The share price of Atlas Energy Solutions Inc. (NYSE:AESI) fell by 11.1% between November 11 and November 18, 2025, putting it among the Energy Stocks that Lost the Most This Week. Atlas Energy Solutions (AESI) Price Target Reduced by Analysts Atlas Energy Solutions Inc. (NYSE:AESI) engages in the production, processing, and sale of mesh and sand used as proppants during the well-completion process in the Permian Basin of West Texas and New Mexico. Atlas Energy Solutions Inc. (NYSE:AESI) continued to de ...

Core Insights - Atlas Energy Solutions Inc. (NYSE:AESI) experienced a significant decline in share price, falling by 15.89% from November 3 to November 10, 2025, making it one of the worst-performing energy stocks during that week [1]. Financial Performance - In Q3, Atlas Energy Solutions missed both earnings and revenue estimates, reporting a net loss of $23.7 million. The adjusted EBITDA was $40.2 million, reflecting a 43% decrease sequentially [3]. - The company anticipates that Q4 adjusted EBITDA will be even lower due to ongoing high costs and sluggish sales volumes [3]. Strategic Decisions - The company announced the suspension of its quarterly dividend, a decision aimed at protecting the long-term strength of its balance sheet and allowing for flexibility to pursue transformative growth opportunities, particularly in its power platform [4]. - Bud Brigham, the executive chairman, emphasized that these growth prospects could significantly reshape Atlas's cash flow profile and create sustainable value for shareholders [4].

