Jay Yun's questions to Hallador Energy Co (HNRG) leadership • Q4 2024
Question
Jay Yun of Summit Ridge Capital Management questioned if pricing expectations for the data center deal still included a premium to forward curves, especially given increased competition from new entrants like OpenAI. He also asked about management's current confidence level in finalizing the deal and the nature of the financial commitments made by their partner.
Answer
CEO Brent Bilsland confirmed that Hallador still expects a premium to the forward curve, noting that increased competition from hyperscalers is putting upward pressure on economics, which benefits the company. He stated that he feels better about getting a deal done now than a few months ago, citing "material steps" and significant financial commitments made by their counterparty to both Hallador and other third parties involved in the transaction, which signals a high probability of success.