Certainly, you’re going to see us add to both positions. And I hope this year in a very meaningful way. On the coal side of the business, Merom is a significant customer of our Sunrise Coal division. And if you look — you’ll see in the 10-K when we release that, we went ahead and contracted that business to ourselves just to try to add more clarity and set that price out for the next handful of years. And when we do that, it really kind of shows that materially for the next 4 years, we’re extremely well hedged or sold, contracted on the coal side of the business. So I think that answered 2 of your questions. I can’t remember what the third was.
Lucas Pipes: This was very helpful. The third one, was on the outlook for Q1 and the full year. I do have another question on the MOU. So maybe since you mentioned it, I’ll raise this one first. Is this an MOU for behind-the-meter power essentially? And then how quickly do you think you could see something materialize and I’d assume you’d have some construction that would need to take place the build out of a data center, what have you. So kind of best case, when could you supply power to a customer?
Brent Bilsland: Yes. So we will go out for RFP this spring, hopefully, next month. We’re trying to get that in order to see what the demands of the markets are. We have, I think, a fair amount of flexibility on what we can offer customers. And quite frankly, I don’t know what the build times will be. We’ve had some customers without an RFP knock on our door, say they’d like to begin construction in 3 months. I think that’s probably too aggressive. Could we see something as early as next year? Possibly. But we’re not really far and off along in those conversations to give any guidance around what the timing is. I think what we’re excited about is just what we’ve seen other companies do both in Indiana and throughout the Midwest, we’ve seen some really large developments and those prices don’t get published, but they do get whispered and if that holds true, we’re excited about what that could potentially be.
Again, until we see an RFP results, it’s really hard to say. We’re just excited about the opportunity. And then as far as our first quarter, we saw one week of really cold extreme weather. So the power plants performed well through that period, and that was a profitable time. And the rest of winter so far has been extremely mild. I mean, it’s — we’ve had some 60 and 70-degree days in both February and March in Indiana. So we don’t know what that means. We’re heading into the shoulder season here next month. That traditionally is low power demand, but winter is traditionally high power demand, and that hasn’t proved to be the case. So we’ll see if this turns out to be a hot summer, we’re encouraged by we’ve got extremely cheap gas today. And then when you start to get out to October, November, we have reasonable gas prices again up in the 3s and $350 range every month thereafter.
So the power curve is seeing that, and it has remained robust so far but short-term prices have been cheap. And so we’ll just manage through that. And that’s why we’re going to — we will keep a very close eye on liquidity to make sure that we are successful. And there could be some opportunities again here with the MOU that we just signed.
Lucas Pipes: Yes. Directionally, would you expect Q1 to be worse than Q4?
Brent Bilsland: Well, I’m not prepared to give guidance on Q1 at a 10-K earnings call. So we’ll wait and see what those results are. Quarter is not over.
Lucas Pipes: Helpful. I’ll do one last one. Why was it necessary for Hoosier to be part of the MOU?
Brent Bilsland: So we, as Hallador, are only allowed to sell wholesale power. And when you start attracting customers for data centers and what not, that is industrial power. And so that technically has to be sold through a structure that involves Hoosier and their distributed cooperative win REMC. And so we basically negotiated with them for a period of time to say, hey, there’s an opportunity here for everybody. Let’s work together and see if we can have success. And those guys have just been terrific partners every step of the way and continue to do so. And as such, I think we have a real opportunity to not only create value for Hallador but create value for or when REMC and their customers.
Lucas Pipes: Got it. Really appreciate all the color. Brent, to you and the team all the best of luck.
Operator: [Operator Instructions] It seems we have no further questions in the queue for today. So I would like to hand back to Brent Bilsland for any concluding remarks. My apologies, we have just had a question registered. And we have a question on the line here from Robert Lietzow
Unidentified Analyst: It’s Roger Zigler individual investor. So in recapping — the — and one question and a comment. Is there anybody else in the coal industry who is making or has made this transition to integrated — vertically integrated independent gold producer. Or power producer as you are. That’s my first question, I guess.
Brent Bilsland: It’s a good question — to my knowledge, Hallador is the only company that has acquired and has interest to acquire more coal-fired power plants and a public structure. And so we’re happy and excited about what we were able to do at Merom. We think there are other possible opportunities out there to replicate. And so we will — but as far as other people in the industry doing this, I know of some others that are buying plants in a private structure, but I’m not aware of anyone doing it in a public structure. It’s not to say it doesn’t exist just to say, I’m unaware of it.
