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Atlas Energy Solutions Announces Second Quarter 2024 Results; Increases Quarterly Dividend

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Atlas Energy Solutions Inc. (NYSE: AESI) reported its Q2 2024 financial results, highlighting total sales of $287.5 million, a 49% increase from Q1 2024. The company's net income was $14.8 million with a 5% net income margin, while Adjusted EBITDA reached $72.0 million with a 25% margin. Atlas declared an increased quarterly dividend of $0.23 per share, payable on August 22, 2024.

Key highlights include:

  • Net cash provided by operating activities: $60.9 million
  • Adjusted Free Cash Flow: $66.6 million (23% margin)
  • Dune Express construction remains on-time and on-budget
  • Total liquidity as of June 30, 2024: $279.2 million

The company expects Q3 2024 financial results to improve significantly following the completion of the Kermit Feed System reconstruction.

Atlas Energy Solutions Inc. (NYSE: AESI) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando ricavi totali di 287,5 milioni di dollari, con un incremento del 49% rispetto al primo trimestre del 2024. L'utile netto dell'azienda è stato di 14,8 milioni di dollari con un margine di utile netto del 5%, mentre l'EBITDA rettificato ha raggiunto i 72,0 milioni di dollari con un margine del 25%. Atlas ha dichiarato un aumento del dividendo trimestrale a 0,23 dollari per azione, pagabile il 22 agosto 2024.

I punti salienti includono:

  • Flusso di cassa netto fornito dalle attività operative: 60,9 milioni di dollari
  • Flusso di cassa libero rettificato: 66,6 milioni di dollari (margine del 23%)
  • La costruzione di Dune Express è in linea con i tempi e il budget
  • Liquidità totale al 30 giugno 2024: 279,2 milioni di dollari

L'azienda prevede che i risultati finanziari del terzo trimestre del 2024 migliorino significativamente dopo il completamento della ricostruzione del sistema di alimentazione Kermit.

Atlas Energy Solutions Inc. (NYSE: AESI) reportó sus resultados financieros del segundo trimestre de 2024, destacando ventas totales de 287,5 millones de dólares, un incremento del 49% en comparación con el primer trimestre de 2024. El ingreso neto de la compañía fue de 14,8 millones de dólares con un margen de ingreso neto del 5%, mientras que el EBITDA ajustado alcanzó los 72,0 millones de dólares con un margen del 25%. Atlas declaró un aumento del dividendo trimestral de 0,23 dólares por acción, pagadero el 22 de agosto de 2024.

Los aspectos destacados incluyen:

  • Flujo de efectivo neto proporcionado por actividades operativas: 60,9 millones de dólares
  • Flujo de caja libre ajustado: 66,6 millones de dólares (margen del 23%)
  • La construcción de Dune Express se mantiene dentro del plazo y del presupuesto
  • Liquidez total al 30 de junio de 2024: 279,2 millones de dólares

La compañía espera que los resultados financieros del tercer trimestre de 2024 mejoren significativamente tras la finalización de la reconstrucción del sistema de alimentación Kermit.

아틀라스 에너지 솔루션즈 Inc. (NYSE: AESI)는 2024년 2분기 재무 결과를 발표하며 총 매출 2억 8750만 달러를 보고했으며, 이는 2024년 1분기 대비 49% 증가한 수치입니다. 회사의 순이익은 1480만 달러이며 순이익률은 5%였고, 조정된 EBITDA는 7200만 달러에 도달했으며, 마진은 25%입니다. 아틀라스는 주당 0.23달러의 분기 배당금을 인상하여 2024년 8월 22일에 지급될 예정입니다.

주요 사항은 다음과 같습니다:

  • 운영 활동에서 제공된 순 현금: 6090만 달러
  • 조정된 자유 현금 흐름: 6660만 달러(23% 마진)
  • 듄 익스프레스 건설은 예정대로 진행되고 있으며 예산 내에 있습니다
  • 2024년 6월 30일 기준 총 유동성: 2억 7920만 달러

회사는 케르밋 공급 시스템 재건축 완료 이후 2024년 3분기 재무 결과가 크게 개선될 것으로 기대하고 있습니다.

