Hallador Energy (HNRG) 9 May 232023 Q2 Earnings call transcript

Good afternoon. Thank you for attending today's Hallador Energy’s First Quarter 2023 Earnings Call. My name is Hannah and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

If you'd like to ask a question, please press star one. to with conference ahead. Hallador like host, to now Palumbo Becky you would pass over the our I may go

your you, our our you Yesterday thank form XX-Q, and Hannah. joining now on Thank today. posted prepared and Larry Martin, is to our us on operating website. With call everybody this results afternoon, the and on questions. will is Brent up quarter After CEO, first the for released remarks, me which today XXXX Bilsland we financial open our president CFO. we And call

the Before today not we begin, please note are to contain that that forward-looking future statements related discussion statements certain events. past may

address expected statements In this and looking context, future our forward financial often business performance.

currently more if results one us. While these we available incorrect, assumptions from forward-looking to those of materialize, or or risks projected statements or or our uncertainties understanding vary materially actual prove expected. information If may are these on based

regulations. sales, estimate our example, For and of these costs future remarks. legislation In mining providing

We events have a information, or new revise result may of obligation whether future update forward-looking statements, any otherwise, required by as that be law. to or no publicly

discussion those may their of that results of and uncertainties affect affect some uncertainties at those results. discussion a of that and some future risks may risks future For our

described You time-to-time should filed in the SEC. risk from with review factors the the reports we

is recorded. call being reminder, this As a

XXXXXX. available on are Q&A toll-free Larry. call into ask We number live archived the you I'll turn to the on earnings website. that and the is and webcast our to And to need that, a question, webcast addition, dial also you the like the would In a you with questions and to of is XXX-XXX-XXXX, encourage if code and over during conference ask will call

everybody. afternoon, Good

bank started, period plus retirement method other tax I interest define our get plus to and investment on of less would plus equity income cash the other expense EBITDA effects long-term capital obligation of current as changes certain liability paid working cash subsidiaries and plus activity operating like amortization. and flows less reclamation Before the effects adjusted I asset asset

first $X.XX per net per our earnings to $XX.X share. of earning and shares $X.XX equated results quarter, For basic diluted the income million were which

Our million. the by $XX bank quarter was for adjusted decreased our EBITDA We $XX million. debt

Our funded bank funded of net of $XX.X million bank million. our end debt debt being as was March the with $XX.X

to I over We our leverage letters debt at totaling $XX.X with the And turn had ratio X.X million the credit will to adjusted now our call Brent or quarter. the of of banks. was times Bilsland, EBITDA our end CEO.

Thank you, to the towards we very we're Well, continue and first make happy our results a as company. progress goals Larry. our with quarter

in quarters, balance Hallador As we past have is diligently deleverage to noticed sheet. our working

reducing million that our adjusted resulted coal our progress in goal, we just for average $XX the This Higher million. towards to business debt EBITDA in quarter. million considerable $XX by quarter over made bank prices in $XX

our $XX XXst, March increased million. times dropped of ratio liquidity and X.X XXXX, As debt-to-EBITDA to to our

by decreased XXXX. to remain expect as ton coal we $X.XX tons. $XX.XX an to sale of of YR by Combined average average Our fourth margins compared the X our for to quarter the price production the year, per sales production ton, of per $X.XX saw million increase quarter business ton. elevated. the rest of improved costs with per Throughout prices

against we of maintain of higher market production evaluate or strive to with also connection as higher production our cost our Freelandville temporarily In while to higher end our our QX, we this, the cost mine our idled evaluate We we to continue subsequent production mix needs. margins.

Freelandville employee our this roles utilizing evaluation. by protected employees base other the have undertake we and while so, doing In we

capacity. pricing the we to be immediate energy, As indicators the continue to by and encouraged look for future, we coal,

economics CapEx, the of on excluding the that the about including current pricing, costs fixed future we maintenance nearly cover think of of all plant, capacity but we the receive Merom based environmental should payments As upgrades.

Coal, Beginning as utilize next is almost of Merom our for tons flexibility exact profitable I to an have month, to sell it way subsidiary. convert Merom it scenario. produced and Sunrise exclusively us. that to example for do the by exclusively we say X deliveries to would that. almost fuel the If be this million our electrons, we'll coal earmarked then Merom coal Currently provides XXXX most

then such so. our market, However, Coal more a if it's on to profitable will the from in to Merom Sunrise way that parties do purchase steel the market's sell we third open changed and

price brick, There we the out fuel, just production are our megawatt you that in most other and its costs how then things and stone, if of to were such hypothetically down break then we rules covered per at our complex. costs plant beyond form, including make accounting rules the payments, cost, expect range variable coal costs to [indiscernible] simple around things be when variable deliver current hour. coal Merom, by all the to it strip not we and numerous to $XX as capacity our our to coal the But of Merom

For XXXX, additional we contracted priced. megawatt be that to million the have remaining to already months an sell, of X beyond we yet what have nine hours expect

to we that what hours contracted XXXX, megawatt we Hoosier, to to X yet to expect have For million approximately be addition sell have in sell to priced.

to share the negotiations that Indiana will cannot Hub this factors, view of company, year. various market early third ongoing for due we a starting at the and provide quarter power as our we of meaningful reasonably view to while So, Merom believe other become of our as curves indicative pricing how prices

the prepared that that, with questions. I'll ends call open to So, remarks. up my

Certainly.

question, please by question, star would please to keypad. reason press remove press star telephone to like that one by for ask Again, press like followed a you your would to you If on ask followed one. two. any If question, star a

your to handset up remember asking speakerphone, using a please your As if pick before reminder, a you are question.

registered. as We here questions are will pause briefly

line proceed. Pipes Riley. first Lucas B. Please the with is of Our from question

Thank you Good operator. very afternoon, everyone. much,

afternoon. Lucas? Good doing, you are How

I wanted for update. the And side that missed Marin for you hour doing – production well I the QX from Brent, was and revenue wondered And doing megawatt wondered like the a I'm sorry contribution I what well. if much at but hope bit well. it, very included I power were QX. to I you little during on the in payments if as you're color during more Thank Merom from capacity the contributions much get very in color. QX. Thank there

capacity revenue. XX the we had We megawatt in for sold quarter, had million yes, And payments a that in about that we hours Lucas. close million to

for you. that forward? remaining model the how lumpy the Was is payments, And that Thank you. should helpful. capacity would a Thank Very year? we of be consistent that – or quarters that the one-off going

No, on the electrical that so period of October Hoosier to of XXst to from is the I the think output of XXX% the Hoosier Energy. the – of to plant plant XXXX May through XXXX, capacity closing of date sold of is just Energy. reiterate, And XXnd of the XXX% time through sold plant that

about QX, we contracted the consistent plant will And of first in XX% capacity sold the and is June, think. capacity of months to plant from for – fairly the we economics the of so, other them the parties. have two starting of be And to

has all which an of payments. That's MISO the offered capacity fully bit sold a see in probably we'll ongoing. capacity because part that increase not into is been of So, auction,

auction, So, been into pretty ongoing. MISO offered that's that's it, much the which is

is of the the pretty So, robustness of feel far, results fixed so or plant. and the of why talking cost depending capacity capacity of the which we cover, is strong almost slightly that into the seen market we're we the enough on haven't the future pleased we the currently that capacity, more to, today or about, And than But year market. yet. say, we're the cover

open for we when this megawatt XXXX. we selling for XXXX. market balance June. on balance significantly then the selling in anticipate And hours starting we energy anticipate of contracted And megawatt we've look X already we the outside up price what of roughly So, for hours the a to of million at million year,

two those of and for repeat you the again could Brent, for then numbers go Sorry, ahead. last XXXX? And XXXX balance

megawatt we a unpriced. through June of million currently are December which basically, So, XXXX, hours, anticipate selling

what Hoosier. to have with addition In contracted we

Very correct. is helpful. That

the Thanks for clarification. Sorry.

then for And same XXXX.

something or just parties megawatt we hours then million something And to to are X.X market, MISO hours a anticipate, have Hoosier. wholesale outside sold megawatt the which like like We X unpriced. million currently

with make higher previously I are think to point we agreed trying prices have Hoosier. market here the is we're to than that current what significantly

prices it's power capacity or prices or both? And that

Both. Well, more on side, power the energy prices. so

it. Got

Did you at sell the power, megawatt So, of portion what to at hear million was today's unpriced would it today's I you X that in market? said curve, expect hours. right? And that forward price your

Yeah.

