Atlas Energy Solutions (AESI) 2024 Goldman Sachs Energy, Clean Tech & Utilities Conference presentation summary

Asset base and operating advantages

• Giant open-dune deposits yield ~85–90% vs. ~65–70% for off-dune deposits; resource life exceeds 100 years at 15 mmtpy of production.

• Costless Pecos Valley Aquifer water enables electric dredge mining, with lower costs and emissions than traditional yellow-iron methods.

• Automated, redundant plant designs target high utilization and lower labor intensity; high-capacity multi-trailer configurations allow payloads 3x–4x industry standards.

• Kermit facility completed in Dec 2023, increasing production capacity by ~50% to 15+ mmtpy.

Logistics and Dune Express

• The 42-mile Dune Express is planned for Q4 2024 service, with $400m expected cost, 13 mmtpy capacity, ~85,000 tons of storage and 4+ loadouts.

• As of Oct 30, 2023, right-of-way, engineering and groundbreaking were complete; ~90% of equipment and materials were ordered, all 42 miles were cleared, and 5 customer commitments were secured; project remained on time and on budget.

• Remote command center commissioned in 3Q23; a third depot was targeted for end-1Q24 to expand coverage beyond 1,500 sq. miles, with a fourth expected later in 2024 to exceed 1,700 sq. miles.

• ~20% of 3Q23 deliveries used multi-trailers; average payload was ~37 tons vs. ~31 tons in 2Q23. 102 of 120 trucks had arrived; the fleet is expected to haul 13 mmtpy once the conveyor is online.

• With the Dune Express, truck delivery capacity to a given point is estimated at up to 500 tons/day vs. ~125–150 tons today, without affecting commercial roads.

Financial profile and shareholder returns

• 3Q23 adjusted EBITDA was $84.1m with a 53% adjusted EBITDA margin; net income was $56.3m with a 36% net income margin.

• 3Q23 dividend totaled $0.20/share: $0.15 base and $0.05 variable, paid Nov 16, 2023; annualized yield was 4.5% based on the $17.92 Dec 27, 2023 closing price.

• $125m in distributions and dividends paid since 4Q21.

• Market capitalization was $1.8B and enterprise value $1.7B, based on Dec 27, 2023 share price and 3Q23 financial information.