HALLADOR ENERGY CO 10-Q

ITEM 1. FINANCIAL STATEMENTS Hallador Energy Company Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ ​ 2025 ​ 2024 ​ ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 9,228 $ 7,232 ​ Restricted cash ​ 23,142 4,921 ​ Accounts receivable ​ 18,742 15,438 ​ Inventory ​ 43,570 36,685 ​ Parts and supplies ​ 42,755 39,104 ​ Prepaid expenses ​ 2,437 1,478 ​ Total current assets ​ 139,874 104,858 ​ Property, plant and equipment: ​ ​ Land and mineral rights ​ 70,307 70,307 ​ Buildings and equipment ​ 446,278 429,857 ​ Mine development ​ 96,764 92,458 ​ Finance lease right-of-use assets ​ 13,034 13,034 ​ Total property, plant and equipment ​ 626,383 605,656 ​ Less - accumulated depreciation, depletion and amortization ​ ( 363,704 ) ( 347,952 ) ​ Total property, plant and equipment, net ​ 262,679 257,704 ​ Equity method investments ​ 2,889 2,607 ​ Other assets ​ 4,071 3,951 ​ Total assets ​ $ 409,513 $ 369,120 ​ ​ ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ Current liabilities: ​ ​ Current portion of bank debt, net ​ $ 17,139 $ 4,095 ​ Accounts payable and accrued liabilities ​ 51,952 44,298 ​ Current portion of lease financing ​ 7,229 6,912 ​ Contract liabilities - current ​ 132,935 97,598 ​ Total current liabilities ​ 209,255 152,903 ​ Long-term liabilities: ​ ​ Bank debt, net ​ 26,000 37,394 ​ Long-term lease financing ​ 5,052 8,749 ​ Asset retirement obligations ​ 15,822 14,957 ​ Contract liabilities - long-term ​ 29,216 49,121 ​ Other ​ 2,015 1,711 ​ Total long-term liabilities ​ 78,105 111,932 ​ Total liabilities ​ 287,360 264,835 ​ 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 June 30, 2025 and December 31, 2024, respectively ​ 430 426 ​ Additional paid-in capital ​ 188,935 189,298 ​ Retained deficit ​ ( 67,212 ) ( 85,439 ) ​ Total stockholders’ equity ​ 122,153 104,285 ​ Total liabilities and stockholders’ equity ​ $ 409,513 $ 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 June 30, ​ Six Months Ended June 30, ​ ​ ​ 2025 2024 2025 2024 SALES AND OPERATING REVENUES: ​ ​ ​ ​ Electric sales ​ $ 59,976 ​ $ 59,979 ​ $ 145,919 ​ $ 120,880 ​ Coal sales ​ ​ 38,147 ​ ​ 32,801 ​ ​ 68,332 ​ ​ 82,431 ​ Other revenues ​ 4,766 ​ 1,045 ​ 6,425 ​ 2,308 ​ Total sales and operating revenues ​ 102,889 ​ 93,825 ​ 220,676 ​ 205,619 ​ EXPENSES: ​ ​ ​ ​ ​ Fuel ​ ​ 15,063 ​ ​ 12,370 ​ ​ 30,273 ​ ​ 20,929 ​ Other operating and maintenance costs ​ ​ 28,955 ​ ​ 33,981 ​ ​ 57,344 ​ ​ 70,963 ​ Cost of purchased power ​ ​ 2,172 ​ ​ 2,619 ​ ​ 9,012 ​ ​ 4,545 ​ Utilities ​ ​ 4,507 ​ ​ 3,910 ​ ​ 8,659 ​ ​ 8,504 ​ Labor ​ ​ 26,799 ​ ​ 26,555 ​ ​ 53,828 ​ ​ 61,723 ​ Depreciation, depletion and amortization ​ 5,542 ​ 13,649 ​ 20,519 ​ 29,092 ​ Asset retirement obligations accretion ​ 437 ​ 399 ​ 864 ​ 798 ​ Exploration costs ​ 98 ​ 47 ​ 119 ​ 117 ​ General and administrative ​ 7,501 ​ 7,803 ​ 14,326 ​ 13,747 ​ Gain on disposal or abandonment of assets, net ​ ​ ( 55 ) ​ ​ ( 222 ) ​ ​ ( 76 ) ​ ​ ( 246 ) ​ Total operating expenses ​ 91,019 ​ 101,111 ​ 194,868 ​ 210,172 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME (LOSS) FROM OPERATIONS ​ 11,870 ​ ( 7,286 ) ​ 25,808 ​ ( 4,553 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense (1) ​ ( 3,819 ) ​ ( 3,735 ) ​ ( 7,542 ) ​ ( 7,672 ) ​ Loss on extinguishment of debt ​ — ​ ( 1,937 ) ​ — ​ ( 2,790 ) ​ Equity method investment (loss) ​ 197 ​ ( 257 ) ​ ( 39 ) ​ ( 506 ) ​ NET INCOME (LOSS) BEFORE INCOME TAXES ​ 8,248 ​ ( 13,215 ) ​ 18,227 ​ ( 15,521 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME TAX BENEFIT: ​ ​ ​ ​ ​ Current ​ — ​ — ​ — ​ — ​ Deferred ​ — ​ ( 3,011 ) ​ — ​ ( 3,621 ) ​ Total income tax benefit ​ — ​ ( 3,011 ) ​ — ​ ( 3,621 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) ​ $ 8,248 ​ $ ( 10,204 ) ​ $ 18,227 ​ $ ( 11,900 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME (LOSS) PER SHARE: ​ ​ ​ ​ ​ Basic ​ $ 0.19 ​ $ ( 0.27 ) ​ $ 0.43 ​ $ ( 0.32 ) ​ Diluted ​ $ 0.19 ​ $ ( 0.27 ) ​ $ 0.42 ​ $ ( 0.32 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ WEIGHTED AVERAGE SHARES OUTSTANDING ​ ​ ​ ​ ​ Basic ​ 42,619 ​ 37,879 ​ 42,798 ​ 37,026 ​ Diluted ​ 43,048 ​ 37,879 ​ 43,434 ​ 37,026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest Expense: ​ ​ ​ ​ ​ Interest on bank debt $ 1,404 $ 2,779 $ 2,898 $ 5,584 ​ Other interest ​ 1,891 ​ 547 ​ 3,623 ​ 1,275 ​ Amortization of debt issuance costs ​ 524 ​ 409 ​ 1,021 ​ 813 ​ Total interest expense ​ $ 3,819 ​ $ 3,735 ​ $ 7,542 ​ $ 7,672 ​ ​ ​ 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) ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 18,227 ​ $ ( 11,900 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ Deferred income tax (benefit) ​ — ​ ( 3,621 ) Equity method investment loss ​ 39 ​ 506 Depreciation, depletion and amortization ​ 20,519 ​ 29,092 Loss on extinguishment of debt ​ — ​ 2,790 Gain on disposal or abandonment of assets, net ​ ( 76 ) ​ ( 246 ) Amortization of debt issuance costs ​ 1,021 ​ 813 Asset retirement obligations accretion ​ 864 ​ 798 Cash paid on asset retirement obligation reclamation ​ ( 311 ) ​ ( 602 ) Stock-based compensation ​ 1,559 ​ 2,247 Amortization of contract liabilities ​ ( 65,597 ) ​ ( 46,524 ) Accretion on contract liabilities ​ ​ 3,215 ​ ​ — Other ​ ​ 284 ​ ​ 1,402 Change in current assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ( 3,304 ) ​ 839 Inventory ​ ( 6,885 ) ​ ( 9,520 ) Parts and supplies ​ ( 3,651 ) ​ ( 582 ) Prepaid expenses ​ 1,003 ​ 2,140 Accounts payable and accrued liabilities ​ 5,062 ​ ( 11,107 ) Contract liabilities ​ 77,814 ​ 83,366 Net cash provided by operating activities ​ $ 49,783 ​ $ 39,891 CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ Capital expenditures ​ $ ( 24,737 ) ​ $ ( 28,044 ) Proceeds from sale of equipment ​ 162 ​ 2,474 Investment in equity method investments ​ ​ ( 322 ) ​ ​ — Net cash used in investing activities ​ ( 24,897 ) ​ ( 25,570 ) CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ Payments on bank debt ​ ( 44,000 ) ​ ( 86,500 ) Borrowings of bank debt ​ 45,000 ​ 40,500 Payments on lease financing ​ ​ ( 3,421 ) ​ ​ ( 2,665 ) Proceeds from sale and leaseback arrangement ​ — ​ 3,783 Issuance of related party notes payable ​ — ​ 5,000 Payments on related party notes payable ​ — ​ ( 5,000 ) Debt issuance costs ​ ( 330 ) ​ ( 76 ) ATM offering ​ — ​ 34,515 Taxes paid on vesting of RSUs ​ ( 1,918 ) ​ ( 273 ) Net cash used in financing activities ​ ( 4,669 ) ​ ( 10,716 ) Increase in cash, cash equivalents, and restricted cash ​ 20,217 ​ 3,605 Cash, cash equivalents, and restricted cash, beginning of period ​ 12,153 ​ 7,123 Cash, cash equivalents, and restricted cash, end of period ​ $ 32,370 ​ $ 10,728 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: ​ ​ ​ Cash and cash equivalents ​ $ 9,228 ​ $ 6,446 Restricted cash ​ 23,142 ​ 4,282 ​ ​ $ 32,370 ​ $ 10,728 SUPPLEMENTAL CASH FLOW INFORMATION: ​ ​ ​ Cash paid for interest ​ $ 2,768 ​ $ 6,312 SUPPLEMENTAL NON-CASH FLOW INFORMATION: ​ ​ ​ ​ Change in capital expenditures included in accounts payable and prepaid expense ​ $ 843 ​ $ ( 1,694 ) Stock issued on redemption of convertible notes and interest ​ $ — ​ $ 22,993 ​ 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, March 31, 2025 ​ 42,978 ​ $ 430 ​ $ 190,378 ​ $ ( 75,460 ) ​ $ 115,348 Stock-based compensation ​ — ​ ​ — ​ ​ 475 ​ ​ — ​ ​ 475 Taxes paid on vesting of RSUs ​ — ​ ​ — ​ ​ ( 1,918 ) ​ ​ — ​ ​ ( 1,918 ) Net Income ​ — ​ ​ — ​ ​ — ​ ​ 8,248 ​ ​ 8,248 Balance, June 30, 2025 ​ 42,978 ​ $ 430 ​ $ 188,935 ​ $ ( 67,212 ) ​ $ 122,153 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2024 42,621 ​ $ 426 ​ $ 189,298 ​ $ ( 85,439 ) ​ $ 104,285 Stock-based compensation — ​ — ​ 1,559 ​ — ​ 1,559 Stock issued on vesting of RSUs 513 ​ 5 ​ ( 5 ) ​ — ​ — Taxes paid on vesting of RSUs ( 156 ) ​ ( 1 ) ​ ( 1,917 ) ​ — ​ ( 1,918 ) Net Income — ​ — ​ — ​ 18,227 ​ 18,227 Balance, June 30, 2025 42,978 ​ $ 430 ​ $ 188,935 ​ $ ( 67,212 ) ​ $ 122,153 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Total ​ ​ Common Stock Issued ​ Paid-in ​ Retained ​ Stockholders’ ​ Shares Amount Capital Earnings Equity Balance, March 31, 2024 ​ 36,534 ​ $ 365 ​ $ 144,490 ​ $ 139,003 ​ $ 283,858 Stock-based compensation ​ — ​ ​ — ​ ​ 1,581 ​ ​ — ​ ​ 1,581 Stock issued on vesting of RSUs ​ 58 ​ ​ 1 ​ ​ ( 1 ) ​ ​ — ​ ​ — Taxes paid on vesting of RSUs ​ ( 27 ) ​ ​ ( 1 ) ​ ​ ( 271 ) ​ ​ — ​ ​ ( 272 ) Stock issued on redemption of convertible notes ​ 2,090 ​ ​ 21 ​ ​ 13,251 ​ ​ — ​ ​ 13,272 Stock issued in ATM offering ​ 3,944 ​ ​ 40 ​ ​ 27,895 ​ ​ — ​ ​ 27,935 Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 10,204 ) ​ ​ ( 10,204 ) Balance, June 30, 2024 ​ 42,599 ​ $ 426 ​ $ 186,945 ​ $ 128,799 ​ $ 316,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2023 34,052 ​ $ 341 ​ $ 127,548 ​ $ 140,699 ​ $ 268,588 Stock-based compensation — ​ — ​ 2,247 ​ — ​ 2,247 Stock issued on vesting of RSUs 379 ​ 4 ​ ( 4 ) ​ — ​ — Taxes paid on vesting of RSUs ( 159 ) ​ ( 2 ) ​ ( 271 ) ​ — ​ ( 273 ) Stock issued on redemption of convertible notes 3,672 ​ 36 ​ 22,957 ​ — ​ 22,993 Stock issued in ATM offering 4,655 ​ 47 ​ 34,468 ​ — ​ 34,515 Net loss — ​ — ​ — ​ ( 11,900 ) ​ ( 11,900 ) Balance, June 30, 2024 42,599 ​ $ 426 ​ $ 186,945 ​ $ 128,799 ​ $ 316,170 ​ See accompanying notes to the condensed consolidated financial statements. ​ 4 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 and six months ended June 30, 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. 5 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 and six months ended June 30, 2025, 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 June 30, 2025, and December 31, 2024, coal inventory includes NRV adjustments of $ 0.1 million and $ 0.3 million, respectively. ​ ​ 6 Table of Contents (5) BANK DEBT On June 27, 2025, the Company executed the Third Amendment (“Third 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 Third Amendment was to provide additional operating flexibility for the remainder of 2025 by redefining covenants, deferring certain covenants until the third quarter of 2025 and moving our October 2025 payment to January 2026. The Third Amendment provides for additional flexibility for the Company to enter into prepaid forward power sale contracts, provided that the Company maintains one hundred percent of the outstanding aggregate principal balance of the Credit Agreement (“Term Loan”) as a compensating balance. During the second quarter of 2025, the Company entered into a $ 35.0 million prepaid forward power sales contract, as noted in “Note 7 – Revenue” of which $ 19.0 million of the proceeds were deposited into a money market account with the administrative agent. The compensating balance is classified as “restricted cash” on the condensed consolidated balance sheets at June 30, 2025. As part of the Third Amendment, the required October 2025 principal payment of $ 6.0 million and the January 2026 principal payment of $ 6.5 million, pursuant to the Term Loan, are both now due in January 2026. The balance of the Term Loan will be fully repaid no later than March 2026. All payments will be funded by withdrawals from our compensating balance held in our money market account. Furthermore, the Third Amendment defines certain administrative changes which include, among other things modifications to the required timelines related to reporting and the removal of third-party financial advisors. Bank debt increased by $ 1.0 million during the six months ended June 30, 2025. Bank debt totaled $ 45.0 million and is comprised of our Term Loan ( $ 19.0 million as of June 30, 2025) and a $ 75.0 million revolver ( $ 26.0 million borrowed as of June 30, 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 June 30, 2025, we had additional borrowing capacity of $ 32.8 million under the revolver and total liquidity of $ 42.0 million. Our additional borrowing capacity is net of $ 16.2 million in outstanding letters of credit as of June 30, 2025 that were required to maintain surety bonds and other credit support obligations . Liquidity consists of our additional borrowing capacity and cash and cash equivalents. The Company is currently in discussions with members of its existing bank group and other lenders to refinance our current Credit Agreement. The revolving credit facility matures July 31, 2026 and our Term Loan matures March 31, 2026. The balance of the Term Loan is scheduled to be repaid in January 2026 and March 2026, utilizing restricted cash as set forth in the Third Amendment. As such, the Term Loan is listed as current on the June 30, 2025 condensed consolidated balance sheet. While no definitive agreement has been reached as of the reporting date, management believes it is probable that the Credit Agreement will be refinanced on market terms and conditions for similar situated borrowers and consistent with the existing Credit Agreement. However, there can be no assurance that such efforts will be successful or completed on favorable terms. Failure to refinance our Credit Agreement debt prior to maturity could adversely affect the Company’s liquidity and financial condition. ​ Fees Unamortized bank fees and other costs incurred in connection with our initial facility totaled $ 4.3 million. Additional costs incurred with our Debt Agreement amendments totaled $ 0.9 million, of which $ 0.3 million related to our Third Amendment . These unamortized bank fees were deferred and are being amortized over the term of the loan. Unamortized bank fees as of June 30, 2025, and December 31, 2024, were $ 1.9 million and $ 2.5 million, respectively. Unused borrowing capacity under the facility was $ 32.8 million as of June 30, 2025. Commitment fees on the unused portion of the facility are 0.50 % per annum. 