HALLADOR ENERGY CO
For the period ended Mar 31, 2026. Filed May 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
HNRG$10.10+7.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001104659-25-109301
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001104659-26-056375
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (69)
Current report
The following discussion and analysis, which should be read in conjunction with our consolidated financial statements and the discussion and analysis included in our 2025 10-K, is intended to assist in providing an understanding of changes in our results of operations and financial condition and is organized as follows:
Current report
•Forward-Looking Statements. This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.
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•Overview. This section provides a general description of our business and recent events.
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•Material Changes in Results of Operations. This section provides an analysis of our results of operations for the three months ended March 31, 2026 and 2025.
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•Material Changes in Financial Condition. This section provides an analysis of our liquidity and our condensed consolidated statements of cash flows.
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The capitalized terms used below have been defined in the notes to our condensed consolidated financial statements. In the following text, the terms “we,” “our,” “the Company” and “us” may refer, as the context requires, to Hallador Energy Company (“Hallador”) or collectively to Hallador and its subsidiaries.
Current report
Unless otherwise indicated, operational data is presented as of March 31, 2026.
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FORWARD-LOOKING STATEMENTS
Current report
Certain statements and information in this Quarterly Report on Form 10-Q may constitute “forward-looking statements.” These statements are based on our beliefs as well as assumptions made by, and information currently available to us. When used in this document, the words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “forecast,” “may,” “project,” “will,” and similar expressions identify forward-looking statements. Without limiting the foregoing, all statements relating to our future outlook, anticipated capital expenditures, future cash flows and borrowings and sources of funding are forward-looking statements. These statements reflect our current views with respect to future events and are subject to numerous assumptions that we believe are open to a wide range of uncertainties and business risks, and actual results may differ materially from those discussed in these statements. Among the factors that could cause actual results to differ from those in the forward-looking statements are:
Current report
If one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may differ materially from those described in any forward-looking statement. When considering forward-looking statements, you should also keep in mind the risk factors described in “Item 1A. Risk Factors” in our 2025 Form 10-K. The risk factors could also cause our actual results to differ materially from those contained in any forward-looking statement. We disclaim any obligation to update the above list or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments, unless required by law.
Current report
You should consider the information above when reading any forward-looking statements contained in this Quarterly Report on Form 10-Q; other reports filed by us with the U.S. Securities and Exchange Commission (“SEC”); our press releases; our website www.halladorenergy.com and written or oral statements made by us or any of our officers or other authorized persons acting on our behalf.
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General
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Hallador is a vertically integrated, independent power producer (“IPP”) and fuel company with operations primarily in Indiana. The Company operates across multiple stages of the energy supply chain, from accredited capacity and energy to coal. The Company’s electric operations are located within the MISO footprint. Our operations include Hallador Power which provides accredited capacity and energy to utilities and other energy market participants through its MISO interconnection, and Sunrise which mines bituminous coal in Indiana to serve various power plants in the Midwest and Southeast United States.
Current report
Operations
Current report
Our business is organized based on the services and products we provide in two segments: (i) Electric Operations and (ii) Coal Operations. The Company also holds 50% interests in Sunrise Energy, LLC (“Sunrise Energy”) and Oaktown Gas, LLC (“Oaktown Gas”), which are accounted for using the equity method. Through its operating subsidiaries, the Company delivers three main products to its customers.
Current report
Accredited Capacity. Hallador Power, the Company’s wholly-owned electric subsidiary, owns and operates the Merom Power Plant (“Merom”), a 1,080 MW coal-fired power generating station, consisting of two steam turbine generators. Unit 1 entered commercial operations in 1982 and Unit 2 in 1983. The units are dispatched through its MISO interconnection. In order to purchase energy through the MISO system, an end user must supply or purchase accredited capacity for an equivalent load. As accredited capacity is primarily available in large quantities from dispatchable sources of energy, such as natural gas and coal-fired power plants, Hallador Power sells accredited capacity to utilities and other energy market participants within the MISO system through Power Purchase Agreements (“PPA”) and other bilateral transactions.
Current report
*Energy.*In addition to accredited capacity, Hallador Power sells wholesale energy to utilities, generation and transmission cooperatives, and other energy market participants within the MISO system through PPAs and other bilateral transactions, and sells on a spot basis in the day-ahead and real-time MISO markets.
