Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q3 2024 Earnings Presentation
28 slides from Atlas Energy Solutions's earnings presentation, Oct 29, 2024
Slide 1: Investor Presentation October 2024
Investor Presentation October 2024 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 (cont’d)
Important Disclosures (cont’d) Reserves This Presentation includes frac sand reserve and resource estimates based on engineering, economic and geological data assembled and analyzed by our mining engineers, which are reviewed periodically by outside firms. However, frac sand reserve estimates are by
Slide 4: Atlas Energy Solutions (NYSE: AESI) at a Glance
Atlas Energy Solutions (NYSE: AESI) at a Glance Q3’24 Update Video ctrl + click to play Market Capitalization (1) $2.2B Enterprise Value (1) $2.6B Production Capacity ~29mmtpy Resource Life (2) ~75 years Headquarters Austin, Texas Stock Symbol NYSE: AESI (1) Source: Bloomberg. Market data as of 25-O
Slide 5: Permian Basin Market Update – Strong Market Fundamentals
Permian Basin Market Update – Strong Market Fundamentals Completions efficiencies driving proppant demand growth; the Permian is the #1 basin in US shale 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 Produc
Slide 6: 3Q’24 Quarterly Financial & Operational Updates
3Q’ Quarterly Financial & perational pdates 19% Total Shareholder Return (1) Largest $222 million returned to shareholders (2) North American Frac Sand Provider (3) $304mm $71mm Leading Provider 3Q’24 Revenue 3Q’24 Adj. EBITDA (4) of Last Mile Solutions $59mm $0.24 / share Announces $200mm 3Q’24 Adj
Slide 7: Atlas is a Leading Permian Focused Proppant and Logistics Provider
Atlas is a Leading Permian Focused Proppant and Logistics Provider Key Investment Highlights Permian Basin Asset Base (2) Compelling Valuation and Growth Profile Trading at a compelling valuation (1) High growth potential from ongoing capital projects and the deployment of additional OnCore units Ro
Slide 8: The Atlas Energy Solutions Advantage
The Atlas Energy Solutions Advantage Logistics and Environmental & Social Market Leadership Operational Efficiency Infrastructure Responsibility Production Capacity & OnCore, Automation & Dune Express & Sustainability Leadership Resource Life Other Innovation High-Capacity Trucking Atlas has a signi
Slide 9: The Permian’s Giant Open Dunes are a Premier Resource
he ermian’s Giant pen Dunes are a ier ne esource 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 enhance economics Atlas Kermit: • 7,052 gross acres (all on Kermit Exceptional quali
Slide 10: OnCore Distributed Mining Network: An Extensive Operational Footprint
OnCore Distributed Mining Network: An Extensive Operational Footprint Nine mines in the Permian Basin provide our customers with operational flexibility, critical spare inventory, and pickup optionality that drive efficiencies in their completion programs Overview Extensive Distributed Mining Networ
Slide 11: 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 Cost Impact Contract Mining Cost Reduction, with Hours of Labor per Effective Nameplate Capacity (2) ~70% Durability as Cost
Slide 12: Consistent and Durable Return of Capital to Shareholders
Consistent and Durable Return of Capital to Shareholders Since inception, Atlas has declared $222 million in distributions and dividends (1) Q ’ eturn o Capital Historical Investor Distributions & Dividends Post-IPO Dividends & November 2024 base dividend of $0.24 per share results in a Associated D
Slide 13: EV / 2026E Adj. EBITDA and 2026E Adj. EBITDA Margins
EV / 2026E Adj. EBITDA and 2026E Adj. EBITDA Margins Exceptional margins that merit multiple expansion Atlas Trades at a Discount to Peers while Wall Street Consensus Margins Outperform Median EV / '26E Adj. EBITDA Median '26E Adj. EBITDA Margin 10.4x 51.8% 41.6% 40.1% 7.6x 6.7x 6.6x 30.6% 6.1x 4.9x
Slide 14: AESI Logistics Update
AESI Logistics Update Summary Update / Latest Developments AESI Payloads on Private Roads Far Exceed Industry Norm In Q3’2 , we delivered ~7 of total sales volumes through Atlas Record Job Average: ~92 tons our last mile crews 105 4.4x 120-truck fleet expected to haul 13mmtpy of proppant once 70 Dun
Slide 15: Redefining the Oilfield Supply Chain from a Manual Process to Data Driven & Automated Solutions
Redefining the Oilfield Supply Chain from a Manual Process to Data Driven & Automated Solutions Atlas is integrating a digital supply chain to reshape supply chain efficiencies Overview of the Atlas Last Mile Application Scaling is Our Digital Platform Foundation — Eliminating manual inputs (OCR, AP
Slide 16: The Dune Express: Proppant Midstream Infrastructure
The Dune Express: Proppant Midstream Infrastructure Project Overview Dune Express Update 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: $400 million Groundbr
Slide 17: The Dune Express in Photos
The Dune Express in Photos Dune Express Conveyor Dune Express Exiting Kermit Facility Culvert Crossing Flood Zone Overhead Crossing Atlas Energy Solutions (NYSE: AESI) | October 2024 High Quality, Differentiated Asset Base 17
Slide 18: 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) Atlas Mine Atlas Mine Dune Express Route (1) Max Proppant (tons) Max Proppant (tons) < 100 < 100 350 - 500 100 - 124 1
Slide 19: The Dune Express and Distributed Mining Assets Drive Efficiency Gains
The Dune Express and Distributed Mining Assets Drive Efficiency Gains Atlas is differentiated by its efficiencies and associated emissions reduction. Atlas deliveries are expected to reduce emissions by ~70% (1) relative to Winkler Trend deliveries. …is Increased y Dune Express Hi h-Capacity Truckin
Slide 20: 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 21: Logistically Advantaged Across the Permian Basin with Unparalleled Capacity
Logistically Advantaged Across the Permian Basin with Unparalleled Capacity Logistically Advantaged Permian Basin Assets Leading Production Capacity Among Peers (1) ~29.0 Existing Production Capacity Capacity Under Construction Atlas is the leading producer in a fragmented market (1) ~30% Atlas is t
Slide 22: Management’s E&P Background and Track Record of Value Creation
Mana ement’s E& Back round and rack ecord o Value Creation Disruptive Oil & Gas Ventures with Track Record of Success Mana ement’s E& Back round Drives Customer uccess Pioneering Use of 3D Seismic, Disruption in Horizontal D&C What We served hrou h an E& perator’s Lens Techniques within the Oil-Rich
Slide 23: Atlas Energy Solutions (NYSE: AESI) Investment Highlights
Atlas Energy Solutions (NYSE: AESI) Investment Highlights The Dune Express Expanded Payload Top-Tier Sand Resources Distributed Mining Network Robust Cash Flow Generation + Strong Financial Position High Quality, Differentiated Asset Base Compelling Valuation and Growth Profile Proven Team, Compelli
Slide 24: Appendix
wh Atlas Appendix Energy Solutions
Slide 25: Reconciliation and Calculation of Non-GAAP Financial Measurements
Reconciliation and Calculation of Non-GAAP Financial Measurements EBITDA and Adjusted EBITDA to Net Income (in thousands) Three Months Ended September 30, 2024 June 30, 2024 March 31, 2024 September 30, 2023 Net income $ 3,918 $ 14,837 $ 26,787 $ 56,327 Depreciation, depletion and accretion expense
Slide 26: 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) Three Months Ended September 30, 2024 June 30, 2024 March 31, 2024 September 30, 2023 Net cash provided by operating activities $
Slide 27: 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 28: 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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