Hallador Energy Signs Agreement with Global Data Center Developer

Hallador Energy Company (NASDAQ: HNRG) announced today the execution of a Conversion Transaction Commitment Agreement with a leading global data center developer through its wholly-owned subsidiary, Hallador Power Company, LLC. This Agreement, effective January 2, 2025, is a significant step forward based on a previously disclosed non-binding term sheet, aiming to facilitate the delivery of energy and capacity to a potential data center development within Indiana.

The Agreement grants exclusivity in negotiations to the counterparty for a 105 Business Days Exclusivity Period, along with cumulative payments of up to $5 million to Hallador Power Company, LLC. Initial payments of $1 million are scheduled for January, followed by $2 million due in March, and an additional $2 million in June if certain conditions precedent remain unsatisfied by the end of the Exclusivity Period.

During this Exclusivity Period, the parties will focus on selecting a utility partner and finalizing other definitive agreements relating to the proposed transaction. If successful, the transaction is expected to secure the majority of Hallador Energy’s energy and capacity at prices exceeding the forward curve for more than ten years.

Brent Bilsland, CEO of Hallador Energy, expressed optimism about the partnership, emphasizing the significance of the exclusivity payments as a testament to the parties’ commitment to the proposed transaction. Bilsland highlighted the potential value creation for shareholders through this strategic relationship.

The completion of the transaction remains subject to various conditions, primarily the negotiation and execution of definitive agreements. There is no guarantee that these agreements will materialize within the current envisioned terms and timeframe, if at all.

Hallador Energy Company, based in Terre Haute, Indiana, is a vertically-integrated Independent Power Producer with core business segments in electricity production through Hallador Power Company, LLC, and fuel supply via Sunrise Coal, LLC. For further information about Hallador, please visit the Company’s website.

This news release contains forward-looking statements in accordance with the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements are subject to risks and uncertainties as detailed in Hallador’s filings with the Securities and Exchange Commission.

The original press release included contact information for the Chief Financial Officer and Investor Relations, which has been omitted as per guidelines.

Please note that the information contained in this article is based on the 8-K SEC Filing from Hallador Energy Company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hallador Energy’s 8K filing here.

Hallador Energy Company Profile

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana.