Hallador Energy Company (NASDAQ:HNRG) Q3 2022 Earnings Call Transcript

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So we think there’s upside if we are successful, in what we’re trying to put together, time will tell. As far as in 2024, we €“ at today’s market prices, we know we can make money at the plant in 2024 significant, as we get closer to that and as we lock in more, we’ll shed more insight into that. But for now, we know that it’s given us a lot more liquidity because it’s given us another avenue to sell and we can always sell in the data ahead market. Now you’re a price taker, but it’s liquid.

Jeff Bronchick: Now got it. Okay. And my last display last thing physical this is a bold scheme. Thoughtful, interesting. optionality, get it, could work really well. Could be a neutral, could be a complete time sucking mess. Life is full of uncertainty. And my point being is that, you guys, I would say this, you guys have adopted a new, you’ve got a grant for an RSU plan that is just time weighted. And I would say if I were you and I were the board, I would’ve doubled or tripled the RSU package, but I would’ve made it, committed to either, some sort of a shareholder return or some sort of an operational thing that would greatly pay you and hence us if this plan is bold and fruitful and it would dock you if it’s well, gave it a world didn’t work as opposed to just kind of waking up and getting three year time best in RSUs would be my mental comment, which you don’t have to address, but I would just throw that in your lap. Okay, go ahead.

Brent Bilsland: Our executive teams RSU are based on metrics, based on both EBITDA and

Larry Martin: Yeah, for the annual numbers, exactly. Short term.

Jeff Bronchick: Yeah. I mean, I don’t like to argue, say CEO should be paid more. That’s a winning argument for you, so you should just take it as is and I appreciate your time.

Operator: Our next call comes from Lucas Pipes from B. Riley Securities. Your line is now open.

Lucas Pipes: Yes. Thank you so much for taking my follow-up. Brent, you spoke about the converts and your prepared remarks, and just maybe as you think about potential, future sources of capital, would you be open to more converts or might you look to other sources at that point? Thank you so much.

Brent Bilsland: Well, I think if this juncture, we are significantly the leveraging our balance sheet. And when we did the convert, it was at a time where our EBITDA performance was poor. Our and we had yet, at the same point in time, we were knocking on the door of all this opportunity, but to take advantage of the opportunity. And when I say opportunity that is sell coal high prices, increase production, acquire the Merom Power Plant, those were kind of the three things that were laying in front of us. So to take advantage of that, we knew we had to spend more money on CapEx, and we couldn’t go really any rely on any more of the debt market. So that’s why we went to the convert. Looking forward, we’re seeing the opposite. Our balance sheet is completely deleveraging, and so we feel that the debt capital market should be sufficient to meet our needs.

So I don’t €“ at this juncture, look to do anymore converse, and we just look to deleverage our balance sheet and work on continue to create, cash flow streams for the Hallador shareholder.

Lucas Pipes: Got it. very helpful. And then maybe just one more for me. you referenced. You reference real performance and I believe last quarter you’d referenced around 85% of scheduled deliveries were being shipped. Has this figure improved and just how are discussions progressing with these real providers as you’re kind of looking to return to higher levels?

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