Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q2 2023 Earnings Presentation
27 slides from Atlas Energy Solutions's earnings presentation, Aug 1, 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 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: Important Disclosures
Important Disclosures Trademarks and Trade Names The Company owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are th
Slide 4: Atlas Energy Solutions (NYSE: AESI) at a Glance
Atlas Energy Solutions (NYSE: AESI) at a Glance Atlas Q2 2023 Update Video Market Capitalization (1) $2.0B ctrl + click to play Enterprise Value (1) $1.8B Q2’23 Quarterly Dividend (2) $0.20 / share Resource Life (3) 100+ years Employees ~400 Headquarters Austin, Texas Stock Symbol NYSE: AESI (1) Sou
Slide 5: Q2 2023 Operational & Financial Update
Atlas Energy Solutions Q2 2023 Operational & Financial Update Total Sales Adj. EBITDA(2) Adj. FCF(2) Net Income Cash Provided by Operating Activities $162mm $93mm $82mm $71mm $104mm (2.8mm tons) (1) (57% Margin) (51% Margin) (44% Margin) (92% growth QoQ) Q2 2023 Capital Projects Update: Dune Express
Slide 6: Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider
Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider Key Investment Highlights Pure Play Permian Asset Base (2) Compelling Valuation and Growth Profile Trading at a discount to peers (1) High growth potential from ongoing capital projects Robust Cash Flow Generation + Strong Financia
Slide 7: AESI's Proppant Production Advantage
AESI’s Proppant Production Advantage Premium Giant Open Dune Geology Advantaged Access to Water Next Generation Plant Design KeyKey Benefits fromfrom Benefits Geology: Geology Key KeyBenefits Benefitsfrom Water from Access: Water Access Key KeyBenefits Benefitsfrom Plant from Design: Plant Design La
Slide 8: The Permian's Giant Open Dunes are a Tier One Resource
The Permian’s Giant Open Dunes are a Tier One Resource Geology of open dunes separates AESI on scale, costs, margins & quality Premier Assets Bookending the Winkler Sand Trend Improved yields relative to off-dune deposits enhances economics Atlas Kermit: • 5,825 gross acres (all on Kermit Exceptiona
Slide 9: Atlas Plant Design & Dredge Mining Provide Operational Advantages
Atlas Plant Design & Dredge Mining Provide Operational Advantages Comparison of Electric Dredging vs. Traditional Mining Atlas has invested in automation to reduce labor costs (2) Cost Impact Emissions Impact (1) Hours of Labor per 1mmtpy Nameplate Capacity ~70% ~50% 100,000 Contract Mining Cost Red
Slide 10: Industry Leading Sustainability, Financial Performance & Growth
Industry Leading Sustainability, Financial Performance & Growth (1) Sales ($mm) Volume (mmtpy) 8.3 10.2 11.3 (2) Growing Sales Avg. Price ($/ton) $17.21 $40.10 $45.32 with High-Quality, $483 Diversified Customer Annualized Base $172 $315 YTD 2021 2022 1H 2023 Adj. EBITDA ($mm) & Adj. EBITDA Margin
Slide 11: Consistent and Durable Return of Capital to Shareholders
Consistent and Durable Return of Capital to Shareholders Since Q4 2021, Atlas has paid $105 million in distributions and dividends (1) Capital Allocation Framework Historical Investor Distributions & Dividends (1) Declared a Q2 2023 base dividend of $0.15 per share and Post-IPO Dividends & Associate
Slide 12: Exceptional Margins & Growth that Merit Multiple Expansion
Exceptional Margins & Growth that Merit Multiple Expansion EV / 2025E Adj. EBITDA, ’22 – ‘25E EBITDA Growth and 2025E EBITDA Margins 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: AESI Trucking Fleet Update: Significantly Expanding Payloads
AESI Trucking Fleet Update: Significantly Expanding Payloads Summary Update / Latest Developments AESI Payloads on Private Roads Far Exceed Industry Norm 120 5.0x ~10% of our second quarter deliveries utilized multi-trailers; 105 4.5x seeing continued customer adoption 100 4.4x 4.0x We expect to hav
Slide 14: Shortened Distances and Expanded Payloads Drive Efficiencies
Shortened Distances and Expanded Payloads Drive Efficiencies Positive disruption of the Permian trucking model reduces road traffic Conventional Trucking Atlas Drop-Depot Model Atlas / Dune Express ~23 tons ~23 tons ~70+ tons ~70+ tons 130-miles round trip 35-miles round trip 75-miles round trip 42-
Slide 15: The Dune Express: Proppant Midstream Infrastructure
The Dune Express: Proppant Midstream Infrastructure Project Overview Dune Express Update (as of July 31, 2023) The Dune Express is an overland conveyor system that will Right of Way Acquisition: Complete transport proppant to the Delaware Basin Pre-Construction Engineering: Complete — Expected cost:
Slide 16: AESI Logistics = Safer, More Reliable and Lower Emission Sand Delivery
AESI Logistics = Safer, More Reliable and Lower Emission Sand Delivery 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 5
Slide 17: Kermit Plant Expansion Poised to Meet Growing Permian Demand
Kermit Plant Expansion Poised to Meet Growing Permian Demand Kermit Plant Expansion Update Atlas is Expanding it’s Differentiated Proppant Producing Leadership (1) Silos are up Existing Production Capacity Kermit Facility Expansion will Capacity Under Construction increase Atlas’s production capacit
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 Assets Illustrative Dune Express Highway Overpass Robust Cash Flow Generation + Strong Financial Position High Quality, Differentiated Asset Base Compelling Valuation and Gro
Slide 20: Term Loan Refinancing Enhances Liquidity, Extends Maturity and Improves Dividend Capacity
Term Loan Refinancing Enhances Liquidity, Extends Maturity and Improves Dividend Capacity Transaction Overview Pro Forma Capitalization and Liquidity Position (1) ($ in millions except per share data) On 7/31/2023, AESI & Stonebriar closed on a refinancing of As of Pro Forma the 2021 Term Loan, alon
Slide 21: Up-C Simplification Clearly Aligns All Shareholders
Up-C Simplification Clearly Aligns All Shareholders The elimination of the Up-C is expected to reduce corporate complexities Transaction Overview Pro Forma Organizational Chart Up-C Simplification will result AESI’s board has approved an Up-C simplification in a Single Class of Stock transaction pur
Slide 22: AESI's DSL Conservation Plan has us Well Prepared for Anything
AESI’s DSL Conservation Plan has us Well Prepared for Anything We expect no disruption to our business even if the DSL is ultimately listed under the ESA AESI’s proactive conservation measures mitigate business risk Dunes Sagebrush Lizard (“DSL”) Atlas has been a leader in the Permian sand community
Slide 23: Appendix
wh Atlas Appendix Energy Solutions
Slide 24: 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 (in thousands) For the Three Months Ended For the Year Ended December 31, June 30, 2023 March 31, 2023 2022 2021 Net income $ 71,211 $ 62,905 $ 217,006 $ 4,258 Deprecia
Slide 25: 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, except percentages) For the Three Months Ended For the Year Ended December 31, June 30, 2023 March 31, 2023 December 31, 2022 December 31, 2021 Net ca
Slide 26: Non-GAAP Financial Measure Definitions
Non-GAAP Financial Measure Definitions Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our manage
Slide 27: 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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