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].

Production Capacity and Operations - The company reported a combined annual production capacity of approximately 29 million tons as of September 30, 2024[98]. - The company operates four proppant production facilities near Kermit, Texas, and a fifth facility near Monahans, Texas[98]. - The company’s proppant is essential for the recovery of hydrocarbons from oil and natural gas wells[98]. - The Dune Express, an overland conveyor infrastructure solution, is currently under construction to enhance logistics efficiency[98]. - The company’s operations are significantly influenced by the demand for proppant in the Permian Basin[97]. Financial Performance - Adjusted EBITDA for the three months ended September 30, 2024, was $71,051 thousand, compared to $84,078 thousand for the same period in 2023, reflecting a decrease of approximately 15.5%[113]. - Adjusted Free Cash Flow for the three months ended September 30, 2024, was $58,669 thousand, down from $68,521 thousand in the prior year, representing a decline of about 12.7%[115]. - Net income for the three months ended September 30, 2024, was $3,918 thousand, significantly lower than $56,327 thousand for the same period in 2023, indicating a decrease of approximately 93%[114]. - Adjusted EBITDA Margin for the three months ended September 30, 2024, was 23.3%, down from 53.3% in the prior year, indicating a significant decline in profitability[116]. - Adjusted Free Cash Flow Margin for the three months ended September 30, 2024, was 19.3%, compared to 43.5% for the same period in 2023, reflecting a decrease of approximately 55.6%[116]. - Gross profit for September 2024 was $53,018, compared to $79,625 in September 2023, reflecting a decrease of approximately 33.4%[117]. - Contribution margin for the nine months ended September 2024 was $250,390, down from $278,993 in the same period of 2023, a decline of about 10.3%[117]. Sales and Revenue - Product sales increased by $30.5 million to $145.3 million for the three months ended September 30, 2024, compared to $114.8 million for the same period in 2023, driven by higher sales volume[123]. - Service sales rose by $116.3 million to $159.1 million for the three months ended September 30, 2024, compared to $42.8 million in the prior year, attributed to increased logistics revenue and a full quarter contribution from Hi-Crush[123]. - Total sales reached $304.4 million for the three months ended September 30, 2024, up from $157.6 million in the same period of 2023[123]. Costs and Expenses - Cost of sales (excluding depreciation, depletion, and accretion expense) increased by $157.5 million to $225.3 million for the three months ended September 30, 2024, compared to $67.8 million in 2023[124]. - Operating income decreased to $15.2 million for the three months ended September 30, 2024, down from $65.3 million in the same period of 2023[124]. - Selling, general and administrative expenses increased by $11.2 million to $25.5 million for the three months ended September 30, 2024, due to higher employee costs and acquisition-related expenses[124]. - Interest expense, net rose by $9.7 million to $11.2 million for the three months ended September 30, 2024, driven by financing for the Hi-Crush acquisition[124]. Debt and Financing - Total debt as of September 30, 2024, was $475,262, significantly higher than $172,511 in September 2023[119]. - The company reported a net debt of $414,100 as of September 30, 2024, compared to a net cash position of $(84,048) in September 2023[119]. - The company issued a Deferred Cash Consideration Note with an initial principal amount of $111.8 million, bearing interest at 5.00% per annum if paid in cash[103]. - The 2023 Term Loan Credit Facility includes a $180.0 million initial term loan with a maturity date of July 31, 2030, bearing interest at 9.50% per annum[131]. - Interest expense associated with the 2023 Term Loan was $12.8 million for the nine months ended September 30, 2024, compared to $2.9 million in the same period of 2023[132]. Acquisitions and Transactions - The acquisition of Hi-Crush Inc. was completed on March 5, 2024, for a total consideration of $456.1 million, subject to customary post-closing adjustments[100]. - The company completed the Hi-Crush Transaction on March 5, 2024, acquiring assets for a total consideration of $140.1 million in cash and $111.8 million in deferred cash[120]. Market Conditions and Risks - The company is subject to various risks, including fluctuations in oil and natural gas prices and competition from other companies[97]. - The price for West Texas Intermediate crude oil decreased by approximately 15% from $82.69 per barrel in Q2 2024 to $70.24 per barrel in Q3 2024[106]. - The Permian Basin drilling rig count declined by two active rigs quarter-over-quarter, ending at 306 active rigs[106]. - E&P companies are increasingly drilling longer lateral wells, which drives up proppant demand for each well completed in the Permian Basin[108]. - The company is subject to various market risks, including interest rate risks and commodity pricing risks, with no material changes in risk exposure since December 31, 2023[141]. Compliance and Regulations - The company emphasizes the importance of maintaining necessary permits and compliance with environmental regulations[97]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing for extended transition periods for compliance with new accounting standards[138]. - The company assesses goodwill and acquired intangible assets for impairment annually, with adjustments made based on fair value assessments[140]. - The company has engaged third-party appraisal firms to assist in determining fair values for identifiable long-lived assets and intangible assets acquired[139].

Atlas Energy Solutions Inc. (NYSE:AESI) Q3 2024 Earnings Conference Call October 29, 2024 10:00 AM ET Company Participants Kyle Turlington - Vice President, Investor Relations Bud Brigham - Executive Chairman John Turner - Chief Executive Officer Blake McCarthy - Chief Financial Officer Chris Scholla - Chief Operating Officer Conference Call Participants Jim Rollyson - Raymond James Kurt Hallead - Benchmark Keith MacKey - RBC Capital Markets David Smith - Pickering Energy Partners Sean Mitchell - Daniel Ene ...

