HALLADOR ENERGY Business Summary

Hallador Energy Company (HNRG) operates as a vertically integrated Independent Power Producer (IPP), generating revenue through two primary segments: Electric Operations and Coal Operations. The company’s business model centers on the 1-gigawatt Merom Generating Station, which produces electricity and capacity for the wholesale market, and its subsidiary, Sunrise Coal, LLC, which supplies fuel both internally and to third-party utilities. Revenue is primarily driven by long-term Power Purchase Agreements (PPAs) and spot market energy sales, supplemented by coal sales contracts. As of early 2026, the company is aggressively diversifying its energy mix, evidenced by its application for over 500 MW of natural gas generation expansion to balance its legacy coal assets. Hallador competes directly with other diversified energy and coal producers such as Alliance Resource Partners (ARLP), Peabody Energy (BTU), and CONSOL Energy (CEIX), positioning itself as a specialized, dispatchable power provider focused on grid reliability in the MISO region. Leadership is spearheaded by President and CEO Brent K. Bilsland, a founding investor of Sunrise Coal who has led Hallador’s strategic pivot from a pure-play coal miner to an integrated IPP since 2014. The executive team was recently bolstered by the appointment of Todd Telesz as Chief Financial Officer in June 2025, bringing extensive experience from Tri-State Generation and Transmission, and Eric Van Deman as Chief Accounting Officer in late 2025. Strategic oversight is further strengthened by the January 2026 appointment of Barbara Sugg, the former President and CEO of Southwest Power Pool, to the Board of Directors. This leadership group, which includes SVP of Power Origination Chamroeun Kong, combines deep regulatory expertise with operational experience in wholesale power markets to navigate the company’s ongoing transition toward a multi-fuel generation portfolio.