Core Insights - Researchers at Tomsk Polytechnic University have developed a new three-phase inverter that could potentially double the reliability of power grids [1] - The inverter features a modern control system that allows renewable energy sources to participate in grid regulation, simulating the operation of traditional synchronous motors for wide-range voltage adjustment [1] Group 1: Technology and Functionality - The basic inverter can adjust voltage amplitude and frequency, thereby regulating power and transmission angle, which determines the extent and duration of operational parameter fluctuations after disturbances [1] - The new control device can link various parameters together, enabling appropriate responses to external disturbances, thus preventing greater losses from arbitrary parameter changes [1] - The new inverter significantly simplifies the connection and operation of renewable energy generation equipment and facilitates the integration of hybrid battery systems into the grid [1] Group 2: Impact and Applications - Preliminary estimates indicate that the device can reduce the amplitude of operational parameter fluctuations during disturbances by nearly half [1] - Prototypes based on this research have been constructed, and design documents for test samples are currently being prepared [1] - The research aims to ensure reliable and seamless integration of different generation and consumption facilities, laying the groundwork for next-generation high-voltage transmission lines, including high-voltage direct current (HVDC) systems and flexible alternating current transmission systems (FACTS) [1] Group 3: Regional Significance - Experts believe that the application of these devices in isolated power systems in regions such as the Far East or the Arctic will be particularly effective due to lower generation and consumption levels [2] - The combination of relatively small storage systems with the newly developed converters is expected to have a greater impact on power quality in these areas [2]

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]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $547.5 million, down from $593.4 million in Q2 2024, primarily due to lower coal sales prices and transportation revenues, partially offset by higher coal sales volumes [4] - Average coal sales price per ton decreased by 11.3% year-over-year to $57.92, driven by the roll-off of higher-priced legacy contracts and a higher proportion of Illinois Basin tons [4] - Net income for Q2 2025 was $59.4 million, compared to $100.2 million in Q2 2024, reflecting variances in revenues and higher depreciation expenses [9] - Adjusted EBITDA for the quarter was $161.9 million, down 10.8% year-over-year but up 1.2% sequentially [10] Business Line Data and Key Metrics Changes - Coal production in Q2 2025 was 8.1 million tons, a 3.9% decrease compared to Q2 2024, while coal sales volumes increased by 6.8% to 8.4 million tons [4] - In the Illinois Basin, coal sales volumes increased by 15.2% year-over-year, driven by record shipments from Riverview and Hamilton mines [5] - Coal sales volumes in Appalachia decreased by 16.8% year-over-year due to challenging mining conditions at Tunnel Ridge [5][6] - Royalty segment revenues were $53.1 million, up 0.2% year-over-year, with oil and gas royalty volumes increasing by 7.7% [8] Market Data and Key Metrics Changes - Eastern utility inventories were 18% below the prior year, indicating a tightening market [18] - Year-to-date electricity generation in key Eastern regions was up over 18% compared to last year, driven by warmer temperatures and increased coal generation [18] - The company is seeing multiple domestic customer solicitations for long-term supply contracts, indicating strong demand for coal [11][12] Company Strategy and Development Direction - The company is optimistic about the long-term outlook due to supportive regulatory actions and strong domestic coal market fundamentals [18][21] - The company is increasing its volume guidance for the Illinois Basin to 25 to 25.75 million tons based on solid domestic demand [12] - The company is exploring opportunities in energy infrastructure related to data centers and evaluating investments in coal power plants [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the current regulatory environment is the most favorable for coal in decades, with actions taken to support coal-fired power plants [21][22] - The company expects second-half results from Appalachia to improve following the completion of a longwall move at Tunnel Ridge [7] - Management expressed cautious optimism about growth opportunities in sales volumes next year, despite potential lower average coal sales prices [19] Other Important Information - The company generated free cash flow of $79 million after investing $65.3 million in coal operations [11] - The quarterly distribution rate was adjusted to $0.60 per unit, reflecting a strategic decision to strengthen the balance sheet and provide flexibility for growth opportunities [22][33] Q&A Session Summary Question: Can you provide more details on the $25 million investment for the acquisition of the Gavin Power plant? - The investment allows participation as an LP investor in a fund set up for the acquisition, which is expected to be accretive upon closing [28] Question: Can you clarify the board's decision to lower the distribution despite a strong outlook? - The adjustment aligns with a more sustainable operating margin and allows for additional cash flow to pursue growth opportunities [32][33] Question: What are the potential growth opportunities being considered? - The company is looking at investments in minerals, energy infrastructure for data centers, and potential acquisitions of coal plants [36][37] Question: How do you see the impact of the recent trade deal on guidance? - There is potential for increased manufacturing demand in the Eastern U.S., which could benefit coal demand [62] Question: How do you anticipate demand growth pacing? - Demand is expected to stabilize as utilities maintain inventory levels, correlating with coal purchases [67][70] Question: Has the decline in Chinese demand for seaborne coal impacted U.S. pricing? - Domestic pricing remains prioritized, but there are signs of improved pricing for exports, which could increase next year [75] Question: Will there be continued investments in royalty assets? - The company plans to invest in its royalty segment, primarily targeting the Permian and Delaware Basins [77]

Group 1 - The U.S. Environmental Protection Agency (EPA) has released guidance on the adoption of artificial intelligence (AI) technologies to ensure the reliability of the electric grid [1]