Watch for the execution of the Generator Interconnection Agreement (GIA) in the coming weeks and the finalization of the engineering and construction agreement. The company does not require a long-term power purchase agreement for final investment decision (FID) on Turtle Creek.
Price Chart
Executive Summary
Hallador Energy closed a $600 million senior secured term loan facility (with $550 million funded at closing and a $50 million delayed draw) from Kennedy Lewis Investment Management to fund its 460-MW Turtle Creek natural gas project. The company also has the ability to establish a $75 million super-priority revolving credit facility, creating a total financing package of up to $675 million. Proceeds will repay $120 million of existing debt and fund turbine purchases, refurbishment, and construction of the project, which has an estimated total cost of less than $800 million.
Key Financial Metrics
Key Facts
- $600 million senior secured term loan facility with $550 million funded at closing and $50 million delayed draw available for 12 months
- Up to $75 million super-priority revolving credit facility with similar tenor
- Total financing package of up to $675 million
- Turtle Creek Gas project expected total project cost of less than $800 million
- Repayment of $45 million existing term loan and $75 million revolver with Texas Capital Bank
- Minimum unrestricted cash of $10 million and minimum 1.15x consolidated debt service coverage ratio
- Maximum consolidated leverage ratio of 9.00x first period and 8.00x each period after COD
- 100% excess cash flow sweep commencing after COD
- 1.35x minimum MOIC increasing to 1.50x upon extension
- $2.4 billion contracted forward sales position as of June 30, 2026
- Kennedy Lewis Investment Management LLC provided the Term Loan Facility
- PEI Global Partners acted as exclusive financial advisor
Financial Impact
Hallador secured up to $675 million in debt financing, with $550 million funded at closing. The company expects to use proceeds to fund the majority of the sub-$800 million Turtle Creek project cost, repay $120 million of existing debt, and for general corporate purposes.
Risk Factors
- High leverage ratio of 9.00x first period after COD and 8.00x each period after COD
- 100% excess cash flow sweep commencing after COD
- Interest rate after COD is SOFR + 8.00% payable in cash, with a 3.5% SOFR floor
- Minimum unrestricted cash of $10 million and no cure right for that covenant
- DSCR and leverage ratio covenants subject to equity cure rights limited to two of any four consecutive quarters and no more than three times over the term
- Turbines have to load, clear export, and be refurbished on schedule
- Contracting the plant output at prices that justify the cost
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-108429 |
| Document: hnrg-20260915xex99d1.htm | 0001104659-26-108429 |
| Document: 0001104659-26-108429-index-headers.html | 0001104659-26-108429 |
| Document: 0001104659-26-108429-index.html | 0001104659-26-108429 |
| Document: 0001104659-26-108429.txt | 0001104659-26-108429 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 8-K | $14.50 | awaiting T+60 | — | $11.15 (−23.07%) |
Sep 17, 2026 5w ago | 8-K | $15.17 | awaiting T+60 | — | $11.15 (−26.47%) |
Aug 10, 2026 10w ago | 8-K | $15.64 | awaiting T+60 | — | $11.15 (−28.68%) |
Aug 10, 2026 10w ago | Press Release | $15.64 | awaiting T+60 | — | $11.15 (+28.68%) |
Jul 15, 2026 14w ago | Insider Cluster | $16.05 $13.92 | ▼ −13.27% | ▼ −16.98% | $11.15 (−30.50%) |
Jun 30, 2026 16w ago | Insider Buy | $16.79 $14.54 | ▼ −13.40% | ▼ −16.36% | $11.15 (−33.56%) |
Jun 26, 2026 17w ago | 8-K | $16.93 $15.07 | ▼ −10.99% | ▼ −15.37% | $11.15 (−34.11%) |
Jun 25, 2026 17w ago | Insider Buy | $18.15 $15.12 | ▼ −16.69% | ▼ −20.55% | $11.15 (−38.54%) |
Jun 11, 2026 19w ago | 8-K | $16.44 $16.90 | ▲ +2.80% | ▼ −0.47% | $11.15 (−32.15%) |
Jun 5, 2026 20w ago | 8-K | $16.92 | awaiting T+60 | — | $11.15 (−34.07%) |
US Market Status
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