Hallador Energy Company (HNRG) Receives a Buy from B.Riley FBR

By Carrie Williams

B.Riley FBR analyst Lucas Pipes maintained a Buy rating on Hallador Energy Company (HNRGResearch Report) today and set a price target of $10. The company’s shares closed yesterday at $5.28, close to its 52-week low of $4.75.

Pipes observed:

“the close, Hallador Energy reported a 1Q19 beat of $25.2M in adjusted EBITDA versus our estimate of $17.0M. Compared to our estimates, the company reported lower costs of $29.24/ton versus our estimate of $31.60/ton. Sales volumes were in line with expectations at 2.13M tons. In addition to reporting its financial results, HNRG also provided an update on its improved contract position over the next four years. HNRG expects to achieve volumes of 8.2M tons in 2019, of which, 98% of sales are committed and priced at $40/ton. In 2020, HNRG expects volumes of 8.0M tons and is currently 84% committed and priced at $41/ton. Overall, we think the company is in a good position to generate strong FCFE of $32M in 2019 which represents a FCFE yield of 19%. We maintain our Buy rating and $10 PT.”

According to TipRanks.com, Pipes is a 3-star analyst with an average return of 0.8% and a 48.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and CONSOL Coal Resources LP.

The word on The Street in general, suggests a Hold analyst consensus rating for Hallador Energy Company.

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Based on Hallador Energy Company’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $6.82 million. In comparison, last year the company had a net profit of $2.08 million.

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Hallador Energy Co. engages in business through its subsidiary, Sunrise Coal, LLC, which produces coal in the Illinois Basin for the electric power generation industry. It also owns summit terminal, a transport facility on the Ohio River. The company was founded in 1951 and is headquartered in Denver, CO.