EX-99.1 3 ex_461721.htm EXHIBIT 99.1 HALLADOR ENERGY COMPANY UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION ex_461721.htm

Exhibit 99.1

 

Hallador Energy Company

Unaudited Pro Forma Condensed Combined Financial Information

 

 

On February 14, 2022, Hallador Energy Company (“Hallador” or the “Company”), through its subsidiary Hallador Power Company, LLC, a Delaware limited liability company, signed an Asset Purchase Agreement (“APA”), with Hoosier Energy Rural Electric Cooperative, Inc. (“Seller” or “Hoosier”), a rural electric membership corporation organized and existing under the laws of the state of Indiana. Pursuant to the APA, the Company acquired the Merom one gigawatt powerplant located on 800 acres in Sullivan County, Indiana, (the “Merom Plant”), along with: equipment and machinery in the Merom Plant; materials inventory; a coal combustion certified coal ash landfill; and coal inventory (collectively, the “Merom Plant Acquisition”). The Company completed the Merom Plant Acquisition on October 21, 2022 pursuant to the APA.

 

The consideration for the Merom Plant Acquisition includes the assumption of certain liabilities as set forth in the APA relating to the powerplant’s closure and post-closure remediation, valued at approximately $7.2 million. In addition, consideration for the Merom Plant Acquisition includes the purchase of approximately $17.0 million in coal inventory on hand, with an initial payment of $5.4 million and subsequent periodic payments over time, subject to post-close adjustments based on actual on-site inventories. Contemporaneous with entering into the APA, Hallador and Hoosier also executed a Power Purchase Agreement (“PPA”), with a liability fair value of $184.5 million, a coal purchase agreement, with an asset fair value of $34.3 million and a capacity payment reduction agreement, with a liability fair value of $11.0 million. The PPA, coal purchase agreement and capacity payment reduction agreement are also included as consideration for the Merom Plant Acquisition.

 

The Merom Plant Acquisition will be accounted for as an asset acquisition in accordance with Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). The fair value of the consideration and the allocation of that amount to the underlying assets acquired is recorded on a relative fair value basis. Additionally, costs directly related to the Merom Plant Acquisition are capitalized as a component of the purchase price. The unaudited pro forma condensed combined financial statements presented herein have been prepared to reflect the transaction accounting adjustments to Hallador’s historical condensed consolidated financial information in order to account for the Merom Plant Acquisition.

 

The preliminary allocation of the total consideration in the Merom Plant Acquisition is based upon management’s estimates of and assumptions related to the fair value of assets acquired and certain liabilities assumed pursuant to the APA. The final allocation will be determined when Hallador has obtained and verified all required data necessary to perform the detailed valuations and calculations to reflect the final fair value at the acquisition date. The final allocation based on relative fair value is expected to be completed when Hallador files its report on Form 10-K for the year ended December 31, 2022. The final allocation could differ materially from the preliminary allocation used in the transaction accounting adjustments due to (1) changes in the fair value of the Merom Plant; (2) changes in the fair value of contract assets and contract liabilities; or (3) other changes to assets or liabilities.

 

The Unaudited Pro Forma Condensed Combined Balance Sheet as of June 30, 2022 gives effect to the Merom Plant Acquisition as if it had been completed on June 30, 2022. The Unaudited Pro Forma Condensed Combined Statements of Operations for the Six Months Ended June 30, 2022 and the Year Ended December 31, 2021 gives effect to the Merom Plant Acquisition as if it had been completed on January 1, 2021. Assumptions and estimates underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with the unaudited pro forma condensed combined financial statements.

 

 
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The unaudited pro forma condensed combined financial information is provided for illustrative purposes only and does not purport to represent what the actual consolidated results of operations or the consolidated financial position of Hallador would have been had the Merom Plant Acquisition occurred on the dates noted above, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. Future results may vary significantly from the results reflected because of various factors. In Hallador’s opinion, all adjustments that are necessary to present fairly the unaudited pro forma condensed combined financial information have been made.

 

The unaudited pro forma condensed combined financial information does not reflect the benefits of potential cost savings or the costs that may be necessary to achieve such savings, opportunities to increase revenue generation or other factors that may result from the Merom Plant Acquisition and, accordingly, does not attempt to predict or suggest future results.

