Hallador Energy Company (NASDAQ: HNRG) announced it signed a 12-year capacity agreement expected to generate over $1 billion in revenue and reported first-quarter financial results.

The Terre Haute, Indiana-based company signed the capacity agreement with a utility subsidiary for planning years 2028 through 2040. The agreement covers approximately two-thirds of Hallador's accredited capacity beginning in 2029, with pricing above a recent three-year agreement signed in March. The deal is subject to regulatory approvals expected in the second half of 2026.

For the first quarter ended March 31, 2026, Hallador reported total revenue of $101.8 million, down from $117.7 million in the prior year period. The decline was attributed to lower electric sales due to reduced generation at the Merom plant, partially offset by higher accredited capacity revenue and improved coal pricing.

The company posted a net loss of $9.3 million, compared to net income of $10.0 million in the first quarter of 2025. Adjusted EBITDA was $5.5 million versus $19.3 million in the year-ago period.

Operating cash flow reached $20.5 million in the quarter. Hallador had no outstanding bank debt at March 31, 2026, compared to $29.7 million at December 31, 2025. Total liquidity was $97.5 million following the signing of a new credit facility in early March.

Capital expenditures in the first quarter were $7.7 million, down from $11.7 million in the prior year period. The company said first-quarter results reflected previously disclosed availability constraints at its Merom facility.

As of March 31, 2026, Hallador had approximately $1.2 billion of total forward energy, capacity and coal sales commitments through 2029, excluding the recently signed 12-year capacity agreement.