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, ​ ​ ​ 2025 ​ 2024 ​ ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 6,891 $ 7,232 ​ Restricted cash ​ 9,316 4,921 ​ Accounts receivable ​ 12,582 15,438 ​ Inventory ​ 36,318 36,685 ​ Parts and supplies ​ 40,137 39,104 ​ Prepaid expenses ​ 1,808 1,478 ​ Total current assets ​ 107,052 104,858 ​ Property, plant and equipment: ​ ​ Land and mineral rights ​ 70,307 70,307 ​ Buildings and equipment ​ 435,329 429,857 ​ Mine development ​ 94,725 92,458 ​ Finance lease right-of-use assets ​ 13,034 13,034 ​ Total property, plant and equipment ​ 613,395 605,656 ​ Less - accumulated depreciation, depletion and amortization ​ ( 360,624 ) ( 347,952 ) ​ Total property, plant and equipment, net ​ 252,771 257,704 ​ Equity method investments ​ 2,370 2,607 ​ Other assets ​ 3,904 3,951 ​ Total assets ​ $ 366,097 $ 369,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ Current liabilities: ​ ​ Current portion of bank debt, net ​ $ 16,965 $ 4,095 ​ Accounts payable and accrued liabilities ​ 45,652 44,298 ​ Current portion of lease financing ​ 7,067 6,912 ​ Contract liabilities - current ​ 107,368 97,598 ​ Total current liabilities ​ 177,052 152,903 ​ Long-term liabilities: ​ ​ Bank debt, net ​ 4,000 37,394 ​ Long-term lease financing ​ 6,921 8,749 ​ Asset retirement obligations ​ 15,386 14,957 ​ Contract liabilities - long-term ​ 42,539 49,121 ​ Other ​ 4,851 1,711 ​ Total long-term liabilities ​ 73,697 111,932 ​ Total liabilities ​ 250,749 264,835 ​ Commitments and contingencies (Note 16) ​ ​ Stockholders' equity: ​ ​ Preferred stock, $ .10 par value, 10,000 shares authorized; none issued ​ — — ​ Common stock, $ .01 par value, 100,000 shares authorized; 42,978 and 42,621 issued and outstanding , as of March 31, 2025 and December 31, 2024, respectively ​ 430 426 ​ Additional paid-in capital ​ 190,378 189,298 ​ Retained earnings (deficit) ​ ( 75,460 ) ( 85,439 ) ​ Total stockholders’ equity ​ 115,348 104,285 ​ Total liabilities and stockholders’ equity ​ $ 366,097 $ 369,120 ​ ​ 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, ​ ​ 2025 2024 SALES AND OPERATING REVENUES: ​ ​ Electric sales ​ $ 85,943 ​ $ 60,681 ​ Coal sales ​ ​ 30,185 ​ ​ 49,630 ​ Other revenues ​ 1,659 ​ 1,263 ​ Total sales and operating revenues ​ 117,787 ​ 111,574 ​ EXPENSES: ​ ​ ​ Fuel ​ ​ 15,210 ​ ​ 8,059 ​ Other operating and maintenance costs ​ ​ 28,389 ​ ​ 37,262 ​ Cost of purchased power ​ ​ 6,840 ​ ​ 1,926 ​ Utilities ​ ​ 4,152 ​ ​ 4,594 ​ Labor ​ ​ 27,029 ​ ​ 35,168 ​ Depreciation, depletion and amortization ​ 14,977 ​ 15,443 ​ Asset retirement obligations accretion ​ 427 ​ 399 ​ Exploration costs ​ 21 ​ 70 ​ General and administrative ​ 6,825 ​ 5,944 ​ Gain on disposal or abandonment of assets, net ​ ​ ( 21 ) ​ ​ ( 24 ) ​ Total operating expenses ​ 103,849 ​ 108,841 ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME FROM OPERATIONS ​ 13,938 ​ 2,733 ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense (1) ​ ( 3,723 ) ​ ( 3,937 ) ​ Loss on extinguishment of debt ​ — ​ ( 853 ) ​ Equity method investment (loss) ​ ( 236 ) ​ ( 249 ) ​ NET INCOME (LOSS) BEFORE INCOME TAXES ​ 9,979 ​ ( 2,306 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME TAX EXPENSE (BENEFIT): ​ ​ ​ Current ​ — ​ — ​ Deferred ​ — ​ ( 610 ) ​ Total income tax expense (benefit) ​ — ​ ( 610 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) ​ $ 9,979 ​ $ ( 1,696 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) PER SHARE: ​ ​ ​ Basic ​ $ 0.23 ​ $ ( 0.05 ) ​ Diluted ​ $ 0.23 ​ $ ( 0.05 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE SHARES OUTSTANDING ​ ​ ​ Basic ​ 42,619 ​ 34,816 ​ Diluted ​ 43,462 ​ 34,816 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest Expense: ​ ​ ​ Interest on bank debt $ 1,494 $ 2,805 Other interest ​ 1,732 ​ 728 ​ Amortization: ​ ​ ​ ​ Amortization of debt issuance costs ​ 497 ​ 404 ​ Total amortization ​ 497 ​ 404 ​ Total interest expense ​ $ 3,723 ​ $ 3,937 ​ ​ ​ See accompanying notes to the condensed consolidated financial statements. ​ 3 Table of Contents Hallador Energy Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 9,979 ​ $ ( 1,696 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Deferred income tax (benefit) ​ — ​ ( 610 ) Equity method investment loss ​ 236 ​ 249 Depreciation, depletion and amortization ​ 14,977 ​ 15,443 Loss on extinguishment of debt ​ — ​ 853 Gain on disposal or abandonment of assets, net ​ ( 21 ) ​ ( 24 ) Amortization of debt issuance costs ​ 497 ​ 404 Asset retirement obligations accretion ​ 427 ​ 399 Cash paid on asset retirement obligation reclamation ​ ( 156 ) ​ ( 639 ) Stock-based compensation ​ 1,084 ​ 666 Amortization of contract liabilities ​ ( 35,669 ) ​ ( 24,529 ) Accretion on contract liabilities ​ ​ 1,560 ​ ​ — Change in current assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ 2,856 ​ 5,709 Inventory ​ 367 ​ ( 6,613 ) Parts and supplies ​ ( 1,033 ) ​ ( 1,483 ) Prepaid expenses ​ ( 330 ) ​ ( 37 ) Accounts payable and accrued liabilities ​ 3,124 ​ ( 8,015 ) Contract liabilities ​ 37,297 ​ 35,355 Other ​ ​ 3,224 ​ ​ 937 Net cash provided by operating activities ​ $ 38,419 ​ $ 16,369 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 4 Table of Contents Hallador Energy Company Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) (continued) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ Capital expenditures ​ $ ( 11,693 ) ​ $ ( 14,874 ) Proceeds from sale of equipment ​ 21 ​ 24 Net cash used in investing activities ​ ( 11,672 ) ​ ( 14,850 ) ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ Payments on bank debt ​ ( 33,000 ) ​ ( 26,500 ) Borrowings of bank debt ​ 12,000 ​ 12,000 Payments on lease financing ​ ​ ( 1,693 ) ​ ​ ( 1,238 ) Proceeds from sale and leaseback arrangement ​ — ​ 1,927 Issuance of related party notes payable ​ — ​ 5,000 Debt issuance costs ​ — ​ ( 38 ) ATM offering ​ — ​ 6,580 Taxes paid on vesting of RSUs ​ — ​ ( 1 ) Net cash used in financing activities ​ ( 22,693 ) ​ ( 2,270 ) Increase (decrease) in cash, cash equivalents, and restricted cash ​ 4,054 ​ ( 751 ) Cash, cash equivalents, and restricted cash, beginning of period ​ 12,153 ​ 7,123 Cash, cash equivalents, and restricted cash, end of period ​ $ 16,207 ​ $ 6,372 ​ ​ ​ ​ ​ ​ ​ CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: ​ ​ ​ Cash and cash equivalents ​ $ 6,891 ​ $ 1,635 Restricted cash ​ 9,316 ​ 4,737 ​ ​ $ 16,207 ​ $ 6,372 ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL CASH FLOW INFORMATION: ​ ​ ​ Cash paid for interest ​ $ 1,830 ​ $ 3,083 ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL NON-CASH FLOW INFORMATION: ​ ​ ​ ​ Change in capital expenditures included in accounts payable and prepaid expense ​ $ ( 1,649 ) ​ $ ( 5,290 ) Stock issued on redemption of convertible notes and interest ​ $ — ​ $ 9,721 ​ ​ See accompanying notes to the condensed consolidated financial statements. ​ ​ ​ ​ ​ 5 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 Earnings 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Total ​ ​ Common Stock Issued ​ Paid-in ​ Retained ​ Stockholders’ ​ Shares Amount Capital Earnings Equity Balance, December 31, 2023 34,052 ​ $ 341 ​ $ 127,548 ​ $ 140,699 ​ $ 268,588 Stock-based compensation — ​ — ​ 666 ​ — ​ 666 Stock issued on vesting of RSUs 321 ​ 3 ​ ( 3 ) ​ — ​ — Taxes paid on vesting of RSUs ( 132 ) ​ ( 1 ) ​ — ​ — ​ ( 1 ) Stock issued on redemption of convertible notes 1,582 ​ 15 ​ 9,706 ​ — ​ 9,721 Stock issued in ATM offering 711 ​ 7 ​ 6,573 ​ — ​ 6,580 Net loss — ​ — ​ — ​ ( 1,696 ) ​ ( 1,696 ) Balance, March 31, 2024 36,534 ​ $ 365 ​ $ 144,490 ​ $ 139,003 ​ $ 283,858 ​ See accompanying notes to the condensed consolidated financial statements. ​ 6 Table of Contents Hallador Energy Company Notes to Condensed Consolidated Financial Statements (unaudited) (1) GENERAL BUSINESS The condensed consolidated financial statements include the accounts of Hallador Energy Company (hereinafter known as “we, us, or our”) and its wholly owned subsidiaries Hallador Power Company, LLC (“Hallador Power”), Sunrise Coal, LLC (“Sunrise”), and Hourglass Sands, LLC (“Hourglass”), as well as Hallador Power and Sunrise’s wholly owned subsidiaries. Our business is organized based on the services and products we provide in two segments: (i) Electric Operations and (ii) Coal Operations. The Chief Operating Decision Maker (“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. ​ 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 a 50 % interest in Sunrise Energy, LLC (“Sunrise Energy”), a private gas exploration company with operations in Indiana and Oaktown Gas, LLC, which we account for using the equity method. The Electric Operations reportable segment includes electric power generation facilities of the Merom Power Plant (“Merom”). The Coal Operations reportable segment includes our currently operating underground mining complex Oaktown 1. We have other mining complexes and locations which were idled during the year ended December 31, 2024. 