Atlas Energy Solutions Announces Fourth Quarter and Year End 2024 Results; Completes Previously Announced Acquisition of Moser Energy Systems

Rhea-AI Summary

Atlas Energy Solutions (NYSE: AESI) reported its Q4 and fiscal year 2024 results, highlighting total sales of $1.1 billion and net income of $59.9 million. The company achieved an Adjusted EBITDA of $288.9 million and Adjusted Free Cash Flow of $251.3 million.

The company completed the acquisition of Moser Energy Systems for $220 million, including $180 million in cash and approximately 1.7 million shares. Additionally, Atlas completed a public offering of 11.5 million shares at $23.00 per share, raising gross proceeds of $264.5 million.

Q4 2024 showed a sequential decrease in total sales by 10.9% to $271.3 million, with sales volumes dropping 15% to 5.1 million tons. The company increased its quarterly dividend to $0.25 per share, payable February 28, 2025, and entered into a new $540 million term loan credit facility with Stonebriar Commercial Finance.

Positive

• Total sales increased 72% YoY to $1.1 billion
• Net income reached $59.9 million with 6% margin
• Adjusted EBITDA of $288.9 million with 27% margin
• Strong operating cash flow of $256.5 million
• Quarterly dividend increased to $0.25 per share
• Successful completion of $264.5M public offering
• Strategic acquisition of Moser Energy Systems expanding market presence

Negative

• Q4 sales decreased 10.9% sequentially to $271.3 million
• Q4 sales volumes declined 15% to 5.1 million tons
• SG&A expenses increased 118.5% YoY to $106.2 million
• Cost of sales increased 178.5% YoY to $725.2 million
• Increased debt with new $540M term loan facility

Insights

Financial Analyst

Atlas Energy's 2024 performance reveals a complex story beneath the headline growth numbers. While total sales grew 72% to $1.1 billion, the 178.5% surge in cost of sales significantly compressed margins, partly due to operational challenges including fire-related disruptions and dredge commissioning delays. The Q4 sequential decline in sales volumes by 15% and revenue by 10.9% suggests potential market headwinds entering 2025.

The strategic acquisition of Moser Energy Systems represents a pivotal transformation, diversifying revenue streams beyond traditional proppant services into distributed power solutions. This $220 million transaction, structured with $180 million cash and $40 million in stock, provides Atlas with a hedge against cyclical mining operations while opening new growth avenues in power generation markets. The company's retention of a 90-day option to redeem the stock consideration in cash demonstrates prudent financial flexibility in deal structuring.

The company's capital structure has been significantly enhanced through multiple transactions. The $264.5 million equity offering, combined with the new $540 million term loan facility, provides substantial liquidity for growth initiatives while enabling debt refinancing. Total liquidity of $206.5 million as of year-end, coupled with strong operating cash flow of $256.5 million, positions Atlas well for executing its diversification strategy.

The increase in quarterly dividend to $0.25 per share, representing an annual distribution of approximately $121.6 million based on current shares outstanding, reflects management's confidence in sustainable cash flow generation. However, investors should monitor the impact of elevated capital expenditures and integration costs on free cash flow margins in the near term.

AUSTIN, Texas--(BUSINESS WIRE)-- Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2024.

Year End 2024 Financial Highlights and Operational Updates

• Total sales of $1.1 billion
• Net income of $59.9 million (6% Net Income Margin)
• Adjusted EBITDA of $288.9 million (27% Adjusted EBITDA Margin) ⁽¹⁾
• Net cash provided by operating activities of $256.5 million
• Adjusted Free Cash Flow of $251.3 million (24% Adjusted Free Cash Flow Margin) ⁽¹⁾
• Increased quarterly dividend to $0.25 per share, payable February 28, 2025
• Completed previously announced acquisition of Moser Energy Systems

Financial Summary
			Year Ended
			December 31, 2024				December 31, 2023				December 31, 2022
			(in thousands, except percentages)
Sales			$	1,055,957			$	613,960			$	482,724
Net income			$	59,944			$	226,493			$	217,006
Net Income Margin				6	%			37	%			45	%
Adjusted EBITDA			$	288,902			$	329,655			$	264,026
Adjusted EBITDA Margin				27	%			54	%			55	%
Net cash provided by operating activities			$	256,460			$	299,027			$	206,012
Adjusted Free Cash Flow			$	251,340			$	291,131			$	228,553
Adjusted Free Cash Flow Margin				24	%			47	%			47	%
(1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP.