Acquisitions - Atlas LLC acquired PropFlow, LLC for approximately $25.0 million in cash, with potential contingent earn-out consideration of up to $15.0 million based on revenue targets in fiscal years 2027 and 2028[243]. - The Moser Acquisition was completed for a total consideration of $180.0 million in cash and approximately 1.7 million shares of Common Stock[245]. - The company completed the Moser Acquisition on February 24, 2025, for cash consideration of $180.0 million, impacting operational results comparability[275]. - The Hi-Crush Transaction was completed on March 5, 2024, with cash consideration of $140.1 million, affecting year-over-year operational results[274]. Financial Performance - Net income for the three months ended September 30, 2025, was $(23,721) thousand, compared to $3,918 thousand for the same period in 2024[266]. - Adjusted EBITDA for the three months ended September 30, 2025, was $40,186 thousand, down from $71,051 thousand in 2024, representing a decrease of approximately 43.4%[266]. - Adjusted Free Cash Flow for the three months ended September 30, 2025, was $21,984 thousand, compared to $58,669 thousand in 2024, indicating a decline of about 62.5%[267]. - Total revenue for the nine months ended September 30, 2025, was $184,936 thousand, compared to $225,666 thousand for the same period in 2024, showing a decrease of about 18.1%[266]. - Total revenue for the three months ended September 30, 2025, was $259.6 million, down from $304.4 million in the same period of 2024, representing a decrease of approximately 14.7%[277]. - Gross profit for the three months ended September 30, 2025, was $23.8 million, a significant decrease from $53.0 million in 2024[277]. - Adjusted EBITDA Margin for the three months ended September 30, 2025, was approximately 22.0% compared to 32.0% in 2024, indicating a decline of 10 percentage points[266]. - Net cash provided by operating activities for the three months ended September 30, 2025, was $32,447 thousand, down from $85,189 thousand in 2024, a decrease of about 61.9%[267]. - Net cash provided by operating activities was $113.6 million for the nine months ended September 30, 2025, down from $185.6 million for the same period in 2024[311]. Revenue Breakdown - Product revenue decreased by $38.5 million to $106.8 million for the three months ended September 30, 2025, compared to $145.3 million for the same period in 2024, primarily due to lower proppant prices and sales volume[278]. - Service revenue decreased by $23.4 million to $135.7 million for the three months ended September 30, 2025, compared to $159.1 million in 2024, attributed to lower sales volumes shipped to last-mile logistics customers[279]. - Rental revenue for the three months ended September 30, 2025, was $17.1 million, resulting from the acquisition of Moser, with no rental revenue reported in the same period of 2024[280]. - Product revenue decreased by $14.2 million to $372.8 million for the nine months ended September 30, 2025, compared to $387.0 million for the same period in 2024[292]. - Service revenue increased by $35.0 million to $432.6 million for the nine months ended September 30, 2025, compared to $397.6 million for the same period in 2024[293]. Costs and Expenses - Maintenance Capital Expenditures for the three months ended September 30, 2025, were $18,202 thousand, up from $12,382 thousand in 2024, reflecting an increase of approximately 47.2%[267]. - The company incurred interest expense of $15,155 thousand for the three months ended September 30, 2025, compared to $11,831 thousand in 2024, representing an increase of approximately 27.5%[266]. - Cost of sales related to services decreased by $18.7 million to $117.8 million for the three months ended September 30, 2025, compared to $136.5 million for the same period in 2024[283]. - Selling, general and administrative expense increased by $10.8 million to $36.3 million for the three months ended September 30, 2025, compared to $25.5 million for the same period in 2024[286]. - Depreciation, depletion, and accretion expense increased by $50.0 million to $118.3 million for the nine months ended September 30, 2025, compared to $68.3 million for the same period in 2024[299]. Debt and Financing - Total debt as of September 30, 2025, was $556.5 million, an increase from $475.3 million in 2024[272]. - Atlas LLC entered into a 2025 Term Loan Credit Facility with a principal amount of $540.0 million, bearing interest at a rate of 9.51% per annum[316][317]. - The proceeds from the 2025 Term Loan were used to refinance the existing 2023 Term Loan Credit Facility, finance the Moser Acquisition, and for general corporate purposes[323]. - The Deferred Cash Consideration Note issued as part of the Hi-Crush Merger Agreement has a principal amount of $111.3 million, with interest rates of 5.00% per annum if paid in cash, or 7.00% if paid in kind[325]. - The 2023 ABL Credit Facility provides revolving credit financing of up to $75.0 million, with a scheduled maturity date of February 22, 2028[331]. - Atlas LLC drew down $25.0 million under the 2023 ABL Credit Facility for the PropFlow Acquisition, with interest expense of $0.3 million for the three months ended September 30, 2025[336]. - As of September 30, 2025, Atlas LLC had $25.0 million in outstanding borrowings and $0.3 million in outstanding letters of credit under the 2023 ABL Credit Facility, with a Borrowing Base of $112.9 million and Availability of $87.6 million[339]. - The ABL Amendment increased the revolving credit commitment to $125.0 million, with existing lenders increasing their commitment by $25.0 million and a new lender adding another $25.0 million[342]. - Atlas LLC has other indebtedness of $17.5 million in equipment finance notes as of September 30, 2025, with interest rates ranging from 2.24% to 10.89%[349]. Operational Insights - Revenue generation is primarily from mining, processing, and distributing proppant, with fluctuations based on production costs, volumes sold, and market conditions[253]. - Logistics service revenue is influenced by the volume of proppant transported, distance to customers, and prevailing freight rates[254]. - The company operates a differentiated logistics platform to enhance efficiency and sustainability in the oil and gas industry within the Permian Basin[241]. - The company has begun integrating autonomous driving technologies into its logistics operations, aiming to create a semi-autonomous oilfield logistics network[241]. - The company’s sand reserves are entirely located in Texas within the Permian Basin, supporting its proppant production and processing operations[240]. Market Conditions - The price for West Texas Intermediate crude oil decreased by approximately 9%, ending the third quarter of 2025 at $63.96 per barrel compared to $70.24 per barrel in the same quarter of 2024[248]. - The U.S. government announced a 10% tariff on product imports and a 50% tariff on steel imports, which may increase raw material input costs for the company and its customers[250]. - The anticipated increase in demand for power generation in the U.S. is driven by data centers, artificial intelligence, and other advanced technologies, coinciding with existing constraints on the electrical grid[249]. Tax and Compliance - Income tax expense decreased by $20.6 million to $(9.2) million for the nine months ended September 30, 2025, compared to $11.4 million for the same period in 2024[307]. - As of September 30, 2025, Atlas LLC was in compliance with the financial covenants of maintaining a maximum Leverage Ratio of 4.0 to 1.0 and a minimum Liquidity of $40 million[324][322]. - There have been no material changes to the company's critical accounting policies and estimates as of September 30, 2025[350].

