{"success":true,"data":{"pressRelease":{"id":"19796","rtpr_id":"nBw8tsWyXa","ticker":"AESI","exchange":"NYSE","all_tickers":["AESI"],"title":"Atlas Energy Solutions Announces First Quarter 2026 Results","author":"Business Wire","published_at":"2026-05-04T20:40:00.286Z","article_body":"Atlas Energy Solutions Announces First Quarter 2026 Results\n\nAtlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”)\ntoday reported financial and operating results for the first quarter ended\nMarch 31, 2026.\n\nFirst Quarter 2026 Highlights\n\n\n * Total revenue of $265.5 million, Net loss of ($47.3) million and Adj. EBITDA\nof $28.4 million, in-line with previously announced range of $26-30 million\n\n * Net cash provided by operating activities of $19.0 million and Adj. Free Cash\nFlow of $3.8 million\n\n * Executed Global Framework Agreement with Caterpillar Inc. covering 1.4\ngigawatts (\"GW\") of incremental power generation assets through 2030\n\n * Announced 5-Year Power Purchase Agreement with a subsidiary of an\ninvestment-grade technology infrastructure provider for 120 megawatts (\"MW\")\nof private generation capacity\n\n * Completed upsized $450 million private placement of 0.50% convertible notes\ndue 2031 with estimated net proceeds of approximately $386.2 million.\n\n * Actively evaluating rapidly expanding power opportunity set that is\napproaching 4 GW of potential opportunities\n\n * Targeting more than 550 MW of power generation capacity deployed through the\nfirst half of 2027\n\nFinancial Summary\n     Three Months Ended   \n     March 31, 2026   December 31, 2025   March 31, 2025 \n     (unaudited, in thousands, except percentages)   \n Revenue   $ 265,583     $ 249,430     $ 297,591   \n Net income (loss)   $ (47,264 )   $ (22,244 )   $ 1,219   \n Net Income (loss) Margin     (18 %)     (9 %)     0 % \n Adjusted EBITDA (1)   $ 28,402     $ 36,744     $ 74,291   \n Adjusted EBITDA Margin (1)     11 %     15 %     25 % \n Net cash provided by (used in) operating activities   $ 18,996     $ 3,707     $ (7,450 ) \n Adjusted Free Cash Flow (1)   $ 3,778     $ 22,393     $ 58,758   \n Adjusted Free Cash Flow Margin (1)     1 %     9 %     20 % \n (1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, and Adjusted \n Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial \n Measures for a discussion of these measures and a reconciliation of these \n measures to our most directly comparable financial measures calculated and \n presented in accordance with GAAP. \n\n\nJohn Turner, President & CEO, commented, “Our first quarter results were\nimpacted by higher plant operating costs. Following severe winter weather in\nJanuary that disrupted West Texas oilfield activity, Atlas incurred expenses\nrelated to maintenance activities at its flagship Kermit facility beyond its\noriginal expectations. We saw a reduction in those higher costs as the quarter\nprogressed and expect improved plant operating costs in the second quarter.\nWith the underlying commodity macro environment having improved rapidly over\nthe course of the first quarter, Atlas remains effectively sold out for the\nsecond quarter and expects volumes to remain elevated for the remainder of\n2026.\n\n“The recently executed incremental 1.4 GW Global Framework Agreement with\nCaterpillar Inc. elevated Atlas’s commercial opportunities almost\nimmediately. With power generating equipment already in short supply, having\naccess to a portfolio of large load, power dense natural gas reciprocating\ngenerator sets that are in high demand, has put Atlas in the driver seat for\nopportunities with customers that were previously unattainable due to lack of\nvisibility on equipment. Atlas has elevated its opportunity set from medium\nsized Industrial opportunities to now squarely in the crosshairs for data\ncenter deployments.\n\n“On April 1, Atlas announced our first behind-the-meter 5-year power\npurchase agreement for 120 MW, with a subsidiary of an investment-grade\ntechnology infrastructure provider. In sum, Atlas is now positioned to\nmeaningfully grow the power business from total expected deployments of 550 MW\nnext year to approximately 2 GW by the end of the decade, which would\ncompletely transform the cash flows of the company and create meaningful value\nto our stakeholders.”\n\nBud Brigham, Executive Chairman, said, “I have never been more excited about\nthe opportunity we are currently facing than what is occurring in the power\nmarkets across the United States. Our first contract along with the exciting\nGlobal Framework Agreement that we signed recently with CAT is a clear sign\nthat we plan to position Atlas to be a leading provider of private power. We\nnow have surety of supply and scale to become a critical player in the\nfast-evolving private grid space. We are just now making our presence known to\nboth investors and to customers who are facing grid constraints across Texas\nand the United States.”