Hallador Energy issued a new public offering of 2,777,778 shares of common stock at $18.00 per share, generating gross proceeds of about $50 million. The offering includes a 30‑day option for underwriters to purchase an additional 416,666 shares, potentially raising total proceeds to roughly $50.8 million.
Texas Capital Securities served as sole bookrunner, with Northland Capital Markets and A.G.P./Alliance Global Partners as co‑managers. The securities were offered under an automatic shelf registration statement on Form S‑3 that became effective on January 13, 2026.
Net proceeds will be used for general corporate purposes, with a primary focus on reserving equipment for a planned natural‑gas generation expansion at the Merom plant. The expansion, part of Hallador’s strategy to transition from coal to a vertically integrated independent power producer, is expected to add roughly 50 % more generating capacity to the Merom site and improve plant flexibility in a market facing capacity scarcity.
Hallador’s recent financial performance underscores the need for additional capital. The company posted a Q3 2025 earnings beat, reporting EPS of $0.55 versus a forecast of $0.08, and revenue that exceeded expectations. Despite the earnings surge, the company remains unprofitable over the last twelve months and faces liquidity constraints, with a current ratio of 0.66, a quick ratio of 0.31, and an Altman Z‑Score of 1.46. The equity raise will help shore up the balance sheet ahead of a refinancing window expected in early 2026.
President and CEO Brent Bilsland said finalizing the ERAS application for the Merom expansion is a “meaningful step forward” and that adding roughly 50 % additional generating capacity should provide exceptional value to shareholders. He also highlighted the company’s strong Q3 2025 earnings as evidence of disciplined cost management and robust demand for its power generation services.
By securing $50 million in new equity, Hallador positions itself to accelerate its transition to natural gas, reduce reliance on coal, and strengthen its financial footing before the upcoming refinancing. The capital infusion also supports the company’s broader strategy of expanding capacity and securing forward sales contracts, which are expected to generate stable revenue streams in the coming years.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.