Atlas Energy Solutions Announces 5% Increase in Quarterly Cash Dividend

Rhea-AI Summary

Atlas Energy Solutions Inc. (AESI) declared a dividend of $0.21 per outstanding share of common stock, representing a 5% increase from the prior quarter's dividend. The dividend will be paid on February 29, 2024, to holders of record of common stock at the close of business on February 22, 2024.

Insights

Financial Analyst

The declaration of a dividend increase by Atlas Energy Solutions Inc. is a tangible indicator of the company's financial health and its confidence in generating consistent cash flows. A 5% increase in the dividend payout is a positive signal to shareholders, reflecting both the company's profitability and its commitment to returning value to its investors. Dividends are often a key factor in investment decisions as they provide a source of regular income and an increase can make the stock more attractive to income-focused investors.

It is also essential to assess the payout ratio, which indicates the proportion of earnings paid out as dividends to shareholders. A sustainable payout ratio ensures that the company retains enough earnings for future growth while rewarding shareholders. In the energy sector, where cash flow can be volatile due to fluctuating commodity prices, a conservative payout ratio is typically favored. The long-term implications of such a dividend increase hinge on Atlas's ability to maintain or grow its dividend in line with its earnings and cash flow projections.

Market Research Analyst

From a market perspective, the announcement of a dividend increase can have immediate effects on the stock's market performance. Investors might perceive this as a sign of strong financial performance and a robust outlook, potentially leading to an increase in stock demand and price. However, it's also critical to evaluate the broader energy market trends and how they may influence Atlas's future performance. The energy sector is subject to geopolitical, environmental and regulatory risks that could impact the company's operations and, consequently, its ability to sustain dividend growth.

Furthermore, evaluating the company's investment in technology, efficiency and sustainable practices is vital, as these factors play a significant role in the long-term success of energy companies. Investors are increasingly considering environmental, social and governance (ESG) criteria when making investment decisions and companies that score well on these aspects may attract a wider investor base.

Economist

Examining the macroeconomic context is crucial when considering the implications of a dividend increase. In an environment with rising interest rates, for example, the relative attractiveness of dividend-paying stocks may change as fixed-income investments become more competitive. Additionally, the health of the overall economy impacts energy consumption and prices, which in turn can affect the profitability of energy companies like Atlas. A robust economic outlook would likely support higher energy prices and demand, possibly providing a favorable backdrop for Atlas's dividend increase.

Conversely, an economic downturn could lead to reduced energy demand and lower prices, potentially putting pressure on the company's cash flows and its ability to maintain dividend payouts. It is important for investors to consider these economic factors alongside company-specific financial metrics when evaluating the sustainability of dividend payments.

AUSTIN, Texas--(BUSINESS WIRE)-- Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today announced that the Board of Directors (the “Board) has declared a dividend of $0.21 per outstanding share of Atlas common stock, to be paid on February 29, 2024, to holders of record of our common stock at the close of business on February 22, 2024. This represents a 5% increase from the prior quarter’s dividend.

About Atlas Energy Solutions

Our company was founded in 2017 by long-time E&P operators and led by Bud Brigham. Our experience as E&P operators, combined with our unique asset base and focus on using technology to deliver novel solutions to our customers’ toughest challenges and mission-critical needs differentiates us as the proppant and logistics provider of choice in the Permian Basin.

Atlas is a leader in the proppant and proppant logistics industry and is currently solely focused on serving customers in the Permian Basin of West Texas and New Mexico, the most active oil and natural gas producing regions in North America. Our Kermit, TX and Monahans, TX facilities are strategically located and specifically designed to maximize reliability of supply and product quality, and our high-efficiency trucking assets and the Dune Express conveyor system is driving significant advancements in proppant logistics.

Our core mission is to maximize value for our stockholders by generating strong cash flow and allocating our capital resources efficiently, including providing a regular and durable return of capital to our investors through industry cycles. Further, we recognize that our long-term profitability is maximized by being good stewards of the environments and communities in which we operate. In our pursuit of this mission, we work to improve the processes involved in the development of hydrocarbons, which we believe will ultimately contribute to providing individuals with access to the energy they need to sustain or improve their quality of life in a clean, safe, and efficient manner. We take great pride in contributing positively to the development of the hydrocarbons that power our lives.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements about our business strategy, our industry, our future operations and profitability, expected capital expenditures and the impact of such expenditures on our performance, financial position, production, revenues and losses, our capital programs, management changes, current and potential future long-term contracts and our future business and financial performance. Although forward-looking statements reflect our good faith beliefs at the time they are made, we caution you that these forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include but are not limited to: commodity price volatility stemming from the ongoing armed conflicts between Russia and Ukraine and Israel and Hamas; increasing hostilities and instability in the Middle East; adverse developments affecting the financial services industry; our ability to complete growth projects, including the Dune Express, on time and on budget; the risk that stockholder litigation in connection with our recent corporate reorganization may result in significant costs of defense, indemnification and liability; changes in general economic, business and political conditions, including changes in the financial markets; actions of OPEC+ to set and maintain oil production levels; the level of production of crude oil, natural gas and other hydrocarbons and the resultant market prices of crude oil; inflation; environmental risks; operating risks; regulatory changes; lack of demand; market share growth; the uncertainty inherent in projecting future rates of reserves; production; cash flow; access to capital; the timing of development expenditures; and other factors discussed or referenced in our filings made from time to time with the U.S. Securities and Exchange Commission (“SEC”), including those discussed under the heading “Risk Factors” in our prospectus, dated September 11, 2023, filed with the SEC pursuant to Rule 424(b) under the Securities Act on September 12, 2023 in connection with our recent corporate reorganization, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208037754/en/

Kyle Turlington

T: 512-220-1200

IR@atlas.energy

Source: Atlas Energy Solutions Inc.

FAQ

What is the dividend amount declared by Atlas Energy Solutions Inc. (AESI)?

The dividend declared is $0.21 per outstanding share of common stock.

When will the dividend be paid to the shareholders of Atlas Energy Solutions Inc. (AESI)?

The dividend will be paid on February 29, 2024.

What was the percentage increase in the dividend from the prior quarter?

The dividend represents a 5% increase from the prior quarter's dividend.

What is the ticker symbol for Atlas Energy Solutions Inc.?

The ticker symbol for Atlas Energy Solutions Inc. is AESI.

Who declared the dividend for Atlas Energy Solutions Inc.?

The Board of Directors declared the dividend for Atlas Energy Solutions Inc.