\n\nFirst Quarter 2026 Financial Results\n\nFirst quarter 2026 total revenue increased $16.1 million, or 6.5% when\ncompared to the fourth quarter of 2025, to $265.5 million. Product revenue\nincreased by $3.7 million, or 3.5% when compared to the fourth quarter of\n2025, to $108.9 million. Product revenue includes $105.6 million in proppant\nsales and $3.3 million in power equipment sales. First quarter 2026 proppant\nproduct sales volumes were 5.7 million tons, or approximately 7.5% more than\nlevels in the fourth quarter of 2025, which does not include approximately 130\nthousand tons of third-party sand purchased to meet customer obligations.\nService revenue increased $13.0 million, or 10.3% when compared to the fourth\nquarter of 2025, to $139.1 million. First quarter 2026 rental revenue\ndecreased $0.6 million, or (3.3%) when compared to fourth quarter of 2025, to\n$17.5 million.\n\nFirst quarter 2026 cost of sales (excluding depreciation, depletion and\naccretion expense) (“cost of sales”) increased by $26.7 million, or 14.3%\nwhen compared to the fourth quarter of 2025, to $214.0 million. Cost of sales\nconsisted of $74.7 million of proppant plant operating costs, $2.1 million\nfrom power equipment costs, $127.0 million related to service costs, $5.9\nmillion related to rental costs and $4.3 million in royalties.\n\nSelling, general and administrative expenses for the first quarter of 2026\nincreased by $2.0 million when compared to the fourth quarter of 2025, to\n$35.7 million or 5.9%.\n\nNet (loss) for the first quarter of 2026 was ($47.3) million, and Adjusted\nEBITDA for the first quarter of 2026 was $28.4 million.\n\nLiquidity, Capital Expenditures and Other\n\nAs of March 31, 2026, the Company’s total liquidity was $89.5 million, which\nwas comprised of $39.8 million in cash and cash equivalents, and $49.7 million\nof availability under the Company’s 2023 ABL Credit Facility.\n\nFuture Guidance\n\nThe Company is providing financial guidance for the second quarter of 2026.\nGuidance is based on current outlook and plans and is subject to a number of\nknown and unknown uncertainties and risks and constitutes a “forward-looking\nstatement” within the meaning of Section 21E of the Securities Exchange Act\nof 1934 as further described under the Cautionary Statement below. Actual\nresults may differ materially from the guidance set forth below.\n\nFor the second quarter, higher sales volume and improved margin flow-through\nin sand and logistics, combined with meaningfully increased power\ncontribution, are expected to result in sequentially improved financial\nresults with Adjusted EBITDA expected to total approximately $50 million.\n\nConference Call Information\n\nThe Company will host a conference call to discuss financial and operational\nresults on May 5, 2026 at 9:00am Central Time (10:00am Eastern Time).\nIndividuals wishing to participate in the conference call should dial (877)\n407-4133. A live webcast will be available at https://ir.atlas.energy/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.atlas.energy%2F&esheet=54528344&newsitemid=20260504705464&lan=en-US&anchor=https%3A%2F%2Fir.atlas.energy%2F&index=1&md5=bc19f39cde1bde164599ecf617d97e9d)\n. Please access the webcast or dial in for the call at least 10 minutes ahead\nof the start time to ensure a proper connection. An archived version of the\nconference call will be available on the Company’s website shortly after the\nconclusion of the call.\n\nAbout Atlas Energy Solutions\n\nAtlas Energy Solutions Inc. (NYSE: AESI) is a leading solutions provider to\nthe energy industry. Atlas’s portfolio of offerings includes oilfield\nlogistics, distributed power systems, and the largest proppant supply network\nin the Permian Basin. With a focus on leveraging technology, automation, and\nremote operations to enhance efficiencies, Atlas is centered on a core mission\nof improving human access to the hydrocarbons that power our lives and, by\ndoing so, maximizing value creation for our shareholders.