared to $11.7 million in the year-ago period.

● Hallador continues to execute on its contracting strategy, increasing long-term revenue visibility and monetizing its dispatchable generation platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Subsequent to quarter-end, the Company entered into a 12-year capacity agreement expected to generate more than $1 billion of contracted revenue through 2040, nearly doubling its forward sales book.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o As of March 31, 2026, Hallador had approximately $1.2 billion of total forward energy, capacity and coal sales commitments through 2029, or $859.6 million excluding the coal sales to Merom. Neither of these totals include the recently signed 12-year capacity agreement.

**Financial Summary** *($ in Millions and Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **Q1 2026** | **Q1 2025** |
| **Electric Sales** | $65.1 | $85.9 |
| **Coal Sales - 3**<sup>rd</sup> **Party** | $35.1 | $30.2 |
| **Other Revenue** | $1.6 | $1.6 |
| **Total Sales and Operating Revenue** | $101.8 | $117.7 |
| **Net Income (Loss)** | $(9.3) | $10.0 |
| **Operating Cash Flow** | $20.5 | $38.4 |
| **Adjusted EBITDA\*** | $5.5 | $19.3 |

---

------

<sub>\* Non-GAAP financial measure, defined as EBITDA</sub> <sub>plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus loss on extinguishment of debt and other reclassifications such as special non-recurring project expenses.</sub>

Adjusted EBITDA 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. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies. Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our operations.

------

**Reconciliation of GAAP "Net Income (Loss)" to non-GAAP "Adjusted EBITDA"**

**(In $ Thousands and Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INCOME (LOSS)** | $(9321) | $9979 |
| Interest expense | 3970 | 3723 |
| Income tax expense (benefit) | (504) |  |
| Depreciation, depletion and amortization | 10606 | 14977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EBITDA** | 4751 | 28679 |
| Stock-based compensation | 1135 | 1084 |
| Asset retirement obligations accretion | 408 | 427 |
| Other amortization (1) | (951) | (11334) |
| Gain on disposal or abandonment of assets, net | (201) | (21) |
| Loss on extinguishment of debt | 230 |  |
| Equity method loss | 121 | 236 |
| Other reclassifications | 14 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ADJUSTED EBITDA**  | $5507 | $19310 |

---

(1)Other amortization relates to the non-cash amortization of the Hoosier PPA entered into and parts and supplies inventory acquired in connection with the acquisition of the Merom Power Plant in 2022.

#### Forward Sales Position - (unaudited)\*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2026** | **2027** | **2028** | **2029** | **Total** |
| **Power** |  |  |  |  |  |
| **Accredited Capacity** |  |  |  |  |  |
| Average daily contracted accredited capacity MW | 781 | 782 | 668 | 340 |  |
| Average contracted accredited capacity price per MWd | $246 | $264 | $300 | $398 |  |
| Contracted accredited capacity revenue (in millions) | $52.82 | $75.26 | $73.28 | $20.44 | $221.80 |
| **Energy** |  |  |  |  |  |
| Contracted MWh (in millions) | 3.10 | 3.06 | 1.09 | 0.27 | 7.52 |
| Average contracted price per MWh | $43.74 | $46.50 | $52.94 | $51.33 |  |
| Contracted revenue (in millions) | $135.59 | $142.29 | $57.70 | $13.86 | $349.44 |
| Total Accredited Capacity & Energy Revenue (in millions) | $188.41 | $217.55 | $130.98 | $34.30 | $571.24 |
| **Coal** |  |  |  |  |  |
| Priced tons - 3rd party (in millions) | 2.10 | 2.50 | 0.50 |  | 5.10 |
| Avg price per ton - 3rd party | $55.73 | $56.74 | $59.00 |  |  |
| Contracted coal revenue - 3rd party (in millions) | $117.03 | $141.85 | $29.50 | $— | $288.38 |
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - CONSOLIDATED | $305.44 | $359.40 | $160.48 | $34.30 | $859.62 |
| Priced tons - Intercompany (in millions) | 2.08 | 2.30 | 3.17 |  | 7.55 |
| Avg price per ton - Intercompany | $51.00 | $51.00 | $51.00 |  |  |
| Contracted coal revenue - Intercompany (in millions) | $106.08 | $117.30 | $161.67 | $— | $385.05 |
| TOTAL CONTRACTED REVENUE (IN MILLIONS) - SEGMENT | $411.52 | $476.70 | $322.15 | $34.30 | $1244.67 |

---

\* Actual revenue related to forward sales positions may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions, including rollover of unfulfilled coal commitments into future periods, and potential force majeure events. Forward sales figures in the 2026 column are for the period from April 1, 2026 through December 31, 2026. The table above reflects contracted balances as of March 31, 2026 and does not include the recently signed 12-year capacity agreement.