Indiana relatively pretty the I pricing out negotiations, ongoing have prices. usually hub. prices change the we remarks, by day. But, every really easy prepared investors We the to But look we in curves closely to for Merom the it sell hub, said it's but point for are. now Those various at robust. market right what market to I as the linked And, month. fairly prices hub Indiana So, to so don't varies the on it's is think

we necessarily doesn't There's haven't that. lot reasons we of for that haven't, hedged mean And a power.

are unsuccessful. if successful hedge We'll see or to working We some power. we're

we get robust market So, are are market. the The deals. pretty are indicators again, when of weaker right stronger when just markets pointing there. Those it's, get that now. there. could saying We're there's, we these be to, It contracted we're not be could the

we some think and being power about we prices And the high. market concerned natural at is are. because want reliability. would to is shouldn't a the well, look be they premium argue And potentially say, And people paid there prices gas

and generation gosh, cover a gotten you PJM, have about year everyone ago, my of today we're couple from comments I that more so talking reserve talking there's all little talking sorts events. pricing look thin, back years we had was about, NERC, about margins FERC, have think, reliability. mean, if nobody excess MISO, Last public we more And to load extreme people seeing two meaning is reliability. I so

putting base go on naked nobody power replaced meet frequently which through that these this generation switch. be load, events load think happening be an when as more I market not by cannot is is to caught struggles unhedged does on upward to we or where because the generation dispatched, pressure and generation have wants more is

– what our plant the megawatt July. have we a selling because in in our we starting to, to and month at because becomes significant leads the today's higher that think today sales have of probably that we next is starts company, significantly with position open hours Merom pricing to prices mirror, for all contributor up been that rearview So, than

that certainly So feel about – but way we XXXX.

us. the We about that of conditions company So, be being excited in position is couldn't more in it's very presented market the our with meaningful. are front

that because, sure really make to XXXX. excitement resonates want and we're coal call selling we we hey, were on year up talking in to prices that's So, going about, this last at show high

This for our thinking they hey, year in prices a I we saying, today the that hold, and we're XXXX later power is show large unsold into have which up, position going very and to if year is will. think

helpful. a sales I in QX, Thank here off million envelope Very if you then really XX hours. mentioned payments. capacity off, way the at the you I'm but sold back XX.X quickly something Larry, about million. did out I electric I maybe took look million you. megawatt for And and the

$XX arrive approach? So, per side. at on about the Is right revenue megawatt that hour the I

we do we for about accounting remember to Hoosier had last at sold Lucas, discounted quarter No, that our talked the prices. contract gap we

just is closed because on the reverse that about some there prices the Hoosier. sold contract that deal, off. is to in credit million prices So, that When revenue discounted to XX taken we had we

contract sold Accounting now to discounted we them it that we reverse to makes had So, easy. that a revenues. have never

– So

starting have we of June is But, a a fiscal to And our as less on power disclosed all through Xst. it's runs that hour. contract the of XXst Brent power think year. with business Hoosier significantly our grid gets then, on, XXst. June $XX I said, megawatt May from May is Xst Hoosier before our there

out we produce are June megawatts can million going we million X.X X selling to to are So, we X.X X million that of them Xst. after

that That's helpful. Thank Thank additional you. you color. for

several at that topic of I you quickly. XXXX? Thank over Last is for very you several much taxed years. how per years, I And Second $XXX and disclosed tons of for ton that wondered really summer X.X how much. is you million much wondered that sold

a for expect that's I our in top about basically job Yeah, event feel give shown think scenario I'm because, today the in we a their Well, we're that first are doing not I of what that year you, I know. mean, don't to be all, prepared to exactly think exactly. average that we're that subject table the don't good of head. is number we've But customers off know $XX. price up always our that, I of to we the in coal I time, And pretty picking where on change. decent the

for currently can better changed at to and prices. us what's take is, or to But in that those into the Merom Plant electrons are comparable over it that turn we coal particularly XXXX, Power prices

