Hallador Energy Enters Third Amendment to Credit Agreement; Allows $10M EBITDA Add-back

What Happened

• Hallador Energy Company announced on August 11, 2026 that it entered into a Third Amendment to its Credit Agreement (originally dated March 5, 2026) with Texas Capital Bank as administrative agent and the lenders party thereto. The amendment revises the Credit Agreement’s definition of “EBITDA” to permit certain add-backs related to payments received for power purchase agreement exclusivity agreements for the fiscal quarter ended June 30, 2026, subject to limits.

Key Details

• Third Amendment dated August 11, 2026 to the Credit Agreement dated March 5, 2026 (previously amended twice).
• Allows the Company to add back certain payments received in respect of power purchase agreement exclusivity agreements to EBITDA for the quarter ended June 30, 2026.
• Aggregate add-back amount is capped at $10,000,000.
• The amendment was entered with Texas Capital Bank as Administrative Agent and the lenders party to the credit facility; the amendment is filed as Exhibit 10.1 to the 8-K.

Why It Matters

• EBITDA is a common metric used in loan covenants and credit calculations; this amendment can increase reported EBITDA for Q2 2026 by up to $10M, which may affect covenant compliance, borrowing capacity, and lender negotiations.
• For investors, the change provides temporary accounting relief tied to specific payments (PPA exclusivity fees) and clarifies how those receipts are treated under the company’s credit facility. The amendment is a material financing update that could influence near-term liquidity and covenant metrics.