\n\nCautionary Statement Regarding Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended (the “Securities\nAct”), and Section 21E of the Securities Exchange Act of 1934, as amended\n(the “Exchange Act”). Statements that are predictive or prospective in\nnature, that depend upon or refer to future events or conditions or that\ninclude the words “may,” “assume,” “forecast,” “position,”\n“strategy,” “potential,” “continue,” “could,” “will,”\n“plan,” “project,” “budget,” “predict,” “pursue,”\n“target,” “seek,” “objective,” “believe,” “expect,”\n“anticipate,” “intend,” “estimate” and other expressions that are\npredictions of or indicate future events and trends and that do not relate to\nhistorical matters identify forward-looking statements. Examples of\nforward-looking statements include, but are not limited to statements\nregarding: expectations regarding the leverage profile, including our\nconvertible notes, and expectations of Atlas, our Executed Global Framework\nAgreement with Caterpillar Inc., our plans and expectations regarding our\nstock repurchase program; expected expansion and growth opportunities in\nAtlas’s power business, including our ability to enter into and execute on\nbehind-the-meter power purchase agreements, long-term power segment, our\nbusiness strategy, industry, future operations and profitability, expected\ncapital expenditures and the impact of such expenditures on our performance,\nstatements about our financial position, production, revenues and losses, our\ncapital programs, management changes, current and potential future long-term\ncontracts and our future business and financial performance.\n\nAlthough forward-looking statements reflect our good faith beliefs at the time\nthey are made, we caution you that these forward-looking statements are\nsubject to a number of risks and uncertainties, most of which are difficult to\npredict and many of which are beyond our control. These risks include but are\nnot limited to: limitations on our financial flexibility due to our existing\nand any future indebtedness; our ability to successfully execute our share\nrepurchase program or implement future share repurchase programs; higher than\nexpected costs to operate our proppant production and processing facilities or\nthe Dune Express; the amount of proppant we are able to produce, which could\nbe adversely affected by, among other things, operating difficulties and\nunusual or unfavorable geologic conditions; the volume of proppant we are able\nto sell and our ability to enter into supply contracts for our proppant on\nacceptable terms; the prices we are able to charge, and the margins we are\nable to realize, from our sales of proppant, logistics services, or mobile\npower generation; hazards customary to the operation of power generation\nfacilities, including transporting, storing and handling fuel, operating\nindustrial, electrical and other equipment, and connecting to high voltage\ntransmission and distribution systems; the demand for and price of proppant\nand power generation, particularly in the Permian Basin; the success of our\nelectric dredging transition efforts; fluctuations in the demand for certain\ngrades of proppant; the domestic and foreign supply of and demand for oil and\nnatural gas; the effects of actions by, or disputes among or between, members\nof OPEC+ with respect to production levels or other matters related to the\nprices of oil and natural gas; changes in the price and availability of\nnatural gas, diesel fuel or electricity that we use as fuel sources for our\nproppant production facilities and related equipment; development of\nalternative power generation technologies or changes in the availability of\ngrid power that would reduce the need for mobile power supply, particularly in\nthe Permian Basin; customer concentration, the potential for future\nconsolidation amongst current or potential customers and the possibility that\ncustomers may not continue to outsource their power system needs, which could\naffect demand for our products and services, especially in the power\ngeneration industry; the availability of capital and our liquidity; the level\nof competition from other companies; pending legal or environmental matters;\nchanges in laws and regulations (or the interpretation thereof) or increased\npublic scrutiny related to the proppant production and oil and natural gas\nindustries, silica dust exposure or the environment; facility shutdowns in\nresponse to environmental regulatory actions; technical difficulties or\nfailures; liability or operational disruptions due to pit-wall or pond\nfailure, environmental hazards, fires, explosions, chemical mishandling or\nother industrial accidents; unanticipated ground, grade or water conditions;\ninability to obtain government approvals or acquire or maintain necessary\npermits or mining, access or water rights; changes in the price and\navailability of transportation services; inability of our customers to take\ndelivery; difficulty collecting on accounts