So, feel we from standpoint, good. that really

So, I don't question. if your that answers know fully

I think did show we have. that table in we the

We Let Lucas, lower-priced and ended Also, our up extending those up contracts me some to were add blending blend of Brent. XXXX. tons price actually here, incremental tons. those with for

$XX. year the taking the the for, on converting Brent over, said, some higher-priced price our Plant tons And those in at tons as then, tons than in to equivalent higher Power So, to be majority stated average X ‘XX, the are carried in those had and it at is to the million table, as hoop to we $XX. next a going X.X is price plan delivered we and contracted We million Merom about ‘XX. plant, but megawatts of

Got it.

have capacity a if you X coal the you to X.X contracted X.X production on tons XX, million assume of sell then million to So, expect million at I Merom. and tons side,

than So, in it? right to million it less the that to XXXX. way market open for leaves Is little be a sold think the about X tons

X negotiating on. million And now we prices that have are we do committed

So.

Got it.

– So

on committed have less a we little sell. a then is X about and or price, million million to

the for XXXX? you Basin today Very market helpful. for put Would Illinois Coal

Yeah.

we of are So, again, negotiations in on the middle that.

to will So, we decline answer that.

front. the to update Understood. best to you Fair color. the And on of all enough. pricing the appreciate I forward the Really look luck. and the team, Brent, continue

Lucas. question, your for you Thank

you, Thank Mr. Pipes.

next with Kevin Oberon. is question Tracey from Our

You may proceed.

Great.

of that? payments auction the bilateral from to for MISO in you the with hearing give relative where So, bilateral probably Can tell transactions. sense the where maybe I be suppose came your are soon. out And can you we of to sold the results the it majority like will But capacity you relatively a shook us sounds a us capacity for give just contracted you number, Hoosier? pricing these directionally if not deals precise you willing capacity where are

into say MISO where of weeks. than prices previously felt we I costs that the heading we was going delayed three we fixed the higher at auction into were contracted. XX% would our auction. they So, auction, by The had covered

May So, I think somewhere a take give we expect to see the results in of day. that XXth-ish, come or there,

seasonal the cost prices or million. a construct this we of feel is to we give So, are be And like auction. before, we multiple just what those how to that years is really, pricing will that come depends indications our it'll plant, said out. But one-year let's curious seeing fixed the at, say I for year. a take see will, that’s cover $X on They've That gone year.

issue an the So, more of, that's capacity from it on-site saying, that baseload concern, basically the we need look, and are, the markets. needs they that, well, to about the markets has are get which to plant plants feel more that, more some happy been fuel. is capacity needed. And are to another the gas the is talked ensures of that this become just becoming that's grid the coal some is it. market reliability generation when fuel haven't signals of saying, and of and a of able But, way some a degree, year more And standpoint new and we twist being feel plants the payments just on

decreasing And oh, a there's Because seeing you showed cracks generation. coal fuel, are well, for see these start been conversation on-site along. compensating fuel. you now, all the pay didn't It with of the now saying, struggle which these about, nuclear attribute these start attributes to of lot on-site industry the when pay generating are for of, spinning gosh, the industry for need. But in market we as is sudden, an that. valuable always that have you attributes the other have, fleet, attributes are well, free. more and there plants And start that So, are becoming sources a grid is gosh, didn't we the that going absolutely hey, this? up for that that operators And all

you for as have there's that created So, this challenges revealed. new transition, by that created or are that,

have, to and become the that going of signals about show meaningful how company. all about excited our that that we the so, that And economics asset to us is makes we're us the seeing seeing excited market

we what five they're that we're asset economic seven if seeing can we one be, seeing for are, is the market that indications and look a seeing signals some think, contract show, indicators see But just and two-year We'll this see this time. and profitable that We'll We're so, show if early there. feel, case. dated. are we out us six And years quite pretty isn't or real. going to longer hey,

beyond And that's our our had in that going is to approved in the capitals feel call beyond. this and last to to heard plant because, ELGs we expend and needed the we, why, XXXX XXXX be say you us board invest

less far But plant change. conditions least indicators. direction So, needed, the is so economic at seeing change. the we're Market needed, is that could by this not more

reasons, So, very for we're excited. all those

in a the number year? Okay. of And what given are total put fixed a costs can on you plant, the

this I No, that's mean, XXnd. asset disclosed again, owned not yet. only we've we've October something since