7 Table of Contents Bank debt, less debt issuance costs, is presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2025 2024 Current bank debt ​ $ 19,000 ​ $ 6,000 Less unamortized debt issuance cost ​ ( 1,861 ) ​ ( 1,905 ) Net current portion ​ $ 17,139 ​ $ 4,095 ​ ​ ​ ​ ​ ​ ​ Long-term bank debt ​ $ 26,000 ​ $ 38,000 Less unamortized debt issuance cost ​ — ​ ( 606 ) Net long-term portion ​ $ 26,000 ​ $ 37,394 ​ ​ ​ ​ ​ ​ ​ Total bank debt ​ $ 45,000 ​ $ 44,000 Less total unamortized debt issuance cost ​ ( 1,861 ) ​ ( 2,511 ) Net bank debt ​ $ 43,139 ​ $ 41,489 ​ ​ ​ ​ ​ ​ Future Maturities (in thousands): ​ 2025 $ — 2026 ​ 45,000 Total ​ $ 45,000 ​ Covenants The Third Amendment, among other things, deferred the Maximum Leverage Ratio and Minimum Debt Service Coverage Ratios until September 2025. The Maximum Leverage Ratio requirement was changed to 3.00 to 1.00 for our fiscal quarter ending September 30, 2025, and is 2.25 to 1.00 thereafter. The Debt Service Coverage Ratio requirement was changed to 3.25 to 1.00 as long as the Company maintains the required compensating balance, if not, remains at 1.25 to 1.00. The Third Amendment removed the First Lien Leverage Ratio while maintaining the minimum liquidity requirement of $ 10.0 million, as defined in the First Amendment to the Credit Agreement. ​ As of June 30, 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 June 30, 2025, we were paying SOFR plus 5.00 % on the outstanding bank debt which equates to an all-in rate of 9.43 %. ​ (6) ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following for the indicated dates (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2025 2024 Accounts payable ​ $ 31,442 ​ $ 24,291 ​ Accrued property taxes ​ 3,832 ​ 4,185 ​ Accrued payroll ​ 5,038 ​ 3,258 ​ Workers' compensation reserve ​ 5,306 ​ 4,321 ​ Group health insurance ​ 1,600 ​ 1,700 ​ Asset retirement obligation - current portion ​ 1,542 ​ 1,952 ​ Other ​ 3,192 ​ 4,591 ​ Total accounts payable and accrued liabilities ​ $ 51,952 ​ $ 44,298 ​ ​ 8 Table of Contents (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. 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 Merom, 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. 9 Table of Contents Electric operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2025 2024 2025 2024 Delivered energy (including contract liability amortization) ​ $ 44,132 ​ $ 43,106 ​ $ 116,268 ​ $ 92,234 Capacity ​ 15,844 ​ 16,873 ​ 29,651 ​ 28,646 Total Electric Operations sales ​ $ 59,976 ​ $ 59,979 ​ $ 145,919 ​ $ 120,880 ​ Coal operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2025 2024 2025 2024 Outside third-party Indiana customers ​ $ 21,290 ​ $ 15,048 ​ $ 41,604 ​ $ 33,152 Customers in Florida, North Carolina, Alabama and Georgia ​ 16,857 ​ 17,753 ​ 26,728 ​ 49,279 Total Coal Operations sales ​ $ 38,147 ​ $ 32,801 ​ $ 68,332 ​ $ 82,431 ​ 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. During the second quarter of 2025, we entered into a 17-month , $ 35.0 million prepaid physically delivered power contract in which Hallador will provide a total of 971,088 MWh to be delivered at various periods starting in July 2025 through November 2026. As the total amount paid up-front by the customer differs from the stand-alone selling price of the transferred power, the Company concluded the contract contains a significant financing component. The contract liability associated with the $ 35.0 million prepayment will be accreted over the agreement term based upon the Company’s incremental borrowing rate which approximates 9.50 %, and the accretion will be separately recognized as interest expense. ​ 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 June 30, 2025 and disaggregated by segment and contract duration. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 2026 2027 2028 2029 Total Delivered energy revenues $ 95,510 $ 172,220 $ 97,280 $ 57,750 $ 13,770 $ 436,530 Capacity revenues ​ ​ 29,460 ​ ​ 61,540 ​ ​ 51,400 ​ ​ 37,330 ​ ​ 3,470 ​ ​ 183,200 Coal Operations revenues ​ ​ 72,360 ​ ​ 127,830 ​ ​ 141,850 ​ ​ 29,500 ​ ​ — ​ ​ 371,540 Total revenue (1) ​ $ 197,330 ​ $ 361,590 ​ $ 290,530 ​ $ 124,580 ​ $ 17,240 ​ $ 991,270 (1) Coal revenues consist of consolidated revenues excluding our intercompany revenues from Merom . 10 Table of Contents 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. The following table shows our beginning and ending accounts receivable from contracts with customers balance for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2025 ​ 2024 Accounts receivable from contracts with customers - beginning balance ​ $ 15,438 ​ $ 19,937 Accounts receivable from contracts with customers - ending balance ​ $ 18,742 ​ $ 19,098 ​ 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2025 ​ 2024 Total contract liabilities - beginning balance ​ $ 146,719 ​ $ 113,741 Cash payments received on future contract obligations ​ ​ 82,476 ​ ​ 90,082 Accretion on contract liabilities ​ ​ 3,215 ​ ​ — Revenue recognized, cash payment received in prior period ​ ​ ( 65,597 ) ​ ​ ( 46,524 ) Revenue recognized, cash payment received in current period ​ ​ ( 4,662 ) ​ ​ ( 6,716 ) Total contract liabilities - ending balance ​ $ 162,151 ​ $ 150,583 ​ ​ (8) INCOME TAXES For the six months ended June 30, 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 six months ended June 30, 2025 and 2024, was ~ 0 % due to recording of a full valuation allowance and ~ 23 %, 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 ( 9,500 ) Non-vested grants as of June 30, 2025 511,918 ​ For the three and six months ended June 30, 2025, our stock compensation expense was $ 0.5 million and $ 1.6 million, respectively. For the three and six months ended June 30, 2024, our stock compensation expense was $ 1.6 million and $ 2.2 million, respectively. 11 Table of Contents Non-vested RSU grants will vest as follows: ​ ​ ​ ​ Vesting Year RSUs Vesting 2025 159,500 2026 176,210 2027 ​ 176,208 ​ ​ 511,918 ​ The outstanding RSUs have a value of $ 8.1 million based on the June 30, 2025 closing stock price of $ 15.83 . As noted in our Form 8-K filed with the SEC on June 2, 2025, on May 29, 2025, shareholders approved the Second Amended and Restated 2008 Restricted Stock Unit Plan (the “RSU Plan”) which, (i) increased the number of shares available for issuance by 2,000,000 shares, and (ii) extended the term of the RSU Plan until May 29, 2035. As of June 30, 2025, unrecognized stock compensation expense to be recognized over the rolling 3 -year vesting period is $ 1.0 million, and we had 2,219,819 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. (10) SELF-INSURANCE The Company is self-insured for certain risks, including physical damage and operational liability, related to our non-leased underground mining equipment allocated among four mining units dispersed over seven miles. 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 June 30, 2025 or December 31, 2024. The Company also self-insures for 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. The Company has restricted cash of $ 23.1 million and $ 3.4 million as of June 30, 2025, and December 31, 2024, respectively, which represents cash held and controlled by third parties and is restricted primarily for future workers’ compensation claim payments and the $ 19.0 million compensating balance on our Term Loan (as discussed in “Note 5 – Bank Debt” above). The Company had $ 5.3 million and $ 4.3 million of workers’ compensation reserve as of June 30, 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 . ​ 12 Table of Contents 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 $ 32.4 million and $ 12.2 million as of June 30, 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. (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 June 30, 2025, and December 31, 2024, was $ 2.2 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 June 30, 2025, and December 31, 2024, was $ 0.7 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. ​ 13 Table of Contents (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. ​ 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. (i) 