Hallador Energy secured a financing package of up to $675 million for its Turtle Creek gas project, taking a major step toward funding a development the company says will cost less than $800 million.
The centerpiece is a $600 million senior secured term loan closed on Sept. 15. About $550 million was funded at closing, with another $50 million available as delayed draw debt for up to 12 months. Hallador also said it can set up a $75 million super-priority revolving credit facility, bringing the total potential package to $675 million.
Hallador said roughly $120 million of the proceeds will go toward repaying its existing $45 million term loan and $75 million revolving credit facility. That leaves the new financing as the main source of support for the next phase of Turtle Creek, including turbine payments, transportation and refurbishment costs, pre-notice-to-proceed expenses and construction work.
The company said the debt package covers the majority of Turtle Creek’s expected capital needs, with the project’s total cost estimated at under $800 million. By that math, the $675 million financing package would cover roughly 84% of the project cost. Hallador said it still expects to pursue additional financing sources and also plans to rely on operating cash flow generated before the plant reaches commercial operation.
A key part of Hallador’s funding case is its $2.4 billion contracted forward sales position as of June 30, 2026. Management said that position, along with expected operating cash flow, gives the company a credible path to fully fund Turtle Creek without significant equity dilution.
The company said development remains on track in several areas. Turbine shipment activities are still scheduled as planned, and Hallador expects to complete the equipment purchase under its existing turbine asset agreement. The turbines are then expected to be sent to Siemens’ U.S. facilities for refurbishment in the coming months.
Hallador also said it expects to sign the generator interconnection agreement in the coming weeks, while negotiations on the engineering and construction contract are in their final stages.
The company reiterated that it does not expect a long-term power purchase agreement to be required before final investment decision. It said it is advancing the project with the support of its existing contracted sales base and ongoing discussions with potential buyers for Turtle Creek’s output.
Hallador’s chairman and CEO, Brent Bilsland, called the debt closing “the largest single step” in financing Turtle Creek and said the company expects to refinance the loan later, once the plant is operating, on terms that reflect an operating asset rather than a development project. Today the company's shares have moved 6.88% to a price of $15.70. For more information, read the company's full 8-K submission here.