receivable; the level of\ncompletion activity in the oil and natural gas industry; inability to obtain\nnecessary proppant production or power generation equipment or replacement\nparts; the amount of water available for processing proppant; any planned or\nfuture expansion projects or capital expenditures; our ability to finance\nequipment, working capital and capital expenditures; inability to successfully\ngrow organically, including through future land acquisitions; inaccuracies in\nestimates of volumes and qualities of our frac sand reserves; failure to meet\nour minimum delivery requirements under our supply agreements; material\nnonpayment or nonperformance by any of our significant customers; development\nof either effective alternative proppants or new processes that replace\nhydraulic fracturing; our ability to borrow funds and access the capital\nmarkets; our ability to comply with covenants contained in our debt\ninstruments; the potential deterioration of our customers’ financial\ncondition, including defaults resulting from actual or potential insolvencies;\nchanges in tariffs, trade barriers, price and exchange controls and other\nregulatory requirements, including such changes that may be implemented by\nU.S. and foreign governments; volatility in political, legal and regulatory\nenvironments; changes in global political or economic conditions, including\nsustained inflation as well as financial market instability or disruptions to\nthe banking system due to bank failures, both generally and in the markets we\nserve; the impact of geopolitical developments and tensions, war and\nuncertainty in oil-producing countries (including the invasion of Ukraine by\nRussia, geopolitical developments involving Iran and disruptions to shipping\nthrough the Strait of Hormuz, continued instability in the Middle East, the\nrecent events in Venezuela and any related political or economic responses and\ncounter-responses or otherwise by various global actors or the general effect\non the global economy); health epidemics, such as the COVID-19 pandemic,\nnatural disasters or inclement or hazardous weather conditions, including but\nnot limited to cold weather, droughts, flooding, tornadoes and the physical\nimpacts of climate change; physical, electronic and cybersecurity breaches;\nthe effects of litigation; plans, objectives, expectations and intentions\ndescribed in this press release that are not historical; and other factors\ndiscussed or referenced in our filings made from time to time with the U.S.\nSecurities and Exchange Commission (“SEC”), including those discussed\nunder the heading “Risk Factors” in our Annual Report on Form 10-K, filed\nwith the SEC on February 24, 2026 and any subsequently filed Quarterly Reports\non Form 10-Q and Current Reports on Form 8-K.\n\nReaders are cautioned not to place undue reliance on forward-looking\nstatements, which speak only as of the date hereof. Factors or events that\ncould cause our actual results to differ may emerge from time to time, and it\nis not possible for us to predict all of them. We undertake no obligation to\npublicly update or revise any forward-looking statement, whether as a result\nof new information, future developments or otherwise, except as may be\nrequired by law.\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Statements of Income \n \n \n \n(unaudited, in thousands, except per share data) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n                   \n Product revenue       $ 108,940     $ 105,173     $ 139,645   \n Service revenue         139,113       126,167       150,609   \n Rental revenue         17,530       18,090       7,337   \n Total revenue         265,583       249,430       297,591   \n Cost of sales (excluding depreciation, depletion and accretion expense)         214,025       187,298       206,063   \n Depreciation, depletion and accretion expense         45,226       41,896       37,000   \n Gross profit         6,332       20,236       54,528   \n Selling, general and administrative expense (including stock-based         35,746       33,724       34,412   \n compensation expense of $8,442, $9,075, and $6,518, respectively) \n Credit loss expense         17       571       —   \n Amortization expense of acquired intangible assets         6,371       6,414       4,785   \n Change in fair value of contingent consideration         —       (3,360 )     —   \n Insurance recovery (gain)         (3,326 )     (2,217 )     —   \n Operating income (loss)         (32,476 )     (14,896 )     15,331   \n Interest (expense), net         (15,784 )     (16,110 )     (12,078 ) \n Other income (expense), net         