Atlas Energy Solutions Inc. (NYSE: AESI) a annoncé ses résultats financiers pour le deuxième trimestre 2024, mettant en évidence des ventes totales de 287,5 millions de dollars, soit une augmentation de 49% par rapport au premier trimestre 2024. Le revenu net de la société était de 14,8 millions de dollars avec une marge de revenu net de 5%, tandis que l'EBITDA ajusté a atteint 72,0 millions de dollars avec une marge de 25%. Atlas a déclaré un dividende trimestriel augmenté de 0,23 dollar par action, payable le 22 août 2024.

Les éléments clés incluent :

  • Flux de trésorerie net provenant des activités opérationnelles : 60,9 millions de dollars
  • Flux de trésorerie libre ajusté : 66,6 millions de dollars (marge de 23%)
  • La construction de Dune Express est à l'heure et dans le budget
  • Liquidité totale au 30 juin 2024 : 279,2 millions de dollars

La société s'attend à ce que les résultats financiers du troisième trimestre 2024 s'améliorent considérablement après l'achèvement de la reconstruction du système d'alimentation Kermit.

Atlas Energy Solutions Inc. (NYSE: AESI) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht und hebt den Gesamtumsatz von 287,5 Millionen US-Dollar hervor, was einem Anstieg von 49% im Vergleich zum ersten Quartal 2024 entspricht. Das Nettoeinkommen des Unternehmens betrug 14,8 Millionen US-Dollar mit einer Nettomarge von 5%, während das bereinigte EBITDA 72,0 Millionen US-Dollar mit einer Marge von 25% erreichte. Atlas erklärte eine erhöhte Quartalsdividende von 0,23 US-Dollar pro Aktie, die am 22. August 2024 zahlbar ist.

Wichtige Highlights sind:

  • Netto-Cashflow aus operativer Tätigkeit: 60,9 Millionen US-Dollar
  • Bereinigter freier Cashflow: 66,6 Millionen US-Dollar (23% Marge)
  • Der Bau von Dune Express liegt im Zeit- und Budgetrahmen
  • Gesamtliquidität zum 30. Juni 2024: 279,2 Millionen US-Dollar

Das Unternehmen erwartet, dass sich die Finanzergebnisse für das dritte Quartal 2024 nach Abschluss des Wiederaufbaus des Kermit-Zuführungssystems erheblich verbessern werden.

Positive
  • Total sales increased by 49% to $287.5 million compared to Q1 2024
  • Declared an increased quarterly dividend of $0.23 per share
  • Dune Express construction remains on-time and on-budget
  • Strong liquidity position of $279.2 million as of June 30, 2024
  • Company expects Q3 2024 financial results to improve significantly
Negative
  • Net income decreased to $14.8 million from $26.8 million in Q1 2024
  • Net Income Margin dropped to 5% from 14% in Q1 2024
  • Adjusted EBITDA Margin decreased to 25% from 39% in Q1 2024
  • Adjusted Free Cash Flow Margin declined to 23% from 37% in Q1 2024
  • Cost of sales increased by 89% compared to Q1 2024

Insights

Atlas Energy Solutions' Q2 2024 results present a mixed picture. While total sales increased 49% quarter-over-quarter to $287.5 million, net income margin dropped significantly from 14% in Q1 to 5% in Q2. This decline can be attributed to higher costs related to the Kermit Feed System reconstruction and lower throughput.

The company's Adjusted EBITDA margin also decreased from 39% to 25%, indicating pressure on profitability. However, the completion of the Kermit facility repairs and the full quarter contribution from the Hi-Crush acquisition suggest potential for improved performance in Q3.

The increased quarterly dividend of $0.23 per share signals management's confidence in future cash flows. With a strong liquidity position of $279.2 million, Atlas appears well-positioned to fund its growth initiatives, including the Dune Express project.

Atlas Energy's Q2 results reflect the volatile nature of the energy services sector. The company's ability to increase sales volumes by 26% quarter-over-quarter, despite operational challenges, demonstrates resilience in market demand. However, lower average pricing during the period suggests ongoing competitive pressures in the industry.

The 101% increase in service sales, largely due to the Hi-Crush acquisition, highlights Atlas's strategic move to diversify its revenue streams. This could potentially provide more stability in future earnings, reducing reliance on product sales alone.

The transition from a base plus variable dividend structure to a standalone base dividend of $0.23 per share may appeal to income-focused investors seeking more predictable returns. This change, coupled with the company's focus on growth projects like Dune Express, positions Atlas as a balanced play in the energy services sector.

