HALLADOR ENERGY CO 10-Q

ITEM 1. FINANCIAL STATEMENTS Hallador Energy Company Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ ​ December 31, ​ ​ ​ 2026 ​ 2025 ​ ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 36,778 $ 10,070 ​ Restricted cash ​ 6,585 5,302 ​ Accounts receivable ​ 9,152 13,989 ​ Inventory ​ 47,164 42,534 ​ Parts and supplies ​ 47,893 45,854 ​ Prepaid expenses ​ 1,604 5,638 ​ Other current assets ​ ​ 1,927 ​ ​ — ​ Total current assets ​ 151,103 123,387 ​ Property, plant and equipment: ​ ​ ​ ​ Land and mineral rights ​ 69,952 69,952 ​ Buildings and equipment ​ 440,682 421,037 ​ Mine development ​ 102,302 102,302 ​ Construction work in progress ​ ​ 35,788 ​ ​ 39,671 ​ Finance lease right-of-use assets ​ 12,591 12,591 ​ Total property, plant and equipment ​ 661,315 645,553 ​ Less - accumulated depreciation, depletion and amortization ​ ( 376,481 ) ( 367,775 ) ​ Total property, plant and equipment, net ​ 284,834 277,778 ​ Equity method investments ​ 2,528 2,647 ​ Operating lease right-of-use assets ​ ​ 2,315 ​ ​ — ​ Other noncurrent assets ​ 7,852 4,241 ​ Total assets ​ $ 448,632 $ 408,053 ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ Accounts payable ​ $ 19,818 $ 12,594 ​ Accrued liabilities and other ​ ​ 35,078 ​ ​ 29,254 ​ Current portion of lease financing ​ 4,981 7,411 ​ Contract liabilities - current ​ 130,170 103,343 ​ Total current liabilities ​ 190,047 152,602 ​ Long-term liabilities: ​ ​ ​ ​ Bank debt, net ​ — 29,678 ​ Long-term lease financing ​ 617 1,338 ​ Deferred income taxes ​ ​ 1,329 ​ ​ 1,833 ​ Asset retirement obligations ​ 15,649 15,241 ​ Contract liabilities - long-term ​ 32,148 45,714 ​ Other ​ 3,268 1,814 ​ Total long-term liabilities ​ 53,011 95,618 ​ Total liabilities ​ 243,058 248,220 ​ Commitments and contingencies (Note 14) ​ ​ ​ ​ Stockholders' equity: ​ ​ ​ ​ Preferred stock, $ .10 par value, 10,000 shares authorized; none issued ​ — — ​ Common stock, $ .01 par value, 100,000 shares authorized; 47,132 and 43,817 issued and outstanding, as of March 31, 2026 and December 31, 2025, respectively ​ 471 438 ​ Additional paid-in capital ​ 257,992 202,963 ​ Retained deficit ​ ( 52,889 ) ( 43,568 ) ​ Total stockholders’ equity ​ 205,574 159,833 ​ Total liabilities and stockholders’ equity ​ $ 448,632 $ 408,053 ​ ​ See accompanying notes to the condensed consolidated financial statements. ​ 1 Table of Contents Hallador Energy Company Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 SALES AND OPERATING REVENUES: ​ ​ ​ ​ Electric sales ​ $ 65,096 ​ $ 85,943 ​ Coal sales ​ ​ 35,080 ​ ​ 30,185 ​ Other revenues ​ 1,631 ​ 1,596 ​ Total sales and operating revenues ​ 101,807 ​ 117,724 ​ EXPENSES: ​ ​ ​ ​ ​ Fuel ​ ​ 14,963 ​ ​ 15,210 ​ Other operating and maintenance costs ​ ​ 29,156 ​ ​ 28,389 ​ Cost of purchased power ​ ​ 14,863 ​ ​ 6,840 ​ Utilities ​ ​ 3,333 ​ ​ 4,152 ​ Labor ​ ​ 27,388 ​ ​ 27,029 ​ Depreciation, depletion and amortization ​ 10,606 ​ 14,977 ​ Asset retirement obligations accretion ​ 408 ​ 427 ​ Exploration costs ​ 84 ​ 21 ​ General and administrative ​ 6,858 ​ 6,825 ​ Gain on disposal or abandonment of assets, net ​ ​ ( 201 ) ​ ​ ( 21 ) ​ Total operating expenses ​ 107,458 ​ 103,849 ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME (LOSS) FROM OPERATIONS ​ ( 5,651 ) ​ 13,875 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ ​ 147 ​ ​ 63 ​ Interest expense (1) ​ ( 3,970 ) ​ ( 3,723 ) ​ Loss on extinguishment of debt ​ ( 230 ) ​ — ​ Equity method investment (loss) ​ ( 121 ) ​ ( 236 ) ​ NET INCOME (LOSS) BEFORE INCOME TAXES ​ ( 9,825 ) ​ 9,979 ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME TAX EXPENSE (BENEFIT): ​ ​ ​ ​ ​ Current ​ — ​ — ​ Deferred ​ ( 504 ) ​ — ​ Total income tax expense (benefit) ​ ( 504 ) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) ​ $ ( 9,321 ) ​ $ 9,979 ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) PER SHARE: ​ ​ ​ ​ ​ Basic ​ $ ( 0.20 ) ​ $ 0.23 ​ Diluted ​ $ ( 0.20 ) ​ $ 0.23 ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE SHARES OUTSTANDING ​ ​ ​ ​ ​ Basic ​ 46,519 ​ 42,619 ​ Diluted ​ 46,519 ​ 43,462 ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest Expense: ​ ​ ​ ​ ​ Interest on bank debt ​ ​ ​ $ 862 ​ ​ ​ $ 1,494 ​ Other interest ​ 2,834 ​ 1,732 ​ Amortization of debt issuance costs ​ 274 ​ 497 ​ Total interest expense ​ $ 3,970 ​ $ 3,723 ​ See accompanying notes to the condensed consolidated financial statements. 2 Table of Contents Hallador Energy Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ ( 9,321 ) ​ $ 9,979 Adjustments to reconcile net income (loss) to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Deferred income tax (benefit) ​ ( 504 ) ​ — Equity method investment loss ​ 121 ​ 236 Depreciation, depletion and amortization ​ 10,606 ​ 14,977 Gain on disposal or abandonment of assets, net ​ ( 201 ) ​ ( 21 ) Loss on extinguishment of debt ​ ​ 230 ​ ​ — Amortization of debt issuance costs ​ 274 ​ 497 Asset retirement obligations accretion ​ 408 ​ 427 Cash paid on asset retirement obligation reclamation ​ ( 148 ) ​ ( 156 ) Stock-based compensation ​ 1,135 ​ 1,084 Amortization of contract liabilities ​ ( 36,447 ) ​ ( 35,669 ) Accretion on contract liabilities ​ ​ 2,834 ​ ​ 1,560 Amortization of right-of-use assets ​ ​ 87 ​ ​ — Other ​ ​ 1,533 ​ ​ 3,224 Change in current assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ 4,837 ​ 2,856 Inventory ​ ( 4,630 ) ​ 367 Parts and supplies ​ ( 2,039 ) ​ ( 1,033 ) Prepaid expenses ​ ( 2,580 ) ​ ( 330 ) Accounts payable and accrued liabilities ​ 7,427 ​ 3,124 Contract liabilities ​ 46,874 ​ 37,297 Net cash provided by operating activities ​ ​ 20,496 ​ ​ 38,419 CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ Capital expenditures ​ ​ ( 7,681 ) ​ ​ ( 11,693 ) Proceeds from sale of equipment ​ 201 ​ 21 Net cash used in investing activities ​ ( 7,480 ) ​ ( 11,672 ) CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ Payments on bank debt ​ ( 56,700 ) ​ ( 33,000 ) Borrowings of bank debt ​ 26,700 ​ 12,000 Payments on lease financing ​ ​ ( 3,172 ) ​ ​ ( 1,693 ) Debt issuance costs ​ ( 5,780 ) ​ ​ — Proceeds