What Hallador Energy Co. told the SEC could break it.

Hallador's results depend on coal, natural-gas and MISO power-market prices; fuel cost per ton, gas spot prices and Merom Hub energy prices drive electric-segment margins and purchased-power costs.

“The weather contributed to higher demand for natural gas in Indiana causing an increase in the average spot prices of $0.84 per thousand cubic feet, or 24.1% compared to 2024. Total fuel costs benefited from a slight decrease in the cost of coal consumed from $54.30 per ton in 2024 to $53.98 per ton in 2025.”

Hallador depends on a limited number of customers — three Electric Operations customers each accounted for ~23% of revenue (Customer A 23.4%, B 22.8%, C 22.8%) in 2025; loss of one would materially affect sales volume, pricing and profitability.

“We depend on a limited number of customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume, price of our products and profitability.”

Hallador's electric output depends on the single two-unit Merom plant — Q4 2025 equipment issues forced costly MISO purchased power (47% of the year's net hourly purchases) — while coal output relied on only Oaktown Mine No. 1 during 2025.

“When there is an outage at one of the generating units at Merom or energy hours at the Merom Hub are priced below our production cost, we have the option to make net hourly purchases of power in the MISO market to satisfy our obligations, which we record as cost of purchased power. Approximately 47.0% of the 2025 net hourly purchases occurred in the fourth quarter as a result of the equipment issues.”

Hallador's coal-fired Merom generation faces GHG and air-quality regulation (CSAPR, Acid Rain); the Feb 2026 EPA repeal of the Endangerment Finding and ongoing legal challenges create regulatory uncertainty for electric-generation emissions rules.

“on February 12, 2026, the U.S. Environmental Protection Agency (“EPA”) rescinded the agency's prior finding in 2009 that GHG from motor vehicles threaten public health and welfare (the “Endangerment Finding”). While the EPA's repeal of the Endangerment Finding invalidates GHG emission standards for motor vehicles, it could impact GHG regulations applied to electric generation facilities that were supported by the Endangerment Finding.”