Hallador Energy Stock Falls Premarket After Data Center Firm Terminates Exclusivity Deal

Hallador Energy (HNRG) stock was down 12.5% in premarket trading on Friday after the company said a data center provider has walked out of a previous agreement that granted the company exclusivity regarding a potential power supply deal.

“The parties continue to discuss an additional exclusivity period and continue in non-exclusive discussions,” Hallador said.

The company added that the “competitive tension” introduced by these third-party negotiations enhances its positioning to execute a deal.

The coal producer had signed the agreement in January. If finalized, the contract would help sell most of Hallador’s produced energy and capacity at prices higher than the forward curve for over a decade.

“Given the inherent complexity of these multi-party agreements, it is uncertain that we will finalize terms before the exclusivity expires,” Hallador CEO Brent Bilsland had said earlier in May.

The company is pivoting towards power generation over coal production amid an uncertain outlook for the fossil fuel in the U.S.

The contribution of coal to total U.S. energy consumption has declined from about 37% in 1950 to 9% currently, and several coal plants are expected to be shut down over the rest of the decade.

During 2024, the company slashed its coal production volume by about 40% and shifted its focus away from the higher-cost portions of its coal reserves.

However, President Donald Trump has proved to be a backer of the industry. He signed several executive orders to boost coal production and its usage for electricity generation.

Retail sentiment on Stocktwits was in the ‘bearish’ territory, while retail chatter was ‘high.’

One trader said the stock move looks like an “overreaction.”

Hallador stock has risen 58.9% year to date (YTD).

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