from ATM offering, net of issuance costs ​ 201 ​ — Proceeds from public offering, net of issuance costs ​ ​ 53,764 ​ ​ — Taxes paid on vesting of RSUs ​ ( 38 ) ​ — Net cash (used in) provided by financing activities ​ 14,975 ​ ( 22,693 ) Increase in cash, cash equivalents, and restricted cash ​ 27,991 ​ 4,054 Cash, cash equivalents, and restricted cash, beginning of period ​ 15,372 ​ 12,153 Cash, cash equivalents, and restricted cash, end of period ​ $ 43,363 ​ $ 16,207 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: ​ ​ ​ ​ Cash and cash equivalents ​ $ 36,778 ​ $ 6,891 Restricted cash ​ 6,585 ​ 9,316 ​ ​ $ 43,363 ​ $ 16,207 SUPPLEMENTAL CASH FLOW INFORMATION: ​ ​ ​ ​ Cash paid for interest ​ $ 1,002 ​ $ 1,830 Non-cash change in capital expenditures included in accounts payable and prepaid expense ​ $ 9,981 ​ $ ( 1,649 ) Right-of-use asset additions ​ $ 2,402 ​ $ — ​ See accompanying notes to the condensed consolidated financial statements. ​ ​ ​ 3 Table of Contents Hallador Energy Company Condensed Consolidated Statements of Stockholders’ Equity (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Total ​ ​ Common Stock Issued ​ Paid-in ​ Retained ​ Stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Deficit ​ ​ ​ Equity Balance, December 31, 2025 43,817 ​ $ 438 ​ $ 202,963 ​ $ ( 43,568 ) ​ $ 159,833 Stock-based compensation — ​ — ​ 1,135 ​ — ​ 1,135 Stock issued on vesting of RSUs 191 ​ 2 ​ ( 40 ) ​ — ​ ( 38 ) Taxes paid on vesting of RSUs ( 81 ) ​ ( 1 ) ​ 1 ​ — ​ — Stock issued in ATM offering 11 ​ — ​ 201 ​ — ​ 201 Stock issued in public offering ​ 3,194 ​ ​ 32 ​ ​ 53,732 ​ ​ — ​ ​ 53,764 Net loss — ​ — ​ — ​ ( 9,321 ) ​ ( 9,321 ) Balance, March 31, 2026 47,132 ​ $ 471 ​ $ 257,992 ​ $ ( 52,889 ) ​ $ 205,574 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Total ​ ​ Common Stock Issued ​ Paid-in ​ Retained ​ Stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Deficit ​ ​ ​ Equity Balance, December 31, 2024 42,621 ​ $ 426 ​ $ 189,298 ​ $ ( 85,439 ) ​ $ 104,285 Stock-based compensation — ​ — ​ 1,084 ​ — ​ 1,084 Stock issued on vesting of RSUs 513 ​ 5 ​ ( 5 ) ​ — ​ — Taxes paid on vesting of RSUs ( 156 ) ​ ( 1 ) ​ 1 ​ — ​ — Net income — ​ — ​ — ​ 9,979 ​ 9,979 Balance, March 31, 2025 42,978 ​ $ 430 ​ $ 190,378 ​ $ ( 75,460 ) ​ $ 115,348 ​ See accompanying notes to the condensed consolidated financial statements. ​ 4 Table of Contents Hallador Energy Company Notes to Condensed Consolidated Financial Statements (unaudited) (1) BASIS OF PRESENTATION Hallador Energy Company (“Hallador” or the “Company”) is a vertically-integrated, independent power producer (“IPP”) and fuel company with operations primarily in Indiana. The Company operates across multiple stages of the energy supply chain, from accredited capacity and electricity to coal. The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The condensed consolidated financial statements include the accounts of Hallador and our wholly owned subsidiaries, including our main operating subsidiaries, Hallador Power Company, LLC (“Hallador Power”) and Sunrise Coal, LLC (“Sunrise”) and their respective subsidiaries, as well as Hourglass Sands, LLC. Additionally, we hold 50 % interests in Sunrise Energy, LLC (“Sunrise Energy”), a private gas exploration company with operations in Indiana and Oaktown Gas, LLC (“Oaktown Gas”), which we account for using the equity method. Our operations include Hallador Power which provides accredited capacity and energy to utilities and other energy market participants through the MISO interconnection, and Sunrise which mines bituminous coal in Indiana to serve various power plants in the Midwest and Southeast United States. ​ All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to the Company’s prior period condensed consolidated financial information to conform to the current period presentation. These presentation changes did not impact the Company’s condensed consolidated net income (loss), consolidated cash flows, total assets, total liabilities or total stockholders’ equity. ​ Our unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or Securities and Exchange Commission (“SEC”) rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our 2025 consolidated financial statements and notes thereto included in our 2025 Annual Report on Form 10-K (our “2025 10-K”). ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, deferred income tax accounts, coal reserves, depreciation, depletion, and amortization, impairment analyses, and calculation of asset retirement obligations (“ARO”). Actual results could differ from those estimates. (2) RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements - Adopted The Company has adopted Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which is effective for fiscal years beginning after December 15, 2024. ASU 2023-09 primarily requires enhanced disclosures to (1) disclose specific categories in the rate reconciliation, (2) disclose the amount of income taxes paid and expensed disaggregated by federal, state, and foreign taxes, with further disaggregation by individual jurisdictions if certain criteria are met, and (3) disclose income (loss) from continuing operations before income tax (benefit) disaggregated between domestic and foreign. Please see “ Note 7 – Income Taxes ” for additional information. ​ 5 Table of Contents ​ Recent Accounting Pronouncements – Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting-Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The update is intended to improve the disclosures about a public business entity’s expenses by requiring more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) included within income statement expense captions. The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The standard will be applied on a prospective basis, with retrospective application permitted. The Company is currently evaluating the impact of adoption of the standard on its financial statement disclosures. ​ (3) INVENTORY Inventory is valued at the lower of cost or net realizable value (“NRV”). Coal inventory includes NRV adjustments