 

The unaudited pro forma financial statements have been developed from and should be read in conjunction with:

 

 

•

The audited financial statements and accompanying notes of Hallador contained in Hallador’s Annual Report on Form 10-K for the year ended December 31, 2021;

 

 

•

The unaudited condensed financial statements and accompanying notes contained in Hallador’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022;

 

 

•

The audited carve-out financial statements and related notes of the Merom Generating Station (a component of Hoosier Energy Rural Electric Cooperative, Inc.) (“Merom Station”) as of and for the year ended December 31, 2021, included elsewhere in this filing; and

 

 

•

The unaudited carve-out financial statements and related notes of the Merom Generating Station (a component of Hoosier Energy Rural Electric Cooperative, Inc.) as of and for the six months ended June 30, 2022, included elsewhere in this filing.

 

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Hallador Energy Company

 

Unaudited Pro Forma Condensed Combined Balance Sheet

  

As of June 30, 2022

  

(in thousands)

  
                                             
                   

Transaction Accounting Adjustments

            
   

Historical

    

Conforming and

      

Merom Plant

      

Pro Forma

  
   

Hallador

    

Merom Station

    

Reclassifications

      

Acquisition

      

Combined

  

ASSETS

                                            

Current Assets:

                                            

Cash and cash equivalents

   $ 8,882     $ —     $ —       $ (5,400 )

(c)

   $ 41,492  
                                38,980  

(i)

        
                                (970 )

(h)

        

Restricted cash

     3,491       —       —         —         3,491  

Accounts receivable

     17,155       —       —         —         17,155  

Inventory

     13,806       —       —         —         13,806  

Fuel

     —       15,785       (15,785 )

(a)

     10,219  

(d)

     10,219  

Contract asset

     —       —       —         34,300  

(e)

     34,300  

Parts and supplies

     12,247       —       —         —         12,247  

Materials and supplies

     —       28,978       (28,978 )

(a)

     11,733  

(d)

     11,733  

Prepaid expenses

     999       —       —         —         999  

Prepayments and other

     —       781       (781 )

(a)

     —         —  

Total current assets

     56,580       45,544       (45,544 )       88,862         145,442  

Property, Plant and Equipment:

                                            

Land and mineral rights

     115,771       —       —         —         115,771  

Land

     —       27,182       (27,182 )

(a)

     —         —  

Buildings and equipment

     355,053       —       —         165,816  

(d)

     520,869  

Plant – at original costs

     —       1,389,371       (1,389,371 )

(b)

     —         —  

Mine development

     123,274       —       —         —         123,274  

Total property, plant and equipment

     594,098       1,416,553       (1,416,553 )       165,816         759,914  

Less – accumulated depreciation, depletion and amortization

     (286,960 )     —       —         —         (286,960 )

Accumulated depreciation

     —       (859,134 )     859,134  

(b)

     —         —  

Total property, plant and equipment, net

     307,138       557,419       (557,419 )       165,816         472,954  

Investment in Sunrise Energy

     3,883       —       —         —         3,883  

Deferred charges and other

     —       11,049       (11,049 )

(a)

     —         —  

Other assets

     8,134       —       —         —         8,134  

Total assets

   $ 375,735     $ 614,012     $ (614,012 )     $ 254,678       $ 630,413  
                                             

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY

            

Current Liabilities

                                            

Current portion of bank debt, net

   $ 13,222     $ —     $ —       $ —       $ 13,222  

Accounts payable

     —       11,687       (11,687 )

(a)

     —         —  

Accounts payable and accrued liabilities

     47,973       —       —         11,600  

(c)

     59,573  

Contract liabilities

     —       —       —         94,527  

(f)

     94,527  

Accrued property taxes

     —       4,253       (4,253 )

(a)

     —         —  

Deferred revenue

     —       —       —         38,980  

(i)

     38,980  

Other current liabilities

     —       1,559       (1,559 )

(a)

     —         —  

Total current liabilities

     61,195       17,499       (17,499 )       145,107         206,302  

Long-term Liabilities

                                            

Bank debt, net

     113,607       —       —         —         113,607  

Deferred income taxes

     3,094       —       —         —         3,094  

Asset retirement obligations

     13,437       19,700       (19,700 )

(a)

     7,230  

(g)

     20,667  

Contract liabilities

     —       —       —         100,973  

(f)

     100,973  

Deferred credits and other

     —       3,139       (3,139 )

(a)