John Turner, President & Chief Executive Officer, commented, “The acquisition of Moser Energy Systems is a platform investment that provides Atlas with exposure to the production-end of the oil and gas value chain, along with new distributed power end-markets. The acquisition strengthens Atlas's market position as a leading provider of energy solutions and we expect the acquisition to help mitigate the volatility of future cash flows. This acquisition, coupled with our January equity offering, provides the company with a compelling runway for future growth. We expect 2025 to be a year of operational excellence as we continue to ramp up Dune Express operations, execute upon our leading last-mile and logistics platform, and look to enhance our new distributed power solutions offerings."

Year End 2024 Financial Results
Total sales for the year ended December 31, 2024 increased $442.0 million, or 72.0% when compared to the year ended December 31, 2023, to $1.1 billion. Product sales increased $47.3 million, or 10.1% when compared to the prior year, to $515.4 million. Service sales increased by $394.7 million, or 270.7% when compared to the prior year, to $540.5 million.

Cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) for the year ended December 31, 2024 increased by $464.8 million, or 178.5% when compared to the prior year, to $725.2 million. The increase in our cost of sales was primarily driven by an increase in product and service sales associated with the addition of the Hi-Crush operations acquired in March 2024, higher costs incurred in the second and third quarters of 2024 due to fire-related temporary loadout operations at one of our Kermit facilities, our operational improvement initiatives, and delays in dredge commissioning.

Selling, general and administrative expenses (“SG&A”) for the year ended December 31, 2024 increased by $57.6 million, or 118.5% when compared to the prior year, to $106.2 million. Included within our SG&A is $22.4 million in stock-based compensation and $19.2 million in other acquisition related costs.

Net income for the year ended December 31, 2024 was $59.9 million, and Adjusted EBITDA for the year ended December 31, 2024 was $288.9 million.

Fourth Quarter 2024 Financial Results
Fourth quarter 2024 total sales decreased $33.1 million, or 10.9% sequentially, to $271.3 million. Product sales decreased $16.9 million, or 11.6%, sequentially, to $128.4 million. Fourth quarter sales volumes decreased to 5.1 million tons or by 15%, coupled with lower average pricing recognized during the period. Service sales decreased by $16.2 million, or 10.2%, sequentially, to $142.9 million.

Fourth quarter 2024 cost of sales decreased by $34.3 million, or 15.2%, sequentially, to $191.0 million, which consists of product costs of sales, inclusive of royalties, of $66.7 million and services cost of sales of $124.3 million. SG&A for the fourth quarter of 2024 increased $0.05 million, or 0.2%, sequentially, to $25.5 million. Net Income for the fourth quarter of 2024 was $14.4 million, representing an increase of $10.5 million, or 269.2%, sequentially. Adjusted EBITDA for the fourth quarter of 2024 was $63.2 million, representing a decrease of $7.9 million, or 11.1%, sequentially.

Liquidity, Capital Expenditures and Other
As of December 31, 2024, the Company’s total liquidity was $206.5 million, which was comprised of $71.7 million in cash and cash equivalents, $54.8 million of availability under the Company’s ABL Facility, and $80.0 million of availability under the Company's Delayed Draw Term Loan Facility. The Company had $70.0 million of borrowings outstanding under the ABL Facility and $0.2 million of outstanding undrawn letters of credit.

Net cash used in investing activities was $512.7 million for the year ended December 31, 2024, driven largely by costs associated with the construction of the Dune Express, the acquisition of Hi-Crush, and additional OnCore deployments.

As of December 31, 2024, the Company had 110,217,322 shares of its commons stock, par value $0.01 per share ("common stock"), outstanding.

