Core Insights - Atlas Energy Solutions Inc. (AESI) reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.18 per share, and down from $0.34 per share a year ago, representing an earnings surprise of -55.56% [1] - The company posted revenues of $297.59 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.53%, and up from $192.67 million year-over-year [2] - The stock has underperformed the market, losing about 34.8% since the beginning of the year compared to the S&P 500's decline of -3.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $333.25 million, and for the current fiscal year, it is $1.28 on revenues of $1.3 billion [7] - The estimate revisions trend for Atlas Energy Solutions Inc. is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Integrated - United States industry is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - Another company in the same industry, Berry Petroleum, is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year change of -28.6% [9]

Investor Presentation May 2025 This Presentation contains "forward-looking statements" of Atlas Energy Solutions Inc. ("Atlas," the "Company," "AESI," "we," "us" or "our") within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words "may," "ass ...

Financial Performance - Total revenue for Q1 2025 was $297.6 million, a 9.7% increase from Q4 2024[7] - Net income for Q1 2025 was $1.2 million, with a net income margin of 0%[6] - Adjusted EBITDA for Q1 2025 was $74.3 million, representing a 25% adjusted EBITDA margin[6] - Sales volumes increased to 5.7 million tons, an 11.8% increase compared to Q4 2024[7] - The cost of sales for Q1 2025 was $206.1 million, a 7.9% increase from Q4 2024[8] - SG&A expenses rose to $34.4 million, a 34.9% increase compared to Q4 2024, primarily due to acquisition-related costs[9] - Net income for the three months ended March 31, 2025, was $1,219 thousand, a significant decrease from $26,787 thousand in the previous quarter and $14,402 thousand in the same period last year[24] - Adjusted EBITDA for the same period was $74,291 thousand, slightly down from $75,543 thousand in the previous quarter but up from $63,236 thousand year-over-year[30] - Adjusted Free Cash Flow was reported at $58,758 thousand, compared to $71,083 thousand in the previous quarter and $47,934 thousand in the same period last year[31] - The Adjusted EBITDA Margin for the quarter was 25%, down from 39% in the previous quarter[31] Assets and Liquidity - Total current assets increased to $376,374 thousand as of March 31, 2025, up from $289,418 thousand a year earlier, driven by a rise in accounts receivable[26] - Total assets reached $2,294,780 thousand, compared to $1,972,652 thousand as of December 31, 2024, reflecting growth in property, plant, and equipment[26] - Cash and cash equivalents decreased to $68,674 thousand from $71,704 thousand at the end of the previous quarter[26] - Total liquidity as of March 31, 2025, was $193.5 million, including $68.7 million in cash[10] Cash Flow and Expenditures - The company reported a net cash used in operating activities of $(7,450) thousand for the quarter, a decline from $39,562 thousand in the previous quarter[31] - Maintenance Capital Expenditures for the quarter were $15,533 thousand, up from $4,460 thousand in the previous quarter[33] - The company raised $253,070 thousand from equity offerings during the quarter, contributing to a net cash provided by financing activities of $232,922 thousand[24] Tax and Interest Expenses - Current income tax expense for Q1 2025 is $914,000, compared to $414,000 in Q1 2024, reflecting a significant increase[35] - Net interest expense for Q1 2025 is $12,078,000, up from $4,978,000 in Q1 2024, indicating a substantial rise in financing costs[37] - Cash interest expense for Q1 2025 is $11,831,000, compared to $6,491,000 in Q1 2024, showing an increase of approximately 82% year-over-year[37] Future Outlook - The company expects sales volumes and adjusted EBITDA to be relatively flat to up sequentially in Q2 2025 compared to Q1 2025[13] - The acquisition of Moser Energy Systems is anticipated to provide a platform for future growth and operational efficiencies[5]

Company Overview - Atlas Energy Solutions Inc. (AESI) is expected to report a year-over-year decline in earnings of 47.1%, with projected earnings of $0.18 per share for the quarter ended March 2025 [3] - The company is anticipated to see a revenue increase of 52.1%, reaching $293.1 million compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 2% lower in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for AESI is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.71%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - In the last reported quarter, AESI was expected to post earnings of $0.17 per share but only achieved $0.06, resulting in a surprise of -64.71% [12] - The company has not beaten consensus EPS estimates in any of the last four quarters [13] Market Sentiment - The upcoming earnings report is crucial, as stock movement may depend on whether actual results exceed or fall short of expectations [2] - Despite a potential earnings beat, other factors may influence stock performance, indicating that an earnings surprise alone may not dictate market reaction [14][16] Industry Context - In the broader context, National Fuel Gas (NFG), a peer in the Oil and Gas - Integrated - United States industry, is expected to post earnings of $2.17 per share, reflecting a year-over-year increase of 21.2% [17] - NFG's revenue is projected to rise by 24.3% to $783.13 million, with a recent EPS estimate revision of 4.1% higher [18]

