Terre Haute-based Hallador Energy Co. (Nasdaq: HNRG) has signed new contracts that it says will increase coal production volumes and prices through next year. The coal company says as a result it is increasing its 2023 EBITDA guidance.
Starting in the second quarter, the average price is $40.00/ton, based on volume of 1.6 million metric tons. It increases to an average price of $58.50/ton on 1.8 mm tons of coal by Q4 2023.
The increased production will come from Hallador’s existing Oaktown Mining Complex, Hallador’s new Prosperity Surface Mine near Petersburg in Pike County and new surface production near Freelandville in Knox County.
Hallador says the additional coal volumes create added pressure on transportation networks which if sales are not delivered timely will create a lag to achieving EBITDA guidance.