HALLADOR ENERGY CO Segments Disclosure
(20) SEGMENTS OF BUSINESS
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.
Our Electric Operations segment includes the electric power generation facilities of our Merom power plant, which is a two-unit, 1080-megawatt rated coal fired power plant located in Sullivan County, Indiana. Our sales region is in MISO Zone 6, which includes Indiana and a portion of western Kentucky. Revenue from our Electric Operations segment consist primarily of delivered energy and accredited capacity revenue. Fuel costs included in our Electric Operations segment include the cost of coal purchased from our Coal Operations segment, which is based on multi-year contracts that approximated market prices at the time the contracts were agreed.
Our Coal Operations segment includes the Oaktown 1 underground mining complex, as well as other currently idled mining facilities, which produce high-quality bituminous coal from the Illinois Basin. Revenue from our Coal Operations segment consists of sales of coal to various third parties and to Merom. Coal sales to our Electric Operations are based on multi-year contracts that approximated market prices at the time the contracts were agreed. Intercompany coal sales and amounts above actual costs to produce the coal are eliminated in the consolidated statements of operations.
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 equity method investments.
The CODM evaluates segment performance based upon Segment EBITDA for each business segment. Segment EBITDA is calculated for each segment as follows:
| 1. | For our Electric Operations segment, Segment EBITDA is comprised of accredited capacity and delivered energy revenues less certain significant segment expenses, which include (i) variable costs comprised of fuel costs and certain other operating costs, such as limestone and soda ash, (ii) other operating and maintenance costs, (iii) costs of purchased power, (iv) utilities, (v) labor and (vi) general and administrative costs. |
| 2. | For our Coal Operations segment, Segment EBITDA is comprised of coal sales less certain significant segment expenses, which include (i) fuel, (ii) other operating and maintenance costs, (iii) utilities, (iv) labor and (v) general and administrative costs. |
Segment EBITDA for each segment is a key measure used by our CODM and provides information about our core operating performance, significant expenses and ability to generate cash flow. Additionally, Segment EBITDA provides investors with the financial analytical framework upon which our CODM bases financial, operational, compensation and planning decisions and presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. Our CODM reviews variable costs, as defined above, in our Electric Operations segment in order to evaluate the efficiency of that segment’s operations.
Presented below are the Electric and Coal Operations key metrics reviewed by the CODM at December 31, 2025 (in thousands):
Electric Operations | Coal Operations | ||||||
Delivered energy | | $ | 252,644 | | Coal sales | $ | 221,008 |
Accredited capacity revenue | 58,093 | ||||||
Electric sales | $ | 310,737 | |||||
Fuel | $ | (132,573) | |||||
Other operating costs (1) | (5) | ||||||
Total variable costs | $ | (132,578) | |||||
Other operating and maintenance costs (2) | $ | (29,358) | Fuel | $ | (2,088) | ||
Cost of purchased power | (20,892) | Other operating and maintenance costs | (99,883) | ||||
Utilities | (4,612) | Utilities | (12,189) | ||||
Labor | (32,672) | Labor | (78,006) | ||||
Power margin without general and administrative | 90,625 | Coal margin without general and administrative | 28,842 | ||||
General and administrative | (5,195) | General and administrative | (8,712) | ||||
Electric Operations — Segment EBITDA | $ | 85,430 | Coal Operations — Segment EBITDA | $ | 20,130 | ||
(1) Other operating costs include costs for lime dust. | |||||||
(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). | |||||||
Presented below are the Electric and Coal Operations key metrics reviewed by the CODM at December 31, 2024 (in thousands):
Electric Operations | Coal Operations | ||||||
Delivered energy | | $ | 203,434 | | Coal sales | $ | 202,525 |
Accredited capacity revenue | 58,093 | ||||||
Electric sales | $ | 261,527 | |||||
Fuel | $ | (111,768) | |||||
Other operating costs (1) | (19) | ||||||
Total variable costs | $ | (111,787) | |||||
Other operating and maintenance costs (2) | $ | (28,622) | Fuel | $ | (2,851) | ||
Cost of purchased power | (10,888) | Other operating and maintenance costs | (89,283) | ||||
Utilities | (2,070) | Utilities | (13,844) | ||||
Labor | (30,842) | Labor | (85,322) | ||||
Power margin without general and administrative | 77,318 | Coal margin without general and administrative | 11,225 | ||||
