v3.26.3
SEGMENTS OF BUSINESS
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENTS OF BUSINESS 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 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 the Merom Station, which is a two-unit, 1,080-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. Revenues from our Electric Operations segment consist primarily of delivered energy and accredited capacity revenues. Fuel costs included in our Electric Operations segment include the cost of coal purchased from our Coal Operations segment, which are based on multi-year contracts which approximated market prices at the time the prices 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 the Merom Station. Coal sales to our Electric Operations are based on multi-year contracts that approximated market prices at the time the prices were agreed. Intercompany coal sales and amounts above actual costs to produce the coal are eliminated in the condensed 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 for the three months ended September 30, 2026 and 2025 (in thousands):
Three Months Ended September 30,
20262025
 Electric Operations Coal Operations Electric Operations Coal Operations
Delivered energy$74,169 $— $77,776 $— 
Accredited capacity revenue18,677 — 15,459 — 
Coal sales— 50,631 — 68,814 
Total Sales92,846 50,631 93,235 68,814 
Fuel(43,440)(779)(44,751)(574)
Other operating costs1
— — (1)— 
Total variable costs(43,440)(779)(44,752)(574)
Other operating and maintenance costs2
(7,093)(24,482)(9,368)(35,046)
Cost of purchased power(11,103)— (2,074)— 
Utilities(2,291)(2,817)(1,873)(2,670)
Labor(9,798)(20,690)(7,949)(19,625)
Segment margin without general and administrative19,121 1,863 27,219 10,899 
General and administrative(1,508)(2,397)(1,308)(2,062)
Segment EBITDA$17,613 $(534)$25,911 $8,837 
Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the nine months ended September 30, 2026 and 2025 (in thousands):
Nine Months Ended September 30,
20262025
 Electric Operations Coal Operations Electric Operations Coal Operations
Delivered energy$167,313 $— $194,044 $— 
Accredited capacity revenue52,819 — 45,110 — 
Coal sales— 147,917 — 169,117 
Total Sales220,132 147,917 239,154 169,117 
Fuel(96,258)(2,093)(104,150)(1564)
Other operating costs1
(1)— (10)— 
Total variable costs(96,259)(2,093)(104,160)(1,564)
Other operating and maintenance costs2
(32,252)(67,582)(24,602)(77,147)
Cost of purchased power(34,599)— (11,086)— 
Utilities(6,387)(8,695)(3,932)(9,270)
Labor(26,549)(60,139)(23,731)(57,671)
Segment margin without general and administrative24,086 9,408 71,643 23,465 
General and administrative(4,299)(6,826)(3,972)(6,290)
Segment EBITDA$19,787 $2,582 $67,671 $17,175 
1 Other operating costs primarily 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 included in fuel and other operating costs.
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended September 30, 2026 (in thousands):
Reconciliation of Revenue: Electric Operations Coal OperationsCorporate and Other
and Eliminations		Consolidated
Delivered energy$74,169 $— $— $74,169 
Accredited capacity revenue18,677 — — 18,677 
Other operating revenue149 696 431 1,276 
Coal sales (third party)— 36,128 — 36,128 
Coal sales (intercompany)— 14,503 (14,503)— 
Operating Revenue$92,995 $51,327 $(14,072)$130,250 
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended September 30, 2025 (in thousands):
Reconciliation of Revenue: Electric Operations Coal OperationsCorporate and Other
and Eliminations		Consolidated
Delivered energy$77,776 $— $— $77,776 
Accredited capacity revenue15,459 — — 15,459 
Other operating revenue170 1,582 314 2,066 
Coal sales (third party)— 51,256 — 51,256 
Coal sales (intercompany)— 17,558 (17,558)— 
Operating Revenue$93,405 $70,396 $(17,244)$146,557 
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the nine months ended September 30, 2026 (in thousands):
Reconciliation of Revenue: Electric Operations Coal OperationsCorporate and Other
and Eliminations		Consolidated
Delivered energy$167,313 $— $— $167,313 
Accredited capacity revenue52,819 — — 52,819 
Other operating revenue517 2,624 1,161 4,302 
Coal sales (third party)— 111,809 — 111,809 
Coal sales (intercompany)— 36,108 (36,108)— 
Operating Revenue$220,649 $150,541 $(34,947)$336,243 
Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the nine months ended September 30, 2025 (in thousands):
Reconciliation of Revenue: Electric Operations Coal OperationsCorporate and Other
and Eliminations		Consolidated
Delivered energy$194,044 $— $— $194,044 
Accredited capacity revenue45,110 — — 45,110 
Other operating revenue3,372 4,206 786 8,364 
Coal sales (third party)— 119,588 — 119,588 
Coal sales (intercompany)— 49,529 (49,529)— 
Operating Revenue$242,526 $173,323 $(48,743)$367,106 
Presented below is the summary of Segment EBITDA (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Electric Operations$17,613 $25,911 $19,787 $67,671 
Coal Operations(534)8,837 2,582 17,175 
Total Segment EBITDA$17,079 $34,748 $22,369 $84,846 
Presented below is our reconciliation of Segment EBITDA to the most comparable GAAP account, income (loss) before income taxes (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Segment EBITDA$17,079 $34,748 $22,369 $84,846 
All other980 648 3,065 (1,207)
Other operating revenue1,276 2,066 4,302 8,364 
Depreciation, depletion and amortization(7,623)(9,142)(28,134)(29,661)
ARO accretion(427)(446)(1,251)(1,310)
Exploration costs(36)(38)(407)(157)
Gain (loss) on disposal or abandonment of assets, net(343)2,334 (157)2,410 
Interest income855 289 1,281 416 
Interest expense(6,007)(4,927)(13,753)(12,469)
Loss on extinguishment of debt(5,717)— (5,947)— 
Equity method investment (loss)358 (248)(7)(287)
Corporate — general and administrative(3,066)(1,400)(10,256)(8,834)
Income (Loss) before Income Taxes$(2,671)$23,884 $(28,895)$42,111 
Presented below are our Electric and Coal Operations assets and capital expenditures for the periods presented below (in thousands):
Other Reconciliations: Electric Operations
Coal Operations1
Corporate and Other
and Eliminations		Consolidated
Assets at September 30, 2026$686,825 $153,856 $68,060 $908,741 
Assets at December 31, 2025$256,529 $148,957 $2,567 $408,053 
Capital Expenditures for the nine months ended September 30, 2026$78,644 $12,436 $— $91,080 
Capital Expenditures for the nine months ended September 30, 2025$25,369 $18,908 $— $44,277 
1 As of December 31, 2025, Coal Operations assets included $9.4 million of cash and cash equivalents held on behalf of the consolidated group, consisting of funds transferred from Electric Operations and Hallador for centralized treasury management purposes. During the third quarter of 2026, this cash was transferred to Corporate and Other. The December 31, 2025 presentation is not reflective of Coal Operations' earnings capacity; refer to the condensed consolidated balance sheets.