Hallador Energy contract raises forward sales book to $3 billion
Hallador Energy entered six-year capacity and energy agreements that lift its total forward sales book to $3 billion, with 95% of Merom accredited capacity contracted through 2035.
By Kelly Cloonan Shares of Hallador Energy gained after the company entered six-year capacity and energy agreements with a utility that increased its total forward sales book to $3 billion. 20 in premarket trading Thursday. At Wednesday's market close, shares were down 28% year to date. Under the capacity agreement, the utility will purchase an annual average of 225 megawatts of capacity at the Merom Generating Station for about $271 million, marking the highest capacity price Hallador has contracted to date, the company said.
The energy agreement, meanwhile, is unit contingent. Based on current forward prices, the company expects the energy agreement to generate about $422 million in revenue over the term, which is from June 1, 2029, through May 31, 2035. With the agreements, about 95% of Merom's accredited capacity is under contract through 2035, Hallador said. Chief Executive Brent Bilsland said the agreement reflects increased demand for power in Indiana as data center projects shift or get delayed in other states.
"That dynamic supports our long-term strategy, strengthens our pricing opportunities, and allows us to contract with large, well-capitalized customers," Bilsland said. com (END) Dow Jones Newswires October 08, 2026 07:59 ET (11:59 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.