Core Viewpoint - Atlas Energy Solutions reported disappointing third-quarter 2025 financial results, missing both top- and bottom-line estimates, which has led to a significant sell-off in its stock. The suspension of the quarterly dividend and a negative outlook for the fourth quarter have further contributed to investor concerns [1][4][7]. Financial Performance - Atlas reported revenue of $259.6 million for Q3 2025, falling short of analysts' expectations of $270.1 million [4]. - The company posted a loss per share of $0.19, which was significantly worse than the anticipated loss of $0.02 per share [4]. - Management projected that fourth-quarter 2025 adjusted EBITDA will decline from the $40.2 million reported in Q3 2025, indicating a challenging outlook for the remainder of the year [5]. Dividend Suspension - The decision to suspend the quarterly dividend was made to protect the company's long-term financial health and to provide flexibility for potential growth opportunities, particularly in its power platform [4].

Financial Data and Key Metrics Changes - In Q3 2025, Atlas generated $259.6 million in revenue and $40.2 million in adjusted EBITDA, resulting in a 15% EBITDA margin [16][4] - Adjusted free cash flow was $22 million, representing 8% of revenue [18] - The net loss for the quarter was $23.7 million, with a net loss per share of $0.19 [18] Business Line Data and Key Metrics Changes - Proppant sales totaled $106.8 million, with volumes at 5.25 million tons, slightly lower than the previous quarter [17] - Logistics contributed $135.7 million to revenue, with a modest decline in tonnage [17] - Power rentals added $17.1 million to revenue, indicating growth in this segment [17] Market Data and Key Metrics Changes - The Permian frack crew count decreased from over 90 in 2024 to around 80 entering Q3 2025, reflecting a slowdown in completions activity [7] - WTI prices were around $60, providing little incentive for operators to increase activity [7] Company Strategy and Development Direction - The company aims to maximize efficiencies with a target of $20 million in annual cost savings [19] - Atlas is focusing on gaining market share during the downturn by leveraging its low-cost production and extensive logistics network [8] - The acquisition of Moser Energy Systems is seen as a strategic move to layer a stable power generation platform atop its oilfield services foundation [21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding a broad recovery in early 2026 due to ongoing capital spending slowdowns by customers [7] - The company anticipates a decline in fourth-quarter volumes to approximately 4.8 million tons, attributed to seasonality and customer budget constraints [16] - Management remains optimistic about the power business, expecting significant growth and stable cash flows from long-term contracts [11][12] Other Important Information - The company has temporarily suspended its dividend to prioritize capital for growth opportunities in the power market [13][14] - The logistics business is facing margin pressure due to a slowdown in completions activity, with trucking rates dropping below COVID-era levels [7] Q&A Session Summary Question: Can you elaborate on the updated power strategy and how Mosier fits into it? - Management indicated that the power strategy has advanced, focusing on establishing a platform with deep expertise and leveraging the Mosier acquisition for engineering and project execution [26] Question: Do you have contracts to justify the new capacity order? - Management confirmed that they would not have ordered the equipment without having line of sight on contracts, with ongoing negotiations for financing [30][31] Question: What caused the higher operating costs this quarter? - The increase in costs was primarily due to inefficiencies related to tailings management at the Kermit facility, which have since been addressed [40][41] Question: What is the outlook for capital spending in 2026? - Capital spending is expected to decrease from 2025 levels, focusing on maintenance rather than growth investments due to current market conditions [44] Question: How will the 240 megawatts of new capacity be deployed? - The new capacity is expected to be split across multiple projects, likely not in the oil and gas sector, but rather in C&I or data centers [78] Question: What is the potential market opportunity for the 2 gigawatts mentioned? - The opportunity set includes a mix of oil and gas applications, C&I opportunities, and data centers, with a significant portion expected to be long-term contracts [62]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Performance - Total revenue for Q3 2025 was $259.6 million, a decrease of $29.1 million or 10.1% compared to Q2 2025[8]. - Net loss for Q3 2025 was $23.7 million, with an Adjusted EBITDA of $40.2 million, reflecting a margin of 15%[4][10]. - Adjusted Free Cash Flow for Q3 2025 was $22.0 million, down from $48.9 million in Q2 2025[6]. - Total revenue for the three months ended September 30, 2025, was $259.613 million, a decrease of 10.04% from $288.676 million in the previous quarter[22]. - Product revenue decreased to $106.839 million from $126.328 million, a decline of 15.3% quarter-over-quarter[22]. - Service revenue also saw a decline, dropping to $135.643 million from $146.355 million, a decrease of 7.7%[22]. - Gross profit for the quarter was $23.764 million, significantly lower than $52.139 million in the previous quarter, reflecting a gross margin contraction[22]. - Operating loss for the quarter was $(18.538) million compared to an operating income of $7.193 million in the previous quarter[22]. - Net loss for the quarter was $(23.721) million, compared to a net loss of $(5.558) million in the previous quarter[22]. - Adjusted EBITDA for the same period was $40,186,000, down from $70,459,000 in the previous quarter, reflecting a decrease of approximately 43%[31]. - The Adjusted EBITDA Margin for the quarter was 15%, down from 24% in the previous quarter, showing a decline of 9 percentage points[33]. - The Adjusted Free Cash Flow Margin was 8%, a decrease from 17% in the prior quarter, reflecting a decline of 9 percentage points[33]. - Net cash provided by operating activities for the quarter was $32,447,000, a significant decrease from $88,642,000 in the previous quarter[33]. Cash and Assets - Cash and cash equivalents at the end of the period were $41.349 million, down from $78.809 million at the beginning of the period[24]. - Total assets increased to $2.233 billion as of September 30, 2025, up from $1.973 billion as of December 31, 2024[26]. - Long-term debt increased to $518.427 million from $466.989 million, indicating a rise in leverage[26]. - The company reported a stock-based compensation expense of $9.344 million for the quarter, up from $8.290 million in the previous quarter[24]. - The company incurred other non-recurring costs of $638,000 during the quarter, down from $4,298,000 in the previous quarter[33]. - The loss on disposal of assets was recorded as zero for the quarter, compared to $8,574,000 in the same quarter last year[31]. Operational Initiatives - The company announced the suspension of its quarterly dividend to strengthen its balance sheet and pursue growth opportunities[6][7]. - An organizational efficiency initiative has been instituted, targeting $20 million in annualized cost savings[6][5]. - The company is positioned to exceed 10 million tons down the Dune Express Conveyor System in 2026[6][5]. - The power business is expanding rapidly, with a target of over 400 megawatts of power generation capacity deployed by early 2027[6][7]. - The company has placed an order for 240 megawatts of power generation assets, expected for delivery in late 2026[6][7]. - Operating expenses per ton are expected to remain elevated temporarily due to lower fixed cost absorption and issues at the Kermit facility[14]. Future Guidance - Future guidance indicates that Adjusted EBITDA for Q4 2025 is projected to be lower sequentially, with volumes forecasted at approximately 4.8 million tons[13][14]. - Maintenance Capital Expenditures for the quarter were $18,202,000, compared to $21,589,000 in the previous quarter, indicating a decrease of approximately 16%[31]. - The company reported a cash interest expense of $13,634,000 for the quarter, compared to $13,459,000 in the previous quarter, indicating a slight increase[41].

