Hallador Energy (HNRG) trades at a low single digit EBITDA multiple despite strong fundamentals. Instead of being the "best house in the worst neighborhood", HNRG is more one of the "most undervalued houses with attractive qualities in a neighborhood at its low point".
HNRG (founded in 1951 as Kimbark Oil and Gas) merged with Hallador Exploration in 1989 and became Hallador Energy. In 2006, HNRG entered into a joint venture with Sunrise Coal (now a wholly-owned subsidiary) and shifted from oil and gas to coal.
Sunrise Coal operates the Carlisle Mine in Indiana and produces 3 million tons annually of high-quality (low-chlorine, high BTU) coal from the Illinois Basin, which includes Illinois, Indiana, and western Kentucky....