close year to of depending make is exceed what to cases, on and some that, today cover cost I fixed in estimate the needs. comfortable maybe capacity our we all, feel be, or very project we want sure we that accurate. think So, But looks very, to

we may that. disclosed that. But elaborate on, on today, goes time we more haven't as So,

make right I to a the price just the And that the heard higher of than capacity in sell the capacity contracts the beginning answer you for it to question, right? of sure hear Did did for Okay. I at Hoosier. selling first you bilateral you're

correctly. heard Yeah, you me

contracts, single basis? Is multiple that for a or year-to-year a you're can in year, negotiated what right Okay. often is so And doing going go am the are doing those you thinking these years? now just auction be on for contracts but bilateral I it that in

one because sometimes out to Well, we it's different have and ways. always don't, completely we we ongoing can't, start and negotiations negotiations finish say hard way

So, enough for that we The are amount feel we years. values meant would have market is that of where capacity. say auction if it I market be capacity MISO indicators an was to that incremental everybody sells robust multiple where, a

even to their to I they generate encourage that own or want agreements. bilateral acquire And think either everyone in capacity

Of transactions, of comes these the what's What course, very going it's on. isn't. know MISO much all of auction, and sees MISO out it indicative they so

that first which construct has the what's that animal. this year the MISO for of a whole this seen, has, a year It's to the tells capacity. seen of going out first it's nobody range time predictions just knows. the first I've new auction, had It's come we've really auction with of seasonal We, dealt me

end the at much have the this, these gotten So, reserve know and margin will MISO, be followed by I we soon thinner. PJM, think the day, of in numbers

great higher. no as materially caused up go excesses of showing capacity to in the MISO longer prices auction, have which so, And has we

pricing those about we the feel all today. good for So, reasons,

how we And we successful the in be will capacity about see future. will contracting

and costs? per call, the or the the This, so megawatt costs, cost clarification. that fixed figure, include just O&M doesn't costs, the another mentioned the the $XX right? megawatt in Is that just you that's cost CapEx variable then but figure fuel other is hour or And Okay.

include, in make. investment So, need that that environmental we to include we CapEx our We not future do number. any maintenance

of be. in going future. those invest come exist We think compliance that additional So, are meet out in the the the may in and not be laws we hey, We costs and the that with may or there'll have today. we're Limitations all what don't said, gets technology us We to laws Effluent to what that know know just standard. Guidelines compliance

coal to sell again, and plant, is from to this, at-cost rules So, have for fuel of there view, hypothetical the ourselves. cost point market we variable but are price to we a if to because were around, this how

little So, that a get to that. follow anyone confusing can for trying

variable we number what to took would wash out? plus the all cost saying So, is CapEx, if that [indiscernible], it stuff is, plus our plant, that per hey, megawatt And maintenance coal took we're hypothetically, hour. at-cost, roughly where $XX our

Okay.

you're $XX do going couple So, is to years? for to the that everything but of environmental next CapEx have the

Correct. so on. Fuel and

So --

maintenance and O&M, CapEx. Fuel, Got it.

And last question. Okay.

be cost. would our fixed CapEx in Maintenance

that fuel, that variable is, is look NOX [indiscernible] like that we cost, that. stone, Our that compliance, is at things

last And Okay. question.

megawatt the that plant's wondering you of to I So, in constrained second that hours potential I’m this parties year, there's sell elsewhere? to half imply if a your successful expect to million seem if million comment non-Hoosier guess the to you're upside coal the megawatt that year. in would hours inventory more sourcing

Well, I at this. think looked we've

source matter elsewhere. It's You coal just more can a of always price.

for XXXX, have I we what power an at at unpriced. other megawatt those we today that curve based think sell parties, are the we is the obligations at that will we million hours on when look additional looking to that we prices look estimate we're

very Great. you Thank Okay. much.

All you. right. Thank

Castlebury [Operator question Pounds Tracy. Mr. Instructions]. comes Advisory. with next from Kenneth you, Thank The

You may proceed.

