Atlas Energy Solutions Inc. · NYSE:AESI
Atlas Energy Solutions — Q1 2024 Earnings Presentation
33 slides from Atlas Energy Solutions's earnings presentation, May 6, 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 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 Q1 2024 Update Video Market Capitalization (1) $2.4B ctrl + click to play Enterprise Value (1) $2.7B Quarterly Dividend (2) $0.22 / share Production Capacity (3) ~28mmtpy Resource Life (3) ~75 years Headquarters Austin, Texas Stock Symbol NYSE: AESI (1
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: Atlas Energy Solutions Q1 2024 Operational & Financial Update
Atlas Energy Solutions Q1 2024 Operational & Financial Update Total Sales Adj. EBITDA (2) Adj. FCF (2) Net Income Cash Provided by Operating Activities $193mm $76mm $71mm $27mm $40mm (~3.9mm tons) (1) (~39% Margin) (~37% Margin) (~14% Margin) (~21% Margin) Summary Company Updates Dune Express Update
Slide 7: Kermit Facility Update and Temporary Operational Plan
Kermit Facility Update and Temporary Operational Plan Operational Plan to Service Our Customers On Sunday, April 14th, a mechanical fire occurred at the Atlas mine in Kermit, Texas which resulted in the closure of the facility — All personnel at the site, including Company employees and contractors
Slide 8: 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 Cochran Hockley Lubbock Crosby Dickens King Trading at a compelling valuation (1) Chaves Yoakum Terry Lynn Garza Kent Stonewall High growt
Slide 9: The Atlas Energy Solutions Advantage
The Atlas Energy Solutions Advantage A fully integrated sand solutions provider 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 Benef
Slide 10: 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 11: 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 12: 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 Effective Nameplate Capacity(2) ~70% ~50% 160,000 Contract Mining Cost R
Slide 13: Next Gen Dredges Expected to Drive Meaningful Cost Reductions
Next Gen Dredges Expected to Drive Meaningful Cost Reductions Next Gen dredges provide meaningfully increased reliability to our Kermit facility Operational Update – New Atlas Electric Dredges Commissioning of Sandstorm at the Kermit Facility “Sandstorm” and “Edlund” are currently being commissioned
Slide 14: Industry Leading Sustainability, Financial Performance & Growth
Industry Leading Sustainability, Financial Performance & Growth (1) Sales ($mm) ✓ Volume (mmtpy) 8.3 10.2 11.0 23.5 (2) Avg. Price ($/ton) $17.21 $40.10 $42.63 $29.04 Growing Sales with High-Quality, Annualized Diversified Customer $614 Base $483 $172 $193 YTD 2021 2022 2023 YTD 2024 Adj. EBITDA ($m
Slide 15: Consistent and Durable Return of Capital to Shareholders
Consistent and Durable Return of Capital to Shareholders Since Q4 2021, Atlas has declared $170 million in distributions and dividends (1) Capital Allocation Framework Historical Investor Distributions & Dividends (1) Post-IPO Dividends & May 2024 dividend of $0.22 per share results in total cash As
Slide 16: Atlas's Margins Outperform Industry Peers
Atlas’s tron and Dura le Mar ins utper orm Industry eers Atlas trades at a discount to peers while margins outperform 12.0x 10.0x Enterprise Value / 2025E Consensus Adj. EBITDA 8.0x ~45% Adj. EBITDA Margins outper orm the “ est o the est” oilfield services companies 6.0x 4.0x 2.0x – – 10.0% 20.0% 30
Slide 17: Exceptional Margins that Merit Multiple Expansion
Exceptional Margins that Merit Multiple Expansion EV / 2025E Adj. EBITDA and 2025E EBITDA Margins Atlas Trades at a Discount to Peers while Wall Street Consensus Margins Outperform Median EV / '25E Adj. EBITDA Median '25E Adj. EBITDA Margin per Wall Street Consensus 9.4x 8.3x 45.9% 48.1% 7.2x 7.2x 3
Slide 18: New Remote Command Center & Drop-Depot Facilities Expand Delaware Basin Footprint
New Remote Command Center & Drop-Depot Facilities Meaningfully Expand Atlas’s Delaware Basin Footprint in Advance o Dune Express 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 loc
Slide 19: 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 In Q1 2024, we delivered over 50% of total sales volumes Atlas Record Job Average: ~92 tons using our own last mile crews 105 120 trucks received
Slide 20: Redefining the Oilfield Supply Chain 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 21: 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 22: The Dune Express: Proppant Midstream Infrastructure
The Dune Express: Proppant Midstream Infrastructure Project Overview Dune Express Update (as of May 6, 2024) 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 23: 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 24: 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 60-70%(1) relative to Winkler Trend deliveries. …is Increased y Dune Express Hi h-Capacity Trucki
Slide 25: 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 26: Atlas is Logistically Advantaged and the Undisputed Market Leader
Atlas is Logistically Advantaged Across the Permian Basin and is the Undisputed Market Leader by Production Capacity Logistically Advantaged Permian Basin Assets Leading Production Capacity Among Peers (1) De Baca ~29.0 Existing Production Capacity Bailey Lamb Hale Floyd Motley Cottle Roosevelt Capa
Slide 27: 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 28: Atlas Energy Solutions (NYSE: AESI) Investment Highlights
Atlas Energy Solutions (NYSE: AESI) Investment Highlights Atlas Wellsite OnCore Distributed Dune Express Atlas’s Giant pen Dunes Delivery Assets Mining Network Overhead Crossing Robust Cash Flow Generation + Strong Financial Position High Quality, Differentiated Asset Base Compelling Valuation and G
Slide 29: Appendix
wh Atlas Appendix Energy Solutions
Slide 30: 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 Year Ended March 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 Net income $ 26,787 $ 226,493 $ 217,006 $ 4,258 Depreciation, depletion and acc
Slide 31: 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 Year Ended March 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 Net cash provided by operating
Slide 32: 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 33: 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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