Current report
*Coal.*Sunrise, the Company’s wholly-owned mining subsidiary, mines coal from reserves found in the Illinois Basin (“ILB”). Coal mined by Sunrise is used as a primary fuel source for generating electricity at various power plants in the Midwest and Southeast United States. In addition, Sunrise has a developed infrastructure for the transport of coal, which is typically sold free on board from the shipping point, including rail networks and truck loading systems, facilitating the efficient movement of the resource from the mine to its customers. Sunrise’s Oaktown Mining Complex is about twenty miles from Merom, which is located in Sullivan County, Indiana, enabling Merom and Sunrise to take advantage of low-cost fuel on a delivered basis.
Current report
Strategy and Management Focus
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We view our business as two integrated operations, “Electric Operations” (our gigawatt Merom power generating station), and “Coal Operations” (our coal mining and coal sales group).
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We strive to achieve margin expansion through organic revenue growth and profitability in our operations by negotiating and fulfilling contracts for accredited capacity, wholesale energy, and thermal coal to utilities and other energy market participants. We continue to monitor opportunities to expand the volume of our electric generation capabilities through expansion of existing facilities utilizing MISO’s ERAS program, or via acquisition. We continue to evaluate other strategic transactions that could add diversification, durability, scale, and geographic expansion opportunities to our Electric Operations. While these opportunities are limited and complex, we believe that Hallador is well-positioned to transform retiring and/or underperforming assets into future opportunities. This will enable us to supply high-demand end users, such as data centers and industrial customers, with minimal impact to retail consumers. In addition, we focus our organic capital investments on strategic maintenance projects to maintain our safe operational performance and improve the reliability of Merom.
Current report
As discussed further under*“Material Changes in Financial Condition — Capitalization”* below, we also seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk.
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Competition and Other External Factors
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We are experiencing competition in both our Electric and Coal Operations. This competition drives lower market prices for our products and services. Competitors for our Electric Operations include other power generators who bid into the MISO system, while competitors for our Coal Operations include other mining entities that are able to service our existing and potential customers via truck or rail within the Midwest and Southeast United States.* *
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MATERIAL CHANGES IN RESULTS OF OPERATIONS
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Our contracted forward sales for accredited capacity, energy, and coal are detailed below with estimated revenue from forward sales of $1.2 billion as of March 31, 2026.
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Forward Sales Position (unaudited)*
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Discussion and Analysis of our Reportable Segments
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Our business is organized based on the services and products we provide in two segments: (i) Electric Operations and (ii) Coal Operations. The Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, reviews and assesses operating performance measures related to our Electric Operations and our Coal Operations segments.
Current report
(1) Other operating costs primarily include costs for lime dust.
Current report
(1) Other operating costs primarily include costs for lime dust.
Current report
Segment operating revenues from electric operations decreased $20.8 million, or 24.3%, compared to the first quarter of 2025, attributable to a $22.6 million decrease in sales of delivered energy partially offset by a $1.7 million increase in accredited capacity revenue. Our Electric Operations generated 0.5 million fewer MWh, but purchased an additional 0.1 million MWh for resale resulting in a net decrease of energy sales of 0.4 million MWh, a decrease of 27.9% compared to the first quarter of 2025. Lower plant availability in the first quarter of 2026 due to equipment issues at Merom had a significant impact on the total MWh generated. The impacted generating unit is scheduled to undergo a major maintenance outage beginning in May 2026, which we expect will improve performance upon completion. The price per MWh for delivered energy decreased 4.8% year-over-year from $46.42 for the three-month period ended March 31, 2025 to $44.21 in 2026. Accredited capacity revenue increased 12.5% to $15.5 million for the three-month period ended March 31, 2026 from $13.8 million in the comparable prior year period.
Current report
Fuel costs on a segment basis decreased $10.5 million, or 27.7%, from the first quarter of 2025. Fuel costs on a consolidated basis decreased $0.2 million or 1.5%, from the first quarter of 2025. The decrease is due to electricity generation falling by 0.5 million MWh, or 34.0%. We used 0.2 million tons less in production on both a segment and consolidated basis, as we utilized 0.2 million less tons produced at the Oaktown mining complex in 2026 compared to 2025. The decrease in electric power generation was attributable to the aforementioned equipment issues, which resulted in 0.5 million lower MWh generated, compared to the same period in 2025. The weather contributed to higher demand for electricity and natural gas causing an increase in the average spot price at Chicago citygate of $1.30 per thousand cubic feet to $5.70 per thousand cubic feet in January 2026 compared to January 2025. Total fuel costs were impacted by an increase in the cost of coal consumed from $53.80 per ton in 2025 to $54.58 per ton in 2026.
