$HNRG Huge deal. Kudos to management for making this happen. I used to hear that Hallador will never get their ERAS NG expansion plan accomplished, with one of the main reasons being a lack of turbines. Not only did they solve that issue, but did so in a way with minimal risk (they think they can sell the turbines for more than they paid in the worst case scenario where they don't go forward with the plan) while significantly shortening their time to power. Being duel fueled should be transformational for their availability of financing and for the ability to make deals with hyperscalers, while broadening the potential shareholder base.
https://t.co/kgkR64gVUB
$HNRG Yesterday's announced deal for 2/3rd of merom capacity implies a pricing uplift from ~$225/MW-day to ~$450-500/MW-day, roughly a 2x repricing.
That is $85-94M/yr of capacity revenue from this deal alone, and a contract for the remaining 1/3rd at similar terms implies ~$128-140M/yr.
The fixed cost to run Merom is ~$60M/yr.
This is all before energy is sold.
@alpha_for_all@AtlasShrug1@blueoutliercap@cesarsroy@Mike10947310 yeah cool, just making sure. was rereading your last post this morning and just wanted to clarify.
this dc news has been out for a while and weβve only traded down, so weβre all missing something!
dunno. I think a lot of the concerns that @alpha_for_all is sharing is reasonable and perhaps representative of many opinions monitoring the situation. also brent has been promising a dc deal for ~2 years, so maybe some fatigue or distrust. and some of the market still models $hnrg as a coal miner lol
@AtlasShrug1@alpha_for_all@blueoutliercap@cesarsroy@Mike10947310 yes I guess it will obviously be circumstantial until thereβs an announcement (which maybe there wonβt even be, as it will potentially be greenwashed). but if you get hallador ir to tell you directly, please let us all know!