Northland Initiates Coverage of Hallador (HNRG) Stock, Cites Data Center Contract Potential

Northland Capital Markets initiated coverage of Hallador Energy Company (NASDAQ:HNRG) on Monday with an Outperform rating and a price target of $23. Analyst Jeff Grampp highlighted Hallador's acquisition of a 1 GW power plant in 2022 and its ongoing negotiations for a long-term contract to supply the majority of this capacity to a data center, potentially soon.

A continuous supply of coal streaming out of the entrance of the underground mine.

Northland Capital Markets also pointed out that Hallador has low-priced legacy power contracts that are set to expire in 2025, which the firm anticipates will provide a strong tailwind for the company's earnings estimates in 2026 and beyond.

Hallador Energy Company (NASDAQ:HNRG) produces steam coal for the electric power generation industry in Indiana. The company owns the Oaktown Fuels Mine 1 and Oaktown Fuels Mine 2 which are underground mines located near Oaktown in Knox County in Indiana. It also owns the Freelandville surface mine located near Freelandville in Knox County in Indiana, and the Prosperity surface mine in the Illinois Basin located near Petersburg in Pike County in Indiana.

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Disclosure: None. This article is originally published at Insider Monkey.