AUSTIN, Texas--(BUSINESS WIRE)-- Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today reported financial and operating results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights

  • Total sales of $287.5 million
  • Net income of $14.8 million (5% Net Income Margin)
  • Adjusted EBITDA of $72.0 million (25% Adjusted EBITDA Margin) (1)
  • Net cash provided by operating activities of $60.9 million
  • Adjusted Free Cash Flow of $66.6 million (23% Adjusted Free Cash Flow Margin) (1)
  • Dune Express construction remains on-time and on-budget
  • Declares increased quarterly dividend of $0.23 per share, payable August 22, 2024

Financial Summary

 

Three Months Ended

 

 

June 30, 2024

 

 

March 31, 2024

 

 

June 30, 2023

 

 

 

(unaudited, in thousands, except percentages)

Sales

 

$

287,518

 

 

$

192,667

 

 

$

161,788

 

Net income

 

$

14,837

 

 

$

26,787

 

 

$

71,211

 

Net Income Margin

 

 

5

%

 

 

14

%

 

 

44

%

Adjusted EBITDA

 

$

72,045

 

 

$

75,543

 

 

$

92,846

 

Adjusted EBITDA Margin

 

 

25

%

 

 

39

%

 

 

57

%

Net cash provided by operating activities

 

$

60,856

 

 

$

39,562

 

 

$

103,883

 

Adjusted Free Cash Flow

 

$

66,627

 

 

$

71,083

 

 

$

86,821

 

Adjusted Free Cash Flow Margin

 

 

23

%

 

 

37

%

 

 

54

%

(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 & CEO, commented, “While second quarter results were weighed down by lower throughput and higher costs related to the reconstruction of the Kermit Feed System, the rest of our operations performed exceedingly well. The reconstruction of the damaged feed system was completed at the end of June, and, after a ramp-up period in July, Atlas is back to normal loadout operations today at Kermit. With the recovery in our productive capacity, we expect our third quarter financial results to meaningfully improve sequentially relative to those of the second quarter. I am extremely proud of our team’s remarkable response times and tireless work ethic throughout this incident, and I would like to congratulate and say thank you to our entire organization for responding so admirably to the event. We’re looking forward to the remainder of 2024 as we near the initial in-service date of the Dune Express.”

Second Quarter 2024 Financial Results

Second quarter 2024 total sales increased $94.9 million, or 49% when compared to the first quarter of 2024, to $287.5 million. Product sales increased $14.8 million, or 13% when compared to the first quarter of 2024, to $128.2 million. Second quarter 2024 sales volumes increased to 4.9 million tons, or 26% when compared to the first quarter of 2024, which was offset by lower average pricing experienced during the period. Service sales increased by $80.1 million, or 101% when compared to the first quarter of 2024, to $159.3 million. The increase in service sales was largely due to a full quarter of contribution of Hi-Crush.

Second quarter 2024 cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) increased by $95.4 million, or 89% when compared to the first quarter of 2024, to $202.1 million. The increase in our cost of sales was primarily driven by a full quarter of contribution associated with the Hi-Crush operations, and elevated costs associated with operations at our damaged Kermit facility.

Selling, general and administrative expenses (“SG&A”) for the second quarter of 2024 decreased $0.7 million, or 3% when compared to the first quarter of 2024, to $27.3 million. Included within our SG&A is $5.5 million in stock based compensation and $5.9 million in other acquisition related costs.

Net income for the second quarter of 2024 was $14.8 million, and Adjusted EBITDA for the second quarter of 2024 was $72.0 million.

Liquidity, Capital Expenditures and Other

As of June 30, 2024, the Company’s total liquidity was $279.2 million, which was comprised of $104.7 million in cash and cash equivalents (held in cash, CDs, and three-month Treasury bills), $74.5 million of availability under the Company’s ABL Facility, and $100 million of availability under the Company's Delayed Draw Term Loan Facility. The Company had $50.0 million of borrowings outstanding under the ABL Facility and $0.6 million of outstanding undrawn letters of credit.

Net cash used in investing activities was $115.8 million during the second quarter of 2024, driven largely by the construction of the Dune Express and additional OnCore deployments.

Quarterly Cash Dividend

On August 1, 2024, the Board of Directors of Atlas declared an increased dividend to common stockholders of $0.23 per share, or approximately $25.3 million in aggregate to shareholders. We have elected to move away from the base plus variable dividend structure to a standalone base dividend. The dividend will be payable on August 22, 2024 to shareholders of record at the close of business on August 15, 2024.

