Hallador Energy Co (HNRG) stock started the new week trading by gaining 22.73% on Tuesday, June 1, 2021, but in the premarket trading, HNRG shares lost 4.04%. HNRG shares have soared 340.00% over the last 12 months, and they have moved up 36.24% in the past week. Over the past three months, the stock has gained 74.71%, while over the past six months, it has risen 175.00%.
Let’s see is there any reason behind its loss and what are the latest developments about the company?
Working with Hoosier Energy for renewable power
On June 01, 2021, Hallador Energy Company announced to work with Hoosier Energy Rural Electric Cooperative, Inc. to develop up to 1000 megawatts (MW) of renewable power, located near the Merom Coal Generation Station in Sullivan, in which Hoosier Energy expects to retire in May 2023.
According to the plan, Hallador will develop approximately 200MW of energy from solar and battery storage through power purchase agreements with Hoosier Energy in 2025.
Recent financial results
On May 3, 2021, Hallador Energy Company announced its financial results for the first quarter of 2021 which ended on March 31, 2021.
Q1 2021 financial highlights
- Hallador Energy reported revenue of $46.7 million for Q1 2021 compared to $62.5 million in Q1 2020.
- In Q1 2021, the net loss was $1.03 million compared to a net loss of $3.7 million in Q1 2020.
- Adjusted EBITDA was $11.42 million in Q1 2021 compared to $13.9 million in Q1 2020.
- The company had an adjusted free cash flow of $5.37 million in Q1 2021 compared to $6.81 million in Q1 2020.
How muchHallador Energy’s debt is?
Hallador Energy’s total debt is $150.20 million, with $113.72 million in long-term debt and $36.47 million in current debt as reported in November 2020 financial statement. The company reported a $136.5 million bank debt on May 3 in the Q1 financial release.
What’s the importance of debt?
Debt is an important factor in the capital structure of a company and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.
FY2020 financial results announcement
On March 09, 2021, Hallador Energy Company announced its financial results for the financial year 2020.
FY2020 financial highlights
- Total revenue was $245.3 million in FY 2020 compared to $323.47 million in FY 2019.
- The company suffered a net loss of $6.22 million in FY 2020 compared with $59.85 million in FY 2019.
- Adjusted EBITDA was $53.5 million in FY 2020 compared to $68.7 million in FY 2019.
- The company had an adjusted free cash flow of $27.6 million in FY 2020 compared with $29.75 million in FY 2019.
There is no negative development which could be the reason behind its loss in the after-hours on Friday. We had good news from yesterday and we are hopeful that HNRG stock will perform better on Wednesday.