     —         —  

Other

     1,579       —       —         —         1,579  

Total long-term liabilities

     131,717       22,839       (22,839 )       108,203         239,920  

Total liabilities

     192,912       40,338       (40,338 )       253,310         446,222  

Redeemable Noncontrolling Interests

     4,000       —       —         —         4,000  

Stockholders’ Equity

                                            

Preferred stock

     —       —       —         —         —  

Common stock

     330       —       —         —         330  

Additional paid-in capital

     114,212       —       —         —         114,212  

Owner’s net investment

     —       573,674       (573,674 )

(a)

    

—

  

 

    

—

  

Retained earnings

     64,281       —       —         1,368   (h)     65,649  

Total stockholders’ equity

     178,823       573,674       (573,674 )       1,368         180,191  

Total liabilities, redeemable noncontrolling interests, and stockholders’ equity

   $ 375,735     $ 614,012     $ (614,012 )     $ 254,678       $ 630,413  

 

 

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Hallador Energy Company

 

Unaudited Pro Forma Condensed Combined Statement of Operations

  

For the Six Months Ended June 30, 2022

  

(in thousands)

  
                                             
                   

Transaction Accounting Adjustments

            
   

Historical

    

Conforming and

      

Merom Plant

      

Pro Forma

  
   

Hallador

    

Merom Station

    

Reclassifications

      

Acquisition

      

Combined

  

Sales and Operating Revenues:

                                            

Coal sales

   $ 121,171     $ —     $ —       $ —       $ 121,171  

Electric revenues

     —       164,345       —         —         164,345  

Other revenues

     3,665       —       141  

(a)

     —         3,806  

Generation byproduct revenue

     —       141       (141 )

(a)

     —         —  

Lease income

     —       135       (135 )

(a)

     —         —  

Total Revenue

     124,836       164,621       (135 )       —         289,322  
                                             

Expenses:

                                            

Operating expenses

     105,995       —       123,910  

(b)

     —         229,905  

Fuel

     —       87,175       (87,175 )

(b)

     —         —  

Other production expenses

     —       20,565       (20,565 )

(b)

     —         —  

Depreciation, depletion and amortization

     20,695       —       —         9,045  

(e)

     29,740  

Depreciation and amortization

     —       17,316       (17,316 )

(a)

     —         —  

Maintenance

     —       16,120       (16,120 )

(b)

     —         —  

Asset retirement obligations accretion

     496       —       —         250  

(e)

     746  

Exploration costs

     272       —       —         —         272  

General and administrative

     6,871       —       6,827  

(a)

     —         13,698  

Administrative and general

     —       6,827       (6,827 )

(a)

     —         —  

Total Operating Expenses

     134,329       148,003       (17,266 )       9,295         274,361  
                                             

Income (Loss) from Operations

     (9,493 )     —       33,749  

(a)

     (9,295 )       14,961  

Operating Margin Before Fixed Charges

     —       16,618       (16,618 )

(a)

     —         —  
                                             

Fixed Charges and Other

                                            

Interest expense

     (4,121 )     (11,328 )     11,328  

(c)

     —         (4,121 )

Other fixed charges and amortization of debt expense

     —       (356 )     356  

(c)

     —         —  

Equity method investment income

     338       —       —         —         338  

(Loss) Income Before Income Taxes

     (13,276 )     —       33,749         (9,295 )       11,178  

Operating Margin

     —       4,934       (4,934 )       —         —  
                                             

Nonoperating Margin

                                            

Other nonoperating expense

     —       (50 )     50  

(b)

     —         —  

Nonoperating post- employment benefits- net

     —       (147 )     147  

(d)

     —         —  

Total Nonoperating Margin

     —       (197 )     197         —         —  
                                             

Income Tax Expense

                                           

Current

     —       —       —         6,082  

(f)

     6,082  

Deferred

     244       —       —         —         244  

Total Income Tax Expense

    244       —       —         6,082         6,326  
                                             

Net Income (Loss)

   $ (13,520 )   $ 4,737     $ 29,012       $ (15,377 )     $ 4,852  
                                             

Weighted-Average Common Shares Outstanding:

                              

Basic

     30,797       —       —         —  

(g)

     30,797  

Diluted

     30,797       —       —         —  

(g)

     30,797  
                                             

Net Income (Loss) per Common Share:

                                      

Basic

   $ (0.44 )                          

(g)

   $ 0.16  

Diluted

   $ (0.44 )                          