Subsequent Events
Acquisition of Moser Energy Systems
On February 24, 2025, Atlas acquired Moser Acquisition, Inc. and its wholly-owned subsidiary Moser Engine Service, Inc. (d/b/a Moser Energy Systems) ("Moser"), a leading provider of distributed power solutions, in a transaction valued at $220.0 million (the “Moser Acquisition”). The transaction consideration included $180.0 million of cash and approximately 1.7 million shares (the “Stock Consideration”) of common stock, valued at $40.0 million based on the 20-day trailing volume-weighted average price ending at the close of trading on Friday, January 24, 2025. The Stock Consideration is subject to revision for customary post-closing adjustments. For 90 days following the closing, all or any portion of the Stock Consideration is subject to redemption at the option of Atlas, with any such redemption to be paid in cash. For more information regarding the transaction, please refer to the Company’s website at https://ir.atlas.energy/ for the acquisition press release and related presentation.

Underwritten Public Offering of Common Stock
On February 3, 2025, the Company completed an underwritten public offering (the “Offering”) of an aggregate of 11,500,000 shares of its common stock at a public offering price of $23.00 per share, for total gross proceeds of $264.5 million and net proceeds of approximately $254.1 million, after deducting underwriting discounts and commissions. The Company granted the underwriters a 30-day option to purchase up to 1,725,000 additional shares of its common stock.

The Company used $171.3 million of the net proceeds it received from the Offering to repay indebtedness, including a portion of its secured PIK toggle seller note and outstanding borrowings under its ABL facility. The remainder of the net proceeds may be used to fund the redemption of the Stock Consideration, if exercised by the Company, subject to market conditions, and for general corporate purposes, including power-related growth capital expenditures following completion of the Moser Acquisition.

2025 Term Loan Credit Facility
On February 21, 2025, the Company entered into a credit agreement (the “2025 Term Loan Credit Agreement”) with Stonebriar Commercial Finance LLC (“Stonebriar”), as administrative agent and initial lender, pursuant to which Stonebriar extended Atlas LLC a term loan credit facility comprised of a $540.0 million single advance term loan that was made on February 21, 2025 (the “2025 Term Loan Credit Facility”). The Company used the proceeds from the 2025 Term Loan Credit Facility (i) to refinance the existing 2023 Term Loan Credit Facility and the ADDT Loan, (ii) to finance the cash consideration for the Moser Acquisition, and (iii) for general corporate purposes.

Quarterly Cash Dividend
On February 11, 2025, the Board of Directors (the “Board") declared a dividend to common stockholders of $0.25 per share, or approximately $30.4 million in the aggregate to shareholders. The dividend will be payable on February 28, 2025 to shareholders of record at the close of business on February 21, 2025.

Conference Call Information
The Company will host a conference call to discuss financial and operational results on Tuesday, February 25, 2025 at 9:00am Central Time (10:00am Eastern Time). Individuals wishing to participate in the conference call should dial (877) 407-4133. A live webcast will be available at https://ir.atlas.energy/. Please access the webcast or dial in for the call at least 10 minutes ahead of the start time to ensure a proper connection. An archived version of the conference call will be available on the Company’s website shortly after the conclusion of the call.

The Company will also post an updated investor presentation titled “Investor Presentation February 2025”, in addition to a "Year-End 2024 Capital Projects Update" video, at https://ir.atlas.energy/ in the "Presentations” section under “News & Events” tab on the Company’s Investor Relations webpage prior to the conference call.

About Atlas Energy Solutions
Atlas Energy Solutions Inc. (NYSE: AESI) is a leading solutions provider to the energy industry. Atlas’ portfolio of offerings includes oilfield logistics, distributed power systems, and the largest proppant supply network in the Permian Basin. With a focus on leveraging technology, automation, and remote operations to enhance efficiencies, Atlas is centered around a core mission of improving human beings’ access to hydrocarbons that power our lives and, by doing so, maximizing value creation for our shareholders.

