Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q1 2023 Earnings Presentation
25 slides from Atlas Energy Solutions's earnings presentation, May 9, 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023 NYSE: AESI
Slide 2: Important Disclosures
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
Slide 3: Atlas Energy Solutions (NYSE: AESI) at a Glance
Atlas Energy Solutions (NYSE: AESI) at a Glance Market Capitalization (1) $1.7B Enterprise Value (1) $1.5B Quarterly Variable Dividend: $0.15 / share Resource Life (2) 100+ years Employees ~397 Headquarters Austin, Texas Stock Symbol NYSE: AESI Constructively Disrupting the Permian Basin (1) Source:
Slide 4: Atlas Energy Solutions Q1 2023 Update
Atlas Energy Solutions Q1 2023 Update Sales Adj. EBITDA (1) Adj. FCF (1) Net Income Cash from Ops $153mm $84mm $77mm $63mm $54mm ~2.8mm tons ~55% margin ~50% margin ~41% margin ~129% growth y/y Dune Express Dune Update Express Kermit Expansion • Have ordered >50% of equipment, 40% of installation /
Slide 5: Company Overview / Introduction
Company Overview / Introduction
Slide 6: Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider
Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider Key Investment Highlights Scaled Permian Assets to Service Entire Permian (1,2) Strong Financial Performance and Growth Profile Strong + resilient margins Low capital intensity required to maintain core business Strong balance shee
Slide 7: What's in Atlas's Differentiated Logistics Offering, and Why it Matters
What’s in Atlas’s Differentiated Logistics Offering, and Why it Matters Drives significant future FCF growth potential; provides safety and emissions benefits Fit-for-Purpose Wellsite Delivery Assets Dune Express Atlas’s trucking fleet can handle comparably large payloads First ever long-haul overla
Slide 8: Kermit Expansion to Increase Company Production Capacity by 50%
Kermit Expansion to Increase Company Production Capacity by 50% Atlas is expanding it’s basin leading production capacity In response to the significant Atlas is Expanding it’s Differentiated Proppant Producing Leadership (1) increase in market demand for Kermit Facility Expansion will Existing Prod
Slide 9: Permian is the #1 Oil Basin; Efficiencies Drive Growing Proppant Demand
Permian is the #1 Oil Basin; Efficiencies Drive Growing Proppant Demand Permian Basin Production & Rig Count (1,2) Permian Frac Fleets & Proppant per Fleet per year (1) 10 The Permian Basin is Driving U.S. Shale Production 70% Simul-Frac Fleets Can Use >1mmtpy Permian Frac Fleets 9 60% Proppant per
Slide 10: Key Investment Highlights
wh Atlas Key Investment Highlights Energy Solutions
Slide 11: Industry Leading Sustainability, Financial Performance & Growth
Industry Leading Sustainability, Financial Performance & Growth (1) Sales ($mm) Volume (mmtpy) 8.3 10.2 11.2 (2) Avg. Price ($/ton) $17.21 $40.10 $46.45 Growing Sales $483 Annualized with Diversified Customer Base $172 $153 2021 2022 Q1 2023 Adj. EBITDA & Adj. EBITDA Margin ($mm) (3) 55% 55% 42%
Slide 12: Exceptional Margins & Growth that Merit Multiple Expansion
Exceptional Margins & Growth that Merit Multiple Expansion Atlas aims to deliver returns through a combination of growth and income Atlas Trades at a Discount to Peers while Wall Street Consensus Margins and Growth Outperform Median EV / '25E Adj. EBITDA Median '22A - '25E Adj. EBITDA Growth Median
Slide 13: Open Dunes Differentiate Atlas on Scale, Quality, Costs & Margins
Open Dunes Differentiate Atlas on Scale, Quality, Costs & Margins Geology of open dunes differentiates Atlas Premier Assets Bookending the Winkler Sand Trend Improved process yields relative to off-dune deposits enhances economics Atlas Kermit: • 5,826 gross acres (all on Kermit Better testing resul
Slide 14: Atlas Plants Designed to Maximize Reliability and Efficiency