486       101       259   \n Income (loss) before income taxes         (47,774 )     (30,905 )     3,512   \n Income tax expense (benefit)         (510 )     (8,661 )     2,293   \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219   \n                   \n Net income (loss) per common share                 \n Basic       $ (0.38 )   $ (0.18 )   $ 0.01   \n Diluted       $ (0.38 )   $ (0.18 )   $ 0.01   \n Weighted average common shares outstanding                 \n Basic         124,626       124,019       118,245   \n Diluted         124,626       124,019       119,747   \n\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Statements of Cash Flows \n \n \n \n(unaudited, in thousands) \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n                   \n Operating activities:                 \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219   \n Adjustments to reconcile net income to net cash provided by (used in)                 \n operating activities: \n Depreciation, depletion and accretion expense         46,883       43,430       38,264   \n Amortization expense of acquired intangible assets         6,371       6,414       4,785   \n Amortization of debt discount         1,057       1,781       1,109   \n Amortization of deferred financing costs         97       102       106   \n Change in fair value of contingent consideration         —       (3,360 )     —   \n Stock-based compensation         8,442       9,075       6,518   \n Gain on sales of power equipment         (1,284 )     —       —   \n Deferred income tax         (5,127 )     (6,665 )     1,379   \n Credit loss expense         17       571       —   \n Other         (51 )     2,301       (122 ) \n Changes in operating assets and liabilities:         9,855       (27,698 )     (60,708 ) \n Net cash provided by (used in) operating activities         18,996       3,707       (7,450 ) \n                   \n Investing activities:                 \n Purchases of property, plant and equipment         (29,275 )     (21,808 )     (52,389 ) \n Proceeds from sales of power equipment         3,336       —       —   \n Proceeds from insurance recovery         3,326       2,217       5,398   \n Acquisition, net of cash acquired         —       —       (181,511 ) \n Net cash used in investing activities         (22,613 )     (19,591 )     (228,502 ) \n                   \n Financing Activities:                 \n Proceeds from ABL credit facility         25,000       25,000       —   \n Principal payments on term loan borrowings         (5,190 )     (3,259 )     (4,725 ) \n Payment on Deferred Cash Consideration Note         (11,085 )     —       (101,252 ) \n Payments under finance leases         (2,134 )     (1,340 )     (959 ) \n Repayment of equipment finance notes         (2,599 )     (1,804 )     (841 ) \n Taxes withheld on vesting equity awards         (1,227 )     (1,295 )     (595 ) \n Proceeds from equity offering, net of issuance costs         —       —       253,070   \n Proceeds from term loan borrowings         —       (2,000 )     188,805   \n Payment on ABL credit facility         —       —       (70,000 ) \n Dividends         —       —       (30,435 ) \n Issuance costs associated with debt financing         —       (135 )     (146 ) \n Net cash provided by financing activities         2,765       15,167       232,922   \n Net increase (decrease) in cash and cash equivalents         (852 )     (717 )     (3,030 ) \n Cash and cash equivalents, beginning of period         40,632       41,349       71,704   \n Cash and cash equivalents, end of period       $ 39,780     $ 40,632     $ 68,674   \n\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Balance Sheets \n \n \n \n(in thousands) \n         As of     As of   \n         March 31, 2026     December 31, 2025   \n         (unaudited)         \n Assets                 \n Current assets:                 \n Cash and cash equivalents       $ 39,780     $ 40,632   \n Accounts receivable, including related parties, net         208,381       180,783   \n Inventories, prepaid expenses and other current assets         87,736       86,099   \n Total current assets         335,897       307,514   \n Property, plant and equipment, net         1,561,601       1,540,813   \n Right-of-use assets         70,793       43,783   \n Goodwill         152,903       152,903   \n Intangible assets         176,283       182,238   \n Other long-term assets         1,101       1,177   \n Total assets       $ 2,298,578     $ 2,228,428   \n Liabilities and stockholders' equity                 \n Current liabilities:                 \n Accounts payable, including related parties         