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 (the “Exchange Act”). 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 regarding the anticipated financial performance of Atlas following the Moser Acquisition; expected accretion to Adjusted EBITDA; expectations regarding the leverage and dividend profile of Atlas following the Moser Acquisition; the expected synergies and efficiencies to be achieved as a result of the Moser Acquisition; expansion and growth of Atlas’s business; future investments in our new distributed power platform; our business strategy, industry, future operations and profitability; expected capital expenditures and the impact of such expenditures on our performance; statements about our 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: uncertainties as to whether the transaction will achieve its anticipated benefits and projected synergies within the expected time period or at all; Atlas’s ability to integrate Moser’s operations in a successful manner and in the expected time period; risks that the anticipated tax treatment of the Moser Acquisition is not obtained; unforeseen or unknown liabilities; potential litigation relating to the Moser Acquisition; unexpected future capital expenditures; the effect of the completion of the Moser Acquisition on the parties’ business relationships and businesses generally; potential difficulties in retaining employees as a result of the Moser Acquisition; risks related to future investments in our new distributed power platform; potential negative effects of the completion of the Moser Acquisition on the market price of Atlas’s common stock or operating results; our ability to successfully execute our stock repurchase program or implement future stock repurchase programs; commodity price volatility, including 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 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; transaction costs; 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; the ability of our customers to meet their obligations to us; our ability to maintain effective internal controls; 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 Annual Report on Form 10-K, filed with the SEC on February 27, 2024, 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 3 forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Atlas Energy Solutions Inc. Condensed Consolidated Statements of Income (in thousands, except per share data)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
		(unaudited)				(unaudited)				(unaudited)
Product sales		$	128,445			$	145,347			$	99,988			$	515,434			$	468,119			$	408,446
Service sales			142,893				159,087				41,150				540,523				145,841				74,278
Total sales			271,338				304,434				141,138				1,055,957				613,960				482,724
Cost of sales (excluding depreciation, depletion and accretion expense)			190,967				225,347				66,567				725,196				260,396				198,918
Depreciation, depletion and accretion expense			30,476				26,069				11,625				98,747				39,798				27,498
Gross profit			49,895				53,018				62,946				232,014				313,766				256,308
Selling, general and administrative expense (including stock and unit-based compensation expense of $6,420, $6,289, $3,749, $22,381, 7,409 and $678, respectively.)			25,511				25,463				13,648				106,248				48,636				24,317
Amortization expense of acquired intangible assets			3,743				3,744				—				12,316				—				—
Loss on disposal of assets			—				8,574				—				19,672				—				—
Insurance recovery (gain)			(10,098	)			—				—				(20,098	)			—				—
Operating income			30,739				15,237				49,298				113,876				265,130				231,991
Interest (expense), net			(12,018	)			(11,193	)			(2,230	)			(38,647	)			(7,689	)			(15,760	)
Other income, net			101				289				(8	)			551				430				2,631
Income before income taxes			18,822				4,333				47,060				75,780				257,871				218,862
Income tax expense			4,420				415				11,010				15,836				31,378				1,856
Net income		$	14,402			$	3,918			$	36,050			$	59,944			$	226,493			$	217,006
Less: Pre-IPO net income attributable to Atlas Sand Company, LLC																		$	54,561
Less: Net income attributable to redeemable noncontrolling interest											313								66,503
Net income attributable to Atlas Energy Solutions Inc.		$	14,402			$	3,918			$	35,737			$	59,944			$	105,429			$	217,006
Net income per common share
Basic		$	0.13			$	0.04			$	0.36			$	0.55			$	1.50
Diluted		$	0.13			$	0.04			$	0.36			$	0.55			$	1.48
Weighted average common shares outstanding
Basic			110,216				109,883				99,566				108,235				70,450
Diluted			111,262				111,078				100,242				109,176				71,035