Two maybe Good questions, bit earlier. and covered Great Hello. job, you gentlemen. a morning. this little

is you think to megawatt So, can you year? what hours said million XXXX, you produce next X.X X

you on is and we I Yeah, heard you connection, hours somewhere I is million said what correct. little around voice the megawatt a XXXX, say think were I that produce plan but X.X choppy – think to you in

Now what the name the plant? capacity for is plant

plant X,XXX plant capacity the is for megawatts. name Well,

That Okay. into does us, that what to just translates you how – X.X? translate gave

X.XX. to translates mean, a about X,XXX Well, I day,

Thank you. Perfect.

Sorry. X.X.

is you number? Okay. do reach coal to much how have it produce and to to that try – possible And that

just hearing is connection The you. sir. We're sorry, not I'm bad.

Okay. Thank you.

you. Thank

from Butler Mr. Rybak of is Pounds. next The with Thank line Mike question you, Hall. the

You may proceed.

Hey. How questions. taking you doing? Thanks my for

looking it megawatt I do more drive obviously, are if historically, million X.X, But can by hours, guys hours. confidence are that's coming something done there you that you really increase output What right, the to right, looking structurally on guys it's I an up can that. question, that Just you know, at X.X hours? respect plant's million mean, than, gives never changing impressive don't better. – to that guys number I last run the follow like And megawatt something megawatt in is and a so you

Yeah. are in Power prices considerably the higher past. than

the when you at So, of looked was cost we're integrated. not. fuel – Hoosier ratio vertically

began, And the power of so, year, at when had plant. of because the were they they power you maintenance in they but And fuel plant. cost plan. close able strong had year, was the historically. That to the going we're were already prices better a ratio acquire last and were prices, even And we their then, backing look look to market today to at sorts down game they than CapEx you those last pretty if things

that a And but can a of in it bad get it, plant condition to condition, we it get in to achieve so, in these wasn't we numbers. process a the so began maintenance of reinvesting better higher

to this a So, Again, haven't that The right. that that we is happen. for market we doable. are calling today contracted signals stuff lot think of

based And here's we what the on to think so, really hey, is, today. signals we're market say trying all today

and Prior where had revealed, So, don't so the going I'm grid generation the operator had here, but they XXXX, don't that But general the better, you'll think for the to and on, if get any idea. I for prior past, exactly, everybody because to out comes the to, events, we're talked says, I been in signals turn quote about has meaning from struggling me meet load. max this market the you quickly look at memory we've trend change think MISO and worse.

something in And XX been they've call. made times like months, XX phone it's the that trailing

there's windmill. base saying base percentage a because cannot isn't be on anywhere panel that solar when that replaced of a we're or closing generation generation. the an has the what sun located And come So, large These load been retirement a a assets load blows generation with off. is, rapid of switch There on been on and turned wind such or shines.

every There's home any MISO battery in today. system capacity night. the goes hardly Solar not

remains the that, fleet has that harder. smaller of work because So, to

in of what that seeing we're so the pricing market. And is the

And that's trying to what we're communicate.

think is it we the than was opportunity So, the in past. bigger

say I that I makes to – sense. mean, the – relative have power the still – see can X.X guess, is to $XX per they still to for would pricing would today, go to curve like megawatt price like you Right. where hour. right far how power down go achievable? number? have seems – No, don't What would pricing not you down they to seems power guys I it be that know It

Yeah.

So, I mean, we're vertically integrated.

of So, comes mine. – there plant at $X.XX plant or a zero the the profit profit of we at at the point and make would $X.XX where make profit coal

get into But in not not something last of we're we're So, of is, to arguably, robust. year. – today in a run. theoretically, markets end our the in it's is, pretty analysis. that The that point at that scenario, They we saw opposite would change do still scale. that change quickly. lot is markets I We going Where exactly think number that that's are energy

probably was it care was down whether oil, power and dramatic year markets. it of the it whether was was it was, whether – energy what Last it up I don't natural was LNG, most coal, gas, the whether market

we're about But don't what these all been of there We're It's contracted. – have to very the we when excited exact cautious – the are numbers we're that and seeing. opportunities say volatile.

it of position. without be we for how think indicate our good trying double-edged overstating it's So, us sword to can this