General and administrative | (5,311) | General and administrative | (9,877) | ||||
Electric Operations — Segment EBITDA | $ | 72,007 | Coal Operations — Segment EBITDA | $ | 1,348 | ||
(1) Other operating costs include costs for lime dust. | |||||||
(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). | |||||||
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues at December 31, 2025 (in thousands):
Corporate and Other |
| |||||||||||
Reconciliation of Revenue: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Delivered energy | | $ | 252,644 | | $ | — | | $ | — | | $ | 252,644 |
Accredited capacity revenue | 58,093 | — | — | 58,093 | ||||||||
Other operating revenue | 3,534 | 5,373 | 1,167 | 10,074 | ||||||||
Coal sales (third party) | — | 148,655 | — | 148,655 | ||||||||
Coal sales (intercompany) | — | 72,353 | (72,353) | — | ||||||||
Operating Revenues | $ | 314,271 | $ | 226,381 | $ | (71,186) | $ | 469,466 | ||||
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues at December 31, 2024 (in thousands):
Corporate and Other |
| |||||||||||
Reconciliation of Revenue: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Delivered energy | | $ | 203,434 | | $ | — | | $ | — | | $ | 203,434 |
Accredited capacity revenue | 58,093 | — | — | 58,093 | ||||||||
Other operating revenue | 946 | 2,559 | 1,679 | 5,184 | ||||||||
Coal sales (third party) | — | 137,448 | — | 137,448 | ||||||||
Coal sales (intercompany) | — | 65,077 | (65,077) | — | ||||||||
Operating Revenues | $ | 262,473 | $ | 205,084 | $ | (63,398) | $ | 404,159 | ||||
Presented below is our reconciliation of Segment EBITDA to the most comparable GAAP account, income (loss) before income taxes at December 31, 2025 (in thousands):
Corporate and Other |
| |||||||||||
Reconciliation of Income (Loss) before Income Taxes: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Income (Loss) before Income Taxes | | $ | 56,741 | | $ | 480 | | $ | (13,517) | | $ | 43,704 |
Other operating revenue | (3,534) | (5,373) | (1,167) | (10,074) | ||||||||
Depreciation, depletion and amortization | 22,681 | 18,465 | 76 | 41,222 | ||||||||
ARO accretion | 497 | 1,267 | — | 1,764 | ||||||||
Exploration costs | — | 216 | — | 216 | ||||||||
(Gain) loss on disposal or abandonment of assets, net | — | (2,489) | — | (2,489) | ||||||||
Interest income | (52) | (235) | (315) | (602) | ||||||||
Interest expense | 9,097 | 7,799 | — | 16,896 | ||||||||
Loss on extinguishment of debt | — | — | 608 | 608 | ||||||||
Equity method investment (loss) | — | — | 450 | 450 | ||||||||
Corporate — general and administrative | — | — | 12,319 | 12,319 | ||||||||
Segment EBITDA | $ | 85,430 | $ | 20,130 | $ | (1,546) | $ | 104,014 | ||||
Presented below is our reconciliation of Segment EBITDA to the most comparable GAAP account, income (loss) before income taxes at December 31, 2024 (in thousands):
Corporate and Other |
| |||||||||||
Reconciliation of Income (Loss) before Income Taxes: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Income (Loss) before Income Taxes | | $ | 51,367 | | $ | (274,120) | | $ | (12,789) | | $ | (235,542) |
Other operating revenue | (946) | (2,559) | (1,679) | (5,184) | ||||||||
Depreciation, depletion and amortization | 19,290 | 46,245 | 91 | 65,626 | ||||||||
Asset impairment | — | 215,136 | — | 215,136 | ||||||||
ARO accretion | 457 | 1,171 | — | 1,628 | ||||||||
Exploration costs | — | 260 | — | 260 | ||||||||
(Gain) loss on disposal or abandonment of assets, net | — | 1,629 | (1,679) | (50) | ||||||||
Interest income | (36) | (197) | (2) | (235) | ||||||||
Interest expense | 1,875 | 11,033 | 942 | 13,850 | ||||||||
Loss on extinguishment of debt | — | — | 2,790 | 2,790 | ||||||||
Equity method investment (loss) | — | — | 746 | 746 | ||||||||
Settlement of litigation | — | 2,750 | — | 2,750 | ||||||||
Corporate — general and administrative | — | — | 11,339 | 11,339 | ||||||||
Corporate — other operating and maintenance costs | — | — | 440 | 440 | ||||||||
Segment EBITDA | $ | 72,007 | $ | 1,348 | $ | 199 | $ | 73,554 | ||||
Presented below are our Electric and Coal Operations assets and capital expenditures at December 31, 2025 (in thousands):
Corporate and Other |
| |||||||||||
Other Reconciliations: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Assets | | $ | 256,529 | | $ | 148,957 | | $ | 2,567 | | $ | 408,053 |
Capital expenditures | $ | 43,853 | $ | 25,362 | $ | — | $ | 69,215 | ||||
Presented below are our Electric and Coal Operations assets and capital expenditures at December 31, 2024 (in thousands):
Corporate and Other |
| |||||||||||
Other Reconciliations: | Electric Operations | Coal Operations | and Eliminations | Consolidated | ||||||||
Assets | | $ | 220,477 | | $ | 144,519 | | $ | 4,124 | | $ | 369,120 |
Capital expenditures | $ | 18,699 | $ | 34,081 | $ | 587 | $ | 53,367 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.