Hallador Energy Signs $3 Billion Agreements

By Hao Liu • Thursday, October 08 16:04 • Permanent Link

Hallador Energy said it executed six-year capacity and energy agreements tied to its Merom generating station that push its total forward sales book to about $3.0 billion at the segment level, up from the prior level implied by its earlier 2026 contracts and March agreement.

The new deal covers deliveries from June 1, 2029, through May 31, 2035, with an annual average of 225 megawatts of accredited capacity and about $271 million of capacity revenue over the term. Hallador also said the energy component carries an annual average base quantity of 200 megawatts and is expected to generate about $422 million of revenue over the term based on current forward prices.

The company said the agreements lift the contracted revenue profile sharply across the next decade. Total accredited capacity and energy revenue per megawatt-hour rises from $46.07 in 2026 to $59.16 in 2027, $62.48 in 2028, $69.66 in 2029, $73.26 in 2030, and $75.35 across 2031-2035.

Contracted revenue at the segment level is now projected at $204.63 million in 2026, $477.91 million in 2027, $335.49 million in 2028, $317.12 million in 2029, $317.32 million in 2030, $947.96 million across 2031-2035, and $386.85 million in 2036-2040, for a total of $2.99 billion.

For the power business alone, Hallador said the new agreements bring approximately 95% of Merom’s accredited capacity under contract through 2035 and about two-thirds under contract for 2036-2040. Average daily contracted accredited capacity is listed at 727 megawatts in 2026, 789 in 2027, 768 in 2028, 750 in 2029, 725 in 2030, 697 across 2031-2035, and 500 in 2036-2040.

The company said the capacity contract is its third announced in 2026 and is priced more than 20% above the capacity contract announced in March. It also said the new capacity price is the highest it has contracted to date.

Hallador’s energy revenue estimate for the new contract period totals about $422 million, while the capacity agreement contributes the remaining piece of the $2.99 billion segment-level forward sales total. Today the company's shares have moved -7.83% to a price of $13.65. For more information, read the company's full 8-K submission here.

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