September 4, 2014 2:00 pm EST Participant Toll-Free Dial-In Number: (844) 420-7670 Participant International Dial-In Number: (716) 247-5774 Access 96574427
3 Participants Victor Stabio, Hallador Energy, Chairman of the Board Brent Bilsland, Hallador Energy, President & CEO Andy Bishop, Hallador Energy, Chief Financial Officer & Treasurer Larry Martin, Sunrise Coal, Chief Financial…
4 Agenda Vectren Acquisition Closing Update Financing Acquisition Benefits Sunrise Coal Assets 230 MM Ton Complex Created Thick Reserves Sales/Cost Structure Familiar Customer Base Integration Timeline Q&A
5 Closing Update Closing occurred Friday, August 29, 2014 Closing price was 320 million Balance sheet adjustment true up to occur within 90 days of closing (coal inventory, parts inventory) New employee orientation occurred…
6 Financing New Credit Facility Lead Bank, PNC Capital Markets 17 total participant banks
7 Acquisition Benefits Reduces operational risk and diversifies mine production Creates a 230 million ton contiguous reserve position Increases quality customer base (100% Investment Grade, 100% scrubbed, 100% base load plants)…
8 Sunrise Coal Assets Sunrise is a wholly owned subsidiary of Hallador Energy Bulldog permit in 2015 War Eagle will now be mined through Oaktown 2 portal Setting the stage for 230 MM underground complex
9 Coal Assets
10 230 MM ton Complex Created
11 Thick Reserves = Low Cost
12 Sales / Cost Structure Carlisles historical cost structure has been less than 30/ton cash cost