of $ 0.1 million as of March 31, 2026, and December 31, 2025. During 2025, as part of the Company’s routine inventory reconciliation process, a downward adjustment of $ 2.6 million was recorded to coal inventory. (4) BANK DEBT New Credit Facility On March 5, 2026, Hallador entered into a credit agreement with Texas Capital Bank, as administrative agent, and Old National Bank, among others, that replaces the Credit Agreement with PNC Bank, National Association and includes a $ 75.0 million senior secured revolving credit facility (the "New Revolving Credit Facility") and a $ 45.0 million senior secured term loan facility (the "Delayed Draw Term Loan", and together with the New Revolving Credit Facility, the "New Credit Facility"). The New Revolving Credit Facility includes (i) a $ 25.0 million sub-facility for letters of credit and (ii) a $ 10.0 million sub-facility for swingline loans. The Company may, subject to conditions set forth in the New Credit Facility, request additional revolving facility commitments and incremental term loan commitments in an aggregate amount not to exceed $ 25.0 million. The Company and certain of its subsidiaries, as guarantors under the New Credit Facility, granted a security interest in substantially all of their assets to secure the Company’s obligations under the New Credit Facility. The New Credit Facility bears interest at a rate equal to, at the Company’s election, either a base rate or term secured overnight financing rate (“SOFR”), plus an applicable margin based upon the Company’s total leverage ratio. Under the New Credit Facility, (A) base rate loans will bear interest at a rate equal to the greater of (i) the prime rate, (ii) the sum of the Federal Funds Rate plus one half of one percent ( 0.50 %), and (iii) the term SOFR plus one percent ( 1.00 %), in each case, plus the applicable margin for base rate loans, which ranges from 2.25 % to 2.75 %, and (B) term SOFR loans will bear interest at term SOFR, plus the applicable margin for term SOFR loans, which ranges from 3.25 % to 3.75 %. The New Credit Facility includes a commitment fee of 0.50 % on the daily unused portions of the New Revolving Credit Facility. If the Delayed Draw Term Loan occurs, which is subject to meeting certain conditions, the principal balance of the Delayed Draw Term Loan shall be due and payable in equal quarterly installments of 2.5 % of the original principal amount of such Delayed Draw Term Loan with a final payment of the remaining balance upon maturity. The New Credit Facility matures on March 5, 2029, and is collateralized by substantially all our assets. When drawn, the proceeds from the New Credit Facility may be used for ongoing working capital and general corporate purposes. The Company used borrowings from the New Credit Facility, together with cash on hand to repay the Prior Credit Agreement (as defined below) in full. As of March 31, 2026, there were no outstanding borrowings under the New Revolving Credit Facility with $ 14.2 million in outstanding letters of credit. There was no Delayed Draw Term Loan balance outstanding at March 31, 2026. 6 Table of Contents ​ Prior Credit Agreement The Company was party to a credit agreement with PNC, in its capacity as administrative agent, which consisted of a revolving credit facility of up to $ 75.0 million and a term loan. On June 27, 2025, the Company executed the Third Amendment (“Third Amendment”) to our Credit Agreement, which was accounted for as a debt modification. The primary purpose of the Third Amendment was to provide additional operating flexibility for the remainder of 2025 by redefining covenants and deferring certain covenants until the third quarter of 2025. During the second quarter of 2025, the Company entered into a $ 35.0 million prepaid forward power sales contract of which $ 19.0 million of the proceeds were deposited into a money market account with the administrative agent as a compensating balance. The compensating balance was utilized to fully repay the outstanding term loan during the fourth quarter of 2025. As of March 5, 2026, t he Company fully repaid its revolving credit facility. Liquidity Liquidity consists of our additional borrowing capacity and unrestricted cash and cash equivalents. As of March 31, 2026, we had additional borrowing capacity of $ 60.8 million under the New Revolving Credit Facility and total liquidity of $ 97.5 million. Our additional borrowing capacity is net of $ 14.2 million in outstanding letters of credit as of March 31, 2026 that were required to maintain surety bonds and other credit support obligations . Fees Bank fees and other costs incurred in connection with the New Credit Facility totaled $ 5.8 million and are reflected in other assets on the condensed consolidated balance sheets. These fees will be amortized over the term of the loan. Unamortized bank fees as of March 31, 2026, and December 31, 2025, were $ 5.6 million and $ 0.3 million, respectively. The New Credit Facility includes a commitment fee of 0.50 % on any daily unused portions of the New Revolving Credit Facility. Unamortized bank fees and other costs incurred in connection with our Prior Credit Agreement of $ 0.2 million were recorded as a loss on extinguishment of debt on the condensed consolidated statements of operations. Bank debt, less debt issuance costs, is presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Current bank debt ​ $ — ​ $ — Less unamortized debt issuance cost (1) ​ — ​ — Net current portion ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ Long-term bank debt ​ $ — ​ $ 30,000 Less unamortized debt issuance cost (1) ​ — ​ ( 322 ) Net long-term portion ​ $ — ​ $ 29,678 ​ ​ ​ ​ ​ ​ ​ Total bank debt ​ $ — ​ $ 30,000 Less total unamortized debt issuance cost (1) ​ — ​ ( 322 ) Net bank debt ​ $ — ​ $ 29,678 ​ (1) Unamortized debt issuance costs of $ 1.9 million is included in other current assets and $ 3.7 million is included in other noncurrent assets on the condensed consolidated balance sheets as of March 31, 2026. ​ 7 Table of Contents Covenants Prior to the date on which the