[ x ]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended: March 31, 2012
or
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission file number: 001-3473
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“COAL KEEPS YOUR LIGHTS ON”
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“COAL KEEPS YOUR LIGHTS ON”
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![]() ![]() HALLADOR ENERGY COMPANY
(www.halladorenergy.com)
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Colorado
(State of incorporation)
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84-1014610
(IRS Employer Identification No.)
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1660 Lincoln Street, Suite 2700, Denver, Colorado
(Address of principal executive offices)
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80264-2701
(Zip Code)
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Issuer's telephone number: 303.839.5504
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o Large accelerated filer
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o Accelerated filer
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o Non-accelerated filer (do not check if a small reporting company)
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þ Smaller reporting company
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March 31,
2012
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December 31,
2011
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 40,581 | $ | 37,542 | ||||
Accounts receivable
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4,513 | 6,689 | ||||||
Coal inventory
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2,584 | 1,863 | ||||||
Parts and supply inventory
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2,442 | 2,202 | ||||||
Other
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401 | 580 | ||||||
Total current assets
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50,521 | 48,876 | ||||||
Coal properties, at cost:
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||||||||
Land, buildings and equipment
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139,092 | 137,707 | ||||||
Mine development
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66,832 | 66,614 | ||||||
205,924 | 204,321 | |||||||
Less - accumulated DD&A
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(46,257 | ) | (42,493 | ) | ||||
159,667 | 161,828 | |||||||
Investment in Savoy
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13,376 | 12,133 | ||||||
Investment in Sunrise Energy
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3,859 | 3,297 | ||||||
Other assets
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7,993 | 6,294 | ||||||
$ | 235,416 | $ | 232,428 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Bank debt
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$ | 15,000 | $ | 17,500 | ||||
Accounts payable and accrued liabilities
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10,147 | 10,471 | ||||||
Income taxes
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3,633 | 5,125 | ||||||
Dividends payable
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4,080 | |||||||
Total current liabilities
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32,860 | 33,096 | ||||||
Long-term liabilities:
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||||||||
Deferred income taxes
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32,272 | 31,128 | ||||||
Asset retirement obligations
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2,313 | 2,276 | ||||||
Other
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4,345 | 4,935 | ||||||
Total long-term liabilities
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38,930 | 38,339 | ||||||
Total liabilities
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71,790 | 71,435 | ||||||
Commitments and contingencies
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||||||||
Stockholders’ equity:
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||||||||
Preferred stock, $.10 par value, 10,000 shares authorized;
none issued
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||||||||
Common stock, $.01 par value, 100,000 shares authorized;
28,309 shares outstanding for both periods
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283 | 283 | ||||||
Additional paid-in capital
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86,530 | 85,984 | ||||||
Retained earnings
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76,758 | 74,685 | ||||||
Accumulated other comprehensive income
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55 | 41 | ||||||
Total stockholders’ equity
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163,626 | 160,993 | ||||||
$ | 235,416 | $ | 232,428 |
2012
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2011
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|||||||
Revenue:
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||||||||
Coal sales
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$ | 29,620 | $ | 33,965 | ||||
Equity income - Savoy
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1,818 | 1,442 | ||||||
Equity income - Sunrise Energy
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56 | 425 | ||||||
Other
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2,462 | 2,029 | ||||||
33,956 | 37,861 | |||||||
Costs and expenses:
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||||||||
Operating costs and expenses
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18,433 | 18,708 | ||||||
DD&A
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3,806 | 3,354 | ||||||
Coal exploration costs
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419 | 121 | ||||||
SG&A
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1,855 | 1,744 | ||||||
Interest
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271 | 364 | ||||||
24,784 | 24,291 | |||||||
Income before income taxes
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9,172 | 13,570 | ||||||
Less income taxes:
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||||||||
Current
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1,884 | 1,837 | ||||||
Deferred
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1,135 | 3,455 | ||||||
3,019 | 5,292 | |||||||
Net income
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$ | 6,153 | $ | 8,278 | ||||
Net income per share:
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||||||||
Basic