101,039       69,203   \n Accrued liabilities and other current liabilities         119,446       101,180   \n Current portion of long-term debt         65,632       40,681   \n Total current liabilities         286,117       211,064   \n Long-term debt, net of discount and deferred financing costs         557,040       538,240   \n Deferred tax liabilities         216,496       221,622   \n Other long-term liabilities         70,050       48,578   \n Total liabilities         1,129,703       1,019,504   \n Total stockholders' equity         1,168,875       1,208,924   \n Total liabilities and stockholders’ equity       $ 2,298,578     $ 2,228,428   \n\n\nNon-GAAP Financial Measures\n\nAdjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted\nFree Cash Flow Margin, Adjusted Free Cash Flow Conversion, Maintenance Capital\nExpenditures and Adjusted Cash SG&A are non-GAAP supplemental financial\nmeasures used by our management and by external users of our financial\nstatements such as investors, research analysts and others, in the case of\nAdjusted EBITDA, to assess our consolidated operating performance on a\nconsistent basis across periods by removing the effects of development\nactivities, provide views on capital resources available to organically fund\ngrowth projects and, in the case of Adjusted Free Cash Flow, assess the\nfinancial performance of our assets and their ability to sustain dividends or\nreinvest to organically fund growth projects over the long term without regard\nto financing methods, capital structure, or historical cost basis.\n\nThese measures do not represent and should not be considered alternatives to,\nor more meaningful than, net income, income from operations, net cash provided\nby operating activities or any other measure of financial performance\npresented in accordance with GAAP as measures of our financial performance.\nAdjusted EBITDA and Adjusted Free Cash Flow have important limitations as\nanalytical tools because they exclude some but not all items that affect net\nincome, the most directly comparable GAAP financial measure. Our computation\nof Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted\nFree Cash Flow Margin, Adjusted Free Cash Flow Conversion, Maintenance Capital\nExpenditures and Adjusted Cash SG&A may differ from computations of\nsimilarly titled measures of other companies.\n\nNon-GAAP Measure Definitions:\n\n\n * We define Adjusted EBITDA as net income before depreciation, depletion and\naccretion, amortization expense of acquired intangible assets, interest\nexpense, income tax expense, stock and unit-based compensation, loss on\nextinguishment of debt, loss on disposal of assets, insurance recovery (gain),\nunrealized commodity derivative gain (loss), other acquisition related costs,\nand other non-recurring costs. Management believes Adjusted EBITDA is useful\nbecause it allows management to more effectively evaluate the Company’s\nconsolidated operating performance and compare the results of its operations\nfrom period to period and against our peers without regard to financing method\nor capital structure. We exclude the items listed above from net income in\narriving at Adjusted EBITDA because these amounts can vary substantially from\ncompany to company within our industry depending upon accounting methods and\nbook values of assets, capital structures and the method by which the assets\nwere acquired. Certain prior period non-recurring costs of goods sold are now\nincluded as an add-back to adjusted EBITDA in order to conform to the current\nperiod presentation and to more accurately describe the Company’s\nconsolidated operating performance and results period over period.\n\n * We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.\n\n * We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital\nExpenditures. Management believes that Adjusted Free Cash Flow is useful to\ninvestors as it provides a measure of the ability of our business to generate\ncash.\n\n * We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by\ntotal revenue.\n\n * We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow\ndivided by Adjusted EBITDA.\n\n * We define Maintenance Capital Expenditures as capital expenditures excluding\ngrowth capital expenditures, reconstruction of previously incurred growth\ncapital expenditures, equipment assets acquired through debt, and asset\nretirement obligations. Certain prior period equipment assets acquired through\ndebt and asset retirement obligations have been removed from capital\nexpenditures in order to conform to the current period presentation and to\nmore accurately describe the Company’s consolidated operating performance\nand results period-over-period.