Conference Call Information

The Company will host a conference call to discuss financial and operational results on Tuesday, August 6, 2024 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 August 2024”, in addition to a "August 2024 Growth 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. is a leading proppant producer and proppant logistics provider, serving primarily the Permian Basin of West Texas and New Mexico. We operate 13 proppant production facilities across the Permian Basin with a combined annual production capacity of 28 million tons, including both large-scale in-basin facilities and smaller distributed mining units. We manage a portfolio of leading-edge logistics assets, which includes our 42-mile Dune Express conveyor system, which is currently under construction and is scheduled to come online in the fourth quarter of 2024. In addition to our conveyor infrastructure, we manage a fleet of 120 trucks, which are capable of delivering expanded payloads due to our custom-manufactured trailers and drop-depot process. Our approach to managing both our proppant production and proppant logistics operations is intently focused on leveraging technology, automation and remote operations to drive efficiencies.

We are a low-cost producer of various high-quality, locally sourced proppants used during the well completion process. We offer both dry and damp sand, and carry various mesh sizes including 100 mesh and 40/70 mesh. Proppant is a key component necessary to facilitate the recovery of hydrocarbons from oil and natural gas wells.

Our logistics platform is designed to increase the efficiency, safety and sustainability of the oil and natural gas industry within the Permian Basin. Proppant logistics is increasingly a differentiating factor affecting customer choice among proppant producers. The cost of delivering sand, even short distances, can be a significant component of customer spending on their well completions given the substantial volumes that are utilized in modern well designs.

We continue to invest in and pursue leading-edge technologies, including autonomous trucking, digital infrastructure, and artificial intelligence, to support opportunities to gain efficiencies in our operations. These technology-focused investments aim to improve our cost structure and also combine to produce beneficial environmental and community impacts.

While our core business is fundamentally aligned with a lower emissions economy, our core obligation has been, and will always be, to our stockholders. We recognize that maximizing value for our stockholders requires that we optimize the outcomes for our broader stakeholders, including our employees and the communities in which we operate. We are proud of the fact that our approach to innovation in the hydrocarbon industry while operating in an environmentally responsible manner creates immense value. Since our founding in 2017, our core mission has been to improve human beings’ access to the hydrocarbons that power our lives while also delivering differentiated social and environmental progress. Our Atlas team has driven innovation and has produced industry-leading environmental benefits by reducing energy consumption, emissions, and our aerial footprint. We call this Sustainable Environmental and Social Progress.

We were founded in 2017 by Ben M. “Bud” Brigham, our Executive Chairman, and are led by an entrepreneurial team with a history of constructive disruption bringing significant and complementary experience to this enterprise, including the perspective of longtime E&P operators, which provides for an elevated understanding of the end users of our products and services. Our executive management team has a proven track record with a history of generating positive returns and value creation. Our experience as E&P operators was instrumental to our understanding of the opportunity created by in-basin sand production and supply in the Permian Basin, which we view as North America’s premier shale resource and which we believe will remain its most active through economic cycles.

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 about the anticipated financial performance of Atlas following our acquisition of substantially all of the Permian Basin proppant production and logistics businesses and operations of Hi-Crush Inc. (the “Hi-Crush Acquisition”); the expected synergies and efficiencies to be achieved as a result of the Hi-Crush Acquisition; statements regarding our ability to return the Kermit facility to full production, the required reconstruction; Atlas’s expectations regarding the timing of the Kermit facility’s return to full production and its utilization; statements about the availability and extent of insurance coverage; statements about the ultimate impact of the incident on Atlas’s future performance; expected accretion to free cash flow and earnings per share; expectations regarding the leverage and dividend profile of Atlas; expansion and growth of Atlas’s business; expected production volumes; our business strategy, our industry, our 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 Hi-Crush Acquisition will achieve its anticipated benefits and projected synergies within the expected time period or at all; Atlas’s ability to integrate Hi-Crush Inc.’s operations in a successful manner and in the expected time period; risks that the anticipated tax treatment of the Hi-Crush Acquisition is not obtained; unforeseen or unknown liabilities; unexpected future capital expenditures; potential litigation relating to the Hi-Crush Acquisition; the effect of the completion of the Hi-Crush Acquisition on Atlas’s business relationships and business generally; risks that the Hi-Crush Acquisition disrupts current plans and operations of Atlas and its management team and potential difficulties in retaining employees as a result of the Hi-Crush Acquisition; the risks related to Atlas’s financing of the Hi-Crush Acquisition; potential negative effects of the Hi-Crush Acquisition on the market price of Atlas’s common stock or operating results; uncertainty regarding the availability of insurance proceeds to offset the cost of reconstructing the Kermit facility; risks relating to the impact of this incident on our ability to service our customers; 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, 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; 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 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
(unaudited, in thousands, except per share data) 

