Hallador Energy Co (HNRG) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

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Q1 2019 NET INCOME UP 228% VS. Q1 2018

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$7.0 million, $0.23 per share for the quarter ended March 31, 2019.

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GROWING CUSTOMER BASE HAS LED TO 25% INCREASE IN COAL VOLUMES Q1 2019 VS. Q1 2018

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Throughout 2018 and 1st Quarter 2019, our Sunrise Coal subsidiary grew from 9 customers in 3 states to 17 customers in 8 states.  This growth in customers has increased our sales volume from 6.6 million tons in 2017 to a projected 8.2 million tons in 2019.

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2.1 million tons of coal sold in Q1 2019, up from 1.7 million tons in Q1 2018

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79% SOLD FOR 4 YEARS = GREAT FREE CASH FLOW VISABILITY

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Sunrise coal continued to make sales during the quarter.  When looking at 2019 through 2022, 25.3 million tons are sold.  Thus, ~79% of our sales are contracted over the next four years at our new ~8.0 million-ton annualized pace.

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THE STATE OF INDIANA HAS CHOSEN COAL

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On April 24, 2019, the Indiana Utility Regulatory Commission (IURC) approved an Indiana utility’s request to upgrade environmental controls at a power plant we serve.  Additionally, the IURC denied the same utility’s request to close three coal units we serve and replace them with new combined cycle gas facilities.

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We believe, the IURC’s decision is a material statement demonstrating that existing coal plants are lower cost than new natural gas plants in Indiana.

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Furthermore, out of concern for the trend of increasing electricity rates, the Indiana legislature created a committee to study Indiana’s energy policy and release their findings by December 2020.