Current report
Other operating and maintenance costs increased $4.3 million, or 95.6%, from the first quarter of 2025. The increase was driven by increased maintenance activities attributable to the aforementioned equipment issues at Merom. In addition to the increased maintenance activities in the first quarter of 2026, the impacted generating unit will receive a major maintenance outage beginning in May.
Current report
Cost of purchased power increased $8.0 million, or 117.3%, from the first quarter of 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 economic net hourly purchases of power in the MISO market to satisfy our obligations, which we record as cost of purchased power. In 2026, we purchased an incremental 51,000 MWh compared to 2025, an increase of 38.6% that was further impacted by the energy pricing dynamics at the time of the purchases.
Current report
Utilities expense decreased $0.5 million, or 80.2%, in the first quarter of 2026 compared to 2025. The change was attributable to decreased production at Merom, as well as new meters installed in 2025 that allow for active management of pricing of auxiliary power in the day-ahead market.
Current report
Labor expenses were largely flat for the first quarter of 2026 versus the comparable period in 2025 as headcount was relatively stable year-over-year.
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Interest expense increased $1.2 million, or 70.2%, from the first quarter of 2025. The increase in our interest expense relates to accretion on our prepaid delivered energy contracts that were entered into in 2024 and 2025.
Current report
Income before income taxes decreased $24.3 million from $19.2 million of income before taxes in the first quarter of 2025 to a loss before taxes of $5.0 million in the first quarter of 2026, which is attributable to the items described in the discussion above.
Current report
Segment operating revenue from coal operations (including intercompany sales to Merom) decreased $8.4 million, or 15.3%, compared to the first quarter of 2025. The decrease was driven by lower volume partially offset by an increase in the average sales price for our coal. We sold 0.9 million tons of coal during the first quarter of 2026, a decrease of 0.2 million tons, or 20.3%, versus 2025. Our average sales price, on a segment basis, increased $3.21 per ton from $51.14 per ton to $54.35 per ton. The decreased sales were driven by lower coal demand from Merom due to the aforementioned equipment issues. Sunrise sold 0.3 million fewer tons of coal to Merom, offset by a 7.2% increase in tons sold to third parties in the first quarter of 2026 compared to 2025. On a consolidated basis, third party sales increased $4.9 million, or 16.2%, versus the first quarter of 2025 attributable to 0.3 million incremental tons sold to third parties, supplemented by an 8.4% increase in our average third party price per ton.
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Previous report
THE FOLLOWING DISCUSSION UPDATES THE MD&A SECTION OF OUR 2024 ANNUAL REPORT ON FORM 10-K AND SHOULD BE READ IN CONJUNCTION THEREWITH.
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We are pleased with our favorable results in the third quarter, during which time we generated $146.8 million of revenue with $23.9 million of net income, representing substantial improvement over the $105.2 million of revenue with $1.6 million of net income generated in the prior year period. For the nine months ended September 30, 2025, we generated $367.5 million of revenue with $42.1 million of net income both materially above prior year performance.
Previous report
Traditional summer weather patterns coupled with higher energy demand and higher natural gas prices provided for a supportive energy-pricing environment during the quarter that led to higher revenue at our Hallador Power subsidiary. Following the completion of Unit 2’s annual maintenance outage in early July 2025, both units operated very well throughout the quarter. We also saw positive results in our Coal Operations resulting from solid coal production, increased shipments and consistent operating costs. The favorable power markets led to increased dispatch levels at both Merom and customer plants, which provided a boost to coal shipments and helped to decrease coal inventories at both the power plant and the mine.
Previous report
During the third quarter 2025 , the Company entered into a $20.0 million prepaid forward power sales contract with scheduled deliveries throughout the first half of 2027. As we have previously noted, these firm forward sales allow us to improve liquidity from lower future price environments and also provides an advantage, as we saw in this instance, when pricing is stronger. These prepaid sales help us to lock in prices in the near term as we continue to focus on securing a long-term power purchase agreement in support of utility, data center and/or other large scale industrial development. The prepaid funds will be used to support company operations and capital expenditures.