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. The interim financial data is unaudited; however, in our opinion, it includes all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the results for the interim periods. The condensed consolidated financial statements included herein have been prepared pursuant to the Securities and Exchange Commission’s (the “SEC”) rules and regulations; accordingly, certain information and footnote disclosures normally included in generally accepted accounting principles (“GAAP”) financial statements have been condensed or omitted. The results of operations and cash flows for the three months ended March 31, 2025, are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2025. Our organization and business, the accounting policies we follow, and other information are contained in the notes to our consolidated financial statements filed as part of our 2024 Annual Report on Form 10-K . This quarterly report should be read in conjunction with such Annual Report on Form 10-K. (2) RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements - Adopted For the year ended December 31, 2024, the Company retrospectively adopted Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). See “ Note 14 – Segments of Business ” for enhanced disclosures associated with the adoption of ASU 2023-07. 7 Table of Contents Recent Accounting Pronouncements – Not Yet Adopted In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). 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. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09, but do not expect it to have a material effect on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments. The objective of the standard is to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt with Conversion and Other Options. This standard will affect entities that settle convertible debt instruments for which the conversion privileges are changed to induce conversion. The guidance will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company is currently evaluating the impact of the new standard on its financial statements and related disclosures. ​ 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. The standard update improves 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) LONG-LIVED ASSET IMPAIRMENTS During the year ended December 31, 2024, the Company recorded a $ 215.1 million non-cash impairment charge in our Coal Operations segment due to the results of our annual business plan review. As part of that business plan review, the Company evaluated core hole samples at several of our mines, noting the samples obtained at our Oaktown 2 mine were determined to be of a lower quality and density than that of the Oaktown 1 mine. As such, the Company decided to temporarily seal the Oaktown 2 mine, and to focus coal production at the Oaktown 1 mine, which has lower recovery costs. The fair values of the impaired assets were determined using a discounted cash flow model, which represents Level 3 fair value measurements under the fair value hierarchy. The fair value analysis used assumptions regarding the projected economics of the Coal Operations assets, given prevailing commodity prices and operating expense levels. For the three months ended March 31, 2025 and 2024, no impairment charges were recorded for long-lived assets. (4) INVENTORY Inventory is valued at a lower of cost or net realizable value (NRV). As of March 31, 2025, and December 31, 2024, coal inventory includes NRV adjustments of $ 0.1 million and $ 0.3 million, respectively. (5) BANK DEBT On September 27, 2024, the Company executed the First Amendment (“First Amendment”) to the Fourth Amended and Restated Credit Agreement, dated as of August 2, 2023 (as amended, the “Credit Agreement”), with PNC Bank, National Association (in its capacity as administrative agent, "PNC"), which was accounted for as a debt modification. The primary purpose of the First Amendment was to provide the Company with short-term covenant relief to pursue 8 Table of Contents additional liquidity. The First Amendment provides for additional flexibility for the Company to enter into prepaid forward power sale contracts, provided that the Company repays outstanding term loans under the Credit Agreement (“Term Loan”) with proceeds received from certain eligible power purchase agreements, up to a maximum of $ 20.0 million. These required prepaid forward power sale Term Loan repayments, if any, will take the place of the $ 6.5 million quarterly Term Loan payments. During the fourth quarter of 2024, the Company entered into a prepaid forward power sales contract in which $ 20.0 million of the proceeds were used to pay our required $ 6.5 million quarterly loan payments through the third quarter of 2025 and also reduced our fourth quarter 2025 payment to $ 6.0 million. Furthermore, the First Amendment defines certain administrative changes which include, among other things, added requirements related to reporting, third party financial advisors, and appraisals on coal and power assets. Bank debt reduced by $ 21.0 million during the three months ended March 31, 2025. Bank debt totaled $ 23.0 million and is comprised of our Term Loan ( $ 19.0 million as of March 31, 2025) and a $ 75.0 million revolver ( $ 4.0 million borrowed as of March 31, 2025) under the Credit Agreement. 