Atlas Plants Designed to Maximize Reliability and Efficiency • Only Permian mines with electric dredge; lower cost & emissions Automation = reduced labor costs Hours worked / 1mmtpy Capacity (1) • Advantaged, no cost, water access (Atlas recycles ~95% of water) 100,000 • Equipment redundancies maxim
Slide 15: Atlas Expects to Deliver Significant Logistics Efficiency Gains
Atlas Expects to Deliver Significant Logistics Efficiency Gains Daily Proppant Delivery Capacity per Truck (Current) Daily Proppant Delivery Capacity per Truck (Dune Express) (1) Today, a truck can deliver only With the Dune Express, a truck can ~125 to ~150 tons to this point deliver up to 500 tons
Slide 16: Selected Bulk Material Conveyor Systems Operating Around the World
Selected Bulk Material Conveyor Systems Operating Around the World Conveyors are commonly used to transport bulk materials globally Applying an Old Technology to a New Application: The Dune Express will be the First Long-Distance Conveyor to Transport Proppant Freeport-McMoRan Teck Resources Arch Re
Slide 17: Atlas General Contractor Approach & Experience Controls Costs and Ensures Timelines
Atlas General Contractor Approach & Experience Controls Costs and Ensures Timelines Atlas Major Construction Projects since 2017 (1) Kermit Facility Monahans Facility Kermit Expansion Dune Express Dune Express Update: Q4 2024 expected commercial in-service Milestones achieved from 2017 – IPO Milesto
Slide 18: Management's E&P Background and Track Record of Value Creation
Management’s E&P Background and Track Record of Value Creation Disruptive Oil & Gas Ventures with Track Record of Success Management’s E&P Background Drives Customer Success Pioneering Use of 3D Seismic, Disruption in Horizontal D&C What We Observed Through an E&P Operator’s Lens Techniques within t
Slide 19: Atlas Energy Solutions (NYSE: AESI) Investment Highlights
Atlas Energy Solutions (NYSE: AESI) Investment Highlights Atlas conveyor fed silos at Kermit Facility Atlas Wellsite Delivery Asset Illustrative Dune Express Highway Overpass Strong Financial Performance, Exceptional Margins & Growth Profile at an Attractive Valuation High Quality, Differentiated As
Slide 20: Appendix
wh Atlas Appendix Energy Solutions
Slide 21: Atlas's Business is Inherently Different from Legacy Sand Providers
Atlas’s Business is Inherently Different from Legacy Sand Providers Atlas Advantage Underpinned by In-Basin + Just-in-Time Model Drives Efficiency + Profits Midwestern Supply Chain: ~1,300+ miles, by train + truck ~1,300 Distance From Mine to Wellsite (miles) In-Basin Supply Chain: ~25 – 150 mile by
Slide 22: Reconciliation and Calculation of Non-GAAP Financial Measurements
Reconciliation and Calculation of Non-GAAP Financial Measurements
Slide 23: Reconciliation and Calculation of Non-GAAP Financial Measurements
Reconciliation and Calculation of Non-GAAP Financial Measurements EBITDA, Adjusted EBITDA, and Adjusted Free Cash Flow to Net Income (Loss) (in thousands, except percentages) For the Three Months Ended March 31, For the Year Ended December 31, 2023 2022 2022 2021 Net income $ 62,905 $ 20,846 $ 217,0
Slide 24: Reconciliation and Calculation of Non-GAAP Financial Measurements
Reconciliation and Calculation of Non-GAAP Financial Measurements Adjusted Free Cash Flow to Net Cash Provided by Operating Activities (in thousands) For the Three Months Ended March 31, For the Year Ended December 31, 2023 2022 December 31, 2022 December 31, 2021 Net Cash Provided by Operating Acti
Slide 25: Investor Relations Contact
Investor Relations Contact For more information, please visit our website at https://atlas.energy/ IR Contact: Kyle Turlington 5918 W Courtyard Drive, Suite #500; Austin, Texas 78730 (T) 512-220-1200 IR@atlas.energy NYSE: AESI
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