Previous report
We continue to see significant and accelerating interest in our capacity and energy offerings. As the third quarter progressed, we saw increased activity from both data center developers and load serving entities seeking the scarce inventory of large blocks of capacity and energy that we have available in the coming decade. We are in advanced discussions on both fronts and anticipate making positive progress towards a long-term agreement with a data center developer or load serving entity by early 2026. Each of the interested parties brings a unique perspective to the negotiations and each presents differentiated value creation opportunities and challenges to effectively monetize our capacity and energy offerings. We continue to believe that the evolving energy markets, specifically related to data center growth and favorable load serving entity demand, as well as the newly supportive regulatory environment, are providing us with opportunities that were not available when we began the request for proposal process. We also recognize that these opportunities have an undefined lifespan and we continue to work diligently to secure an agreement that will benefit the Company and our shareholders, both now and in the future.
Previous report
While we still believe that an agreement with a load serving entity is intrinsically more straightforward to negotiate, can be implemented sooner and could result in greater sales volumes of energy and accredited capacity, we are beginning to see improving timelines on the developer side, especially where the developers had the foresight to speculatively acquire required infrastructure, such as step-down transformers, switch gear and other site-specific level electrical equipment. We anticipate favorable pricing in these potential opportunities, but, as we have highlighted before, data center arrangements are inherently more complex and involve multiple parties, which by its nature adds time and alignment challenges to the negotiation process. Notwithstanding those challenges, returning to non-exclusive negotiations reinforced our belief that we will forge a strategic partnership and create significant value for years to come.
Previous report
Throughout the past several years, we have expressed our strong belief that the prevailing industry trend of retiring dispatchable generators in favor of non-dispatchable resources, such as wind and solar, will create and has created an unbalanced supply and demand equation, resulting in reduced availability and increased price of accredited capacity. It is our position that the enhanced reliability of dispatchable generation, like Merom, versus non-dispatchable generators will increase the value of the attributes of Hallador Power in the overall energy markets. With this in mind, we continue to evaluate the potential to enhance value through strategic growth initiatives such as the acquisition of retiring or retired generation assets and infrastructure. We are regularly evaluating potential acquisition opportunities to diversify and
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increase our dispatchable generation as well as other strategic opportunities, which we believe would inherently diversify our generation portfolio, and provide an avenue to realize future growth opportunities. We believe that this approach has the potential to enhance our financial flexibility and strengthen our position in the evolving energy market.
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We remain optimistic about the potential to add to our strategic generation portfolio and the long-term benefits that such a transaction could produce for the company, its shareholders and its customers. This model for growth enables us to capture value by providing accredited capacity and reliable energy. In connection with this belief, on November 3, 2025, Hallador Power submitted an application to MISO’s Expedited Resource Addition Study (ERAS) program to add an additional 525 MW of gas generation at the Merom site. Given the strong market signals that we are currently seeing for our product offerings and the robust interest in the types of long-term arrangements that we are currently evaluating, we believe that it is an appropriate time to explore increasing generation at Merom. While the application is only a first step in our growth process and does not guarantee that we will be able to add the full load which we applied for, or any additional generation as part of ERAS, we are excited to participate in the opportunity and for what it could mean to the future of Hallador. We are currently targeting the generation to come online late in 2028. The process is capital intensive and includes operational, financial, regulatory and legal risks that could impact the project’s viability and/or timeline.
Previous report
Additionally, we see the potential of enhancing Merom’s reliability, resiliency and flexibility by incorporating natural gas and creating a dual fuel configuration should operational and financial conditions support it. While we remain in the evaluation process, by adding the capability to co-fire with gas or coal, we believe that it could provide Hallador Power and its customers the ability to take advantage of economic fluctuations in fuel cost and provide potential flexibility as we manage other operating expenses. We believe that the ability to co-fire with natural gas and coal will also provide increased resiliency in times where gas availability is limited and allow us to retain the economic advantages of operating our Sunrise Coal subsidiary and leveraging our own fuel supply to ensure competitively priced offerings from third party fuel providers. This evaluation is complex on a variety of levels, specifically customer preference and an evolving regulatory environment, each of which could materially impact the timing and economic benefits of undertaking such a change.
Previous report
In 2024, we delivered 2.9 million MWh of energy during the first nine months at an average sales price of $50.97 per MWh. In 2025, we delivered 4.0 million MWh of energy during the first nine months at an average sales price of $48.88. As illustrated in the forward sales position table, below, following 2026, we are optimistic that we will be able to sell energy at higher prices in support of data center development and/or to traditional wholesale customers in line with the indicators of a strong forward energy pricing curve.
