Hallador Energy Company announced that its subsidiary, Hallador Power Company, LLC, executed a Conversion Transaction Commitment Agreement with a leading global data center developer, effective January 2, 2025. This agreement builds upon a non-binding term sheet signed in the third quarter of 2024.
The agreement grants exclusivity in negotiations to the counterparty for a period of 105 business days. Hallador Power Company, LLC is set to receive cumulative payments of up to $5 million during this exclusivity period.
These payments include $1 million due in January, with additional $2 million payments in March and June if certain conditions precedent to the proposed transaction are not satisfied. The potential transaction is expected to contract the majority of Hallador's energy and capacity at prices higher than the forward curve for over a decade.
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