In This Article:
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Revenue: $297.6 million for Q1 2025.
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Adjusted EBITDA: $74.3 million, representing a 25% margin.
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Proppant Sales Revenue: $139.7 million.
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Logistics Operations Revenue: $150.6 million.
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Power Rentals Revenue: $7.3 million.
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Proppant Volumes: 5.7 million tons.
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Encore Volumes: 1.7 million tons.
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Average Revenue per Ton: $24.71, excluding shortfall revenue $22.51 per ton.
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Total Cost of Sales (excluding DD&A): $206.1 million.
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Cash SG&A: $26.6 million, including $8.2 million in transaction costs.
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Net Income: $1.2 million.
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Earnings per Share: $1.2 million.
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Adjusted Free Cash Flow: $58.8 million, 19.7% of revenue.
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Total Incurred CapEx: $38.9 million.
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Maintenance CapEx: $15.5 million.
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Growth CapEx: $23.4 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Atlas Energy Solutions Inc (NYSE:AESI) reported strong Q1 2025 revenues of $297.6 million and an adjusted EBITDA of $74.3 million, representing a 25% margin.
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The company completed the acquisition of Moser Energy Systems, enhancing its power solutions and expanding its operational capabilities.
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The Dune Express, a key logistics infrastructure, has begun commercial operations, contributing to cost savings and improved logistics margins.
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Atlas Energy Solutions Inc (NYSE:AESI) maintains a low-cost structure with annual maintenance CapEx of approximately $45 million to $50 million, providing flexibility in spending.
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The integration of Moser Energy Systems is progressing well, with positive customer feedback and new business models being explored to increase efficiency and lower costs.
Negative Points
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The company faced higher-than-expected commissioning costs related to the Dune Express, impacting Q1 EBITDA by approximately $4 million.
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Volatility in commodity prices and macroeconomic uncertainty have led to deferred customer spending and near-term activity, affecting growth projections.
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Q1 service margins were impacted by elevated costs and challenging winter road conditions, with January margins dipping to mid-single digits.
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Atlas Energy Solutions Inc (NYSE:AESI) anticipates SG&A expenses to rise above $20 million per quarter starting in Q2 due to Moser's integration.
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The company is experiencing a general pause in market activity due to macroeconomic uncertainties, impacting the realization of potential upside volumes.
Q & A Highlights
Q: Can you provide additional color on your guidance of flat to up sequentially, considering the Dune Express ramp-up and full contribution from your power business? A: John Turner, CEO: Currently, we don't see any near-term upside in the market. There is a wait-and-see attitude due to market uncertainties. However, we are seeing larger volumes taken off the Dune Express, positively impacting our logistics margins, which are expected to be in the 20% range this quarter. If commodity prices remain around current levels, activity might wane, but Atlas is well-positioned with operators having the highest return on assets in the Permian Basin.