 

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

 

 

 

 

 

 

Product sales

 

$

128,210

 

 

$

113,432

 

 

$

125,216

 

Service sales

 

 

159,308

 

 

 

79,235

 

 

 

36,572

 

Total sales

 

 

287,518

 

 

 

192,667

 

 

 

161,788

 

Cost of sales (excluding depreciation, depletion and accretion expense)

 

 

202,136

 

 

 

106,746

 

 

 

63,504

 

Depreciation, depletion and accretion expense

 

 

25,027

 

 

 

17,175

 

 

 

9,433

 

Gross profit

 

 

60,355

 

 

 

68,746

 

 

 

88,851

 

Selling, general and administrative expense (including stock and unit-based compensation expense of $5,466, $4,206 and $1,624, respectively.)

 

 

27,266

 

 

 

28,008

 

 

 

12,183

 

Amortization expense of acquired intangible assets

 

 

3,768

 

 

 

1,061

 

 

 

 

Loss on disposal of assets

 

 

11,098

 

 

 

 

 

 

 

Insurance recovery (gain)

 

 

(10,000

)

 

 

 

 

 

 

Operating income

 

 

28,223

 

 

 

39,677

 

 

 

76,668

 

Interest (expense), net

 

 

(10,458

)

 

 

(4,978

)

 

 

(521

)

Other income

 

 

138

 

 

 

23

 

 

 

118

 

Income before income taxes

 

 

17,903

 

 

 

34,722

 

 

 

76,265

 

Income tax expense

 

 

3,066

 

 

 

7,935

 

 

 

5,054

 

Net income

 

$

14,837

 

 

$

26,787

 

 

$

71,211

 

Less: Net income attributable to redeemable noncontrolling interest

 

 

 

 

 

 

32,693

 

Net income attributable to Atlas Energy Solutions Inc.

 

$

14,837

 

 

$

26,787

 

 

$

38,518

 

 

 

 

 

 

 

 

Net income per common share

 

 

 

 

 

 

Basic

 

$

0.13

 

 

$

0.26

 

 

$

0.67

 

Diluted

 

$

0.13

 

 

$

0.26

 

 

$

0.67

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

 

111,064

 

 

 

102,931

 

 

 

57,148

 

Diluted

 

 

112,023

 

 

 

103,822

 

 

 

57,420

 

 
 
 
 

Atlas Energy Solutions Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands) 

 

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

14,837

 

 

$

26,787

 

 

$

71,211

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation, depletion and accretion expense

 

 

25,886

 

 

 

18,007

 

 

 

9,814

 

Amortization of debt discount

 

 

1,083

 

 

 

407

 

 

 

120

 

Amortization of deferred financing costs

 

 

118

 

 

 

78

 

 

 

104

 

Amortization expense of acquired intangible assets

 

 

3,768

 

 

 

1,061

 

 

 

 

Loss on disposal of assets

 

 

11,098

 

 

 

 

 

 

 

Insurance recovery (gain)

 

 

(10,000

)

 

 

 

 

 

 

Stock and unit-based compensation

 

 

5,466

 

 

 

4,206

 

 

 

1,624

 

Deferred income tax

 

 

2,758

 

 

 

7,521

 

 

 

5,819

 

Other

 

 

(744

)

 

 

(5

)

 

 

(21

)

Changes in operating assets and liabilities:

 

 

6,586

 

 

 

(18,500

)

 

 

15,212

 

Net cash provided by operating activities

 

 

60,856

 

 

 

39,562

 

 

 

103,883

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(115,790

)

 

 

(95,486

)

 

 

(85,895

)

Hi-Crush acquisition, net of cash acquired

 

 

 

 

 

(142,233

)

 

 