(g)

   $ 0.16  

 

 

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Hallador Energy Company

 

Unaudited Pro Forma Condensed Combined Statement of Operations

  

For the Year Ended December 31, 2021

  

(in thousands)

  
                                             
                   

Transaction Accounting Adjustments

            
   

Historical

    

Conforming and

      

Merom Plant

      

Pro Forma

  
   

Hallador

    

Merom Station

    

Reclassifications

      

Acquisition

      

Combined

  

Sales and Operating Revenues:

                                            

Coal sales

   $ 243,903     $ —     $ (2,738 )

(h)

   $ —       $ 241,165  

Electric revenues

     —       267,456       —         —         267,456  

Other revenues

     3,763       —       218  

(a)

               3,981  

Generation byproduct revenue

     —       218       (218 )

(a)

     —         —  

Lease income

     —       186       (186 )

(a)

     —         —  

Total Revenue

     247,666       267,860       (2,924 )       —         512,602  
                                             

Expenses:

                                            

Operating expenses

     198,840       —       187,395  

(b)

     —         386,235  

Fuel

     —       118,303       (115,565 )

(b)

     —         —  
                      (2,738 )

(h)

                  

Other production expenses

     —       40,677       (40,677 )

(b)

     —         —  

Depreciation, depletion and amortization

     39,973       —       —         18,089  

(e)

     58,062  

Depreciation and amortization

     —       34,574       (34,574 )

(a)

     —         —  

Asset impairment

     1,588       —       —         —         1,588  

Maintenance

     —       30,789       (30,789 )

(b)

     —         —  

Asset retirement obligations accretion

     1,504       —       —         500  

(e)

     2,004  

Asset retirement obligations change in estimate

     (3,510 )     —       —         —         (3,510 )

Exploration costs

     482       —       —         —         482  

General and administrative

     14,833       —       11,282  

(a)

     (1,368 )

(i)

     24,747  

Administrative and general

     —       11,282       (11,282 )

(a)

     —         —  

Total Operating Expenses

     253,710       235,625       (36,948 )       17,221         469,608  

Income (Loss) from Operations

     (6,044 )     —       66,259  

(a)

     (17,221 )       42,994  

Operating Margin Before Fixed Charges

     —       32,235       (32,235 )

(a)

     —         —  
                                             

Fixed Charges and Other

                                            

Interest expense

     (8,048 )     (23,405 )     23,405  

(c)

     —         (8,048 )

Other fixed charges and amortization of debt expense

     —       (801 )     801  

(c)

     —         —  

Gain on extinguishment of debt

     10,000       —       —         —         10,000  

Equity method investment income

     364       —       —         —         364  

Income (Loss) Before Income Taxes

     (3,728 )     —       66,259         (17,221 )       45,310  

Operating Margin

     —       8,029       (8,029 )       —         —  
                                             

Nonoperating Margin

                                            

Other nonoperating expense

     —       (364 )     364  

(b)

     —         —  

Nonoperating post- employment benefits- net

     —       (292 )     292  

(d)

     —         —  

Total Nonoperating Margin

     —       (656 )     656         —         —  
                                             

Income Tax Expense

                                           

Current

     —       —       —         12,196  

(f)

     12,196  

Deferred

     26       —       —         —         26  

Total Income Tax Expense

     26       —       —         12,196         12,222  
                                             

Net Income (Loss)

   $ (3,754 )   $ 7,373     $ 58,886       $ (29,417 )     $ 33,088  
                                             

Weighted-Average Common Shares Outstanding:

                              

Basic

     30,614       —       —         —  

(g)

     30,614  

Diluted

     30,614       —       —         —  

(g)

     30,614  
                                             

Net Income (Loss) per Common Share:

                                      

Basic

   $ (0.12 )                          

(g)

   $ 1.07  

Diluted

   $ (0.12 )                          

(g)

   $ 1.07  

 

 

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Hallador Energy Company

 

Notes to Unaudited Pro Forma Condensed Combined Financial Information

 

 

1.

 Basis of Presentation

 

The accompanying unaudited pro forma condensed combined financial statements were prepared based on the historical financial statements of Hallador and the historical carve-out financial statements of Merom Station. The Merom Plant Acquisition has been accounted for as an asset acquisition in accordance with ASC 805. The fair value of the consideration and allocation of that amount to the underlying assets acquired, on a relative fair value basis, will be recorded on Hallador’s books as of the date of the closing of the Merom Plant Acquisition. Additionally, costs directly related to the Merom Plant Acquisition are capitalized as a component of the purchase price.