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$ | .22 | $ | .30 | ||||
Diluted
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$ | .21 | $ | .29 | ||||
Weighted average shares outstanding:
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||||||||
Basic
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28,309 | 28,045 | ||||||
Diluted
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28,681 | 28,532 | ||||||
Net income
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$ | 6,153 | $ | 8,278 | ||||
Other comprehensive income:
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||||||||
Increase in value of marketable equity securities available for sale, net of taxes
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14 | 6 | ||||||
Comprehensive income
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$ | 6,167 | $ | 8,284 | ||||
2012
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2011
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|||||||
Operating activities:
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||||||||
Cash provided by operating activities
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$ | 9,579 | $ | 13,866 | ||||
Investing activities:
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||||||||
Capital expenditures for coal properties
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(2,372 | ) | (6,858 | ) | ||||
Capital expenditures for unproved oil and gas properties
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(1,243 | ) | ||||||
Investment in Sunrise Energy
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(506 | ) | ||||||
Proceeds from CDs
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1,291 | |||||||
Increase in marketable securities
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(1,269 | ) | ||||||
Other
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130 | 127 | ||||||
Cash used in investing activities
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(4,017 | ) | (6,683 | ) | ||||
Financing activities:
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||||||||
Payments to bank
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(2,500 | ) | (2,500 | ) | ||||
Other
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(23 | ) | ||||||
Cash used in financing activities
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(2,523 | ) | (2,500 | ) | ||||
Increase in cash and cash equivalents
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3,039 | 4,683 | ||||||
Cash and cash equivalents, beginning of period
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37,542 | 10,277 | ||||||
Cash and cash equivalents, end of period
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$ | 40,581 | $ | 14,960 | ||||
Shares
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Common Stock
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Additional
Paid-in Capital
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Retained Earnings
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AOCI*
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Total
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|||||||||||||||||||
Balance, January 1, 2012
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28,309 | $ | 283 | $ | 85,984 | $ | 74,685 | $ | 41 | $ | 160,993 | |||||||||||||
Stock-based compensation
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546 | 546 | ||||||||||||||||||||||
Increase in value of marketable equity securities available for sale, net of taxes
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14 | 14 | ||||||||||||||||||||||
Dividends
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(4,080 | ) | (4,080 | ) | ||||||||||||||||||||
Net income
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6,153 | 6,153 | ||||||||||||||||||||||
Balance, March 31, 2012
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28,309 | $ | 283 | $ | 86,530 | $ | 76,758 | $ | 55 | $ | 163,626 | |||||||||||||
2012
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||||
Current assets
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$ | 18,421 | ||
Oil and gas properties, net
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20,433 | |||
$ | 38,854 | |||
Total liabilities
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$ | 9,341 | ||
Partners' capital
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29,513 | |||
$ | 38,854 |
2012
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2011
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Revenue
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$ | 8,887 | $ | 6,725 | ||||
Expenses
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(4,854 | ) | (3,540 | ) | ||||
Net income
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$ | 4,033 | $ | 3,185 | ||||
2012
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||||
Current assets
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$ | 2,467 | ||
Oil and gas properties, net
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6,201 | |||
$ | 8,668 | |||
Total liabilities
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$ | 962 | ||
Partners' capital
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7,706 | |||
$ | 8,668 |
2012
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2011
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Revenue
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$ | 607 | $ | 1,372 | ||||
Expenses
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(495 | ) | (521 | ) | ||||
Net income
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$ | 112 | $ | 851 | ||||
March 31,
2012
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December 31,
2011
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Long-term assets:
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||||||||
Oil and gas properties, net
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$ | 336 | $ | 336 | ||||
Advance coal royalties
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3,199 | 3,205 | ||||||
Deferred financing costs, net
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214 | 295 | ||||||
Marketable equity securities available for sale at fair value (restricted)*
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3,595 | 2,326 | ||||||
Miscellaneous
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649 | 132 | ||||||
$ | 7,993 | $ | 6,294 | |||||
----------------------
*Held by Sunrise Indemnity, Inc., our wholly-owned captive insurance company.