conditions to availability of the Delayed Draw Term Loan are satisfied, our covenants include: ● Total leverage ratio – 2.50 to 1.00 stepping down to 2.25 to 1.00 in the fourth quarter 2026. ● Senior secured leverage ratio – 2.50 to 1.00 stepping down to 2.25 to 1.00 in the fourth quarter 2026. ● Minimum liquidity threshold – $ 20.0 million increasing to $ 25.0 million in the fourth quarter 2026. ● Fixed charge coverage ratio – 1.25 to 1.00. After the conditions to availability of the Delayed Draw Term Loan are satisfied, our covenants will include: ● Total leverage ratio – 3.25 to 1.00 stepping down to 3.00 to 1.00 in the fourth quarter 2026. ● Senior secured leverage ratio – 2.00 to 1.00. ● Fixed charge coverage ratio – 1.25 to 1.00. As of March 31, 2026, we were in compliance with all covenants defined in the New Credit Facility. Interest Rate The New Credit Facility bears interest with margins ranging from 2.25 % to 3.75 % above SOFR or the applicable base rate, subject to a SOFR floor of 1.00 %, as further described above. The applicable margin is determined based upon the Company's leverage ratio and the type of loan drawn. As of March 31, 2026, we were subject to paying the applicable SOFR plus 3.50 % on any outstanding bank debt which equates to an all-in rate of 7.16 %. ​ (5) ACCRUED LIABILITIES AND OTHER Accrued liabilities consist of the following for the indicated dates (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Accrued liabilities ​ ​ 14,320 ​ ​ 10,829 ​ Workers' compensation reserve ​ ​ 4,732 ​ ​ 5,223 ​ Accrued property taxes ​ ​ 4,474 ​ ​ 3,900 ​ Accrued payroll ​ ​ 5,076 ​ ​ 3,037 ​ ARO - current portion ​ ​ 2,460 ​ ​ 2,606 ​ Group heath insurance ​ ​ 1,350 ​ ​ 1,420 ​ Operating lease liability - current portion ​ ​ 608 ​ ​ — ​ Other ​ 2,058 ​ 2,239 ​ Total accrued liabilities and other ​ $ 35,078 ​ $ 29,254 ​ ​ ​ (6) REVENUE Revenue from Contracts with Customers We account for contracts with customers when the parties have executed the contract and are committed to performing their respective obligations, the rights of each party are identified, payment terms are identified, the contract has commercial substance, and it is probable substantially all the consideration will be collected. We recognize revenue when we satisfy a performance obligation by transferring control of a good or service to a customer. Electric Operations We concluded that for a Power Purchase Agreement (“PPA”) that is not determined to be a lease or derivative, the definition of a contract and the criteria in ASC 606, Revenue from Contracts with Customers (“ASC 606”), is met at the 8 Table of Contents time a PPA is executed by the parties, as this is the point at which enforceable rights and obligations are established. Accordingly, we concluded that a PPA that is not determined to be a lease or derivative constitutes a valid contract under ASC 606. Under accredited capacity PPAs, we recognize revenue daily, based on an output method of capacity made available as part of any stand-ready obligations for contracted accredited capacity performance obligations. For delivered energy PPAs, we recognize revenue daily for the actual delivered MWh of electricity. For the prepaid delivered energy PPAs, we recognize revenue daily for the funds received for the actual delivered MWh of electricity plus any accretion attributable to the time value of money. When there is an outage at one of the generating units at Merom or energy hours at the Merom Hub are priced below our production cost, we have the option to make net hourly purchases of power in the MISO market to satisfy our obligations, which we record as cost of purchased power in our condensed consolidated statements of operations. Coal operations Our coal revenue is derived from sales to customers of coal produced at our mining facilities. Our customers typically purchase coal free on board from our mine sites where title, risk of loss, and control pass to the customer. Our customers arrange for and bear the costs of transporting their coal from our mines to their plants or other specified discharge points. Our customers are typically domestic utility companies. Coal sales agreements with our customers are fixed-priced, fixed-volume supply contracts, but some include a pre-determined escalation in price for each year and some allow for our customers to vary the fixed-volume by pre-determined quantities during a set period, such as quarterly. The terms of our coal sales agreements result from competitive bidding and extensive negotiations with customers. Consequently, the terms of these contracts vary by customer. Coal sales agreements typically contain coal quality specifications which require the raw coal sold by us to the customer to be (i) substantially free of magnetic material and other foreign material impurities and (ii) crushed to a maximum size as set forth in the respective coal sales agreement. Price adjustments are made and billed in the month the coal sale was recognized based on quality standards that are specified in the coal sales agreement, such as British thermal unit factor, moisture, ash, and sulfur content, and can result in either increases or decreases in the value of the coal shipped. When applicable, we have constrained the expected value of variable consideration in our estimation of transaction price and only included this consideration to the extent that it is probable that a significant revenue reversal will not occur. Disaggregation of Revenue Revenue is disaggregated by revenue source for our Electric Operations and by primary geographic markets for our Coal Operations, as we believe this best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. Electric Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Delivered energy (including contract liability amortization) ​ $ 49,562 ​ $ 72,136 Accredited capacity ​ 15,534 ​ 13,807 Total Electric Operations sales ​ $ 65,096 ​ $ 85,943 ​ 9 Table of Contents Coal Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Third party Indiana customers ​ $ 25,913 ​ $ 20,314 Other customers ​ 9,167 ​ 9,871 