Atlas Energy Solutions Inc. Condensed Consolidated Statements of Cash Flows ( in thousands)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
		(unaudited)				(unaudited)				(unaudited)
Operating activities:
Net income		$	14,402			$	3,918			$	36,050			$	59,944			$	226,493			$	217,006
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and accretion expense			31,342				26,972				12,266				102,207				41,634				28,617
Amortization of debt discount			1,038				1,045				292				3,573				761				457
Amortization of deferred financing costs			117				122				67				435				337				442
Amortization expense of acquired intangible assets			3,743				3,744				—				12,316				—				—
Loss on disposal of assets			—				8,574				—				19,672				—				—
Stock and unit-based compensation			6,420				6,289				3,749				22,381				7,409				678
Deferred income tax			4,569				154				10,142				15,002				29,201				(2	)
Commodity derivatives gain			—				—				—				—				—				(1,842	)
Settlements on commodity derivatives			—				—				—				—				—				2,137
Other			62				(906	)			(4	)			(1,593	)			139				293
Changes in operating assets and liabilities:			9,160				35,277				22,941				22,523				(6,947	)			(41,774	)
Net cash provided by operating activities			70,853				85,189				85,503				256,460				299,027				206,012
Investing activities:
Purchases of property, plant and equipment			(76,431	)			(86,276	)			(119,793	)			(373,983	)			(365,486	)			(89,592	)
Hi-Crush acquisition, net of cash acquired			(11,192	)			—				—				(153,425	)			—				—
Proceeds from insurance recovery			4,700				10,000				—				14,700				—				—
Net cash used in investing activities			(82,923	)			(76,276	)			(119,793	)			(512,708	)			(365,486	)			(89,592	)
Financing Activities:
Proceeds from term loan borrowing			20,000				(3,039	)			—				168,500				—				—
Proceeds from ABL credit facility			20,000				—				—				70,000				—				—
Principal payments on term loan borrowings			(4,452	)			(4,333	)			—				(14,383	)			(16,573	)			(28,544	)
Issuance costs associated with debt financing			(6	)			(37	)			—				(1,189	)			(4,397	)			(233	)
Payments under finance leases			(851	)			(863	)			(69	)			(2,625	)			(2,001	)			(1,010	)
Repayment of equipment finance notes			(1,036	)			(1,456	)							(3,563	)			—				—
Dividends and distributions			(26,451	)			(25,271	)			(20,005	)			(96,895	)			(62,163	)			—
Taxes withheld on vesting RSUs			(2,067	)			—				—				(2,067	)			—				—
Prepayment fee on 2021 Term Loan Credit Facility			—				—				—				—				(2,649	)			—
Net proceeds from IPO			—				—				—				—				303,426				—
Payment of offering costs			—				—				—				—				(6,020	)			—
Member distributions prior to IPO			—				—				—				—				(15,000	)			(45,024	)
Net cash provided by (used in) financing activities			5,137				(34,999	)			(20,074	)			117,778				194,623				(74,811	)
Net decrease in cash and cash equivalents			(6,933	)			(26,086	)			(54,364	)			(138,470	)			128,164				41,609
Cash and cash equivalents, beginning of period			78,637				104,723				264,538				210,174				82,010				40,401
Cash and cash equivalents, end of period		$	71,704			$	78,637			$	210,174			$	71,704			$	210,174			$	82,010

Atlas Energy Solutions Inc. Condensed Consolidated Balance Sheets (in thousands)
		As of				As of
		December 31, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents		$	71,704			$	210,174
Accounts receivable, net			165,967				71,170
Inventories, prepaid expenses and other current assets			51,747				37,342
Total current assets			289,418				318,686
Property, plant and equipment, net			1,486,246				934,660
Right-of-use assets			18,666				4,151
Goodwill			68,999				—
Intangible assets			105,867				1,767
Other long-term assets			3,456				2,422
Total assets		$	1,972,652			$	1,261,686
Liabilities and stockholders' equity
Current liabilities:
Accounts payable, including related parties			119,244				61,159
Accrued liabilities and other current liabilities			80,085				31,433
Current portion of long-term debt			43,736				—
Total current liabilities			243,065				92,592
Long-term debt, net of discount and deferred financing costs			466,989				172,820
Deferred tax liabilities			206,872				121,529
Other long-term liabilities			19,170				6,921
Total liabilities			936,096				393,862
Total stockholders' and members' equity			1,036,556				867,824
Total liabilities and stockholders’ equity		$	1,972,652			$	1,261,686

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 management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis.

