Hallador Energy finalized its application to the Expedited Resource Addition Study (ERAS) program and deposited roughly $13 million to satisfy the program’s upfront requirement. The ERAS filing is a fast‑track pathway that could enable the company to add up to 515 MW of natural‑gas generation adjacent to its Merom Power Station in Indiana, more than doubling the plant’s current coal‑only output of about 250 MW.
In the third quarter of 2025, Hallador reported earnings per share of $0.55, a $0.47 beat over the consensus estimate of $0.08, and revenue of $146.8 million, up $42.7 million or 41% above the $104.14 million forecast. The earnings surge was driven by disciplined cost management and operational leverage, while the revenue growth reflected robust demand for power in the region and a favorable mix of long‑term contracts with data‑center customers.
The Merom site, already a coal‑fired facility, will host the new natural‑gas units, positioning Hallador to tap the growing MISO Zone 6 capacity scarcity and to diversify its fuel mix. The 515 MW addition would provide a significant hedge against rising natural‑gas costs and expand the company’s portfolio of dispatchable power for high‑value customers.
To support the ERAS project and strengthen its balance sheet ahead of a refinancing window in early 2026, Hallador filed a prospectus supplement to its existing shelf registration to raise up to $50 million of common stock under its at‑the‑market (ATM) program. The equity raise is intended to fund the new capacity and to provide liquidity for future capital needs.
Hallador’s shift from a coal‑centric model to a diversified independent power producer aligns with broader industry trends toward cleaner, more flexible generation. The company’s focus on data‑center customers, which demand reliable dispatchable power, positions it to capture higher power prices in a market where MISO Zone 6 is experiencing capacity scarcity.
Investors weighed the dilution risk from the planned equity raise against Hallador’s strong earnings performance and strategic expansion. The company’s ability to secure a fast‑track ERAS spot and to raise capital demonstrates confidence in its execution capability and its commitment to long‑term growth.
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