Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Investor Presentation (March 2024)
31 slides from Atlas Energy Solutions's investor presentation, Mar 19, 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024 Exhibit 99.1
Slide 2: Forward-Looking Statements
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 Exchange Act of 1934,
Slide 3: Trademarks, Industry Data and Non-GAAP Financial Measures
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 the property of their re
Slide 4: Management's E&P Background and Track Record of Value Creation
Note: Past performance by members of our management team, our directors or their respective affiliates may not be indicative of future performance. | Source: Bloomberg, public disclosures. | (1) Total return calculated as cumulative dividends plus stock price appreciation (IPO date through 28-Dec-20
Slide 5: Permian Basin Market Update
Completions efficiencies driving proppant demand growth; the Permian is the #1 basin in US shale Permian Basin Market Update Permian Other (1) Per Lium, Baker Hughes and EIA. 2023E, 2024E and 2025E frac fleet and proppant demand forecast based on Lium guidance. | (2) Area chart represents production
Slide 6: Consistent Long-Term Value Creation and Shareholder Return of Capital
Includes the pending dividend payable on February 29. | (2) As of market close on February 23, 2024. | (3) Calculations assume AESI consensus estimates as of 02/14/2024. Cash Flow Per Share (“CFPS”) defined as net income plus depreciation and amortization divided by diluted shares outstanding. Earni
Slide 7: Atlas's Strong and Durable Margins Outperform Industry Peers
Source: Public filings and Bloomberg consensus data as of 12-March-2024. Note: Adjusted EBITDA is a Non-GAAP financial measure. Adj. EBITDA margin calculated as Adj. EBITDA divided by Sales. See Appendix for a reconciliation of non-GAAP measures to the nearest GAAP measures. Figures represent figure
Slide 8: Exceptional Margins that Merit Multiple Expansion
Source: Public Filings, Bloomberg Consensus data as of 12-March-2024. | Big Three Oilfield Services: SLB, BHI and HAL. | Equipment & Infra.: NOV, FTI, WHD and OII. | Chemical / Water / Proppant: CHX, SES, SOI, ARIS and SLCA. | Production & Field Services: USAC, AROC, XPRO, KGS and CLB. | Midstream:
Slide 9: Atlas Acquisition of Hi-Crush
wh Atlas Acquisition of Hi-Crush Energy Solutions
Slide 10: Acquisition of Hi-Crush Creates Largest Proppant Producer in North America
Transaction excludes midwestern mining assets and NE terminal assets. Atlas’s Acquisition of Hi-Crush Creates a Leading Proppant Logistics Provider and the Largest Proppant Producer in North America Accelerating Free Cash Flow and Shareholder Returns Combines Two of the Proppant Industry’s Primary I
Slide 11: Transaction Summary
Transaction Summary Acquisition Overview Atlas to acquire all of Hi-Crush's Permian proppant production and NAM logistics assets: (1) Two in-basin Permian plants in Kermit, TX add ~5 mmtpy of production capacity Kermit mines are capable of producing both dry and damp sand Eight highly contracted dis
Slide 12: Atlas and Hi-Crush are a Compelling Strategic Fit
Acquisition advances Atlas’s goal of logistically advantaging our proppant to every Permian wellhead (1) Atlas and Hi-Crush are a Compelling Strategic Fit Creates a premier portfolio of Permian proppant production assets with unmatched scale Significant opportunity for operational synergies through
Slide 13: Combines the Proppant Industry's Primary Innovators
Based on annualized pro forma production capacity assuming full contribution from OnCore 8. (2) Based on realized effective (a) economic contribution & (b) production capacity in 2024. Combines the Proppant Industry’s Primary Innovators Strong Strategic Fit Within Existing Offerings Premium Giant Op
Slide 14: Transforms Atlas into the Largest Proppant Producer in North America
Transforms Atlas into the Largest Proppant Producer in North America The combination creates over 28 mmtpy of pro forma Permian capacity yielding the largest proppant provider across North America Strategically adjacent location of Kermit mines to Atlas’s existing Kermit mines supports the long-term
Slide 15: Dune Express Proppant Logistics Infrastructure
Dune Express Proppant Logistics Infrastructure Historically ~60-70% of logistics costs are labor, impacting opex and reliability. The Dune Express (midstream asset), high-capacity trucking with drop depots and OnCore all drive labor intensity and opex down, along with emissions, while enhancing reli
Slide 16: The Dune Express and Distributed Mining Assets Drive Efficiency Gains
200 - 349 < 100 100 - 124 125 - 149 150 - 174 175 - 199 Max Proppant (tons) The Dune Express and Distributed Mining Assets Drive Efficiency Gains Source: Enverus, Management analysis and estimates. (1) Represents expected Dune Express route based on secured rights-of-way and federal permits. (2) Ass