Investor Presentation October 2024 NYSE: AESI Important Disclosures Forward-Looking Statements 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, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include t ...

Financial Performance - Atlas Energy Solutions Inc. reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.55 per share a year ago, representing an earnings surprise of -24% [1] - The company posted revenues of $304.43 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.74%, compared to year-ago revenues of $157.62 million [2] - Over the last four quarters, Atlas Energy Solutions has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance and Outlook - Shares of Atlas Energy Solutions have increased by approximately 16.3% since the beginning of the year, while the S&P 500 has gained 21.8% [3] - The company's current consensus EPS estimate for the coming quarter is $0.24 on revenues of $317.42 million, and for the current fiscal year, it is $0.88 on revenues of $1.11 billion [7] Industry Context - The Oil and Gas - Integrated - United States industry, to which Atlas Energy Solutions belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Atlas Energy Solutions' stock performance [5][6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Delaware 001-41828 93-2154509 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share AESI New York Stock Exchange FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 10 ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Atlas Energy Solutions Inc. (AESI) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if th ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Atlas Energy Solutions Inc. (Exact Name of Registrant as Specified in its Charter) For the quarterly period ended June 30, 2024 (State or other jurisdiction of incorporation or organization) 5918 W. Courtyard Drive, Suite 500 Austin, Texas 78730 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Financial Data and Key Metrics Changes - Atlas reported revenues of $288 million for Q2 2024, a 49% sequential increase from Q1, primarily due to the full quarter impact from the acquisition of Hi-Crush [22] - Adjusted EBITDA decreased slightly to $72 million, representing 25% of revenue, while net income was $14.8 million, or 5% of revenue [22] - The total financial impact from the fire incident at the Kermit facility was at the top end of the $20 million to $40 million range previously estimated [24] Business Line Data and Key Metrics Changes - Revenues from product sales were approximately $128 million on volumes of 4.9 million tons, with an average sales price of about $26.07 per ton [23] - Service revenues reached approximately $159 million, doubling from Q1 levels due to the Hi-Crush acquisition and growth in the legacy business [23] - The logistics team set a quarterly record for loads delivered, with over 50% of sand volumes delivered using in-house last mile crews [23] Market Data and Key Metrics Changes - The Permian rig count has declined approximately 10% over the past 12 months and is expected to remain stagnant through the latter half of the year [15] - Despite a decline in rig activity, proppant demand is expected to increase slightly year-over-year, with the average amount of sand pumped per fracture rising from approximately 40,000 tons to over 65,000 tons [17] - The supply-demand balance in the Permian proppant market is looser than the previous year, with spot prices nearing breakeven for less advantaged competitors [17][18] Company Strategy and Development Direction - The construction of the Dune Express, a 42-mile overland conveyor system, is on track for commissioning by the end of the year, which is expected to significantly enhance proppant logistics in the Permian Basin [11][12] - Atlas is focusing on innovations in logistics, including a partnership with Kodiak Robotics for autonomous trucking, which is anticipated to improve last-mile delivery efficiency [14] - The company aims to maintain its competitive edge by leveraging its low-cost structure and operational efficiencies to navigate current market challenges [45][46] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 has been a challenging year for the oilfield, with weak natural gas prices impacting drilling and completion activities [15] - Despite current market conditions, Atlas remains confident in its ability to generate healthy margins and returns, as its operational advantages allow it to thrive even when competitors struggle [18] - The company is optimistic about future growth, particularly with the Dune Express expected to enhance logistics capabilities and customer service [35][36] Other Important Information - The company has increased its dividend to $0.23 per share, representing a 5% increase over the prior period, and has shifted to a stand-alone ordinary dividend structure [28] - Atlas has launched OnCore 8 in the Midland Basin, which has a production capacity exceeding one million tons annually [21] Q&A Session Summary Question: Impact of trucking rates on logistics business - Chris Scholla explained that while trucking rates have fallen, Atlas's structural advantages will enhance margins as the Dune Express ramps up [32][34] Question: Customer demand and volume outlook - Bud Brigham indicated that the sales team has secured over 9 million tons for delivery next year, and they are optimistic about future contracts [37] Question: Logistics outlook for Q3 - Blake McCarthy noted that while Q2 logistics results were exceptional, some normalization is expected in Q3, but no significant degradation in market conditions is anticipated [40] Question: Supply and demand dynamics in the proppant market - John Turner mentioned that some competitors are shutting down operations due to low pricing, which could positively impact pricing dynamics in the long run [42][43] Question: Market conditions in the Delaware Basin - Bud Brigham highlighted that the Dune Express will significantly enhance Atlas's position in the Delaware Basin, where demand is strong [49][50] Question: Future M&A considerations - John Turner stated that while the market is fragmented and consolidation is likely, Atlas will be selective in any future acquisitions to maintain its competitive position [87] Question: Ramping last mile deliveries ahead of Dune Express - Chris Scholla confirmed that they are expanding last mile contracts and targeting additional crews as the Dune Express nears completion [92]