 

Presented in the unaudited pro forma condensed combined financial statements is the impact of the Merom Plant Acquisition. Certain transaction accounting adjustments have been made in order to show the effects of the acquisition in the unaudited pro forma condensed combined financial statements. The accounting adjustments related to the Merom Plant Acquisition are preliminary and based on estimates of the purchase consideration and estimates of fair value and useful lives of the assets acquired and liabilities assumed. The final allocation will be determined when Hallador has obtained and verified all required data necessary to perform the detailed valuations and calculations to reflect the final relative fair value at the acquisition date. The final allocation is expected to be completed when Hallador files its report on Form 10-K for the year ended December 31, 2022. The final allocation could differ materially from the preliminary allocation used in the transaction accounting adjustments due to (1) changes in the fair value of the Merom Plant; (2) changes in the fair value of contract assets and contract liabilities; or (3) other changes to assets or liabilities.

 

The unaudited pro forma condensed combined financial statements and related notes are presented for illustrative purposes only. If the Merom Plant Acquisition and other transactions contemplated herein had occurred in the past, the Company’s operating results might have been materially different from those presented in the unaudited pro forma condensed combined financial statements. The unaudited pro forma condensed combined financial statements should not be relied upon as an indication of operating results that the Company would have achieved if the Merom Plant Acquisition and other transactions contemplated herein had taken place on the specified date. In addition, future results may vary significantly from the results reflected in the unaudited pro forma condensed combined financial statement of operations and should not be relied upon as an indication of the future results the Company will have after the contemplation of the Merom Plant Acquisition and the other transactions contemplated by these unaudited pro forma condensed combined financial statements.

 

The unaudited pro forma condensed combined financial information does not reflect the benefits of potential cost savings or the costs that may be necessary to achieve such savings, opportunities to increase revenue generation or other factors that may result from the Merom Plant Acquisition and, accordingly, does not attempt to predict or suggest future results. In addition, Hallador did not included a transaction accounting adjustment for ASC 842, Leases, for the Merom Plant as the adoption of this standard is not expected to be material. In Hallador’s opinion, all adjustments that are necessary to present fairly the unaudited pro forma condensed combined financial information have been made.

 

The Unaudited Pro Forma Condensed Combined Statements of Operations for the Six Months Ended June 30, 2022 and the Year Ended December 31, 2021 were prepared assuming the Merom Plant Acquisition occurred on January 1, 2021. The Unaudited Pro Forma Condensed Combined Balance Sheet as of June 30, 2022 was prepared as if the Merom Plant Acquisition had occurred on June 30, 2022.

 

 

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2.

Consideration and Preliminary Allocation

 

The preliminary allocation of total consideration in the Merom Plant Acquisition is based upon management’s estimates of and assumptions related to the fair value of assets acquired and liabilities assumed as of the closing date of the transaction using currently available information and market data. Because the unaudited pro forma condensed combined financial information has been prepared based on these preliminary estimates, the final purchase price allocation and the resulting effect on financial position and results of operations may differ materially from the pro forma amounts included herein.

 

The preliminary purchase price allocation is subject to change due to several factors, including (1) changes in the fair value of the Merom Plant; (2) changes in the fair value of contract assets and contract liabilities; or (3) other changes to assets or liabilities.

 

The total consideration and relative fair value of assets acquired and fair value of liabilities assumed by Hallador were initially recorded as follows (in thousands):

 

Consideration:

        

Direct transaction costs

   $ 2,338  

Contract liability – PPA

     184,500  

Contract liability – Capacity payment reduction

     11,000  

Contract asset – Coal purchase agreement

     (34,300 )

Coal inventory purchased

     5,400  

Fair value of deferred coal inventory payment

     11,600  

Total consideration

   $ 180,538  

Relative fair value of asset acquired:

        

Plant

   $ 165,816  

Materials and supplies

     11,733  

Coal inventory

     10,219  

Amount attributable to assets acquired

   $ 187,768  

Fair value of liabilities assumed:

        

Asset retirement obligations

   $ 7,230  

Amount attributable to liabilities assumed

   $ 7,230  

 

The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair value of the Merom Plant and asset retirement obligations were measured using the discounted cash flow technique of valuation.