------

Forward-Looking Statements

*This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the* "*Securities Act*"*), and Section 21E of the Securities Exchange Act of 1934, as amended (the* "*Exchange Act*"*). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as* "*expects,*" "*believes,*" "*intends,*" "*anticipates,*" "*plans,*" "*estimates,*" "*guidance,*" "*target,*" "*potential,*" "possible," *or* "*probable*" *or statements that certain actions, events or results* "*may,*" "*will,*" "*should,*" *or* "*could*" *be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to participate in the ERAS program (which ultimately requires the approval of MISO of our application and is a capital intensive project subject to construction, operational, financial, regulatory and legal risks that could impact the project's viability and/or timeline) and achieve the expected benefits thereof, our ability to secure agreements in support of the development and construction of planned projects, including the expansion of our Merom Generating Station, and our expectations with respect to potential accelerating demand for accredited capacity. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador's annual report on Form 10-K for the year ended December 31, 2025, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.*

**Conference Call and Webcast**

Hallador management will host a conference call today, May 6, 2026 at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

**Date:** Wednesday, May 6, 2026

**Time:** 5:00 p.m. Eastern time

**Toll-free dial-in number:** (800) 715-9871

**International dial-in number:** (646) 307-1963

**Conference ID:** 8503380

**Live webcast registration link:** <u>here</u>

The conference call will also be broadcast live and available for replay in the investor relations section of the Company's website at <u>www.halladorenergy.com</u>.

#### About Hallador Energy Company
Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and provides accredited capacity at its one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company's website at www.halladorenergy.com.

**Company Contact**

Todd E. Telesz

Chief Financial Officer

<u>TTelesz@halladorenergy.com</u>

**Investor Relations Contact**

Sean Mansouri, CFA

Elevate IR

(720) 330-2829

<u>HNRG@elevate-ir.com</u><u> </u>

------

Hallador Energy Company

**Condensed Consolidated Balance Sheets**

(in thousands, except per share data)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $36778 | $10070 |
| &nbsp;&nbsp;Restricted cash | 6585 | 5302 |
| &nbsp;&nbsp;Accounts receivable | 9152 | 13989 |
| &nbsp;&nbsp;Inventory | 47164 | 42534 |
| &nbsp;&nbsp;Parts and supplies | 47893 | 45854 |
| &nbsp;&nbsp;Prepaid expenses | 1604 | 5638 |
| &nbsp;&nbsp;Other current assets | 1927 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 151103 | 123387 |
| **Property, plant and equipment:** |  |  |
| &nbsp;&nbsp;Land and mineral rights | 69952 | 69952 |
| &nbsp;&nbsp;Buildings and equipment | 440682 | 421037 |
| &nbsp;&nbsp;Mine development | 102302 | 102302 |
| &nbsp;&nbsp;Construction work in progress | 35788 | 39671 |
| &nbsp;&nbsp;Finance lease right-of-use assets | 12591 | 12591 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment | 661315 | 645553 |
| &nbsp;&nbsp;Less - accumulated depreciation, depletion and amortization | (376481) | (367775) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment, net | 284834 | 277778 |
| &nbsp;&nbsp;Equity method investments | 2528 | 2647 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 2315 |  |
| &nbsp;&nbsp;Other noncurrent assets | 7852 | 4241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $448632 | $408053 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;Accounts payable | $19818 | $12594 |
| &nbsp;&nbsp;Accrued liabilities and other | 35078 | 29254 |
| &nbsp;&nbsp;Current portion of lease financing | 4981 | 7411 |
| &nbsp;&nbsp;Contract liabilities - current | 130170 | 103343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 190047 | 152602 |
| **Long-term liabilities:** |  |  |
| &nbsp;&nbsp;Bank debt, net |  | 29678 |
| &nbsp;&nbsp;Long-term lease financing  | 617 | 1338 |
| &nbsp;&nbsp;Deferred income taxes | 1329 | 1833 |
| &nbsp;&nbsp;Asset retirement obligations | 15649 | 15241 |
| &nbsp;&nbsp;Contract liabilities - long-term | 32148 | 45714 |
| &nbsp;&nbsp;Other | 3268 | 1814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 53011 | 95618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 243058 | 248220 |
| **Commitments and contingencies (Note 14)** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;Preferred stock, $.10 par value, 10,000 shares authorized; none issued |  |  |
| &nbsp;&nbsp;Common stock, $.01 par value, 100,000 shares authorized; 47,132 and 43,817 issued and outstanding, as of March 31, 2026 and December 31, 2025, respectively | 471 | 438 |
| &nbsp;&nbsp;Additional paid-in capital | 257992 | 202963 |
| &nbsp;&nbsp;Retained deficit | (52889) | (43568) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 205574 | 159833 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $448632 | $408053 |

