Why These Energy Stocks are Losing This Week

3. Hallador Energy Company (NASDAQ:HNRG

Share Price Decline Between Dec. 10 – Dec. 17: 21.43%

Hallador Energy Company (NASDAQ:HNRG), through its subsidiaries, engages in the production of steam coal for the electric power generation industry in Indiana. The company has now evolved into a growing, vertically integrated Independent Power Producer (IPP) focused on meeting rising energy demands.

Hallador Energy Company (NASDAQ:HNRG) was among the coal producers that gained earlier this month due to natural gas prices hitting a 3-year high, as several power suppliers were likely to boost output from cheaper coal-fired power plants instead of paying for expensive natural gas. However, natural gas prices have since fallen by more than 26%, driven by record-high production, ample storage, and forecasts of above-average temperatures heading into Christmas, which may reduce heating demand.

So, the recent slump in share price could be due to profit-taking by investors, as well as due to the bearish sentiment surrounding the overall energy sector, driven by a sharp decline in crude oil and natural gas prices.