So, coal excellent signals as what we're capacity is looks today well. pricing pricing good, look saying signals power look good,

significantly month think sold large starting – position We out XXX% unsold this month to we're open condition the our because month. pretty that's plant So, is power from in. a into out being next up sold – this going we to or

the bring. the to Midwest, the indexes, prices we is grid XXX-degree power there prices It's what heat it to year because meet. And be will see look entire If that If in terrible. much degrees XX out. be see the struggle. – We'll power starting to going be is crazy, really load just won't

by time, MISO. of at operator to, extreme is had up a there's in not an hot we cold being to those markets say going other.This a to the up the share be backed and any backing grid You've see same is or events prices one two MISO power hour, it's PJM spare go that megawatt electrons MISO hour. market publicly thousand PJM, if couple from dollars these where is the of But either where to

because those a type saying, And is gas generator well, we The of, generator that's is a be above want the of because going or out the the market to premium lack a saying future a there's – if caught want to who's tide don't market price That's that out, be saying. of more the When in old pay generation, events to goes of in you we the don't out scenario. find we're so naked. caught. are coal

So, we will we'll and we away. out the premium what demand think pay premium extreme well, a stay that low, that dissipate we Again, market will see, premium saying, power power If is go if see stays event. to temperatures, of that increase.

were ago. what is this because at wants markets it – well, look three it energy in what was everyone and years This We're we this completely transition years the say, is different three than past should is be to ago. in

those are of to to pay power and try that a We challenges. markets new have creates challenges. grid, the into And forced lot solve to the forced now variable generation

just questions, the on in I one two Merom, this. so share QX, to want one Okay, But core. on the

XX just or million. look your at if So, revenue so we was electrical

You million liability that a amortization. had contract that was XX

about And of the energy then net about was XX that So, million. was XX revenue. capacity million

remaining generation XX. about So, is the revenue

about XX hours. And having was generate XX why million? be I paid megawatt you if noted revenue trouble was you're $XX megawatt per hour, million? you generation it shouldn't the I that, X,XXX reconciling getting think

Because there's capacity payments –

took he Well, out. those

up. day I the and it's get not based on think if and I a ups true prices for megawatt. true do some know generate and excess over But Mike, we went $X payments, we downs

that we have then So, some don't we at the mean, go your and XXX of I that $XX. excess we produce instance, power exactly. we exactly for XXX is Because to day and where – $XX, for Hoosier. do but I we at that that email day, can doesn't When the power bid an in send net megawatts theory if for you it's excess we're correct. look get

that most be of – will difference. So be that the could

to first the the tonnage, guys then on $XXX. million the X.X you at signed question carryover like And question, tons

like let's haven't million specified think is guys how right, playing X.X of is say, I I just around. the you majority XX. in at much I And tons was XX. But just okay, in obviously $XXX. in XX, If say it

‘XX, for right, million year, at next for tonnages have about that XXX. noted tons includes which you guys X.X these $XX, at You

trying in of in it's just I'm my the quick X.X implies example, so So, back the contracted this million is the price. $XX tonnage, the if that a like why X.X low. out to rest of figure out envelope, tons, at it's

multi-year of I guess contracts. what other I our are all We a really I from say time, have Well, contracts aren't. or we mean, we went period to would this. can't speak

had so, And high. prices that have low, we we prices that were were

prices from lower coal those two, ago. three that of years we priced Some came

on, exactly don't table market average get And well, in hundred, these are. up many of so, hung like we're how you prices want our our I to showing what the

model, average future to cost is look, at create think your our volumes we or So, the we're trying if been, how the tons whatnot, of many cash I going look what in move. at has have, we production think to here's you're what here's that price, flow look the here's

get I think you'll there.

be. trying to where I you're think you'll get to

of so Best luck. Okay. Well, thank you much.

Yeah, I Thank appreciate the you. questions.

time, Mr. call to back you, Instructions] Brent the Rybak. are so There questions [Operator will any turn Bilsland for this over further I remarks. at additional Thank no

we’re excited the interest future I We're signals about pricing about, from Yeah, call the Merom today. the excited all very the our company, to that participants brings market. again, very think from of appreciate And that quarter. we the seeing the once we're the

you. the So, and with call work next Thank for that, get to I'll end Bye-bye. quarter.

That Thank today's concludes earnings Hallador participation. XXXX call. first your you Energy quarter for

your line. disconnect now You may