Hallador Energy Secures $600M Loan for Turtle Creek Gas Project

By Bobby Samwell • Thursday, September 17 10:51 • Permanent Link

Hallador Energy said it closed a $600 million senior secured term loan on Sept. 15 to help finance its Turtle Creek gas project, and it can add up to another $75 million through a super-priority revolving credit facility, bringing the total financing package to as much as $675 million.

The term loan is split between about $550 million funded at closing and a $50 million delayed-draw commitment available for up to 12 months. Hallador said roughly $120 million of the proceeds will go toward retiring its existing $45 million term loan and $75 million revolving credit facility.

The company said Turtle Creek’s expected total project cost is less than $800 million, making the $675 million package the largest part of the funding plan and enough to cover the majority of the project’s capital needs. Hallador said it expects to supplement the debt with additional financing and operating cash flow generated before the plant reaches commercial operation.

Hallador said it had about $2.4 billion of contracted forward sales as of June 30, 2026, and said that position, combined with expected operating cash flow, gives it a path to fully fund the project while aiming for little to no equity dilution.

The company is developing Turtle Creek as a 460-megawatt natural gas-fired plant. Hallador said turbine shipment activities remain on schedule, equipment purchase should be completed under the existing asset purchase agreement, and the equipment is 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 agreement are in their final stages.

The company said it does not expect a long-term power purchase agreement to be required for final investment decision. It said Turtle Creek would be supported by its existing contracted forward sales and by current MISO market pricing for capacity and energy, which it believes is favorable for new dispatchable generation. Today the company's shares have moved 6.88% to a price of $15.70. Check out the company's full 8-K submission here.

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