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Shifting to our Coal Operations, during the quarter, we saw improvements in operational expenses and increased shipments. The improved dispatch levels at Merom and our customers’ plants helped to reduce our previously elevated inventories, while still allowing us adequate fuel inventory to position us well to meet industry needs if power plants, including Merom, dispatch at higher levels over the course of the upcoming Winter season.
Previous report
With renewed support of coal mining and coal fired generation on both the federal and state level, we believe that we are well-positioned to take advantage of opportunities for strategic growth and/or organic expansion. We believe that current market dynamics remain stronger than they were in the past year, and we are actively assessing the timing and feasibility of expanding coal production in 2026. As we have previously said, our average contracted sales price in 2026 across all coal sales contracts is approximately $4.00 per ton higher than the average contracted sales price in 2025.
Previous report
We currently expect to produce approximately 3.8 million tons of coal in 2025. In the first three quarters of 2025, we produced 3.1 million tons of coal at our Oaktown Mining Complex. We also use supplemental coal from third party suppliers at Merom, typically purchased at favorable prices to help diversify self-production supply risk and to provide us with additional flexibility in our ability to rapidly respond to customer demand if spot market pricing justifies doing so. This optionality to obtain low-cost fuel either internally or from third-parties while capturing upward swings in the commodity markets for coal should allow us to further maximize margins while optimizing fuel costs at Merom.
Previous report
The continued transformation of Hallador from a commodity focused producer of coal to a vertically integrated IPP remains our primary focus. This allows us to leverage the ongoing impacts of the energy transition to capture the
Previous report
expanding margins of the energy markets and capitalize on the rising demand for reliable electricity. As described above, we continue to see very strong interest from data center developers and load serving entities with respect to our energy and accredited capacity offerings. This interest and the number of inquiries accelerated throughout the quarter and we are encouraged by the variety of interested parties and the varied deal structures that we are seeing with respect to our offerings. We continue to believe that our business is well positioned to take advantage of opportunities for growth and cash flow generation as they arise.
Previous report
Like our competitors, Hallador’s business is affected by various macroeconomic factors, including tariffs and inflationary trends. The U.S. has implemented, or is considering implementing, higher tariffs on imports into the U.S. While such tariffs could potentially result in reduced economic activity, increased costs in operating our business including potential supply chain disruptions, and changes in purchasing behaviors for thermal coal or other potentially adverse economic outcomes, tariffs (or retaliatory trade measures imposed by other countries on U.S. goods) have not yet had a significant impact on our business or results of operations.
Previous report
Our goal is for Hallador Power to generate up to 6.0 million MWh annually (see Hallador Power’s capacity and utilization information below), if the markets and energy pricing support that level of generation. During the first nine months of the year, Hallador Power generated approximately 3.7 million MWh, or roughly 82.0% of our year-to-date target and economically purchased 0.3 million MWh.
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When forward selling Capacity, we target annual sales of around $65.0 million to offset our fixed annual costs at the plant of approximately $60.0 million. For 2025, we have contracted approximately $58.1 million or 89.4% of our target. We believe our forward Capacity sales goals are attainable as illustrated in our “Forward Sales Position” table below.
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Our condensed consolidated financial statements should be read in conjunction with this discussion. This analysis includes a discussion of metrics on a per mega-watt hour (MWh) and a per ton basis as derived from the condensed consolidated financial statements, which are considered non-GAAP measurements. These metrics are significant factors in assessing our operating results and profitability.
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The following is an overview our Electric Operations and Coal Operations results for Q3 2025 compared to Q2 2025.
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Key drivers in Q3 2025 Electric Operations results were:
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(1)During the third quarter of 2025, we sold 1.6 million MWh representing a 100.0% increase in total MWh sold from the second quarter of 2025. This increase was expected as Q2 2025 typically has lower demand for power and we had a planned maintenance outage on one of our units at Merom for approximately two months during the second quarter. On a per MWh basis, Q3 Electrics Sales were $59.09 per MWh sold compared to $72.44 per MWh sold in Q2 2025. The variance on a per MWh basis was primarily due to the allocation of capacity revenue over increased energy volumes.
