Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q3 2023 Earnings Presentation
27 slides from Atlas Energy Solutions's earnings presentation, Oct 31, 2023
Slide 1: Investor Presentation October 2023
Investor Presentation October 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 September 2023 Update Video Market Capitalization (1) ctrl + click to play $1.9B Enterprise Value (1) $1.8B Quarterly Dividend (2) $0.20 / share Resource Life (3) 100+ years Employees ~430 Headquarters Austin, Texas Stock Symbol NYSE: AESI (1) Source:
Slide 4: Permian Basin Market Update
Permian Basin Market Update 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) 10.0 The Permian Basin is Driving U.S. Shale Production 70% 200 Permian Frac F
Slide 5: Q3 2023 Operational & Financial Update
Atlas Energy Solutions Q3 2023 Operational & Financial Update Total Sales Adj. EBITDA (1) Adj. FCF (1) Net Income Cash Provided by Operating Activities $158mm $84mm $69mm $56mm $55mm (53% Margin) (43% Margin) (36% Margin) Q3 2023 Capital Projects Update: Dune Express, Wellsite Delivery Assets and Ne
Slide 6: Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider
Atlas is a Leading Pure-Play Permian Proppant and Logistics Provider Key Investment Highlights Pure Play Permian Asset Base (2) Compelling Valuation and Growth Profile Trading at a discount to peer group (1) High growth potential from ongoing capital projects Robust Cash Flow Generation + Strong Fin
Slide 7: The Atlas Energy Solutions Advantage
The Atlas Energy Solutions Advantage Premium Giant Open Dune Geology 100+ years of resource life at 15.0 mmtpy of production Lack of organics and impurities result in higher mining yields Premium quality product with high crush strength Advantaged Water Access Ample costless water provides Atlas wit
Slide 8: The Permian's Giant Open Dunes are a Tier One Resource
The Permian’s Giant Open Dunes are a Tier One Resource Geology of open dunes separates AESI on scale, costs, margins & quality Premier Assets Bookending the Winkler Sand Trend Improved yields relative to off-dune deposits enhances economics Atlas Kermit: • 5,825 gross acres (all on Kermit Exceptiona
Slide 9: Atlas Plant Design & Dredge Mining Provide Operational Advantages
Atlas Plant Design & Dredge Mining Provide Operational Advantages Comparison of Electric Dredging vs. Traditional Mining Atlas has invested in automation to reduce labor costs Cost Impact Emissions Impact (1) Hours of Labor per ton of Estimated Production Capacity(2) ~70% ~50% 160,000 Contract Minin
Slide 10: Industry Leading Sustainability, Financial Performance & Growth
Industry Leading Sustainability, Financial Performance & Growth (1) Sales ($mm) ✓ Growing Sales with High-Quality, $483 Diversified Customer Annualized Base $172 $473 YTD 2021 2022 YTD 2023 Adj. EBITDA ($mm) & Adj. EBITDA Margin and Adj. EBITDA ($mm) ✓ Net Income ($mm) & Net Income Margin (2) Adj. E
Slide 11: Consistent and Durable Return of Capital to Shareholders
Consistent and Durable Return of Capital to Shareholders Since Q4 2021, Atlas has paid $125 million in distributions and dividends (1) Capital Allocation Framework Historical Investor Distributions & Dividends (1) Declared a fourth quarter 2023 base dividend of $0.15 per Post-IPO Dividends & share a
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: New Remote Command Center & Drop-Depot Facilities Expand Delaware Basin Footprint
New Remote Command Center & Drop-Depot Facilities Meaningfully Expands Atlas’ Delaware Basin Footprint Overview Expanding Operational Footprint Our remote in-field command center is Atlas will have a multi-trailer operational footprint in the Delaware Basin of presently located 18-miles west of our
Slide 14: 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 ~20% of our third quarter deliveries utilized multi-trailers; 105 4.5x seeing continued customer adoption 100 4.4x 4.0x We expect to have
Slide 15: 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 16: The Dune Express: Proppant Midstream Infrastructure
The Dune Express: Proppant Midstream Infrastructure Project Overview Dune Express Update (as of October 30, 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 co
Slide 17: 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 18: 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 19: New Kermit Facility Poised to Meet Growing Permian Demand
New Kermit Facility Poised to Meet Growing Permian Demand New Kermit Facility Update Atlas is Expanding it’s Differentiated Proppant Producing Leadership (1) Wet plant commissioning has started Existing Production Capacity New Kermit Facility will increase Capacity Under Construction Atlas’s product
Slide 20: 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 21: Atlas Energy Solutions 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 22: Appendix
wh Atlas Appendix Energy Solutions
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 (in thousands) For the Three Months Ended For the Year Ended December 31, September 30, 2023 June 30, 2023 March 31, 2023 2022 2021 Net income $ 56,327 $ 71,211 $ 62,90
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, except percentages) For the Three Months Ended For the Year Ended December 31, September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Decem
Slide 25: 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 26: Permian Proppant Pumped per Day Increasing
Permian Proppant Pumped per Day Increasing * Lateral length greater than 8,000 feet, proppant mass total greater than 1 million pounds per well, and zipper frac completion (simul-frac included) Source: Rystad Energy ShaleWellCube, Rystad Energy research and analytics. Atlas Energy Solutions (NYSE: A
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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