Hallador Energy Company (Nasdaq: HNRG) ("Hallador" or the "Company") is announcing a newly signed 12-year capacity agreement with a subsidiary of a utility.

Hallador signed a 12-year agreement to sell a substantial portion of its accredited capacity to a subsidiary of a utility for planning years 2028 through 2040. The agreement initially covers a smaller volume of accredited capacity in 2028, increasing to approximately 2/3rds of the company's accredited capacity beginning in 2029 through 2040. The sale is priced above the recent three-year agreement signed in March, and pricing is the same for all 12 years of the contract. Hallador expects to generate more than $1 billion in cumulative revenue from the agreement, nearly doubling its forward sales book, and is expected to convert to free cash flow at a very high rate. The structure is capacity-only and does not include the sale of energy, allowing the Company to retain flexibility to optimize future energy sales. The agreement is subject to customary regulatory approvals anticipated to be received in the second half of 2026.