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. ​ 14 Table of Contents Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered Energy $ 44,132 Coal Sales $ 45,529 Capacity Revenue ​ ​ 15,844 ​ ​ ​ ​ Electric Sales ​ $ 59,976 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 21,328 ) ​ ​ ​ ​ Other Operating Costs (1) ​ ​ ( 1 ) ​ ​ ​ ​ Total Variable Costs ​ $ ( 21,329 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Operating and Maintenance Costs (2) ​ $ ( 10,707 ) ​ Fuel $ ( 434 ) Cost of Purchased Power ​ ​ ( 2,172 ) ​ Other Operating and Maintenance Costs ​ ( 18,247 ) Utilities ​ ​ ( 1,383 ) ​ Utilities ​ ( 3,124 ) Labor ​ ​ ( 7,639 ) ​ Labor ​ ( 19,160 ) Power Margin Without General and Administrative ​ ​ 16,746 ​ Coal Margin Without General and Administrative ​ 4,564 General and Administrative ​ ​ ( 1,129 ) ​ General and Administrative ​ ( 1,915 ) Electric Operations — EBITDA Margin ​ $ 15,617 ​ Coal Operations — EBITDA Margin $ 2,649 ​ (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 as discussed above in (1). ​ ​ Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered Energy $ 43,106 Coal Sales $ 45,710 Capacity Revenue ​ ​ 16,873 ​ ​ ​ ​ Electric Sales ​ $ 59,979 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 24,416 ) ​ ​ ​ ​ Other Operating Costs (1) ​ ​ 7 ​ ​ ​ ​ Total Variable Costs ​ $ ( 24,409 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Operating and Maintenance Costs (2) ​ $ ( 12,479 ) ​ Fuel $ ( 750 ) Cost of Purchased Power ​ ​ ( 2,619 ) ​ Other Operating and Maintenance Costs ​ ( 21,597 ) Utilities ​ ​ ( 437 ) ​ Utilities ​ ( 3,253 ) Labor ​ ​ ( 7,160 ) ​ Labor ​ ( 19,395 ) Power Margin Without General and Administrative ​ ​ 12,875 ​ Coal Margin Without General and Administrative ​ 715 General and Administrative ​ ​ ( 1,450 ) ​ General and Administrative ​ ( 3,492 ) Electric Operations — EBITDA Margin ​ $ 11,425 ​ Coal Operations — EBITDA Margin $ ( 2,777 ) ​ (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 as discussed above in (1). ​ ​ ​ ​ ​ ​ ​ ​ ​ 15 Table of Contents Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the six months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered Energy $ 116,268 Coal Sales $ 100,303 Capacity Revenue ​ ​ 29,651 ​ ​ ​ ​ Electric Sales ​ $ 145,919 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 59,399 ) ​ ​ ​ ​ Other Operating Costs (1) ​ ​ ( 9 ) ​ ​ ​ ​ Total Variable Costs ​ $ ( 59,408 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Operating and Maintenance Costs (2) ​ $ ( 15,234 ) ​ Fuel $ ( 990 ) Cost of Purchased Power ​ ​ ( 9,012 ) ​ Other Operating and Maintenance Costs ​ ( 42,101 ) Utilities ​ ​ ( 2,059 ) ​ Utilities ​ ( 6,600 ) Labor ​ ​ ( 15,782 ) ​ Labor ​ ( 38,046 ) Power Margin Without General and Administrative ​ ​ 44,424 ​ Coal Margin Without General and Administrative ​ 12,566 General and Administrative ​ ​ ( 2,664 ) ​ General and Administrative ​ ( 4,228 ) Electric Operations — EBITDA Margin ​ $ 41,760 ​ Coal Operations — EBITDA Margin $ 8,338 ​ (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 as discussed above in (1). ​ Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the six months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Electric Operations ​ ​ Coal Operations Delivered Energy $ 92,234 Coal Sales $ 111,746 Capacity Revenue ​ ​ 28,646 ​ ​ ​ ​ Electric Sales ​ $ 120,880 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fuel ​ $ ( 49,351 ) ​ ​ ​ ​ Other Operating Costs (1) ​ ​ 14 ​ ​ ​ ​ Total Variable Costs ​ $ ( 49,337 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Operating and Maintenance Costs (2) ​ $ ( 17,365 ) ​ Fuel $ ( 1,985 ) Cost of Purchased Power ​ ​ ( 4,545 ) ​ Other Operating and Maintenance Costs ​ ( 53,388 ) Utilities ​ ​ ( 959 ) ​ Utilities ​ ( 7,545 ) Labor ​ ​ ( 14,843 ) ​ Labor ​ ( 46,880 ) Power Margin Without General and Administrative ​ ​ 33,831 ​ Coal Margin Without General and Administrative ​ 1,948 General and Administrative ​ ​ ( 2,508 ) ​ General and Administrative ​ ( 5,930 ) Electric Operations — EBITDA Margin ​ $ 31,323 ​ Coal Operations — EBITDA Margin $ ( 3,982 ) ​ (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 as discussed above in (1). ​ 16 Table of Contents Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 44,132 $ — $ — $ 44,132 Capacity Revenue ​ ​ 15,844 ​ ​ — ​ ​ — ​ ​ 15,844 Other Operating Revenue ​ ​ 3,134 ​ ​ 1,399 ​ ​ 233 ​ ​ 4,766 Coal Sales (Third-Party) ​ ​ — ​ ​ 38,147 ​ ​ — ​ ​ 38,147 Coal Sales (Intercompany) ​ ​ — ​ ​ 7,382 ​ ​ ( 7,382 ) ​ ​ — Operating Revenues ​ $ 63,110 ​ $ 46,928 ​ $ ( 7,149 ) ​ $ 102,889 Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 43,106 $ — $ — $ 43,106 Capacity Revenue ​ ​ 16,873 ​ ​ — ​ ​ — ​ ​ 16,873 Other Operating Revenue ​ ​ 174 ​ ​ 497 ​ ​ 374 ​ ​ 1,045 Coal Sales (Third-Party) ​ ​ — ​ ​ 32,801 ​ ​ — ​ ​ 32,801 Coal Sales (Intercompany) ​ ​ — ​ ​ 12,909 ​ ​ ( 12,909 ) ​ ​ — Operating Revenues ​ $ 60,153 ​ $ 46,207 ​ $ ( 12,535 ) ​ $ 93,825 Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the six months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 116,268 $ — $ — $ 116,268 Capacity Revenue ​ ​ 29,651 ​ ​ — ​ ​ — ​ ​ 29,651 Other Operating Revenue ​ ​ 3,221 ​ ​ 2,723 ​ ​ 481 ​ ​ 6,425 Coal Sales (Third-Party) ​ ​ — ​ ​ 68,332 ​ ​ — ​ ​ 68,332 Coal Sales (Intercompany) ​ ​ — ​ ​ 31,971 ​ ​ ( 31,971 ) ​ ​ — Operating Revenues ​ $ 149,140 ​ $ 103,026 ​ $ ( 31,490 ) ​ $ 220,676 Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the six months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ Reconciliation of Revenue: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Delivered Energy $ 92,234 $ — $ — ​ $ 92,234 Capacity Revenue ​ ​ 28,646 ​ ​ — ​ ​ — ​ ​ 28,646 Other Operating Revenue ​ ​ 331 ​ ​ 1,307 ​ ​ 670 ​ ​ 2,308 Coal Sales (Third-Party) ​ ​ — ​ ​ 82,431 ​ ​ — ​ ​ 82,431 Coal Sales (Intercompany) ​ ​ — ​ ​ 29,315 ​ ​ ( 29,315 ) ​ ​ — Operating Revenues ​ $ 121,211 ​ $ 113,053 ​ $ ( 28,645 ) ​ $ 205,619 ​ 17 Table of Contents Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income (Loss) ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 15,617 $ — $ 6,699 $ 22,316 Coal Operations — EBITDA Margin ​ ​ — ​ ​ 2,649 ​ ​ ( 7,382 ) ​ ​ ( 4,733 ) Other Operating Revenue ​ ​ 3,134 ​ ​ 1,399 ​ ​ 233 ​ ​ 4,766 Depreciation, Depletion and Amortization (1) ​ ​ ( 5,164 ) ​ ​ ( 359 ) ​ ​ ( 19 ) ​ ​ ( 5,542 ) Asset Retirement Obligations Accretion ​ ​ ( 123 ) ​ ​ ( 314 ) ​ ​ — ​ ​ ( 437 ) Exploration Costs ​ ​ — ​ ​ ( 98 ) ​ ​ — ​ ​ ( 98 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 55 ​ ​ — ​ ​ 55 Interest Expense ​ ​ ( 1,891 ) ​ ​ ( 1,928 ) ​ ​ — ​ ​ ( 3,819 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ 197 ​ ​ 197 Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 4,457 ) ​ ​ ( 4,457 ) Income (Loss) before Income Taxes ​ $ 11,573 ​ $ 1,404 ​ $ ( 4,729 ) ​ $ 8,248 (1) Depreciation, Depletion and Amortization for Coal Operations includes a $ 4.8 million out-of-period adjustment resulting in decreased expense during the second quarter of 2025 due to an overestimate of depreciation, depletion and amortization expense in the first quarter 2025. ​ Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income (Loss) ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 11,425 $ — $ 12,796 $ 24,221 Coal Operations — EBITDA Margin ​ ​ — ​ ​ ( 2,777 ) ​ ​ ( 12,909 ) ​ ​ ( 15,686 ) Other Operating Revenue ​ ​ 174 ​ ​ 497 ​ ​ 374 ​ ​ 1,045 Depreciation, Depletion and Amortization ​ ​ ( 4,698 ) ​ ​ ( 8,930 ) ​ ​ ( 21 ) ​ ​ ( 13,649 ) Asset Retirement Obligations Accretion ​ ​ ( 113 ) ​ ​ ( 286 ) ​ ​ — ​ ​ ( 399 ) Exploration Costs ​ ​ — ​ ​ ( 47 ) ​ ​ — ​ ​ ( 47 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 222 ​ ​ — ​ ​ 222 Interest Expense ​ ​ ( 186 ) ​ ​ ( 3,188 ) ​ ​ ( 361 ) ​ ​ ( 3,735 ) Loss on Extinguishment of Debt ​ ​ — ​ ​ — ​ ​ ( 1,937 ) ​ ​ ( 1,937 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ ( 257 ) ​ ​ ( 257 ) Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 2,862 ) ​ ​ ( 2,862 ) Corporate — Other Operating and Maintenance Costs ​ ​ — ​ ​ — ​ ​ ( 131 ) ​ ​ ( 131 ) Income (Loss) before Income Taxes ​ $ 6,602 ​ $ ( 14,509 ) ​ $ ( 5,308 ) ​ $ ( 13,215 ) Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the six months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income (Loss) ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 41,760 $ — $ 30,116 $ 71,876 Coal Operations — EBITDA Margin ​ ​ — ​ ​ 8,338 ​ ​ ( 31,971 ) ​ ​ ( 23,633 ) Other Operating Revenue ​ ​ 3,221 ​ ​ 2,723 ​ ​ 481 ​ ​ 6,425 Depreciation, Depletion and Amortization ​ ​ ( 10,325 ) ​ ​ ( 10,156 ) ​ ​ ( 38 ) ​ ​ ( 20,519 ) Asset Retirement Obligations Accretion ​ ​ ( 243 ) ​ ​ ( 621 ) ​ ​ — ​ ​ ( 864 ) Exploration Costs ​ ​ — ​ ​ ( 119 ) ​ ​ — ​ ​ ( 119 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 76 ​ ​ — ​ ​ 76 Interest Expense ​ ​ ( 3,623 ) ​ ​ ( 3,919 ) ​ ​ — ​ ​ ( 7,542 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ ( 39 ) ​ ​ ( 39 ) Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 7,434 ) ​ ​ ( 7,434 ) Income (Loss) before Income Taxes ​ $ 30,790 ​ $ ( 3,678 ) ​ $ ( 8,885 ) ​ $ 18,227 18 Table of Contents Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the six months ended June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income (Loss) ​ ​ ​ ​ ​ ​ ​ Corporate and Other ​ ​ before Income Taxes: ​ Electric Operations ​ Coal Operations ​ and Eliminations ​ Consolidated Electric Operations — EBITDA Margin $ 31,323 $ — $ 30,407 $ 61,730 Coal Operations — EBITDA Margin ​ ​ — ​ ​ ( 3,982 ) ​ ​ ( 29,315 ) ​ ​ ( 33,297 ) Other Operating Revenue ​ ​ 331 ​ ​ 1,307 ​ ​ 670 ​ ​ 2,308 Depreciation, Depletion and Amortization ​ ​ ( 9,395 ) ​ ​ ( 19,658 ) ​ ​ ( 39 ) ​ ​ ( 29,092 ) Asset Retirement Obligations Accretion ​ ​ ( 224 ) ​ ​ ( 574 ) ​ ​ — ​ ​ ( 798 ) Exploration Costs ​ ​ — ​ ​ ( 117 ) ​ ​ — ​ ​ ( 117 ) Gain (loss) on disposal or abandonment of assets, net ​ ​ — ​ ​ 246 ​ ​ — ​ ​ 246 Interest Expense ​ ​ ( 334 ) ​ ​ ( 6,397 ) ​ ​ ( 941 ) ​ ​ ( 7,672 ) Loss on Extinguishment of Debt ​ ​ — ​ ​ — ​ ​ ( 2,790 ) ​ ​ ( 2,790 ) Equity Method Investment (Loss) ​ ​ — ​ ​ — ​ ​ ( 506 ) ​ ​ ( 506 ) Corporate — General and Administrative ​ ​ — ​ ​ — ​ ​ ( 5,310 ) ​ ​ ( 5,310 ) Corporate — Other Operating and Maintenance Costs ​ ​ — ​ ​ — ​ ​ ( 223 ) ​ ​ ( 223 ) Income (Loss) before Income Taxes ​ $ 21,701 ​ $ ( 29,175 ) ​ $ ( 8,047 ) ​ $ ( 15,521 ) ​ 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 ​ and Eliminations ​ Consolidated Assets at June 30, 2025 $ 231,774 $ 156,811 $ 20,928 $ 409,513 Assets at December 31, 2024 ​ $ 220,477 ​ $ 144,519 ​ $ 4,124 ​ $ 369,120 Capital Expenditures at June 30, 2025 ​ $ 12,700 ​ $ 12,037 ​ $ — ​ $ 24,737 ​ 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 ​ and Eliminations ​ Consolidated Assets at June 30, 2024 $ 220,511 $ 367,807 $ 6,851 $ 595,169 Assets at December 31, 2023 ​ $ 208,331 ​ $ 376,387 ​ $ 5,062 ​ $ 589,780 Capital Expenditures at June 30, 2024 ​ $ 11,519 ​ $ 16,192 ​ $ 333 ​ $ 28,044 ​ ​ ​ (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 June 30, Six Months Ended June 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Basic earnings per common share: ​ ​ ​ ​ Net income (loss) - basic ​ $ 8,248 ​ $ ( 10,204 ) ​ $ 18,227 ​ $ ( 11,900 ) Weighted average shares outstanding - basic ​ 42,619 ​ 37,879 ​ 42,798 ​ 37,026 Basic earnings (loss) per common share ​ $ 0.19 ​ $ ( 0.27 ) ​ $ 0.43 ​ $ ( 0.32 ) ​ 19 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 June 30, Six Months Ended June 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Diluted earnings per common share: ​ ​ ​ ​ Net income (loss) - diluted ​ $ 8,248 ​ $ ( 10,204 ) ​ $ 18,227 ​ $ ( 11,900 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ 42,619 ​ 37,879 ​ 42,798 ​ 37,026 Add: Dilutive effects of Restricted Stock Units ​ 429 ​ — ​ 636 ​ — Weighted average shares outstanding - diluted ​ 43,048 ​ 37,879 ​ 43,434 ​ 37,026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share ​ $ 0.19 ​ $ ( 0.27 ) ​ $ 0.42 ​ $ ( 0.32 ) ​ ​ ​ ​ (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 June 30, 2025. ​ ​ (17) SUBSEQUENT EVENTS On July 1, 2025, the Company amended a third party customer’s coal supply sales agreement increasing contractual tons delivered by 0.3 million and 0.1 million, or $ 13.0 million and $ 2.6 million in revenue, for 2025 and 2026, respectively. ​ On July 4, 2025, the U.S. H.R.1, an act to provide for reconciliation pursuant to title II of H. Con. Res. 14. (“the OBBBA”) was enacted. The OBBBA introduces multiple tax law and other legislative changes, including modifications to income tax provisions such as domestic research and development expenses, capital expenditures, and U.S. taxation of international earnings; the repeal or acceleration of the sunset of certain tax credits under the 2022 Inflation Reduction Act and elimination of certain penalties for violations of certain regulatory credit programs. The Company is analyzing the potential impacts of this legislation on its business and does not anticipate there to be a material impact as a result. ​ ​ ​ 20 Table of Contents