Acquisition and Integration Risks - The company is currently facing uncertainties regarding the anticipated benefits and projected synergies from the Moser Acquisition, which may not be realized within the expected timeframe or at all [14]. - The company is subject to risks related to the integration of Moser's business, which may not yield the expected benefits [26]. - The company’s ability to maintain financial flexibility may be limited due to existing and future debt following the Moser Acquisition [14]. Customer Base and Quality - The company had 49 customers in 2024, with 10 classified as investment grade, compared to 33 customers and 6 investment grade in 2023, indicating a significant increase in customer base quality [486]. Commodity Price Exposure - The company does not currently intend to hedge its indirect exposure to commodity price risk, which is influenced by fluctuations in crude oil and natural gas prices [481]. - The company is exposed to volatility in natural gas prices, which are critical for its proppant manufacturing operations, and has not entered into any commodity derivative contracts for 2023 and 2024 [482]. - The company’s operational performance may be adversely affected by a material decline in oil and natural gas prices or activity levels in the Permian Basin [485]. Operational Challenges - The company is focused on improving its production facilities following a fire incident at the Kermit facility on April 14, 2024, which may impact future performance [14]. - The company is facing risks related to environmental regulations and operational disruptions that could affect its business operations [19]. Inflation Impact - Inflationary factors may adversely affect the company's results of operations due to increased product and overhead costs [487]. - The company does not believe inflation has materially impacted its financial position or results of operations to date [487]. - A high rate of inflation in the future may negatively affect the company's ability to maintain current gross margin levels [487]. - Selling prices of the company's products may need to increase to keep pace with rising costs [487]. - Selling, general, and administrative expenses as a percentage of net revenue may be impacted by inflation [487]. Debt and Financial Flexibility - As of December 31, 2024, the company had $70.0 million of debt outstanding under the 2023 ABL Credit Facility, with a potential annual interest expense fluctuation of approximately $0.4 million for a hypothetical 1.0% change in interest rates [483].

Financial Data and Key Metrics Changes - Total company's adjusted EBITDA was $288.9 million or 27% of revenue [29] - Fourth quarter reported total sales of $271.3 million and adjusted EBITDA of $63.2 million or 23.3% of revenue [29] - Net income was $14.4 million or 5.3% of revenue, with earnings per share at $0.13 [35] - Adjusted free cash flow was $47.9 million or 17.7% of revenue [35] - CapEx during the quarter was $50 million, with maintenance CapEx at $15.3 million [36] Business Line Data and Key Metrics Changes - Revenue from proppant sales was $128.4 million, with total profit sales volumes per quarter declining to 5.1 million tons due to seasonal slowdown [30] - Average revenue per ton for the quarter was $25.31, adjusted to $23.28 per ton when accounting for contractual payments [31] - Logistics revenue for the year was $140.5 million [29] Market Data and Key Metrics Changes - Spot sand prices fell to cyclical lows during the fourth quarter due to reduced customer demand and aggressive pricing from competitors [18] - The company expects a gradual return to normalcy in sand pricing, with expectations for a return to mid-teen levels [21][36] Company Strategy and Development Direction - The company aims to ramp up volumes and achieve full effective utilization of the Dune Express by midyear [8] - The acquisition of Mosier Energy Systems is seen as a platform investment into the distributed power market, with plans to grow its fleet from 212 megawatts to approximately 310 megawatts by the end of 2026 [15][16] - The company is focused on shareholder returns, having increased its quarterly dividend by 4% [13][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in the Permian profit market and rational pricing behavior among competitors [20][21] - The company expects Q1 volumes to be up 10% to 15% sequentially and anticipates adjusted EBITDA for Q1 to be between $75 million and $85 million [41] - Full-year 2025 adjusted EBITDA is expected to reflect the contribution from the Mosier acquisition [42] Other Important Information - The company has paid out $252 million in total dividends and distributions since inception [53] - The Dune Express is described as the world's first commercial driverless delivery operation, enhancing logistics efficiency [10][49] Q&A Session Summary Question: Can you speak to the volume moved down the Dune Express and gating factors for full utilization? - The company is currently running at 50% to 60% of capacity and expects to reach full utilization by midyear, with some planned downtime for optimization [60][62] Question: How are you balancing growth opportunities with returning cash to shareholders? - The company aims to maintain a stable dividend while pursuing high-return growth projects, with a focus on optimizing cash flow [66][68] Question: Can you discuss plans for the Mosier acquisition and future power generation? - The Mosier acquisition is viewed as a platform for growth in the power business, with potential for rapid expansion based on customer demand [75][76] Question: What are the cost savings of using autonomous trucks versus regular trucks? - The company noted that labor constitutes about 70-80% of truck operating costs, indicating significant potential savings with autonomous trucks [82] Question: What is the current contract coverage for the year? - The company has approximately 22 million tons contracted for 2025, with expectations for this number to increase [117] Question: Are you seeing interest from customers for longer-term contracts? - There is a trend towards longer-term contracts, which may have lower pricing but provide volume stability [120]