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. Liquidity As of March 31, 2025, we had additional borrowing capacity of $ 52.8 million under the revolver and total liquidity of $ 69.0 million. Our additional borrowing capacity is net of $ 18.2 million in outstanding letters of credit as of March 31, 2025 that were required to maintain surety bonds . Liquidity consists of our additional borrowing capacity and cash and cash equivalents. Fees Unamortized bank fees and other costs incurred in connection with our initial facility totaled $ 4.3 million. Additional costs incurred with the First Amendment totaled $ 0.6 million . These unamortized bank fees were deferred and are being amortized over the term of the loan. Unamortized bank fees as of March 31, 2025, and December 31, 2024, were $ 2.0 million and $ 2.5 million, respectively. Bank debt, less debt issuance costs, is presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2025 2024 Current bank debt ​ $ 19,000 ​ $ 6,000 ​ Less unamortized debt issuance cost ​ ( 2,035 ) ​ ( 1,905 ) ​ Net current portion ​ $ 16,965 ​ $ 4,095 ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term bank debt ​ $ 4,000 ​ $ 38,000 ​ Less unamortized debt issuance cost ​ — ​ ( 606 ) ​ Net long-term portion ​ $ 4,000 ​ $ 37,394 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total bank debt ​ $ 23,000 ​ $ 44,000 ​ Less total unamortized debt issuance cost ​ ( 2,035 ) ​ ( 2,511 ) ​ Net bank debt ​ $ 20,965 ​ $ 41,489 ​ ​ ​ ​ ​ ​ Future Maturities (in thousands): ​ 2025 $ 6,000 2026 ​ 17,000 Total ​ $ 23,000 ​ 9 Table of Contents Covenants The First Amendment, among other things, provided the Company with short-term covenant relief to pursue additional liquidity. The First Amendment waived the Company’s Leverage Ratio requirement for the third and fourth quarters of 2024, increased the threshold to 5.50 to 1.00 for the first quarter of 2025, and decreased the threshold back to 2.25 to 1.00 for each fiscal quarter thereafter. Additionally, the Debt Service Coverage Ratio requirement ( 1.25 to 1.00) was waived from third quarter of 2024 through the first quarter of 2025. The First Amendment also added additional financial covenants which include: (i) a maximum First Lien Leverage Ratio for the first quarter of 2025, calculated as of the end of each fiscal quarter for the trailing twelve months, not to exceed 3.50 to 1.00; (ii) a minimum liquidity requirement of $ 10.0 million, beginning on the First Amendment execution date and ending when the second quarter of 2025 compliance certificate is received; and (iii) a minimum quarterly EBITDA requirement, as defined in the First Amendment, of $ 5.0 million for the third quarter of 2024 through the first quarter of 2025. ​ As of March 31, 2025, our Leverage Ratio and First Lien Leverage Ratios were 1.89 , liquidity of $ 69.0 million and quarterly adjusted EBITDA of $ 19.3 million were in compliance with the requirements of the Credit Agreement. ​ As of March 31, 2025, we were in compliance with all other covenants defined in the Credit Agreement. Interest Rate The interest rate on the facility ranges from secured overnight financing rate (“SOFR”) plus 4.00 % to SOFR plus 5.00 %, depending on our Leverage Ratio. As of March 31, 2025, we were paying SOFR plus 5.00 % on the outstanding bank debt which equates to an all-in rate of 9.45 %. ​ (6) ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following for the indicated dates (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2025 2024 Accounts payable ​ $ 26,002 ​ $ 24,291 ​ Accrued property taxes ​ 4,671 ​ 4,185 ​ Accrued payroll ​ 4,374 ​ 3,258 ​ Workers' compensation reserve ​ 4,805 ​ 4,321 ​ Group health insurance ​ 1,650 ​ 1,700 ​ Asset retirement obligation - current portion ​ 1,697 ​ 1,952 ​ Other ​ 2,453 ​ 4,591 ​ Total accounts payable and accrued liabilities ​ $ 45,652 ​ $ 44,298 ​ ​ ​ (7) REVENUE Revenue from Contracts with Customers We account for a contract with a customer 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 time a PPA is executed by the parties, as this is the point at which enforceable rights and obligations are established. 