Hallador Energy Company Secures Record Capacity Pricing in Three-Year Agreement

TERRE HAUTE, Ind., March 25, 2026 (GLOBE NEWSWIRE) -- Hallador Energy Company has signed a three-year agreement to sell substantially all of its remaining accredited capacity to a utility customer for planning years 2026 through the summer of 2028 at record pricing for the Company. The capacity is priced at approximately 2x the capacity pricing levels currently embedded in the Company's forward sales book and is expected to generate approximately $86 million of cumulative Revenue over the three-year term.

"This transaction establishes a step change for higher capacity pricing at our Merom facility and reflects the strength of demand we are seeing in the market," said Brent Bilsland, Chairman and Chief Executive Officer of Hallador Energy. "It also provides a strong foundation as we negotiate additional long-term capacity agreements. Assuming these increased pricing levels, our capacity revenues have the potential to increase more than two times to approximately $130 million annually starting in 2029, which would be in addition to energy revenue. Given the largely fixed cost structure of our Merom power plant, we expect the majority of this incremental capacity revenue to translate directly to operating cash flow."

Mr. Bilsland further stated, "As we continue to make progress on our proposed 515MW natural gas-fired simple cycle project via the ERAS program, we are thrilled to see these escalating capacity prices."

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 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 http://www.halladorenergy.com/.

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 obtain favorable terms for longer-term PPAs in the future and whether we will be successful in selling any of our accredited capacity at the higher prices reflected in our recently executed three-year capacity PPA described in this press release. 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.

Company Contact
Todd E. Telesz
Chief Financial Officer
[email protected]

Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
[email protected]

Source: Hallador Energy Company