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(2)In Q3 2025, significant operating costs including fuel, other operating and maintenance and cost of purchased power were $56.2 million, or $35.61 per MWh compared to $34.2 million, or $41.31 per MWh in Q2 2025. The increase in costs reflect the higher plant output and planned maintenance as also reflected in the decreased cost per MWh from Q2.
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Key drivers in Q3 2025 Coal Operations results were:
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LIQUIDITY AND CAPITAL RESOURCES
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CAPITAL EXPENDITURES (“Capex”)
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RESULTS OF OPERATIONS
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Presentation of Segment Information
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Electric Operations
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(1) Other operating costs include costs for limestone, dibasic acid, ammonia, lime dust and soda ash.
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(1) Other operating costs include costs for limestone, dibasic acid, ammonia, lime dust and soda ash.
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Q3 2025 vs. Q3 2024
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Key drivers in Electric Operations Q3 results were:
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YTD 2025 vs. YTD 2024
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Key drivers in Electric Operations YTD results were:
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Q3 2025 vs. Q3 2024
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Key drivers in Q3 2025 Coal Operations results were:
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YTD 2025 vs. YTD 2024
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Key drivers in YTD 2025 Coal Operations results were:
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Previous wording
Actual revenue related to forward sales positions may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions and potential force majeure events.
Current wording
Actual revenue related to forward sales positions may differ materially for various reasons, including price adjustment features for coal quality and cost escalations, volume optionality provisions, including rollover of unfulfilled coal commitments into future periods, and potential force majeure events. Forward sales figures in the 2026 column are for the period from April 1, 2026 through December 31, 2026.
Previous wording
Our operations are divided into two primary reportable segments: Electric Operations and Coal Operations. The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as an operating segment, are presented as “Corporate and Other and Eliminations” within the notes to the condensed consolidated financial statements and primarily are comprised of unallocated corporate costs and activities, including a 50% interest in Sunrise Energy, LLC, a private gas exploration company with operations in Indiana and Oaktown Gas, LLC, which we account for using the equity method.
Current wording
In addition to these reportable segments, the Company has a “Corporate and Other and Eliminations” category, which is not significant enough, on a stand-alone basis, to be considered an operating segment. Corporate and Other and Eliminations primarily consist of unallocated corporate costs and activities, including our 50% interests in Sunrise Energy and Oaktown Gas, which we account for using the equity method.
Previous wording
(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).
Current wording
(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable included in fuel and other operating costs.
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(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).
Current wording
(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable included in fuel and other operating costs.
Previous wording
(i)Average cost per ton sold is calculated as the sum of the Coal Operation’s “Fuel”, “Other Operating and Maintenance Costs”, “Utilities” and “Labor” costs. Coal Operations costs are presented in the “Presentation of Segment Information” above.
Current wording
(i)Average cost per ton sold is calculated as the sum of the Coal Operation’s fuel, other operating and maintenance costs, utilities and labor costs divided by tons sold for the respective period in this table. Coal Operations costs are presented in the “Discussion and Analysis of our Reportable Segments” above.
Previous wording
Our effective tax rate (ETR) is estimated at ~0% and ~24% for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, we estimated our annual ETR based upon projected annual income (loss), forecasted permanent tax differences, discrete items, and statutory rates in states in which we operate. Our ETR differs from the statutory rate due primarily to statutory depletion in excess of tax basis and changes in the valuation allowance. The deduction for statutory percentage depletion does not necessarily change proportionately to changes in income (loss) before income taxes.
Current wording
Our effective tax rate (“ETR”) is estimated at ~5.2% and ~0% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026, we estimated our annual ETR based upon projected annual income (loss), forecasted permanent tax differences, discrete items, and statutory rates in states in which we operate. Our ETR differs from the statutory rate due primarily to statutory depletion in excess of tax basis and changes in the valuation allowance. The deduction for statutory percentage depletion does not necessarily change proportionately to changes in income (loss) before income taxes.
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See*“Item 1. Financial Statements - Note 9 - Stock Compensation Plans”* for a discussion of RSUs.
Current wording
See*“Item 1. Financial Statements - Note 8 - Stock Compensation Plans”* for a discussion of restricted stock unit (“RSUs”).
Previous wording
For the nine months ended September 30, 2025, capex was $44.3 million allocated as follows (in millions):
Current wording
For the three months ended March 31, 2026, capital expenditures (“Capex”) was $7.7 million allocated as follows (in millions):