\n\n * We define Adjusted Cash SG&A as selling, general and administrative\nexpenses (“SG&A”) less stock-based compensation, depreciation in\nSG&A, non-recurring transaction expenses, and certain litigation expenses,\nnet of insurance reimbursements.\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income \n \n \n \n(unaudited, in thousands) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219 \n Depreciation, depletion and accretion expense         46,883       43,430       38,264 \n Amortization expense of acquired intangible assets         6,371       6,414       4,785 \n Interest expense         15,914       16,214       13,046 \n Income tax expense (benefit)         (510 )     (8,661 )     2,293 \n EBITDA       $ 21,394     $ 35,153     $ 59,607 \n Stock-based compensation         8,442       9,075       6,518 \n Insurance recovery (gain) (1)         (3,326 )     (2,217 )     — \n Other non-recurring costs (2)         1,750       1,048       849 \n Other acquisition related costs (3)         142       (6,315 )     7,317 \n Adjusted EBITDA       $ 28,402     $ 36,744     $ 74,291 \n Maintenance Capital Expenditures (4)       $ 24,624     $ 14,351     $ 15,533 \n Adjusted Free Cash Flow       $ 3,778     $ 22,393     $ 58,758 \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating \n Activities \n \n \n \n(unaudited, in thousands, except percentages) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Net cash provided by (used in) operating activities       $ 18,996     $ 3,707     $ (7,450 ) \n Current income tax expense (benefit) (4)         4,617       (1,996 )     914   \n Change in operating assets and liabilities         (9,855 )     27,698       60,708   \n Cash interest expense (4)         14,760       14,331       11,831   \n Maintenance capital expenditures (4)         (24,624 )     (14,351 )     (15,533 ) \n Gain on sales of power equipment         1,284       —       —   \n Credit loss expense         (17 )     (571 )     —   \n Change in fair value of contingent consideration         —       3,360       —   \n Other non-recurring costs (2)         1,750       1,048       849   \n Other acquisition related costs (3)         142       (6,315 )     7,317   \n Insurance recovery (gain) (1)         (3,326 )     (2,217 )     —   \n Other         51       (2,301 )     122   \n Adjusted Free Cash Flow       $ 3,778     $ 22,393     $ 58,758   \n Adjusted EBITDA Margin         11 %     15 %     25 % \n Adjusted Free Cash Flow Margin         1 %     9 %     20 % \n Adjusted Free Cash Flow Conversion         13 %     61 %     79 % \n\n   (1) Represents insurance recovery (gain) related to the dredge mining assets at \n the Kermit facility. \n   (2) Other non-recurring costs includes costs incurred during our 2025 Term Loan \n Credit Facility transaction and other infrequent and unusual costs. \n   (3) Represents transactions costs incurred in connection with acquisitions, \n including fees paid to finance, legal, accounting and other advisors, employee \n retention and benefit costs, and other operational and corporate costs. \n   (4) A reconciliation of these items used to calculate Adjusted Free Cash Flow to \n comparable GAAP measures is included below. \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Maintenance Capital Expenditures to Purchase of Property, \n Plant and Equipment \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Maintenance Capital Expenditures, accrual basis reconciliation:                 \n Purchases of property, plant and equipment       $ 29,275     $ 21,808     $ 52,389   \n Changes in operating assets and liabilities associated with investing         37,801       2,088       (13,526 ) \n activities, equipment assets acquired through debt, and asset retirement \n obligations (1) \n Less: Equipment assets acquired through debt and asset retirement obligations         (35,470 )     (4,422 )     (3,374 ) \n Less: Growth capital expenditures and reconstruction of previously incurred         (6,982 )     (5,123 )     (19,956 ) \n growth capital expenditures \n Maintenance Capital Expenditures, accrual basis       $ 24,624     $ 14,351     $ 15,533   \n\n   (1) Positive working capital changes reflect capital expenditures in the current \n period that will be paid in a future period. Negative working capital changes \n reflect capital expenditures incurred in a prior period but paid during the \n period presented. In addition, this amount includes equipment assets acquired \n through debt and asset retirement obligations. \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Current Income Tax Expense to Income