Atlas Energy Solutions Inc. (AESI) Earnings Call Transcript & Summary

Good afternoon and welcome to Atlas' operational and financial update. In 2025, we hit the ground running, highlighted by our announcement on January 12 of our first commercial delivery off the Dune Express. Since that announcement, we have continued to increase our daily commercial deliveries off the Dune Express and continue to work towards our goal of full effective utilization by midyear. This was truly a tremendous feat by our construction team and is an innovation that is redefining oilfield logistics in the Permian Basin. Concurrently, we continue to see great success in our rollout of autonomous trucking with our partners at Kodiak. By the end of February, we expect to have completed approximately 300 autonomous deliveries. Based on the operational success we are seeing with Kodiak's driverless technology, we will be adding additional units to our logistics fleet throughout the year as we continue to be the technology leader in oilfield logistics. Additionally, I'd like to extend a warm welcome to our new team members joining us with the acquisition of Moser Energy Systems. The acquisition of Moser is our entry into the distributed power space and provides us with a strong platform for growth in a rapidly expanding market while also exposing Atlas to the less volatile production side of the oil and gas value chain. It is quite amazing to think back over our first 2 years as a public company. From almost tripling our productive capacity to becoming the largest wet sand producer in the Permian, to building the world's second longest conveyor system, to successfully rolling out autonomous last mile and multi-trailer operations, we made a lot of promises 2 years ago and thanks to our amazing employees, we continue to deliver on those promises. But this is just the beginning. We're just getting started.

I certainly share John's enthusiasm as we enter the next phase for Atlas. With construction of the Dune Express now complete, Atlas is transitioning from a period of heavy construction CapEx into a period of cash flow inflection and redeployment with ample organic growth investment opportunities in front of us. With the addition of Moser Energy Systems, we have added additional avenues of growth through the expanding distributed power market and a greater degree of cash flow durability through service offerings tied to the production life cycle phase of the oil. Our core business is executing quite well. Despite a general seasonal slowdown in the fourth quarter, our OnCore mobile mine set a quarterly volume record. We entered 2025 with a significant percentage of our overall productive capacity already contracted, ensuring high utilization across all our plants. The Dune Express has been a key differentiator for Atlas. What started as a novel idea is now becoming a reality, revolutionizing proppant logistics in the Delaware Basin and dramatically improving efficiencies and safety. As always, we continue to look for ways to improve our service offerings to customers this year and beyond. Our recent actions in the capital markets, including our follow-on equity offering and debt refinancing have left us with a fortress balance sheet, providing us flexibility to pursue high-return growth opportunities that will further grow Atlas' cash flows and most importantly, our returns for shareholders. I'm pleased to announce we are going to increase our quarterly dividend 4% to $0.25 per share, up $0.01 when compared to our dividend last quarter. Before passing the baton to our COO, Chris Scholla, I would like to invite you to our fourth quarter conference call tomorrow, Tuesday, February 25, at 9:00 a.m. Central. We have made incredible progress on our road map. We set bold goals and we're delivering. We're expanding our business offerings, diversifying revenue streams and driving innovation that adds value to our customers while creating lasting value for our investors. One of our biggest milestones is the launch of the Dune Express, a groundbreaking project that's now moving forward every day in the commissioning process. This marks a major step in revolutionizing how we transport sand efficiently, safely and at scale. With every milestone, we're proving our ability to execute and lead the industry forward.

And that's not all. We're also setting a new industry standard with autonomous truck deliveries. We've successfully deployed this technology with our partner, Kodiak Robotics. And by the end of the quarter, we expect to complete 300 fully autonomous deliveries, ultimately reducing costs, increasing efficiency and transforming the way we deliver sand. These innovations are not just about technology. They're about value creation. By optimizing our operations and investing in the future, we're expanding opportunities, strengthening our business and ensuring long-term growth for both our customers and investors. To our employees and partners, thank you. Your dedication and expertise make these achievements possible. And to our investors, your trust empowers us to take bold steps and drive real impact. The future isn't just coming. We're building it today.