These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies.

Non-GAAP Measure Definitions:

• We define Adjusted EBITDA net income before depreciation, depletion and accretion expense, amortization expense of acquired intangible assets, interest expense, income tax expense, stock and unit-based compensation, loss on extinguishment of debt, loss on disposal of assets, insurance recovery (gain), unrealized commodity derivative (gain) loss, other acquisition related costs, and other non-recurring costs. Management believes Adjusted EBITDA is useful because it allows management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period and against our peers without regard to financing method or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain prior period non-recurring costs of goods sold are now included as an add-back to adjusted EBITDA in order to conform to the current period presentation and to more accurately describe the Company’s operating performance and results period-over-period.
• We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total sales.
• We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital Expenditures. Management believes that Adjusted Free Cash Flow is useful to investors as it provides a measure of the ability of our business to generate cash.
• We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total sales.
• We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow divided by Adjusted EBITDA.
• We define Maintenance Capital Expenditures as capital expenditures excluding growth capital expenditures and reconstruction of previously incurred growth capital expenditures.

Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income (unaudited, in thousands)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net income		$	14,402			$	3,918			$	36,050			$	59,944			$	226,493			$	217,006
Depreciation, depletion and accretion expense			31,342				26,972				12,266				102,207				41,634				28,617
Amortization expense of acquired intangible assets			3,743				3,744				—				12,316				—				—
Interest expense			12,257				11,831				4,731				43,078				17,452				15,803
Income tax expense			4,420				415				11,010				15,836				31,378				1,856
EBITDA		$	66,164			$	46,880			$	64,057			$	233,381			$	316,957			$	263,282
Stock and unit-based compensation			6,420				6,289				3,749				22,381				7,409				678
Unrealized commodity derivative (gain) loss			—				—				—				—				—				66
Loss on disposal of assets (1)			—				8,574				—				19,672				—				—
Insurance recovery (gain)(2)			(10,098	)			—				—				(20,098	)			—				—
Other non-recurring costs (3)			—				6,918				441				14,335				4,838				—
Other acquisition related costs (4)			750				2,390				451				19,231				451				—
Adjusted EBITDA		$	63,236			$	71,051			$	68,698			$	288,902			$	329,655			$	264,026
Maintenance Capital Expenditures (5)		$	15,302			$	12,382			$	12,180			$	37,562			$	38,524			$	35,473
Adjusted Free Cash Flow		$	47,934			$	58,669			$	56,518			$	251,340			$	291,131			$	228,553

Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities (unaudited, in thousands, except percentages)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Net cash provided by operating activities		$	70,853			$	85,189			$	85,503			$	256,460			$	299,027			$	206,012
Current income tax expense (benefit)(5)			(149	)			261				868				834				2,177				1,858
Change in operating assets and liabilities			(9,160	)			(35,277	)			(22,941	)			(22,523	)			6,947				41,774
Cash interest expense (5)			11,102				10,664				4,371				39,070				16,354				14,904
Maintenance capital expenditures (5)			(15,302	)			(12,382	)			(12,180	)			(37,562	)			(38,524	)			(35,473	)
Other non-recurring costs (3)			—				6,918				441				14,335				4,838				—
Other acquisition related costs (4)			750				2,390				451				19,231				451				—
Insurance recovery (gain)(2)			(10,098	)			—				—				(20,098	)			—				—
Other			(62	)			906				5				1,593				(139	)			(522	)
Adjusted Free Cash Flow		$	47,934			$	58,669			$	56,518			$	251,340			$	291,131			$	228,553
Adjusted EBITDA Margin			23	%			23	%			49	%			27	%			54	%			55	%
Adjusted Free Cash Flow Margin			18	%			19	%			40	%			24	%			47	%			47	%
Adjusted Free Cash Flow Conversion			76	%			83	%			82	%			87	%			88	%			87	%