Total Coal Operations sales ​ $ 35,080 ​ $ 30,185 ​ Performance Obligations A performance obligation is a promise in a contract with a customer to provide distinct goods or services. Performance obligations are the unit of account for purposes of applying the revenue recognition standard and therefore determine when and how revenue is recognized. Electric Operations We concluded that each MWh of delivered energy is capable of being distinct as a customer could benefit from each on its own by using/consuming it as a part of its operations. We also concluded that the stand-ready obligation to be available to provide electricity is capable of being distinct as each unit of accredited capacity provides an economic benefit to the holder and could be sold by the customer. Coal Operations In most of our coal contracts, the customer contracts with us to provide coal that meets certain quality criteria. We consider each ton of coal a separate performance obligation and allocate the transaction price using the base price per the contract, increased or decreased for quality adjustments. The following table illustrates the balance of all current Electric and Coal Operations contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2026 and disaggregated by segment and contract duration (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ ​ ​ 2029 ​ ​ ​ Total Delivered energy revenue $ 135,590 $ 142,290 $ 57,700 $ 13,860 $ 349,440 Accredited capacity revenue ​ ​ 52,820 ​ ​ 75,260 ​ ​ 73,280 ​ ​ 20,440 ​ ​ 221,800 Coal Operations revenue (1) ​ ​ 117,030 ​ ​ 141,850 ​ ​ 29,500 ​ ​ — ​ ​ 288,380 Total revenue ​ $ 305,440 ​ $ 359,400 ​ $ 160,480 ​ $ 34,300 ​ $ 859,620 (1) Coal Operations revenue consists of consolidated revenue excluding our intercompany revenues from Merom. Contract Balances Under ASC 606, the timing of when a performance obligation is satisfied can affect the presentation of accounts receivable, contract assets and contract liabilities. The main distinction between accounts receivable and contract assets is whether consideration is conditional on something other than the passage of time. A receivable is an entity’s right to consideration that is unconditional. Under the typical payment terms of our contracts with customers, the customer pays us the contracted price for electricity or accredited capacity. For coal contracts, the customer pays us a base price for the coal, increased or decreased for any quality adjustments. Amounts billed and due are recorded as trade accounts receivable and included in accounts receivable in our condensed consolidated balance sheets. Payments received prior to fulfilling our performance obligations are included in contract liabilities in our condensed consolidated balance sheets. When the Company receives customer payments more than one year in advance of the related performance obligations, in accordance with ASC 606, the Company adjusts the transaction price for the significant financing component associated with these contracts at risk adjusted market rates. The resulting interest accretion is recognized as interest expense over the period between the customer payment date and the expected satisfaction of the performance obligation. 10 Table of Contents The following table shows our beginning and ending accounts receivable balances from contracts with customers for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2026 ​ 2025 Accounts receivable from contracts with customers - beginning balance ​ $ 13,989 ​ $ 15,438 Accounts receivable from contracts with customers - ending balance ​ $ 9,152 ​ $ 12,582 ​ As the Company fulfills its contractual obligations, we recognized those amounts in revenue. The following table reconciles our beginning and ending contract liabilities for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2026 ​ 2025 Total contract liabilities - beginning balance ​ $ 149,057 ​ $ 146,719 Cash payments received on future contract obligations ​ ​ 46,874 ​ ​ 37,297 Accretion on contract liabilities ​ ​ 2,834 ​ ​ 1,560 Revenue recognized, cash payment received in prior period ​ ​ ( 36,447 ) ​ ​ ( 35,669 ) Total contract liabilities - ending balance ​ $ 162,318 ​ $ 149,907 ​ ​ (7) INCOME TAXES For the three months ended March 31, 2026 and 2025, we recorded income taxes using an estimated annual effective tax rate based upon projected annual income (loss), forecasted permanent tax differences, discrete items, and statutory rates in states in which we operate. The effective tax rate for the three months ended March 31, 2026 and 2025, was approximately 5.2 % and 0 %, respectively, due to recording of a valuation allowance. Historically, our actual effective tax rates differed from the statutory effective rate primarily due to the benefit received from statutory percentage depletion in excess of tax basis. The deduction for statutory percentage depletion does not necessarily change proportionately to changes in income (loss) before income taxes. On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of or repealing others. We have analyzed the provisions within the act and determined that the benefits relating to capital expenditures and deductibility of interest under IRC Section 163(j) will provide cash flow benefits to the company by accelerating deductions for tax purposes. As the material benefits relate to the timing of deductions, there were no material impact affecting the effective tax rate or the valuation allowance determination in the period that OBBBA was enacted. (8) STOCK COMPENSATION PLANS Non-vested grants and activity for the period presented are as follows (in whole shares): ​ ​ ​ Non-vested grants as of December 31, 2025 586,101 Awarded 9,973 Vested ( 191,307 ) Forfeited — Non-vested grants as of March 31, 2026 404,767 ​ Stock compensation expense was $ 1.1 million for the three months ended March 31, 2026 and 2025. 