10 Table of Contents Accordingly, we concluded that a PPA that is not determined to be a lease or derivative constitutes a valid contract under ASC 606. We recognize revenue daily, based on an output method of capacity made available as part of any stand-ready obligations for contract capacity performance obligations and daily, based on an output method of MWh of electricity delivered. For the delivered energy performance obligation in the PPA with Hoosier, we recognize revenue daily for actual delivered electricity plus the amortization of the contract liability as a result of the Asset Purchase Agreement with Hoosier. For delivered energy to all other customers, we recognize revenue daily for the actual delivered electricity. When energy hours at the Merom Hub are priced below our production cost or during outages at our Merom Facility, we have the option to make net hourly purchases of power in the MISO market. We record these as “Cost of purchased power” on our condensed consolidated statements of operations. Coal operations Our coal revenue is derived from sales to customers of coal produced at our facilities. Our customers typically purchase coal directly from our mine sites where the sale occurs and where title, risk of loss, and control pass to the customer at that point. 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. Our coal sales agreements with our customers are fixed-priced, fixed-volume supply contracts, or include a pre-determined escalation in price for each year. Price re-opener and index provisions may allow either party to commence a renegotiation of the contract price at a pre-determined time. Price re-opener provisions may automatically set a new price based on the prevailing market price or, in some instances, require us to negotiate a new price, sometimes within specified ranges of prices. 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 will typically contain coal quality specifications. With coal quality specifications in place, the raw coal sold by us to the customer at the delivery point must be substantially free of magnetic material and other foreign material impurities and 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 Btu factor, moisture, ash, and sulfur content, and can result in either increases or decreases in the value of the coal shipped. 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, ​ 2025 2024 Delivered energy (including contract liability amortization) ​ $ 72,136 ​ $ 48,908 Capacity ​ 13,807 ​ 11,773 Total Electric Operations sales ​ $ 85,943 ​ $ 60,681 ​ 11 Table of Contents Coal operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2025 2024 Outside third-party Indiana customers ​ $ 20,314 ​ $ 18,103 Customers in Florida, North Carolina, Alabama and Georgia ​ 9,871 ​ 31,527 Total Coal Operations sales ​ $ 30,185 ​ $ 49,630 ​ Performance Obligations Electric Operations We concluded that each megawatt hour (“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 capacity provides an economic benefit to the holder and could be sold by the customer. Coal Operations 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. 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 based on 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, 2025 and disaggregated by segment and contract duration. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2026 2027 2028 2029 Total Delivered energy revenues $ 113,090 $ 149,280 $ 97,290 $ 57,700 $ 13,860 $ 431,220 Capacity revenues ​ ​ 45,450 ​ ​ 61,540 ​ ​ 51,400 ​ ​ 37,330 ​ ​ 3,470 ​ ​ 199,190 Coal Operations revenues ​ ​ 112,600 ​ ​ 138,730 ​ ​ 141,850 ​ ​ 29,500 ​ ​ — ​ ​ 422,680 Total revenue (1) ​ $ 271,140 ​ $ 349,550 ​ $ 290,540 ​ $ 124,530 ​ $ 17,330 ​ $ 1,053,090 (1) Coal revenues consist of consolidated revenues 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 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. 12 Table of Contents The following table shows our beginning and ending accounts receivable from contracts with customers balance for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2025 ​ 2024 Accounts receivable from contracts with customers - beginning balance ​ $ 15,438 ​ $ 19,937 Accounts receivable from contracts with customers - ending balance ​ $ 12,582 ​ $ 14,228 ​ As the Company fulfills its contractual obligations, we recognized those amounts in revenues. The following table reconciles our beginning and ending contract liabilities for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ 2025 ​ 2024 Total contract liabilities - beginning balance ​ $ 146,719 ​ $ 113,741 Cash payments received