Hallador Energy Company

Good afternoon. Thank you for attending today's Halador Energy first quarter 2024 earnings call. My name is Megan and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to Becky Palumbo, investor relations with Halador Energy. Please go ahead.

Thank you, Megan. Thank you, everybody, for taking the time today to join our discussion on our first quarter 2024 earnings. With me today are Brent Bezlin, our president and CEO, and our newly appointed CFO, Margie Hartgrave. Yesterday afternoon, we released our first quarter 2024 financial and operating results in a press release that is now on our website. Today we will discuss those results as well as our perspective on current market conditions and outlook for 2024. Following our prepared remarks, we will open the call to answer your questions. Before beginning, a reminder that some of our remarks today may include forward-looking statements subject to a variety of risks, uncertainties, and assumptions contained in our filings from time to time with the SEC and are also reflected in yesterday's press release. While these forward-looking statements are based on information currently available to us, if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect, actual results may vary materially from those we projected or expected. In providing these remarks, has no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law to do so. We plan on filing our Form 10-Q later this afternoon. And with the preliminaries out of the way, I will now turn the call over to Margie.

Thank you, Becky, and good afternoon, everyone. First off, I'd like to personally thank Larry Martin for all of his hard work at Halidor and for making this transition so smooth and enjoyable. Larry will be on the call to assist in answering questions for this quarter. Before we get started, I'd like to define adjusted EBITDA to refresh everyone's memory. Adjusted EBITDA is the sum of operating cash flow less the effects of certain subsidiary and equity method investment activity, plus bank interest, less the effects of working capital, period changes, plus cash paid on asset retirement obligation reclamations, plus other operations. For the first quarter of 2024, Halador incurred a net loss of $1.7 million. which equates to a loss of 5 cents per share for both basic and diluted earnings. Our adjusted EBITDA for the quarter was $6.8 million, and our operating cash flow for the quarter was $16.4 million. Of this $16.4 million, we used $14.5 million to reduce our debt, and at quarter end, our funded debt balance was $77 million and our net debt balance was $75.4 million. We also had 18.6 million of LC's outstanding as of March 31, 2024. Our liquidity at quarter end was $39.5 million and our debt to adjusted EBITDA or leverage ratio was 1.58, well within our covenant of 2.25. With that, I'll turn the call over to our CEO, Brent Bilsland.