Core Viewpoint - Atlas Energy Solutions Inc. reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.37 per share a year ago, indicating a significant earnings surprise of -64.71% [1] Financial Performance - The company posted revenues of $271.34 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.11%, and showing a substantial increase from year-ago revenues of $141.14 million [2] - Over the last four quarters, Atlas Energy Solutions has not surpassed consensus EPS estimates, with the most recent quarter also reflecting a decline in earnings expectations [2][6] Stock Performance - Atlas Energy Solutions shares have lost about 7% since the beginning of the year, contrasting with the S&P 500's gain of 2.2%, indicating underperformance in the market [3] - The current Zacks Rank for the stock is 5 (Strong Sell), suggesting that shares are expected to underperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $298.98 million, and for the current fiscal year, it is $1.50 on revenues of $1.27 billion [7] - The trend of estimate revisions for Atlas Energy Solutions has been unfavorable ahead of the earnings release, which may impact future stock performance [6] Industry Context - The Oil and Gas - Integrated - United States industry is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Acquisition Details - Atlas Energy Solutions Inc. announced a definitive agreement to acquire Moser Energy Systems for a total transaction value of $220 million, consisting of $180 million in cash and approximately 1.7 million shares valued at $40 million[1][2]. - The acquisition is anticipated to be immediately accretive and is expected to close by the end of Q1 2025, pending customary closing conditions[4][7]. - Moser Energy Systems has a strong EBITDA margin profile of over 50%, which is expected to enhance Atlas's cash flow generation and shareholder returns[4]. - The company is in the process of completing the Moser Acquisition, which is subject to various risks and uncertainties[27]. - The company anticipates potential synergies from the Moser Acquisition, but the realization of these benefits is uncertain[27]. Financial Projections - For Q4 2024, estimated revenue is projected to be between $270.0 million and $272.0 million, representing an increase of approximately 92% compared to Q4 2023 revenue of $141.1 million[11]. - Estimated Adjusted EBITDA for Q4 2024 is expected to be between $62.2 million and $64.2 million, a decrease of approximately 8% from Q4 2023 Adjusted EBITDA of $68.7 million[12]. - For the fiscal year 2024, revenue is expected to be between $1,055.0 million and $1,057.0 million, an increase of approximately 72% compared to $614.0 million in fiscal year 2023[19]. - Estimated Adjusted EBITDA for the fiscal year 2024 is projected to be between $287.9 million and $289.9 million, a decrease of approximately 12% from $329.7 million in fiscal year 2023[19]. - Full Year 2023 Net Income was $226,493,000, with an estimated range for Full Year 2024 between $58,392,000 and $59,792,000[30]. - Full Year 2023 Adjusted EBITDA was $329,655,000, with an estimated range for Full Year 2024 between $287,866,000 and $289,866,000[30]. Cash Flow and Income - Cash and cash equivalents are expected to total approximately $71.7 million, a decrease of approximately 66% from $210.2 million at the end of fiscal year 2023[19]. - Net Income for Q4 2023 was $36,050,000, with an estimated range for Q4 2024 between $12,850,000 and $14,250,000[30]. - EBITDA for Q4 2023 was $64,057,000, with an estimated range for Q4 2024 between $64,928,000 and $67,328,000[30]. - EBITDA for Full Year 2023 was $316,957,000, with an estimated range for Full Year 2024 between $232,145,000 and $234,545,000[30]. Operational Strategies - Atlas continues to invest in technologies such as autonomous trucking and artificial intelligence to improve operational efficiencies and reduce costs[20]. Risks and Uncertainties - The company is facing risks related to commodity price volatility, particularly due to geopolitical tensions in regions like Ukraine and the Middle East[27]. - The company has outlined a stock repurchase program, but the successful execution of this program is uncertain[27].