on future contract obligations ​ ​ 37,296 ​ ​ 35,355 Accretion on contract liabilities ​ ​ 1,560 ​ ​ — Revenue recognized, cash payment received in prior period ​ ​ ( 35,668 ) ​ ​ ( 24,529 ) Total contract liabilities - ending balance ​ $ 149,907 ​ $ 124,567 ​ ​ (8) INCOME TAXES For the three months ended March 31, 2025 and 2024, 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, 2025 and 2024, was 0 % due to recording of a full valuation allowance and ~ 26 %, respectively. Historically, our actual effective tax rates have 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. (9) STOCK COMPENSATION PLANS ​ ​ ​ ​ Non-vested grants as of December 31, 2024 1,034,486 Vested - weighted average share price on vested date was $ 12.28 ( 513,068 ) Forfeited ( 7,000 ) Non-vested grants as of March 31, 2025 514,418 ​ For the three months ended March 31, 2025 and 2024, our stock compensation expense was $ 1.1 million and $ 0.7 million, respectively. Non-vested RSU grants will vest as follows: ​ ​ ​ ​ Vesting Year RSUs Vesting 2025 162,000 2026 176,210 2027 ​ 176,208 ​ ​ 514,418 ​ The outstanding RSUs have a value of $ 6.3 million based on the March 31, 2025 closing stock price of $ 12.28 . As of March 31, 2025, unrecognized stock compensation expense to be recognized over the rolling 3 -year vesting period is $ 1.5 million, and we had 217,319 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. 13 Table of Contents (10) SELF-INSURANCE We self-insure our non-leased underground mining equipment. Such equipment was allocated among four mining units dispersed over seven miles, at March 31, 2025 and December 31, 2024. The historical cost of such equipment was approximately $ 160.8 million and $ 227.8 million as of March 31, 2025, and December 31, 2024. We also self-insure for workers’ compensation claims under a guaranteed cost program. Under this program, we are responsible for the first $ 1.0 million per claim up to an aggregate of $ 4.0 million annually. Restricted cash of $ 3.3 million and $ 3.4 million as of March 31, 2025, and December 31, 2024, respectively, represents cash held and controlled by a third party and is restricted primarily for future workers’ compensation claim payments. The Company had $ 4.8 million and $ 4.3 million of workers’ compensation reserve as of March 31, 2025 and December 31, 2024 , respectively, in “accounts payable and accrued liabilities” on the condensed consolidated balance sheets. (11) 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. We have no Level 2 instruments. 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 . Nonrecurring Fair Value Measurements During the fourth quarter of 2024, the Company completed its review of the coal mining facilities and future mining plans. The impairment analysis was based upon the coal mining operating plans of the Company, market driven pricing and cost trends. As part of that analysis, the Company determined the carrying amount of its coal mining long-lived asset group was not recoverable and recorded a non-cash, long-lived asset impairment charge of $ 215.1 million in 2024. The discounted cash flow model was calculated using projected economics for the Coal Operations assets, using the Company’s mining plan and reserve estimates to be mined and sold at prevailing commodity prices, operating expenses, and production cost levels, which are classified as Level 3 inputs. Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and restricted cash. The Company’s cash and cash equivalent and restricted cash balances on deposit with financial institutions total $ 16.2 million and $ 12.2 million as of March 31, 2025 and December 31, 2024, 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. 14 Table of Contents (12) EQUITY METHOD INVESTMENTS We own a 50 % interest in Sunrise Energy, LLC, which owns gas reserves and gathering equipment with plans to develop and operate such reserves. Sunrise Energy, LLC, 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 as of March 31, 2025, and December 31, 2024, was $ 2.0 million and $ 2.1 million, respectively. 