Slide 17: Pro Forma Combined Asset Snapshot
Note: Includes location of OnCore #8 which is contracted but not yet operational. Adds complementary Midland Basin customer base creating Permian’s most extensive proppant supply chain infrastructure Acquisition Furthers Atlas's Goal of Logistical Superiority, Creating an Advantaged Network of Propp
Slide 18: Dune Express and OnCore Reduce Road Traffic and Emissions
Although different in approach, the Dune Express and OnCore each positively disrupt the legacy Permian trucking model by reducing road traffic and emissions through: Shortened hauls from the Dune Express in the Delaware Shortened hauls due to OnCore’s proximity to wellsite activity Both Dune Express
Slide 19: Strong Balance Sheet and Liquidity Provide Financing Flexibility
ABL Facility – Existing facility upsized to $125 million with $50 million draw planned at close of Acquisition Improved dividend capacity; Maturity extended to 2029 Stonebriar Acquisition Loan – $150 million acquisition term loan at a ~10.5% interest rate Retains $100 million delayed draw feature; 2
Slide 20: Transaction Enhances Atlas Energy Solutions Investment Profile
Transaction Enhances Atlas Energy Solutions Investment Profile Enhances sustainable environmental and social progress (“SESP”) leadership Highly contracted cash flow, conservative financial profile Combines the proppant industry’s primary innovators Scale and asset quality drive exceptional cost str
Slide 21: Atlas Overview & Update
wh Atlas Atlas Overview & Update Energy Solutions
Slide 22: The Atlas Energy Solutions Advantage
The Atlas Energy Solutions Advantage Premium Giant Open Dune Geology 115+ years of resource life (1) at 16 mmtpy of production Lack of organics and impurities result in higher mining yields Premium quality product with high crush strength Advantaged Water Access Ample costless water provides Atlas w
Slide 23: High Quality, Differentiated Asset Base
High Quality, Differentiated Asset Base Geology of open dunes separates AESI on scale, costs, margins & quality Improved yields relative to off-dune deposits enhance economics Exceptional quality (high crush strength, low turbidity, etc.) Large, deep deposits with consistent reserve mix Costless Pec
Slide 24: Atlas Plant Design & Dredge Mining Provide Operational Advantages
Source: Management Estimates, EPA, ERCOT. Emissions defined as CO2 emissions plus particulate matter. Atlas and its contractors use traditional mining methods to supplement dredge production and as a backup during dredge downtime. Per Lium data & management estimates; represents total hours worked a
Slide 25: Next Gen Dredges Expected to Drive Meaningful Cost Reductions
Next Gen Dredges Expected to Drive Meaningful Cost Reductions Operating Cab Operational Update – New Atlas Electric Dredges View from Operating Cab Falcon #1 in initial stages of commissioning Falcon #2 shipments expected to start arriving early March; Commissioning planned for early April Once Falc
Slide 26: The Dune Express: Proppant Midstream Infrastructure
The Dune Express: Proppant Midstream Infrastructure High Quality, Differentiated Asset Base Source: Enverus | (1) Represents expected Dune Express route based on secured rights-of-way and federal permits. | (2) Based on existing well count within each section. (3) Based on conservative estimates of
Slide 27: Safer, More Reliable and Lower Emission Sand Delivery
High Quality, Differentiated Asset Base Daily Proppant Delivery Capacity per Truck (Dune Express) AESI Logistics = Safer, More Reliable and Lower Emission Sand Delivery Daily Proppant Delivery Capacity per Truck (Current) Source: Enverus, Management analysis and estimates. | (1) Represents planned D
Slide 28: First Long-Distance Conveyor to Transport Proppant
High Quality, Differentiated Asset Base Source: Company disclosures, Mindat Research, Mining Weekly, Conveyor Equipment Manufacturers Association, Western Sahara Resource Watch. Conveyors are commonly used to transport bulk materials globally Selected Bulk Material Conveyor Systems Operating Around
Slide 29: 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
Slide 30: Reconciliation and Calculation of Non-GAAP Financial Measurements
Positive working capital changes reflect capital expenditures in the current period that will be paid in a future period. Negative working capital changes reflect capital expenditures incurred in a prior period but paid during the period presented. Reconciliation and Calculation of Non-GAAP Financia
Slide 31: Non-GAAP Financial Measure Definitions
Non-GAAP Financial Measure Definitions Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted
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