Atlas Energy Solutions (AESI) 2023 RBC Global Energy, Power & Infrastructure Conference presentation summary

Business profile

• Permian-focused proppant and logistics footprint; market capitalization $1.7B and enterprise value $1.5B as of Jun. 2, 2023.

• Resource life of 100+ years, calculated using reserves and resources against projected 15 mmtpy annual capacity by year-end 2023.

• Q1'23 quarterly variable dividend of $0.15/share; payment date May 22, 2023.

Resource and operating advantages

• Giant open-dune deposits offer estimated yields of ~85–90% versus ~65–70% for off-dune deposits; up to 100 feet of stacked pay and high-quality sand support scale and consistency.

• Electric dredging is presented as reducing contract mining costs by 70% and annual mining emissions by 50% versus traditional mining methods.

• Dredge operations use 0 gallons of diesel annually versus ~816,000 gallons for traditional mining; estimated emissions are ~9.0M versus ~18.3M pounds annually.

• Water access enables electric dredging and washing; plant redundancies, automation, storage and efficient loadouts support utilization and lower labor intensity.

Financial performance

• 2022 sales were $483M, Adjusted EBITDA $264M with a 55% margin, and net income $217M with a 45% margin.

• Q1'23 Adjusted EBITDA was $84.0M with a 55% margin; net income was $62.9M with a 41% margin.

• 2022 Adjusted Free Cash Flow was $229M with a 47% margin and 87% Adjusted EBITDA conversion.

• Management cited low financial leverage, resilient margins and low maintenance capital intensity as investment attributes.