5 Best Coal Stocks to Invest In According to Hedge Funds

4. Hallador Energy Company (NASDAQ:HNRG)

Number of Hedge Fund Holders: 31

With $118 million in hedge fund investment in the stock as of Q1 2026, Hallador Energy Company (NASDAQ:HNRG) is among the best coal stocks to invest in.

In addition to being one of the best coal stocks, Hallador Energy Company (NASDAQ:HNRG) made its most decisive move yet toward becoming a natural gas power generator on June 1, 2026. The company announced the acquisition of approximately 460 MW of “never-fired” Siemens gas turbines, generators, a steam turbine, and ancillary equipment from Energy World Corporation for a total purchase price of $350 million, or roughly $760 per kilowatt.

The equipment will be delivered to Siemens USA and then to Hallador Energy Company (NASDAQ:HNRG)’s Merom site, with transportation, refurbishment, and logistics adding approximately $100 million in incremental costs. The all-in delivered price of $450 million represents more than half the estimated total project cost for Hallador’s proposed Merom simple-cycle natural gas-fired combustion turbine project, which is currently advancing through MISO’s ERAS interconnection process.

Chairman and CEO Brent Bilsland emphasized that without equipment, there is no project. Therefore, he said, securing turbines in a market with significant supply constraints and extended lead times for new equipment removes a critical development risk. If the project advances as anticipated, Bilsland said the facility could begin generating revenue and cash flow between late 2028 and mid-2029.

The project is advancing through a four-step framework: securing equipment, initiating the MISO ERAS interconnection study, marketing output under long-term power purchase agreements (PPAs), and reaching a final investment decision upon completion of the ERAS study in September 2026.

Importantly, Hallador Energy Company (NASDAQ:HNRG) retains the option to advance the full project, sell the project with the equipment, or sell the equipment standalone.

Hallador Energy Company (NASDAQ:HNRG) had no outstanding bank debt and a $120 million credit facility as of March 31, 2026, and its contracted sales book has grown to over $2.1 billion in 2026, including a previously announced 12-year capacity agreement valued at over $1 billion.

Hallador Energy Company (NASDAQ:HNRG) operates as an independent power producer and fuel company in the United States. It operates in two segments, Electric Operations and Coal Operations.