11 Table of Contents Non-vested restricted stock unit (“RSU”) grants will vest as follows (in whole shares): ​ ​ ​ ​ Vesting Year ​ ​ ​ RSUs Vesting 2026 15,872 2027 377,679 2028 ​ 11,216 ​ ​ 404,767 ​ As of March 31, 2026, unrecognized stock compensation expense to be recognized over the respective vesting period is $ 3.2 million, and we had 2,075,261 RSUs available for future issuance. RSUs are not allocated earnings and losses as they are considered non-participating securities. Forfeitures are recognized as they occur. (9) SELF-INSURANCE The Company is self-insured for certain risks, including physical damage and operational liability, related to our non-leased underground mining equipment. The Company records a liability for self-insured risks when a loss is both probable and reasonably estimable. The Company had no accrual for self-insurance liabilities as of March 31, 2026 or December 31, 2025. The Company also self-insures for a portion of its workers’ compensation claims under a guaranteed cost program. Under this program, the Company is responsible for the first $ 1.0 million per claim up to an aggregate of $ 4.0 million annually. As of March 31, 2026 and December 31, 2025 the Company has restricted cash of $ 3.3 million and $ 3.0 million as of March 31, 2026 and December 31, 2025, respectively, for future workers’ compensation claim payments. The Company had $ 4.7 million and $ 5.2 million of workers’ compensation reserve as of March 31, 2026 and December 31, 2025 , respectively, in accrued liabilities on the condensed consolidated balance sheets. (10) FAIR VALUE MEASUREMENTS We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. We have no Level 1 instruments . Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). ARO liabilities use Level 3 non-recurring fair value measures . The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued liabilities and other, approximate fair value due to the short maturity of those instruments. Our debt is recorded at amortized cost, which approximates fair value due to the variable interest rates in the agreement and is collateralized primarily by our assets. Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and restricted cash. 12 Table of Contents The Company’s cash and cash equivalent and restricted cash balances on deposit with financial institutions total $ 43.4 million and $ 15.4 million as of March 31, 2026 and December 31, 2025, respectively, which exceeded FDIC insured limits. The Company regularly monitors these institutions’ financial condition. The Company utilizes large and reputable banking institutions which it believes mitigates these risks. The Company has not experienced any losses in such accounts. (11) EQUITY METHOD INVESTMENTS We own a 50 % interest in Sunrise Energy which owns gas reserves and gathering equipment with plans to develop and operate such reserves. Sunrise Energy also plans to develop and explore for oil, natural gas, and coal-bed methane gas reserves on or near our underground coal reserves. The carrying value of the investment included in our condensed consolidated balance sheets was $ 1.9 million as of March 31, 2026 and December 31, 2025. The Company also owns a 50 % interest in Oaktown Gas, LLC. Oaktown Gas, LLC operates an emission abatement project through the destruction of gases extracted from the Oaktown mines to generate carbon credits and other emissions offset credits. The carrying value of the investment included in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, was $ 0.6 million and $ 0.7 million, respectively. (12) SEGMENTS OF BUSINESS Our business is organized based on the services and products we provide in two segments : (i) Electric Operations and (ii) Coal Operations. The CODM, who is the Company’s Chief Executive Officer, reviews and assesses operating performance measures related to our Electric Operations and our Coal Operations segments. ​ Our Electric Operations segment includes the electric power generation facilities of our Merom power plant, which is a two -unit, 1080 -megawatt rated coal fired power plant located in Sullivan County, Indiana. Our sales region is in MISO Zone 6, which includes Indiana and a portion of western Kentucky. Revenues from our Electric Operations segment consist primarily of delivered energy and accredited capacity revenues. Fuel costs included in our Electric Operations segment include the cost of coal purchased from our Coal Operations segment, which are based on multi-year contracts which approximate market prices at the time the contracts were agreed. ​ Our Coal Operations segment includes the Oaktown 1 underground mining complex, as well as other currently idled mining facilities, which produce high-quality bituminous coal from the Illinois Basin. Revenue from our Coal Operations segment consists of sales of coal to various third parties and to Merom. Coal sales to our Electric Operations are based on multi-year contracts that approximated market prices at the time the contracts were agreed. Intercompany coal sales and amounts above actual costs to produce the coal are eliminated in the condensed consolidated statements of operations. ​ In addition to these reportable segments, the Company has a “Corporate and Other and Eliminations” category, which is not significant enough, on a stand-alone basis, to be considered an operating segment. Corporate and Other and Eliminations primarily consist of unallocated corporate costs and activities, including our equity method investments. ​ The CODM evaluates segment performance based upon Segment EBITDA for each business segment. Segment EBITDA is calculated for each segment as follows: ​ 1. For our Electric Operations segment, Segment EBITDA is comprised of accredited capacity and delivered energy revenues less certain significant segment expenses, which include (i) variable costs comprised of fuel costs and certain other operating costs, such as limestone and soda ash, (ii) other operating and maintenance costs, (iii) costs of purchased power, (iv) utilities, (v) labor and (vi) general and administrative costs . ​ 2. For our Coal Operations segment, Segment EBITDA is comprised of coal sales less certain significant segment expenses, which include (i) fuel, (ii) other operating and maintenance costs, (iii) utilities, (iv) labor and (v) general and administrative costs. ​ 13 Table of Contents Segment EBITDA for each segment is a key measure used by our CODM and provides information about our core operating performance, significant expenses and ability to generate cash flow. Additionally, Segment EBITDA provides investors with the financial analytical framework upon which our CODM bases financial, operational, compensation and planning decisions and presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. Our CODM reviews variable costs, as defined above, in our Electric Operations segment in order to evaluate the efficiency of that segment’s operations. ​ Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended March 31, 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered energy ​ $ 49,562 ​ Coal sales $ 46,412 Accredited capacity revenue ​ ​ 15,534 ​ ​ ​ ​ Electric sales ​ $ 65,096 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 27,527 ) ​ ​ ​ ​ Other operating costs (1) ​ ​ ( 29 ) ​ ​ ​ ​ Total variable costs ​ $ ( 27,556 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating and maintenance costs (2) ​ $ ( 8,854 ) ​ Fuel $ ( 528 ) Cost of purchased power ​ ​ ( 14,863 ) ​ Other operating and maintenance costs ​ ( 20,273 ) Utilities ​ ​ ( 134 ) ​ Utilities ​ ( 3,199 ) Labor ​ ​ ( 8,129 ) ​ Labor ​ ( 19,259 ) Power margin without general and administrative ​ ​ 5,560 ​ Coal margin without general and administrative ​ 3,153 General and administrative ​ ​ ( 1,310 ) ​ General and administrative ​ ( 2,211 ) Electric Operations — Segment EBITDA ​ $ 4,250 ​ Coal Operations — Segment EBITDA $ 942 ​ (1) Other operating costs primarily include costs for lime dust. (2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable included in fuel and other operating costs. ​ ​ Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered energy ​ $ 72,136 ​ Coal sales $ 54,774 Accredited capacity revenue ​ ​ 13,807 ​ ​ ​ ​ Electric sales ​ $ 85,943 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 38,071 ) ​ ​ ​ ​ Other operating costs (1) ​ ​ ( 8 ) ​ ​ ​ ​ Total variable costs ​ $ ( 38,079 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating and maintenance costs (2) ​ $ ( 4,527 ) ​ Fuel $ ( 556 ) Cost of purchased power ​ ​ ( 6,840 ) ​ Other operating and maintenance costs ​ ( 23,854 ) Utilities ​ ​ ( 676 ) ​ Utilities ​ ( 3,476 ) Labor ​ ​ ( 8,143 ) ​ Labor ​ ( 18,886 ) Power margin without general and administrative ​ ​ 27,678 ​ Coal margin without general and administrative ​ 8,002 General and administrative ​ ​ ( 1,535 ) ​ General and administrative ​ ( 2,313 ) Electric Operations — Segment EBITDA ​ $ 26,143 ​ Coal Operations — Segment EBITDA $ 5,689 ​ (1) Other operating costs primarily include costs for lime dust. (2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable included in fuel and other operating costs. ​ ​ 14 Table of Contents Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended March 31, 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered energy ​ $ 49,562 ​ $ — ​ $ — ​ $ 49,562 Accredited capacity revenue ​ ​ 15,534 ​ ​ — ​ ​ — ​ ​ 15,534 Other operating revenue ​ ​ 137 ​ ​ 1,140 ​ ​ 354 ​ ​ 1,631 Coal sales (third party) ​ ​ — ​ ​ 35,080 ​ ​ — ​ ​ 35,080 Coal sales (intercompany) ​ ​ — ​ ​ 11,332 ​ ​ ( 11,332 ) ​ ​ — Operating Revenue ​ $ 65,233 ​ $ 47,552 ​ $ ( 10,978 ) ​ $ 101,807 Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered energy ​ $ 72,136 ​ $ — ​ $ — ​ $ 72,136 Accredited capacity revenue ​ ​ 13,807 ​ ​ — ​ ​ — ​ ​ 13,807 Other operating revenue ​ ​ 87 ​ ​ 1,261 ​ ​ 248 ​ ​ 1,596 Coal sales (third party) ​ ​ — ​ ​ 30,185 ​ ​ — ​ ​ 30,185 Coal sales (intercompany) ​ ​ — ​ ​ 24,589 ​ ​ ( 24,589 ) ​ ​ — Operating Revenue ​ $ 86,030 ​ $ 56,035 ​ $ ( 24,341 ) ​ $ 117,724 ​ Presented below is our reconciliation of Segment EBITDA to the most comparable GAAP account, income (loss) before income taxes for the three months ended March 31, 2026 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Income (Loss) before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Income (Loss) before Income Taxes ​ $ ( 5,038 ) ​ $ ( 2,979 ) ​ $ ( 1,808 ) ​ $ ( 9,825 ) Other operating revenue ​ ​ ( 137 ) ​ ​ ( 1,140 ) ​ ​ ( 354 ) ​ ​ ( 1,631 ) Depreciation, depletion and amortization ​ ​ 6,383 ​ ​ 4,204 ​ ​ 19 ​ ​ 10,606 ARO accretion ​ ​ 131 ​ ​ 277 ​ ​ — ​ ​ 408 Exploration costs ​ ​ — ​ ​ 84 ​ ​ — ​ ​ 84 (Gain) loss on disposal or abandonment of assets, net ​ ​ — ​ ​ ( 201 ) ​ ​ — ​ ​ ( 201 ) Interest income ​ ​ ( 36 ) ​ ​ ( 111 ) ​ ​ — ​ ​ ( 147 ) Interest expense ​ ​ 2,947 ​ ​ 808 ​ ​ 215 ​ ​ 3,970 Loss on extinguishment of debt ​ ​ — ​ ​ — ​ ​ 230 ​ ​ 230 Equity method investment (loss) ​ ​ — ​ ​ — ​ ​ 121 ​ ​ 121 Corporate — general and administrative ​ ​ — ​ ​ — ​ ​ 3,337 ​ ​ 3,337 Segment EBITDA ​ $ 4,250 ​ $ 942 ​ $ 1,760 ​ $ 6,952 ​ Presented below is our reconciliation of Segment EBITDA to the most comparable GAAP account, income (loss) before income taxes for the three months ended March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Income (Loss) before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Income (Loss) before Income Taxes ​ $ 19,217 ​ $ ( 5,082 ) ​ $ ( 4,156 ) ​ $ 9,979 Other operating revenue ​ ​ ( 87 ) ​ ​ ( 1,261 ) ​ ​ ( 248 ) ​ ​ ( 1,596 ) Depreciation, depletion and amortization ​ ​ 5,161 ​ ​ 9,797 ​ ​ 19 ​ ​ 14,977 ARO accretion ​ ​ 120 ​ ​ 307 ​ ​ — ​ ​ 427 Exploration costs ​ ​ — ​ ​ 21 ​ ​ — ​ ​ 21 (Gain) loss on disposal or abandonment of assets, net ​ ​ — ​ ​ ( 21 ) ​ ​ — ​ ​ ( 21 ) Interest income ​ ​ — ​ ​ ( 63 ) ​ ​ — ​ ​ ( 63 ) Interest expense ​ ​ 1,732 ​ ​ 1,991 ​ ​ — ​ ​ 3,723 Equity method investment (loss) ​ ​ — ​ ​ — ​ ​ 236 ​ ​ 236 Corporate — general and administrative ​ ​ — ​ ​ — ​ ​ 2,977 ​ ​ 2,977 Segment EBITDA ​ $ 26,143 ​ $ 5,689 ​ $ ( 1,172 ) ​ $ 30,660 ​ 15 Table of Contents Presented below are our Electric and Coal Operations assets and capital expenditures for the periods presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Other Reconciliations: ​ Electric Operations ​ Coal Operations (1) ​ and Eliminations ​ Consolidated Assets