 

Net cash used in investing activities

 

 

(115,790

)

 

 

(237,719

)

 

 

(85,895

)

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Payment of offering costs

 

 

 

 

 

 

 

 

(4,439

)

Proceeds from borrowings

 

 

3,039

 

 

 

198,500

 

 

 

 

Principal payments on term loan borrowings

 

 

(4,217

)

 

 

(1,381

)

 

 

(8,347

)

Issuance costs associated with debt financing

 

 

(416

)

 

 

(730

)

 

 

(222

)

Payments under finance leases

 

 

(846

)

 

 

(65

)

 

 

(962

)

Repayment of notes payable

 

 

(855

)

 

 

(216

)

 

 

 

Dividends and distributions

 

 

(24,168

)

 

 

(21,005

)

 

 

(15,000

)

Net cash provided by (used in) financing activities

 

 

(27,463

)

 

 

175,103

 

 

 

(28,970

)

Net decrease in cash and cash equivalents

 

 

(82,397

)

 

 

(23,054

)

 

 

(10,982

)

Cash and cash equivalents, beginning of period

 

 

187,120

 

 

 

210,174

 

 

 

352,656

 

Cash and cash equivalents, end of period

 

$

104,723

 

 

$

187,120

 

 

$

341,674

 

 
 
 
 

Atlas Energy Solutions Inc.
Condensed Consolidated Balance Sheets
(in thousands) 

 

 

 

As of

 

As of

 

 

June 30, 2024

 

December 31, 2023

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

104,723

 

 

$

210,174

 

Accounts receivable, including related parties

 

 

197,072

 

 

 

71,170

 

Inventories, prepaid expenses and other current assets

 

 

63,361

 

 

 

37,342

 

Total current assets

 

 

365,156

 

 

 

318,686

 

Property, plant and equipment, net

 

 

1,403,417

 

 

 

934,660

 

Right-of-use assets

 

 

22,664

 

 

 

4,151

 

Goodwill

 

 

75,219

 

 

 

 

Intangible assets

 

 

112,422

 

 

 

1,767

 

Other long-term assets

 

 

3,451

 

 

 

2,422

 

Total assets

 

$

1,982,329

 

 

$

1,261,686

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable, including related parties

 

 

103,877

 

 

 

61,159

 

Accrued liabilities and other current liabilities

 

 

104,903

 

 

 

31,433

 

Current portion of long-term debt

 

 

30,553

 

 

 

 

Total current liabilities

 

 

239,333

 

 

 

92,592

 

Long-term debt, net of discount and deferred financing costs

 

 

447,450

 

 

 

172,820

 

Deferred tax liabilities

 

 

207,027

 

 

 

121,529

 

Other long-term liabilities

 

 

26,559

 

 

 

6,921

 

Total liabilities

 

 

920,369

 

 

 

393,862

 

Total stockholders' and members' equity

 

 

1,061,960

 

 

 

867,824

 

Total liabilities and stockholders’ equity

 

$

1,982,329

 

 

$

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 as net income before depreciation, depletion and accretion, 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 non-recurring transaction 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.
  • 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

 

 

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

 

Amortization expense of acquired intangible assets

 

 

3,768

 

 

 

1,061

 

 

 

 

Interest expense

 

 

12,014

 

 

 

6,976

 

 

 

4,027

 

Income tax expense

 

 

3,066

 

 

 

7,935

 

 

 

5,054

 

EBITDA

 

$

59,571

 

 

$

60,766

 

 

$

90,106

 

Stock and unit-based compensation

 

 

5,466

 

 

 

4,206

 

 

 

1,624

 

Non-recurring transaction costs

 

 

22

 

 

 

368

 

 

 

1,116

 

Other acquisition related costs(1)

 

 

5,888

 

 

 

10,203

 

 

 

 

Loss on disposal of assets(2)

 

 

11,098

 

 

 

 

 

 

 

Insurance recovery (gain)(3)

 

 

(10,000

)

 

 

 

 

 

 

Adjusted EBITDA

 

$

72,045

 

 

$

75,543

 

 

$

92,846

 

Maintenance Capital Expenditures

 

$

5,418

 

 

$

4,460

 

 

$

6,025

 

Adjusted Free Cash Flow

 

$

66,627

 

 

$

71,083

 

 

$

86,821

 

 
 
 
 

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

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Net cash provided by operating activities

