Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q2 2024 Earnings Presentation
31 slides from Atlas Energy Solutions's earnings presentation, Aug 6, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 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 Q2’24 Update Video Market Capitalization (1) ctrl + click to play $2.1B Enterprise Value (1) $2.4B Quarterly Dividend (2) $0.23 / share Production Capacity ~28mmtpy Resource Life (3) ~75 years Headquarters Austin, Texas Stock Symbol NYSE: AESI (1) Sour
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: Q2’24 Operational & Financial Update
Q2’24 Operational & Financial Update Total Sales Adj. EBITDA (1) Adj. FCF (1) Net Income Cash Provided by Operating Activities $288mm $72mm $67mm $15mm $61mm (~4.9mm tons) (~25% Margin) (~23% Margin) (~5% Margin) (~54% Q-o-Q Growth) Summary Company Updates Dune Express Update Operational Update Logi
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 Premium Giant Open Advantaged Water Next Generation Plant OnCore Distributed Logistics Dune Geology Access Design Mining Network Differentiation Key Benefits from Key Benefits from Water Key Benefits from Plant Key Benefits from Key Benefits from Geology Access D
Slide 9: 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 enhance economics Atlas Kermit: • 7,052 gross acres (all on Kermit Exceptional
Slide 10: OnCore Distributed Mining Network: An Extensive Operational Footprint
OnCore Distributed Mining Network: An Extensive Operational Footprint Eight 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 Netwo
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: Industry Leading Sustainability, Financial Performance & Growth
Industry Leading Sustainability, Financial Performance & Growth (1) Sales ($mm) Volume (mmtpy) 8.3 10.2 11.0 21.2 (2) Growing Sales Avg. Price ($/ton) $17.21 $40.10 $42.63 $26.07 with High-Quality, Diversified Customer Annualized $614 Base $483 $172 $480YTD YTD $193 2021 2022 2023 YTD 2024 Adj. EB
Slide 13: Consistent and Durable Return of Capital to Shareholders
Consistent and Durable Return of Capital to Shareholders Since Q4’21, Atlas has declared $195 million in distributions and dividends (1) Q2’24 Return of Capital Historical Investor Distributions & Dividends Post-IPO Dividends & August 2024 dividend of $0.23 per share results in total cash Associated
Slide 14: EV / 2025E Adj. EBITDA and 2025E Adj. EBITDA Margins
EV / 2025E Adj. EBITDA and 2025E Adj. EBITDA Margins Exceptional margins that merit multiple expansion Atlas Trades at a Discount to Peers while Wall Street Consensus Margins Outperform Median EV / '25E Adj. EBITDA Median '25E Adj. EBITDA Margin 50.6% 10.0x 42.4% 8.0x 7.5x 7.1x 33.8% 5.9x 27.4% 22.7
Slide 15: Expand Atlas’s Delaware Basin Footprint in Advance of Dune Express
Remote Command Center & Drop-Depot Facilities Meaningfully Expand Atlas’s Delaware Basin Footprint in Advance of Dune Express Overview Expanding Operational Footprint In-field remote command center is presently Atlas will have a multi-trailer operational footprint in the Delaware Basin of located 18
Slide 16: AESI Logistics Update
AESI Logistics Update Summary Update / Latest Developments AESI Payloads on Private Roads Far Exceed Industry Norm In Q2’24, we delivered over 50% of total sales volumes Atlas Record Job Average: ~92 tons through our last mile crews 105 120-truck fleet expected to haul 13mmtpy of proppant once 4.4x
Slide 17: Redefining the Oilfield Supply Chain: 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 18: 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 19: 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 20: Dune Express Update in Photos
Dune Express Update in Photos Dune Express Conveyor Dune Express Exiting Kermit Facility Culvert Crossing Flood Zone Overhead Crossing Atlas Energy Solutions (NYSE: AESI) | August 2024 High Quality, Differentiated Asset Base 20
Slide 21: 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 22: 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 by Dune Express, High-Capacity Truck
Slide 23: 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 24: 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 Existing Production Capacity Capacity Under Construction Atlas is the leading producer in a fragmented market (1) ~30% Atlas is the
Slide 25: 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 26: Atlas Energy Solutions (NYSE: AESI) Investment Highlights
Atlas Energy Solutions (NYSE: AESI) Investment Highlights Dune Express Expanded Payload Giant Open Dunes Distributed Mining Network Robust Cash Flow Generation + Strong Financial Position High Quality, Differentiated Asset Base Compelling Valuation and Growth Profile Proven Team, Compelling Track Re
Slide 27: Appendix
wh Atlas Appendix Energy Solutions
Slide 28: Reconciliation and Calculation of Non-GAAP Financial Measurements
Reconciliation and Calculation of Non-GAAP Financial Measurements EBITDA and Adjusted EBITDA to Net Income (unaudited, in thousands) Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 Net income $ 14,837 $ 26,787 $ 71,211 Depreciation, depletion and accretion expense 25,886 18,007 9,814 A
Slide 29: 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 (unaudited, in thousands, except percentages) Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 Net cash provided by operating activities $ 60,856 $ 39,5
Slide 30: 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 31: 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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