(1)	Represents loss on disposal of one of the Company's dredge mining assets at its Kermit facility and loss on disposal of assets as a result of the fire at one of the Kermit plants that caused damage to the physical condition of the Kermit asset group.
(2)	Represents insurance recovery (gain) deemed collectible and legally enforceable as of December 31, 2024 related to the fire at one of the Kermit plants.
(3)	Other non-recurring costs includes costs incurred during our Up-C simplification transaction, temporary loadout, and other infrequent and unusual costs.
(4)	Represents acquisition costs include fees paid to finance, legal, accounting and other advisors, employee retention and benefit costs, and other operational and corporate costs.
(5)	A reconciliation of the adjustment of these items used to calculate Adjusted Free Cash Flow to the Consolidated Financial Statements is included below.

Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Maintenance Capital Expenditures to Purchase of Property, Plant and Equipment (unaudited, in thousands)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Maintenance Capital Expenditures, accrual basis reconciliation:
Purchases of property, plant and equipment		$	76,431			$	86,276			$	119,793			$	373,983			$	365,486			$	89,592
Changes in operating assets and liabilities associated with investing activities (1)			(11,118	)			(5,389	)			(1,828	)			(2,948	)			66,132				20,747
Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures			(50,011	)			(68,505	)			(105,785	)			(333,473	)			(393,094	)			(74,866	)
Maintenance Capital Expenditures, accrual basis		$	15,302			$	12,382			$	12,180			$	37,562			$	38,524			$	35,473

(1)	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.

Atlas Energy Solutions Inc. – Supplemental Information Reconciliation of Current Income Tax Expense to Income Tax Expense (unaudited, in thousands)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Current tax expense reconciliation:
Income tax expense		$	4,420			$	415			$	11,010			$	15,836			$	31,378			$	1,856
Less: deferred tax expense (benefit)			(4,569	)			(154	)			(10,142	)			(15,002	)			(29,201	)			2
Current income tax expense (benefit)		$	(149	)		$	261			$	868			$	834			$	2,177			$	1,858

Atlas Energy Solutions Inc. – Supplemental Information Cash Interest Expense to Income Expense, Net (unaudited, in thousands)
		Three Months Ended												Year Ended
		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023				December 31, 2022
Cash interest expense reconciliation:
Interest expense, net		$	12,018			$	11,193			$	2,230			$	38,647			$	7,689			$	15,760
Less: Amortization of debt discount			(1,038	)			(1,045	)			(292	)			(3,573	)			(761	)			(457	)
Less: Amortization of deferred financing costs			(117	)			(122	)			(67	)			(435	)			(337	)			(442	)
Less: Interest income			239				638				2,500				4,431				9,763				43
Cash interest expense		$	11,102			$	10,664			$	4,371			$	39,070			$	16,354			$	14,904

 

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Investor Contact

Kyle Turlington

5918 W Courtyard Drive, Suite #500

Austin, Texas 78730

United States

T: 512-220-1200

IR@atlas.energy

Source: Atlas Energy Solutions Inc.

FAQ

What were Atlas Energy Solutions (AESI) key financial results for 2024?

Atlas Energy Solutions reported total sales of $1.1 billion, net income of $59.9 million, Adjusted EBITDA of $288.9 million, and Adjusted Free Cash Flow of $251.3 million for fiscal year 2024.

How much did AESI pay for the Moser Energy Systems acquisition?

Atlas Energy Solutions acquired Moser Energy Systems for $220 million, consisting of $180 million in cash and approximately 1.7 million shares valued at $40 million.

What were the terms of AESI's February 2025 public offering?

Atlas Energy Solutions offered 11.5 million shares at $23.00 per share, raising gross proceeds of $264.5 million and net proceeds of approximately $254.1 million.

How did AESI's Q4 2024 performance compare to the previous quarter?

Q4 2024 showed a 10.9% sequential decrease in total sales to $271.3 million, with sales volumes declining 15% to 5.1 million tons.

What is AESI's new dividend payment for Q1 2025?

Atlas Energy Solutions increased its quarterly dividend to $0.25 per share, payable on February 28, 2025, to shareholders of record as of February 21, 2025.