---

------

Hallador Energy Company

**Condensed Consolidated Statements of Operations**

(in thousands, except per share data)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| **SALES AND OPERATING REVENUES:** |  |  |
| &nbsp;&nbsp;Electric sales | $65096 | $85943 |
| &nbsp;&nbsp;Coal sales | 35080 | 30185 |
| &nbsp;&nbsp;Other revenues | 1631 | 1596 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total sales and operating revenues | 101807 | 117724 |
| **EXPENSES:** |  |  |
| &nbsp;&nbsp;Fuel | 14963 | 15210 |
| &nbsp;&nbsp;Other operating and maintenance costs | 29156 | 28389 |
| &nbsp;&nbsp;Cost of purchased power | 14863 | 6840 |
| &nbsp;&nbsp;Utilities | 3333 | 4152 |
| &nbsp;&nbsp;Labor | 27388 | 27029 |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 10606 | 14977 |
| &nbsp;&nbsp;Asset retirement obligations accretion | 408 | 427 |
| &nbsp;&nbsp;Exploration costs | 84 | 21 |
| &nbsp;&nbsp;General and administrative | 6858 | 6825 |
| &nbsp;&nbsp;Gain on disposal or abandonment of assets, net | (201) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 107458 | 103849 |
| **INCOME (LOSS) FROM OPERATIONS** | (5651) | 13875 |
| &nbsp;&nbsp;Interest income | 147 | 63 |
| &nbsp;&nbsp;Interest expense (1) | (3970) | (3723) |
| &nbsp;&nbsp;Loss on extinguishment of debt | (230) |  |
| &nbsp;&nbsp;Equity method investment (loss) | (121) | (236) |
| **NET INCOME (LOSS) BEFORE INCOME TAXES** | (9825) | 9979 |
| **INCOME TAX EXPENSE (BENEFIT):** |  |  |
| &nbsp;&nbsp;Current |  |  |
| &nbsp;&nbsp;Deferred | (504) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income tax expense (benefit) | (504) |  |
| **NET INCOME (LOSS)** | $(9321) | $9979 |
| **NET INCOME (LOSS) PER SHARE:** |  |  |
| &nbsp;&nbsp;Basic | $(0.20) | $0.23 |
| &nbsp;&nbsp;Diluted | $(0.20) | $0.23 |
| **WEIGHTED AVERAGE SHARES OUTSTANDING** |  |  |
| &nbsp;&nbsp;Basic | 46519 | 42619 |
| &nbsp;&nbsp;Diluted | 46519 | 43462 |
| <u>(1) Interest Expense:</u> |  |  |
| Interest on bank debt | $862 | $1494 |
| Other interest | 2834 | 1732 |
| Amortization of debt issuance costs | 274 | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | $3970 | $3723 |

---

------

Hallador Energy Company

**Condensed Consolidated Statements of Cash Flows**

(in thousands)

(unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income (loss) | $(9321) | $9979 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Deferred income tax (benefit) | (504) |  |
| &nbsp;&nbsp;Equity method investment loss | 121 | 236 |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 10606 | 14977 |
| &nbsp;&nbsp;Gain on disposal or abandonment of assets, net | (201) | (21) |
| &nbsp;&nbsp;Loss on extinguishment of debt | 230 |  |
| &nbsp;&nbsp;Amortization of debt issuance costs | 274 | 497 |
| &nbsp;&nbsp;Asset retirement obligations accretion | 408 | 427 |
| &nbsp;&nbsp;Cash paid on asset retirement obligation reclamation | (148) | (156) |
| &nbsp;&nbsp;Stock-based compensation | 1135 | 1084 |
| &nbsp;&nbsp;Amortization of contract liabilities | (36447) | (35669) |
| &nbsp;&nbsp;Accretion on contract liabilities | 2834 | 1560 |
| &nbsp;&nbsp;Amortization of right-of-use assets | 87 |  |
| &nbsp;&nbsp;Other | 1533 | 3224 |
| &nbsp;&nbsp;Change in current assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 4837 | 2856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | (4630) | 367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Parts and supplies | (2039) | (1033) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (2580) | (330) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 7427 | 3124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 46874 | 37297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 20496 | 38419 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;Capital expenditures | (7681) | (11693) |
| &nbsp;&nbsp;Proceeds from sale of equipment | 201 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (7480) | (11672) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;Payments on bank debt | (56700) | (33000) |
| &nbsp;&nbsp;Borrowings of bank debt | 26700 | 12000 |
| &nbsp;&nbsp;Payments on lease financing | (3172) | (1693) |
| &nbsp;&nbsp;Debt issuance costs | (5780) |  |
| &nbsp;&nbsp;Proceeds from ATM offering, net of issuance costs | 201 |  |
| &nbsp;&nbsp;Proceeds from public offering, net of issuance costs | 53764 |  |
| &nbsp;&nbsp;Taxes paid on vesting of RSUs | (38) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | 14975 | (22693) |
| Increase in cash, cash equivalents, and restricted cash | 27991 | 4054 |
| Cash, cash equivalents, and restricted cash, beginning of period | 15372 | 12153 |
| Cash, cash equivalents, and restricted cash, end of period | $43363 | $16207 |
| **CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $36778 | $6891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 6585 | 9316 |
|  | $43363 | $16207 |
| **SUPPLEMENTAL CASH FLOW INFORMATION:** |  |  |
| &nbsp;&nbsp;Cash paid for interest | $1002 | $1830 |
| &nbsp;&nbsp;Non-cash change in capital expenditures included in accounts payable and prepaid expense | $9981 | $(1649) |
| &nbsp;&nbsp;Right-of-use asset additions | $2402 | $— |

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