Here is Why Hallador Energy (HNRG) Fell Today

The share price of Hallador Energy Company (NASDAQ:HNRG) fell by 7.33% on May 23, 2025. Let’s shed some light on the development.

Here is Why Hallador Energy (HNRG) Fell Today

With its roots in oil and gas exploration, Hallador Energy Company (NASDAQ:HNRG) has evolved to concentrate on coal development and transportation delivery. The company is also pivoting towards power generation over coal production amid a tough outlook for fossil fuels in the U.S.

After closing at an all-time high of $19.4 earlier this week, Hallador Energy Company (NASDAQ:HNRG) suffered a setback after it revealed that its pact with a datacenter developer, which granted exclusivity in a potential power supply deal, has been terminated by the counterparty. Initially effective as of January 2, 2025, the terminated agreement would have helped Hallador sell most of its energy and capacity at prices higher than the forward curve for over a decade. The news has shaken investor confidence since the company’s partnership with the datacenter developer would have provided a significant boost to its growth trajectory.

However, despite the setback, Hallador Energy Company (NASDAQ:HNRG) continues to engage in discussions for an additional exclusivity period and is actively seeking alternative opportunities with other interested parties, which it believes will enhance its strategic positioning and deliver long-term value to shareholders.

It is worth mentioning that Hallador Energy Company (NASDAQ:HNRG) posted strong results for its Q1 2025 last month. The company’s EPS of $0.23 beat expectations by a significant $0.39, while its revenue also increased by 7.4% YoY to $117.8 million, topping estimates by over $19 million.

While we acknowledge the potential of HNRG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than HNRG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.