 

Significant unobservable inputs to the valuation of the Merom Plant Acquisition and asset retirement obligations included estimated future electricity prices and electricity generation, future coal inventory costs and other associated operating costs, remediation costs and weighted average cost of capital.

 

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3.

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet and Unaudited Pro Forma Condensed Combined Statements of Operations

 

Unaudited Pro Forma Condensed Combined Balance Sheet

 

The following adjustments were made in the preparation of the Unaudited Pro Forma Condensed Combined Balance Sheet as of June 30, 2022:

 

 

(a)

Adjustment to remove the historical values of assets, liabilities and associated equity of Merom Station.

 

 

(b)

Adjustment to eliminate the historical book value and accumulated depreciation of the Merom Station as of June 30, 2022.

 

 

(c)

Represents cash paid for coal inventory on hand at closing of $5.4 million and estimated additional subsequent payments to be made for additional coal on hand of $11.6 million.

 

 

(d)

Adjustment to reflect the relative fair value of assets acquired of Merom Station.

 

 

(e)

Adjustment to recognize an off-market coal inventory contract executed with Hoosier contemporaneously with the Merom Plant Acquisition. The off-market coal inventory contract allows the Company to purchase coal at below market prices through May 2023.

 

 

(f)

Adjustment to recognize off-market PPA and capacity reduction payment agreement executed with Hoosier contemporaneously with the Merom Plant Acquisition. The off-market PPA extends through 2025. The capacity reduction payments extend through 2023.

 

 

(g)

Adjustment to reflect the fair value of asset retirement obligations assumed as part of the Merom Plant Acquisition.

 

 

(h)

Represents transaction costs of $2.3 million related to the Merom Plant Acquisition, including $1.0 million to be paid after closing and $1.3 million paid prior to June 30, 2022.

 

 

(i)

Represents advanced capacity payments received from Hoosier pursuant to the APA. The advanced capacity payments will be earned from October 21, 2022 through May 31, 2023.

 
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Unaudited Pro Forma Condensed Combined Statements of Operations

 

The following adjustments were made in the preparation of the Unaudited Pro Forma Condensed Combined Statements of Operations for the Six Months Ended June 30, 2022 and the Year Ended December 31, 2021:

 

 

(a)

Adjustments to conform Merom Station’s presentation to the presentation of Hallador.

 

 

(b)

Adjustment to conform Merom Station’s presentation of fuel, other production expenses, maintenance and other nonoperating expenses to the operating expense presentation used by Hallador.

 

 

(c)

Adjustment to remove Merom Station’s interest expense as debt was not assumed by Hallador as part of the Merom Plant Acquisition.

 

 

(d)

Adjustment to remove expenses associated with Merom Station’s post-retirement benefit plan which was not assumed by Hallador as part of the Merom Plant Acquisition.

 

 

(e)

Represents depreciation, depletion, and amortization expense resulting from the change in basis of property and equipment acquired and accretion expense from new asset retirement obligations recognized as a result of the Merom Plant Acquisition. The depreciation adjustment was calculated using an approximate 9-year useful life.

 

 

(f)

Represents the application of Hallador’s statutory tax rate of 24.9% to the pre-tax amount of the Merom Plant Acquisition and pro forma adjustments.

 

 

(g)

The following table reconciles historical and pro forma basic and diluted earnings per share for the periods indicated (in thousands, except per share amounts):

 

   

Six Months Ended

   

Year Ended

  
   

June 30, 2022

    

December 31, 2021

  
   

Historical

    

Pro-Forma

    

Historical

    

Pro-Forma

  

Net income (loss)

   $ (13,520 )   $ 4,852     $ (3,754 )   $ 33,088  

Less: (income) loss allocated to participating securities

     79       (29 )     35       (246 )

Net income (loss) allocated to common shareholders

   $ (13,441 )   $ 4,823     $ (3,719 )   $ 32,842  

Weighted average shares outstanding — basic and diluted

     30,797       30,797       30,614       30,614  

Basic and diluted net income (loss) per share

   $ (0.44 )   $ 0.16     $ (0.12 )   $ 1.07  

 

 

(h)

Represents the elimination of historical coal sales between Hallador and Hoosier.

 

 

(i)

Represents the capitalization of $1.3 million of transaction costs related to the Merom Plant Acquisition that were expensed prior to June 30, 2022.

 

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