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Three months ended
March 31,
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2012
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2011
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Other income:
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MSHA reimbursements
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$ | 2,336 | $ | 1,900 | ||||
Exploration and dry hole costs
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(103 | ) | ||||||
Oil and gas sales, net of expenses
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117 | 57 | ||||||
Other
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9 | 175 | ||||||
$ | 2,462 | $ | 2,029 | |||||
Year
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Contracted Tons
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Average Price
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2012
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2,913,000
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$42.74
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2013
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2,900,000
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40.01
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2014
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1,100,000
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46.64
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2012
|
2011
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Revenue:
|
||||||||
Oil
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$ | 7,299 | $ | 5,522 | ||||
Nat gas
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98 | 145 | ||||||
NGLs (natural gas liquids)
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269 | 148 | ||||||
Contract drilling
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1,182 | 792 | ||||||
Other
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39 | 118 | ||||||
Total revenue
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8,887 | 6,725 | ||||||
Costs and expenses:
|
||||||||
LOE (lease operating expenses)
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1,098 | 818 | ||||||
Contract drilling costs
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731 | 464 | ||||||
DD&A (depreciation, depletion & amortization)
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961 | 937 | ||||||
G&G (geological and geophysical) costs
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651 | 145 | ||||||
Dry hole costs
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285 | 235 | ||||||
Impairment of unproved properties
|
810 | 612 | ||||||
Other exploration costs
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61 | 69 | ||||||
G&A (general & administrative)
|
257 | 260 | ||||||
Total expenses
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4,854 | 3,540 | ||||||
Net income
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$ | 4,033 | $ | 3,185 | ||||
The information below is not in thousands:
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||||||||
Oil production - barrels
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72,900 | 62,000 | ||||||
NGLs production - barrels
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4,900 | 2,575 | ||||||
Nat gas production - Mcf
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31,900 | 33,000 | ||||||
Average oil prices/barrel for the quarter
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$ | 100.00 | $ | 89.00 | ||||
Average NGL prices/barrel for the quarter
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$ | 54.93 | $ | 57.34 | ||||
Average gas prices/Mcf for the quarter
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$ | 3.07 | $ | 4.35 |
31
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SOX 302 Certifications (1)
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32
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SOX 906 Certification (1)
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95
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Mine Safety Disclosure
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(1) Filed herewith.
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HALLADOR ENERGY COMPANY
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||
Date: May 4, 2012
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/s/W. Anderson Bishop
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W. Anderson Bishop, CFO and CAO
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1.
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I have reviewed this quarterly report on Form 10-Q of Hallador Energy Company;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
||
/S/VICTOR P. STABIO
|
|||
May 4, 2012
|
Victor P. Stabio, CEO
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Hallador Energy Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
||
/S/W. Anderson Bishop
|
|||
May 4, 2012
|
W. Anderson Bishop, CFO
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
May 4, 2012
|
By:
|
/S/Victor P. Stabio
Victor P. Stabio, CEO
|
||
/S/W. Anderson Bishop
W. Anderson Bishop, CFO
|
Section
|
Section
|
Section
|
Section
|
Section
|
Proposed
|
||||||||
104(a)
|
104(b)
|
104(d)
|
107(a)
|
110(b)(2)
|
MSHA
|
||||||||
Month
|
Citations
|
Orders
|
Citation/Orders
|
Orders
|
Violations
|
Assessments
|
|||||||
(in thousands)
|
|||||||||||||
January
|
0
|
0
|
0
|
0
|
0
|
$6.6
|
|||||||
February
|
2
|
0
|
0
|
0
|
0
|
7.0
|
|||||||
March
|
0
|
0
|
0
|
0
|
0
|
3.6
|
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(3) Equity Investment in Savoy
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Equity Investment In Savoy |
(3) Equity
Investment in Savoy
We
own a 45% interest in Savoy Energy L.P., a private company
engaged in the oil and gas business primarily in the State of
Michigan. Savoy uses the successful efforts method of
accounting. We account for our interest using the
equity method of accounting.
Below
(in thousands) to the 100% are a condensed balance sheet at
March 31, 2012 and a condensed statement of operations for
the three months ended March 31, 2012 and 2011.
Condensed
Balance Sheet
Condensed
Statement of Operations
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