Core Viewpoint - Atlas Energy Solutions Inc. has placed an order for 240 megawatts of power generation equipment to enhance its power business and provide long-term power solutions to a diverse customer base across the economy [1] Group 1: Company Developments - The order consists of equipment from a blue-chip provider, indicating a strategic partnership with a reputable supplier [1] - The equipment will feature units with a nameplate capacity of 4 megawatts per engine, showcasing the company's commitment to scalable power generation solutions [1] - The initiative reflects Atlas Energy's evolution towards becoming a comprehensive power solutions provider [1]

Core Points - Atlas Energy Solutions Inc. (NYSE: AESI) announced the timing for its third quarter 2025 earnings release and conference call [1] - The earnings release will be issued after market close on Monday, November 3, 2025 [1] - A conference call will be held to discuss financial results following the earnings release [1]

Core Viewpoint - Atlas Energy Solutions Inc. will release its third quarter 2025 earnings after market close on November 3, 2025, and will hold a conference call to discuss the results on November 4, 2025 [1] Company Announcement - The earnings release will be available after market close on November 3, 2025 [1] - A conference call to discuss financial and operational results is scheduled for 8:00 AM Central Time (9:00 AM Eastern Time) on November 4, 2025 [1] - A live webcast of the conference call will be accessible at the company's investor relations website [1]