Core Insights - Signia Capital Management's Small-Micro Cap Values strategy achieved a gross return of 39.28% and a net return of 35.04% for the full year 2025, significantly outperforming the Russell Microcap Value's return of 23.83% and the Russell 2000 Value's return of 12.59% [1] - Since inception, the strategy has delivered a net annualized return of 29.42%, compared to 16.15% for the Russell Microcap Value and 14.54% for the Russell 2000 Value [1] Company Focus - Atlas Energy Solutions Inc. (NYSE:AESI) is highlighted as a key investment, providing frac sand used in oil and gas well-completion processes [2][3] - As of February 11, 2026, Atlas Energy Solutions Inc. had a stock price of $12.01 per share, with a one-month return of 9.88% but a decline of 42.97% over the past twelve months [2] - The market capitalization of Atlas Energy Solutions Inc. is reported at $1.997 billion [2] - Signia Capital Management initiated a position in Atlas Energy Solutions Inc. in early December 2025, marking one of seven new buys in the second half of 2025 [3]

Group 1 - Atlas Energy Solutions Inc. (NYSE:AESI) experienced a share price decline of 2.10% from January 23 to January 30, 2026, ranking it among the energy stocks that lost the most during that week [1] - The company is involved in the production, processing, and sale of frac sand, which is utilized as a proppant in the well completion process, primarily in the Permian Basin of West Texas and New Mexico [2] - Stephens has reduced its price target for AESI from $20 to $16 while maintaining an 'Overweight' rating, projecting a mixed Q4 report with EBITDA estimates 14% above and cash flow per share estimates 8% below consensus [3] Group 2 - Over the past year, AESI's share price has declined by more than 49%, indicating significant volatility and potential investment risks [4] - The company is expected to provide mixed guidance for 2026, with EBITDA estimates in line with and cash flow per share estimates 7% above market expectations [3]

Group 1 - Source Energy Services held its annual meeting of shareholders on May 9, 2025, where results were reported [1] - All proposed nominees for the board of directors were elected, with Scott Melbourn receiving 99.98% of votes for, and Chris Johnson receiving 98.59% [2] - Shareholders approved the resolution to fix the number of directors at four, with 81.95% approval, and the appointment of Ernst & Young LLP as the auditor with 99.99% approval [3] Group 2 - Source Energy Services specializes in the integrated production and distribution of frac sand and other bulk completion materials [4] - The company offers an end-to-end solution for frac sand, supported by its mines and processing facilities in Wisconsin and Peace River, along with a terminal network in Western Canada [4] - Source's logistics platform enhances supply reliability and ensures timely delivery of frac sand and other materials to well sites [5]

Group 1 - Source Energy Services held its annual meeting of shareholders on May 9, 2025, where results were reported [1] - All proposed nominees for the board of directors were elected, with Scott Melbourn receiving 99.98% of votes for, and Chris Johnson receiving 98.59% [2] - Shareholders approved the resolution to fix the number of directors at four with 81.95% approval, and the appointment of Ernst & Young LLP as the auditor with 99.99% approval [3] Group 2 - Source Energy Services specializes in the integrated production and distribution of frac sand and other bulk completion materials [4] - The company offers an end-to-end solution for frac sand, supported by its mines and processing facilities, terminal network, and logistics capabilities [4][5] - Source's logistics platform enhances reliability of supply and ensures timely delivery of materials at well sites [5]

Core Viewpoint - Source Energy Services Ltd. has announced the implementation of a Normal Course Issuer Bid (NCIB) to repurchase its Common Shares, aiming to enhance shareholder value by reducing the number of outstanding shares [1][5]. Summary by Sections NCIB Details - The NCIB will commence on May 13, 2025, and will terminate on the earlier of May 12, 2026, or when the maximum number of shares is purchased, which is the lesser of $5 million worth of shares or 750,000 Common Shares [3]. - As of April 30, 2025, there were 13,545,055 Common Shares outstanding, and the average daily trading volume for the past six months was 29,156 Common Shares, allowing a maximum daily repurchase of 7,289 shares [2][3]. Automatic Securities Purchase Plan (ASPP) - The company plans to enter into an ASPP with Acumen Capital Finance Partners Limited, allowing repurchases during regulatory restrictions or blackout periods, with Acumen determining the timing and number of shares purchased [4]. Management's Perspective - The Board of Directors and management believe the market price of Source's Common Shares does not reflect their underlying value, and the NCIB is a strategy to allocate capital effectively [5]. - Decisions regarding the timing and size of purchases under the NCIB will be based on various factors, including liquidity, financial performance, and market conditions [6]. Company Overview - Source Energy Services focuses on the integrated production and distribution of frac sand and other bulk completion materials, providing an end-to-end solution supported by its mining and processing facilities [7]. - The company's logistics platform enhances the reliability of supply and timely delivery of materials to well sites [8].

Core Insights - Source Energy Services Ltd. reported strong financial results for Q1 2025, achieving record sand sales volumes and revenue, driven by increased demand and operational efficiency [1][4][7]. Financial Performance - Sand volumes reached 1,041,223 metric tonnes (MT), up from 874,849 MT in Q1 2024, representing a 19% increase [3][4]. - Sand revenue was $162.9 million, a 22% increase from $132.9 million in Q1 2024 [3][4]. - Total revenue for the quarter was $208.6 million, an increase of $39.0 million or 23% compared to the previous year [4][7]. - Net income surged to $23.6 million, up from $1.9 million in Q1 2024, reflecting improved business performance and a legal settlement [4][7]. - Adjusted EBITDA increased by 5% to $33.8 million, compared to $32.0 million in Q1 2024 [11][28]. Cost and Margin Analysis - Gross margin was $36.8 million, a slight increase from $35.6 million in Q1 2024 [4][9]. - Adjusted Gross Margin was $46.2 million, up 7% from $43.2 million in the same quarter last year [4][31]. - Cost of sales increased due to higher sand sales volumes and transportation costs, with a notable impact from the weakening Canadian dollar [8][9]. Operational Highlights - The company achieved 88% utilization across its eleven-unit Sahara fleet, indicating strong operational efficiency [4]. - The initial phase of the Peace River facility expansion was completed, with a new rotary dryer fully operational [4][17]. - The first phase of operations at the Taylor transload facility commenced, enhancing logistics capabilities [4][17]. Business Outlook - Source anticipates continued strong customer activity levels in the Montney basin through Q2 2025, supported by recent expansions and operational improvements [17][20]. - The company is focused on increasing its logistics services in response to customer demand, aiming to enhance its service offerings [21][20].