at March 31, 2026 ​ $ 254,332 ​ $ 184,915 ​ $ 9,385 ​ $ 448,632 Assets at December 31, 2025 ​ $ 256,529 ​ $ 148,957 ​ $ 2,567 ​ $ 408,053 Capital Expenditures for the period ending March 31, 2026 ​ $ 3,889 ​ $ 3,792 ​ $ — ​ $ 7,681 ​ (1) Coal Operations assets include cash held on behalf of the consolidated group. Cash held by our Coal Operations includes funds transferred from Electric Operations and Hallador for centralized treasury management purposes. This presentation is not reflective of Coal Operations earnings capacity; refer to the condensed consolidated balance sheets and the “Liquidity of Hallador” in the “Material Changes in Financial Condition” section of “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a complete view of the Company's cash position. ​ Cash and cash equivalents included in Coal Operations assets were $ 36.3 million and $ 9.4 million as of March 31, 2026 and December 31, 2025, respectively. ​ Presented below are our Electric and Coal Operations assets and capital expenditures for the periods presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Other Reconciliations: ​ Electric Operations ​ Coal Operations (1) ​ and Eliminations ​ Consolidated Assets at March 31, 2025 ​ $ 222,865 ​ $ 141,023 ​ $ 2,209 ​ $ 366,097 Assets at December 31, 2024 ​ $ 220,477 ​ $ 144,519 ​ $ 4,124 ​ $ 369,120 Capital Expenditures for the period ending March 31, 2025 ​ $ 5,449 ​ $ 6,244 ​ $ — ​ $ 11,693 ​ ​ ​ Cash and cash equivalents included in Coal Operations assets were $ 5.6 million and $ 6.9 million as of March 31, 2025 and December 31, 2024, respectively. ​ ​ (13) NET INCOME (LOSS) PER SHARE The following table (in thousands, except per share amounts) sets forth the computation of basic earnings (loss) per share for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 Basic earnings per common share: ​ ​ ​ ​ Net income (loss) - basic ​ $ ( 9,321 ) ​ $ 9,979 Weighted average shares outstanding - basic ​ 46,519 ​ 42,619 Basic earnings (loss) per common share ​ $ ( 0.20 ) ​ $ 0.23 ​ 16 Table of Contents The following table (in thousands, except per share amounts) sets forth the computation of diluted net income (loss) per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 Diluted earnings per common share: ​ ​ ​ ​ Net income (loss) - diluted ​ $ ( 9,321 ) ​ $ 9,979 ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 46,519 ​ 42,619 Add: Dilutive effects of Restricted Stock Units ​ — ​ 843 Weighted average shares outstanding - diluted ​ 46,519 ​ 43,462 ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share ​ $ ( 0.20 ) ​ $ 0.23 ​ ​ The computation of diluted net loss per share for the three months ended March 31, 2026 excludes 389,276 potentially dilutive securities related to unvested restricted stock units as their inclusion would have been anti-dilutive. ​ ​ (14) CONTINGENCIES Our Coal Operations subsidiary was party to litigation in which the plaintiffs alleged violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay. In January 2025, we agreed to settle with the plaintiffs such litigation for $ 2.8 million, which was recorded in operating expenses on our consolidated statements of operations for the year ended December 31, 2024. During the third quarter of 2025, we transferred $ 2.7 million into an escrow account and in late 2025 the settlement terms were approved by the court. At December 31, 2025, there were no further amounts accrued on our consolidated balance sheet related to this litigation. ​ (15) AT MARKET AGREEMENT (“ATM”) AND CONFIDENTIALLY MARKETED PUBLIC OFFERING (“CMPO”) ATM ​ On December 18, 2023, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (the “Agent”), pursuant to which we may issue and sell, from time to time, shares (the “Shares”) of our common stock, par value $ 0.01 per share (the “Common Stock”), with aggregate gross proceeds of up to $ 50.0 million through an “at-the-market” equity offering program under which the Agent will act as sales agent (the “ATM Program”). Under the Sales Agreement, we or the Agent have the right, by giving five days’ notice, to terminate the Sales Agreement in our and the Agent’s sole discretion. On December 16, 2025, the Company increased the aggregate gross sales proceeds under the ATM Program from $ 50.0 million to $ 100.0 million by amending the Sales Agreement. ​ During the three months ended March 31, 2026, we issued 10,832 shares of Common Stock under the ATM Program for net proceeds of $ 0.2 million. During the year ended December 31, 2025, we issued 697,227 shares of Common Stock under the ATM Program for net proceeds of $ 13.5 million. In January 2026, the Company delivered written notice to the Agent to terminate the Sales Agreement effective January 18, 2026. As a result of the termination of the Sales Agreement, the Company will not offer or sell any further shares under the ATM Program. ​ CMPO ​ In January 2026, the Company conducted a confidentially marketed public offering (the "CMPO") pursuant to a base prospectus and a final prospectus supplement that were filed with the SEC. The Company sold a total of 3,194,444 shares of common stock, at a price to the public of $ 18.00 per share for aggregate gross proceeds of approximately $ 57.5 million, including the exercise of the underwriter’s option prior to deducting underwriting discounts, commissions, and other offering expenses of $ 3.7 million. ​ 17 Table of Contents (16) SUBSEQUENT EVENTS On May 1, 2026, the Company entered into a Master Power Purchase and Sale Agreement Long-Form Confirmation Letter (the "Capacity PPA") with a subsidiary of a utility. The Capacity PPA provides for the sale of approximately two -thirds of the Company’s accredited capacity from its Merom Generating Station, commencing in late 2028 and extending through mid-2040, and is expected to generate cumulative revenue in excess of $ 1.0 billion. The Capacity PPA is subject to customary regulatory approvals, including approval by the Indiana Utility Regulatory Commission (“IURC”). Completion of the IURC’s review is anticipated in the second half of 2026. ​ ​ ​ 18 Table of Contents