Hallador Revises Downward Contracted Coal Sales Position
DENVER, Nov. 18, 2015 /PRNewswire/ --
(NASDAQ: HNRG) In May of this year, one of our customers asked to defer 571,000 tons from 2015 to 2016. As an incentive to modify our agreement with the customer, they offered to award us additional tons in 2016-2020. As such, we included the additional tons as agreed to in our second and third quarter filings. On November 16, our customer notified us that they wished to substantially modify the agreement. Negotiations are still ongoing. Until a contract is finalized, we feel it is prudent to revise our contracted sales position.
The table below includes 571,000 tons in 2016 that are currently contracted to ship in 2015.
|
Minimum Tons To Be Sold |
Maximum Tons To Be Sold |
Average |
|||||||||||||||||||||||||||
|
Priced |
(Unpriced) |
Total |
Priced |
(Unpriced) |
Total |
Estimated |
|||||||||||||||||||||||
|
Year |
Tons |
Tons |
Tons |
Tons |
Tons |
Tons |
Prices |
||||||||||||||||||||||
|
2015 – Q4 |
1,528 |
1,528 |
1,528 |
1,528 |
$ |
45.29 |
|||||||||||||||||||||||
|
2016(1) |
5,518 |
5,518 |
5,874 |
5,874 |
43.55 |
||||||||||||||||||||||||
|
2017(2) |
2,820 |
389 |
3,209 |
4,620 |
581 |
5,201 |
42.86 |
||||||||||||||||||||||
|
2018 |
1,560 |
1,199 |
2,759 |
2,210 |
1,791 |
4,001 |
44.03 |
||||||||||||||||||||||
|
2019 |
1,000 |
2,009 |
3,009 |
1,250 |
3,001 |
4,251 |
45.76 |
||||||||||||||||||||||
|
2020 |
1,000 |
2,009 |
3,009 |
1,000 |
3,001 |
4,001 |
46.91 |
||||||||||||||||||||||
|
2021 |
2,009 |
2,009 |
3,001 |
3,001 |
|||||||||||||||||||||||||
|
2022 |
2,009 |
2,009 |
3,001 |
3,001 |
|||||||||||||||||||||||||
|
2023 |
1,620 |
1,620 |
2,420 |
2,420 |
|||||||||||||||||||||||||
|
2024 |
810 |
810 |
1,210 |
1,210 |
|||||||||||||||||||||||||
|
13,426 |
12,054 |
25,480 |
16,482 |
18,006 |
34,488 |
||||||||||||||||||||||||
|
(1) |
For 2016, we estimate we will sell 6.5 million tons. |
|
(2) |
For 2017, we estimate we will sell 7.5 million tons. |
AS PREVIOUSLY REPORTED
|
Minimum Tons To Be Sold |
Maximum Tons To Be Sold |
Average |
|||||||||||||||||||||||||||
|
Priced |
(Unpriced) |
Total |
Priced |
(Unpriced) |
Total |
Estimated |
|||||||||||||||||||||||
|
Year |
Tons |
Tons |
Tons |
Tons |
Tons |
Tons |
Prices |
||||||||||||||||||||||
|
2015-Q4 |
1,528 |
1,528 |
1,528 |
1,528 |
$ |
45.29 |
|||||||||||||||||||||||
|
2016(1) |
5,568 |
5,568 |
6,424 |
6,424 |
43.34 |
||||||||||||||||||||||||
|
2017(2) |
3,070 |
389 |
3,459 |
4,620 |
581 |
5,201 |
42.67 |
||||||||||||||||||||||
|
2018 |
2,685 |
1,199 |
3,884 |
4,410 |
1,791 |
6,201 |
41.67 |
||||||||||||||||||||||
|
2019 |
2,575 |
2,009 |
4,584 |
3,450 |
3,001 |
6,451 |
42.15 |
||||||||||||||||||||||
|
2020 |
2,350 |
2,009 |
4,359 |
3,200 |
3,001 |
6,201 |
43.77 |
||||||||||||||||||||||
|
2021 |
2,009 |
2,009 |
3,001 |
3,001 |
|||||||||||||||||||||||||
|
2022 |
2,009 |
2,009 |
3,001 |
3,001 |
|||||||||||||||||||||||||
|
2023 |
1,620 |
1,620 |
2,420 |
2,420 |
|||||||||||||||||||||||||
|
2024 |
810 |
810 |
1,210 |
1,210 |
|||||||||||||||||||||||||
|
17,776 |
12,054 |
29,830 |
23,632 |
18,006 |
41,638 |
||||||||||||||||||||||||
|
(1) |
For 2016, we estimate we will sell 6.5 million tons. |
|
(2) |
For 2017, we estimate we will sell 7.5 million tons. |
Committed unpriced tons are firm commitments, meaning we are required to ship and our customer is required to receive said tons through the duration of the contract. The contracts provide mechanisms for establishing a market-based price. As set forth in the table above, we have 12-18 million tons committed but unpriced through 2024.
Hallador is headquartered in Denver, Colorado and through its wholly owned subsidiary, Sunrise Coal, LLC, produces coal in the Illinois Basin for the electric power generation industry. To learn more about Hallador or Sunrise, visit our websites at www.halladorenergy.com or www.sunrisecoal.com.
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SOURCE Hallador Energy Company
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