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Hallador Energy Q1 net income slips to $6.2M on lower coal sales revenue

Hallador EnergyCo. reported net income of $6.2 million in the first quarter, down from$7.6 million in the year-ago period, according to a Form 10-Q filed by the companyMay 6.

Hallador's total coal sales revenue in the quarter was $75.8million, down from $97.1 million the year-ago period. The company's net income pershare was 21 cents, down from 25 cents per share a year ago.

Costs at Hallador operations were $49.8 million, down from $88.2million. In the quarter, Halladorsold 1.6 million tons of coal at an average price of $46.53/ton. For the year-agoquarter, it sold 2.1 million tons at an average price of $45.23/ton.

The company reported in its Form 10-Q that on March 22 it completedthe purchase of undergroundcoal reserves and a coal sales agreement associated with Blackhawk Mining LLC's Freelandville mining complex for $18million. As part of the transaction, Hallador also purchased 14.2 million tons ofproven coal reserves and associated advanced royalties in addition to rights undera coal sales agreement that extends through 2017.

Halladoralso recently executed an amendment to its credit agreement to increase liquidityand maintain compliance with the agreement. The amendment reduced the company'srevolver from $250 million to $200 million. The amendments were madeto increase the company's liquidity and maintain compliance through the maturityof the agreement in August 2019, it said.