Hallador Energy Co. reported net income of $21.4 million in the last quarter of 2017, or 69 cents per basic and diluted share — a jump from the net loss of $3.8 million in the last quarter of 2016, according to results released March 12.
The Denver-based coal producer posted revenue of $69.3 million in the fourth quarter, compared to $71.2 million in the year-ago period.
Coal sales stood at 1.7 million tons in the recent quarter, a number roughly in line with the fourth quarter of 2016, and coal revenue was $68.9 million.
Net income for full-year 2017 was $33.1 million, or $1.08 per share, an increase from $12.5 million, or 42 cents per share, for the full year of 2016. The federal tax reform resulted in a tax benefit of $18.0 million at the end of 2017. Excluding the tax reform benefit, net income for full-year 2017 would have been $15.1 million, or 51 cents per share.
Hallador reported full-year 2017 adjusted EBITDA of $83.3 million, compared with $80.7 million a year earlier.
Total revenues for the year were $271.6 million, compared with $281.5 million in the full year of 2016. Adjusted free cash flow for 2017 was $58.7 million, compared with $58.3 million in 2016. Full-year operating cash flow totaled $61.6 million in 2017, an increase from $60.9 million in 2016.
The company sold 6.6 million tons of coal during the year at an average sale price of $40.80 per ton, compared with 6.3 million tons sold at an average price of $44.15 per ton in 2016.
Hallador Energy said it recently made a $4 million investment in Hourglass Sands LLC, a frac sand mining company out of Colorado, according to a March 12 earnings release. Hourglass Sands currently controls a permitted sand reserve near Colorado Springs. The company expects to truck test shipments to customers in the DJ Basin this summer.
The investment "brings diversification and growth opportunities to our company and shareholders by capitalizing on the shale boom in the United States, while complementing our core coal business. We do not anticipate Hourglass Sands to be profitable in 2018, but are excited about its growth potential in future years," said Brent Bilsland, Hallador president and CEO.
The company also expects to achieve operation at the Princeton Loop in the second quarter. The project will serve as a truck to rail coal loading facility and will provide access to new markets and customers served by the Norfolk Southern Railway Co.