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, 2025, and December 31, 2024, was $ 0.4 million and $ 0.5 million, respectively. (13) ORGANIZATIONAL RESTRUCTURING On February 23, 2024, (the “Effective Date”), we committed to a reorganization effort in the Coal Operations Segment (the “Reorganization Plan”) that included a workforce reduction of approximately 110 employees, or approximately 12 % of the workforce. The reduction in workforce was communicated to employees on the Effective Date and implemented immediately, subject to certain administrative procedures. The Reorganization Plan was designed to strengthen our financial and operational efficiency and create significant operational savings and higher margins in our Coal Operations segment. This step helped advance our transition from a company primarily focused on coal production to a more resilient and diversified integrated independent power producer (“IPP”). As part of this initiative, we substantially idled production at our higher cost surface mines, Prosperity Mine and Freelandville Mine, with minimal ongoing production. We also focused our seven units of underground equipment on four units of our lowest cost production at our Oaktown Mine. In connection with the Reorganization Plan, we incurred aggregate expenses of $ 1.9 million ($ 1.1 million in the first quarter of 2024 and $ 0.8 million in the second quarter of 2024) that were included in “Labor” in the condensed consolidated statements of operations. These charges related to compensation, tax, professional, and insurance related expenses are considered one-time charges paid during 2024. The coal mining properties asset group was tested for impairment as result of the organizational restructuring passing the undiscounted recoverability test. ​ (14) 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 Chief Operating Decision Maker (“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 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 are entered into. ​ 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. Revenues from our Coal Operations segment consist of sales of coal to various third-parties and to Merom. Coal sales to our Electric Operations are based on multi-year contracts which approximate market prices at the time the contracts are entered into. Intercompany coal sales and amounts above actual costs to produce the coal are eliminated in the consolidated statements of operations. ​ 15 Table of Contents 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 EBITDA margin for each business segment. EBITDA margin is calculated for each segment as follows: ​ 1. For our Electric Operations segment, EBITDA margin is comprised of delivered energy revenues less certain significant segment expenses, which include (i) variable costs, (ii) other operating and maintenance costs, (iii) costs of purchased power, (iv) utilities, (v) labor and (vi) general and administrative costs. Variable operating costs are comprised of fuel costs and certain other operating costs, such as limestone and soda ash. 2. For our Coal Operations segment, EBITDA margin 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. ​ EBITDA margin 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, EBITDA margin 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 segments operations. ​ Presented below are the Electric and Coal Operations key metrics reviewed by the CODM at March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations ​ ​ ​ ​ ​ ​ ​ ​ Delivered Energy $ 72,136 Coal Sales $ 54,774 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 — EBITDA Margin ​ $ 26,143 ​ Coal Operations — EBITDA Margin $ 5,689 ​ ​ ​ ​ ​ ​ ​ ​ (1) Other operating costs include costs for limestone, dibasic acid, ammonia, lime dust and soda ash. (2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1). 16 Table of Contents Presented below are the Electric and Coal Operations key metrics reviewed by the CODM at March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations ​ ​ ​ ​ ​ ​ ​ ​ Delivered Energy $ 48,908 Coal Sales $ 66,036 Capacity Revenue ​ ​ 11,773 ​ ​ ​ ​ Electric Sales ​ $ 60,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 24,435 ) ​ ​ ​ ​ Other Operating Costs (1) ​ ​ ( 493 ) ​ ​ ​ ​ Total Variable Costs ​ $ ( 24,928 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Operating and Maintenance Costs (2) ​ $ ( 4,886 ) ​ Fuel $ ( 1,235 ) Cost of Purchased Power ​ ​ ( 1,926 ) ​ Other Operating and Maintenance Costs ​ ( 31,791 ) Utilities ​ ​ ( 302 ) ​ Utilities ​ ( 4,292 ) Labor ​ ​ ( 7,683 ) ​ Labor ​ ( 27,485 ) Power Margin Without General and Administrative ​ ​ 20,956 ​ Coal Margin Without General and Administrative ​ 1,233 General and Administrative ​ ​ ( 1,058 ) ​ General and Administrative ​ ( 2,438 ) Electric Operations — EBITDA Margin ​ $ 19,898 ​ Coal Operations — EBITDA Margin $ ( 1,205 ) ​ ​ ​ ​ ​ ​ ​ ​ (1) Other operating costs include costs for limestone, dibasic acid, ammonia, lime dust and soda ash. (2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1). ​ Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues at March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 