 

$

60,856

 

 

$

39,562

 

 

$

103,883

 

Current income tax expense (benefit)(4)

 

 

308

 

 

 

414

 

 

 

(765

)

Change in operating assets and liabilities

 

 

(6,586

)

 

 

18,500

 

 

 

(15,212

)

Cash interest expense(4)

 

 

10,813

 

 

 

6,491

 

 

 

3,804

 

Maintenance capital expenditures(4)

 

 

(5,418

)

 

 

(4,460

)

 

 

(6,025

)

Non-recurring transaction costs

 

 

22

 

 

 

368

 

 

 

1,116

 

Other acquisition related costs

 

 

5,888

 

 

 

10,203

 

 

 

 

Other

 

 

744

 

 

 

5

 

 

 

20

 

Adjusted Free Cash Flow

 

$

66,627

 

 

$

71,083

 

 

$

86,821

 

Adjusted EBITDA Margin

 

 

25

%

 

 

39

%

 

 

57

%

Adjusted Free Cash Flow Margin

 

 

23

%

 

 

37

%

 

 

54

%

Adjusted Free Cash Flow Conversion

 

 

92

%

 

 

94

%

 

 

94

%

(1)

Represents Hi-Crush Transaction costs include fees paid to finance, legal, accounting and other advisors, employee retention and benefit costs, and other operational and corporate costs.

(2)

Represents 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. 

(3)

Represents insurance recovery (gain) deemed collectible and legally enforceable related to the fire at one of the Kermit plants. 

(4)

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

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Maintenance Capital Expenditures, accrual basis reconciliation:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

$

115,790

 

 

$

95,486

 

 

$

85,895

 

Changes in operating assets and liabilities associated with investing activities(1)

 

 

16,134

 

 

 

(2,575

)

 

 

20,996

 

Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures

 

 

(126,506

)

 

 

(88,451

)

 

 

(100,866

)

Maintenance Capital Expenditures, accrual basis

 

$

5,418

 

 

$

4,460

 

 

$

6,025

 

(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

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Current tax expense reconciliation:

 

 

 

 

 

 

Income tax expense

 

$

3,066

 

 

$

7,935

 

 

$

5,054

 

Less: deferred tax expense

 

 

(2,758

)

 

 

(7,521

)

 

 

(5,819

)

Current income tax expense (benefit)

 

$

308

 

 

$

414

 

 

$

(765

)

 
 
 

Atlas Energy Solutions Inc. – Supplemental Information
Cash Interest Expense to Income Expense, Net
(unaudited, in thousands) 

 

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

Cash interest expense reconciliation:

 

 

 

 

 

 

Interest expense, net

 

$

10,458

 

 

$

4,978

 

 

$

521

 

Less: Amortization of debt discount

 

 

(1,083

)

 

 

(407

)

 

 

(120

)

Less: Amortization of deferred financing costs

 

 

(118

)

 

 

(78

)

 

 

(104

)

Less: Interest income

 

 

1,556

 

 

 

1,998

 

 

 

3,507

 

Cash interest expense

 

$

10,813

 

 

$

6,491

 

 

$

3,804

 

 
 

 

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) total sales for Q2 2024?

Atlas Energy Solutions (AESI) reported total sales of $287.5 million for Q2 2024, representing a 49% increase compared to Q1 2024.

How much did Atlas Energy Solutions (AESI) increase its quarterly dividend in Q2 2024?

Atlas Energy Solutions (AESI) increased its quarterly dividend to $0.23 per share, payable on August 22, 2024, to shareholders of record as of August 15, 2024.

What was Atlas Energy Solutions' (AESI) Adjusted EBITDA for Q2 2024?

Atlas Energy Solutions (AESI) reported an Adjusted EBITDA of $72.0 million for Q2 2024, with an Adjusted EBITDA Margin of 25%.

How much was Atlas Energy Solutions' (AESI) net income for Q2 2024?

Atlas Energy Solutions (AESI) reported a net income of $14.8 million for Q2 2024, with a Net Income Margin of 5%.

What is the status of Atlas Energy Solutions' (AESI) Dune Express project as of Q2 2024?

As of Q2 2024, Atlas Energy Solutions (AESI) reported that the Dune Express construction remains on-time and on-budget.

Atlas Energy Solutions Inc.

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Oil & Gas Equipment & Services
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