Acquisition Details - Langford Energy Partners (LEP) acquired Midland Basin assets from Murchison Oil and Gas, LLC, closing the deal on December 6, 2024 [1][2] - The acquired assets include approximately 8,000 net acres primarily located in Howard, Borden, and Midland Counties, Texas [1] - The assets have a net production of approximately 7,200 boe/d, with 72% being oil, primarily from 63 operated horizontal wells [1] - The acquisition includes established oil, gas, and water infrastructure, such as two owned saltwater disposal wells, to support future production and development [1] Management Perspective - LEP's CEO, Lance Langford, views the acquisition as an opportunity to expand the company's operational success and deliver value to investors, leveraging the asset for further bolt-on acquisitions in the Midland Basin [3] - Executive Chairman Bud Brigham highlights the high-quality nature of the asset, which aligns with the company's strategy, and expresses personal excitement about re-entering the Midland Basin, where he began his career [3] Financing and Advisors - The acquisition was funded through equity from LEP's flagship fund, Langford Energy Partners I, LP, and senior bank debt from a new credit facility led by Texas Capital Bank [5] - Legal counsel for LEP was provided by Vartabedian Hester & Haynes LLP, Vinson & Elkins LLP, and Kirkland & Ellis LLP [6] - RBC Richardson Barr served as the exclusive financial advisor, and Holland & Knight LLP acted as legal counsel for Murchison [6] Company Background - Langford Energy Partners manages a direct-to-LP fund focused on operated oil & gas investments, led by General Partners Lance Langford and Bud Brigham, who have over three decades of industry experience [7] - The Brigham Platform, led by Bud Brigham, consists of four enterprises, including LEP, aiming to capitalize on traditional energy sources while prioritizing innovation and operational efficiency [9]

Core Insights - Brigham Exploration (BEXP) has acquired nonoperated assets from Great Western Drilling Ltd. (GWDC) in Texas and New Mexico, significantly expanding its footprint in the Permian Basin [1][2]. Acquisition Highlights - The acquisition includes over 7,000 net acres in the Delaware and Midland Basin, primarily located in Eddy and Lea Counties, New Mexico, and Martin, Midland, Loving, and Winkler Counties, Texas [2]. - As of August 2024, the net production from the acquired assets is approximately 2,700 barrels of oil equivalent per day (boe/d) from around 29 net producing wells [2]. - The pro forma balance sheet post-acquisition is expected to maintain a strong leverage ratio below 1.0x [2]. - The acquisition was finalized on November 22, 2024, with an effective date of April 1, 2024 [2]. - Following the acquisition, BEXP's estimated average net daily wellhead production is projected to be around 15,500 boe/d from a combined total of approximately 79 net producing wells [2]. Strategic Alignment - The acquisition aligns with BEXP's strategic focus on high-quality properties with low geologic risk in the Permian Basin [2]. - Bud Brigham, BEXP's Executive Chairman, emphasized that this acquisition enhances their existing asset base and diversifies their positions geographically and geologically [3]. - The acquisition was funded through existing equity commitments, a new credit facility led by BOK Financial, and available cash [3]. Advisory Support - Vinson & Elkins LLP acted as legal counsel for BEXP, while Redfield Energy Advisors served as financial advisor and Lynch, Chappell & Alsup provided legal counsel to GWDC [4]. Company Background - BEXP is a premier non-operated oil and gas acquisition and management company focused on the Permian Basin, founded in 2017 by Bud Brigham, who has extensive experience in the oil and gas sector [5]. - The Brigham Platform, led by Bud Brigham, consists of multiple energy enterprises, emphasizing innovation, capital discipline, and operational efficiency [7].