72,136 $ — $ — $ 72,136 Capacity Revenue ​ ​ 13,807 ​ ​ — ​ ​ — ​ ​ 13,807 Other Operating Revenue ​ ​ 87 ​ ​ 1,324 ​ ​ 248 ​ ​ 1,659 Coal Sales (Third-Party) ​ ​ — ​ ​ 30,185 ​ ​ — ​ ​ 30,185 Coal Sales (Intercompany) ​ ​ — ​ ​ 24,589 ​ ​ ( 24,589 ) ​ ​ — Operating Revenues ​ $ 86,030 ​ $ 56,098 ​ $ ( 24,341 ) ​ $ 117,787 ​ Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues at March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 48,908 $ — $ — $ 48,908 Capacity Revenue ​ ​ 11,773 ​ ​ — ​ ​ — ​ ​ 11,773 Other Operating Revenue ​ ​ 157 ​ ​ 810 ​ ​ 296 ​ ​ 1,263 Coal Sales (Third-Party) ​ ​ — ​ ​ 49,630 ​ ​ — ​ ​ 49,630 Coal Sales (Intercompany) ​ ​ — ​ ​ 16,406 ​ ​ ( 16,406 ) ​ ​ — Operating Revenues ​ $ 60,838 ​ $ 66,846 ​ $ ( 16,110 ) ​ $ 111,574 ​ 17 Table of Contents Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes at March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Income (Loss) before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 26,143 $ — $ 23,417 $ 49,560 Coal Operations — EBITDA Margin ​ ​ — ​ ​ 5,689 ​ ​ ( 24,589 ) ​ ​ ( 18,900 ) Other Operating Revenue ​ ​ 87 ​ ​ 1,324 ​ ​ 248 ​ ​ 1,659 Depreciation, Depletion and Amortization ​ ​ ( 5,161 ) ​ ​ ( 9,797 ) ​ ​ ( 19 ) ​ ​ ( 14,977 ) Asset Retirement Obligations Accretion ​ ​ ( 120 ) ​ ​ ( 307 ) ​ ​ — ​ ​ ( 427 ) Exploration Costs ​ ​ — ​ ​ ( 21 ) ​ ​ — ​ ​ ( 21 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 21 ​ ​ — ​ ​ 21 Interest Expense ​ ​ ( 1,732 ) ​ ​ ( 1,991 ) ​ ​ — ​ ​ ( 3,723 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ ( 236 ) ​ ​ ( 236 ) Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 2,977 ) ​ ​ ( 2,977 ) Income (Loss) before Income Taxes ​ $ 19,217 ​ $ ( 5,082 ) ​ $ ( 4,156 ) ​ $ 9,979 ​ Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes at March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Income (Loss) before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 19,898 $ — $ 17,611 $ 37,509 Coal Operations — EBITDA Margin ​ ​ — ​ ​ ( 1,205 ) ​ ​ ( 16,406 ) ​ ​ ( 17,611 ) Other Operating Revenue ​ ​ 157 ​ ​ 810 ​ ​ 296 ​ ​ 1,263 Depreciation, Depletion and Amortization ​ ​ ( 4,697 ) ​ ​ ( 10,728 ) ​ ​ ( 18 ) ​ ​ ( 15,443 ) Asset Retirement Obligations Accretion ​ ​ ( 111 ) ​ ​ ( 288 ) ​ ​ — ​ ​ ( 399 ) Exploration Costs ​ ​ — ​ ​ ( 70 ) ​ ​ — ​ ​ ( 70 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 24 ​ ​ — ​ ​ 24 Interest Expense ​ ​ ( 148 ) ​ ​ ( 3,209 ) ​ ​ ( 580 ) ​ ​ ( 3,937 ) Loss on Extinguishment of Debt ​ ​ — ​ ​ — ​ ​ ( 853 ) ​ ​ ( 853 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ ( 249 ) ​ ​ ( 249 ) Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 2,448 ) ​ ​ ( 2,448 ) Corporate — Other Operating and Maintenance Costs ​ ​ — ​ ​ — ​ ​ ( 92 ) ​ ​ ( 92 ) Income (Loss) before Income Taxes ​ $ 15,099 ​ $ ( 14,666 ) ​ $ ( 2,739 ) ​ $ ( 2,306 ) ​ Presented below are our Electric and Coal Operations assets and capital expenditures at March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Other Reconciliations: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Assets $ 222,865 $ 141,023 $ 2,209 $ 366,097 Capital Expenditures ​ $ 5,449 ​ $ 6,244 ​ $ — ​ $ 11,693 ​ Presented below are our Electric and Coal Operations assets and capital expenditures at March 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Other Reconciliations: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Assets $ 211,116 $ 370,292 $ 4,012 $ 585,420 Capital Expenditures ​ $ 6,242 ​ $ 8,632 ​ $ — ​ $ 14,874 ​ ​ ​ 18 Table of Contents (15) 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 indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2025 ​ 2024 ​ Basic earnings per common share: ​ ​ Net income (loss) - basic ​ $ 9,979 ​ $ ( 1,696 ) ​ Weighted average shares outstanding - basic ​ 42,619 ​ 34,816 ​ Basic earnings (loss) per common share ​ $ 0.23 ​ $ ( 0.05 ) ​ ​ 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, ​ ​ 2025 ​ 2024 ​ Diluted earnings per common share: ​ ​ Net income (loss) - diluted ​ $ 9,979 ​ $ ( 1,696 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 42,619 ​ 34,816 ​ Add: Dilutive effects of Restricted Stock Units ​ 843 ​ — ​ Weighted average shares outstanding - diluted ​ 43,462 ​ 34,816 ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share ​ $ 0.23 ​ $ ( 0.05 ) ​ ​ ​ ​ ​ (16) CONTINGENCIES Our Coal Operations subsidiary is party to litigation in which the plaintiffs allege 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 and is in “Accounts payable and accrued liabilities” on our condensed consolidated balance sheets at March 31, 2025. ​ ​ ​ ​ ​ 19 Table of Contents