Tax Expense \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Current tax expense reconciliation:                 \n Income tax expense (benefit)       $ (510 )   $ (8,661 )   $ 2,293   \n Less: deferred tax expense         5,127       6,665       (1,379 ) \n Current income tax expense (benefit)       $ 4,617     $ (1,996 )   $ 914   \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nCash Interest Expense to Interest Expense, Net \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Cash interest expense reconciliation:                 \n Interest expense, net       $ 15,784     $ 16,110     $ 12,078   \n Less: Amortization of debt discount         (1,057 )     (1,781 )     (1,109 ) \n Less: Amortization of deferred financing costs         (97 )     (102 )     (106 ) \n Less: Interest income         130       104       968   \n Cash interest expense       $ 14,760     $ 14,331     $ 11,831   \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nSG&A to Adjusted Cash SG&A \n \n \n \n(unaudited, in thousands) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Selling, general and administrative expense       $ 35,746   $ 33,724     $ 34,412 \n Less: Stock-based compensation expense         8,442     9,075       6,518 \n Less: Depreciation expense recognized in selling, general and administrative         1,656     1,535       1,267 \n expense \n Less: Non-recurring transaction expenses (1)         1,892     (1,907 )     8,166 \n Less: Litigation expenses, net of insurance reimbursements         413     3,127       386 \n Adjusted Cash SG&A       $ 23,343   $ 21,894     $ 18,075 \n\n   (1) Represents other non-recurring costs and other acquisition related costs \n recorded in SG&A. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260504705464/en/\n(https://www.businesswire.com/news/home/20260504705464/en/)\n\nInvestor Contact \n\nKyle Turlington\n\n5918 W Courtyard Drive, Suite #500\n\nAustin, Texas 78730\n\nUnited States\n\nT: 512-220-1200\n\nIR@atlas.energy (mailto:IR@atlas.energy)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw8tsWyXa","title":"Atlas Energy Solutions Announces First Quarter 2026 Results","author":"Business Wire","ticker":"AESI","created":"2026-05-04T20:40:00.286Z","tickers":["AESI"],"exchange":"NYSE","article_body":"Atlas Energy Solutions Announces First Quarter 2026 Results\n\nAtlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”)\ntoday reported financial and operating results for the first quarter ended\nMarch 31, 2026.\n\nFirst Quarter 2026 Highlights\n\n\n * Total revenue of $265.5 million, Net loss of ($47.3) million and Adj. EBITDA\nof $28.4 million, in-line with previously announced range of $26-30 million\n\n * Net cash provided by operating activities of $19.0 million and Adj. Free Cash\nFlow of $3.8 million\n\n * Executed Global Framework Agreement with Caterpillar Inc. covering 1.4\ngigawatts (\"GW\") of incremental power generation assets through 2030\n\n * Announced 5-Year Power Purchase Agreement with a subsidiary of an\ninvestment-grade technology infrastructure provider for 120 megawatts (\"MW\")\nof private generation capacity\n\n * Completed upsized $450 million private placement of 0.50% convertible notes\ndue 2031 with estimated net proceeds of approximately $386.2 million.\n\n * Actively evaluating rapidly expanding power opportunity set that is\napproaching 4 GW of potential opportunities\n\n * Targeting more than 550 MW of power generation capacity deployed through the\nfirst half of 2027\n\nFinancial Summary\n     Three Months Ended   \n     March 31, 2026   December 31, 2025   March 31, 2025 \n     (unaudited, in thousands, except percentages)   \n Revenue   $ 265,583     $ 249,430     $ 297,591   \n Net income (loss)   $ (47,264 )   $ (22,244 )   $ 1,219   \n Net Income (loss) Margin     (18 %)     (9 %)     0 % \n Adjusted EBITDA (1)   $ 28,402     $ 36,744     $ 74,291   \n Adjusted EBITDA Margin (1)     11 %     15 %     25 % \n Net cash provided by (used in) operating activities   $ 18,996     $ 3,707     $ (7,450 ) \n Adjusted Free Cash Flow (1)   $ 3,778     $ 22,393     $ 58,758   \n Adjusted Free Cash Flow Margin (1)     1 %     9 %     20 % \n (1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, and Adjusted \n Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial \n Measures for a discussion of these measures and a reconciliation of these \n measures to our most directly comparable financial measures calculated and \n presented in accordance with GAAP. \n\n\nJohn Turner, President & CEO, commented, “Our first quarter results were\nimpacted by higher plant operating costs. Following severe winter weather in\nJanuary that disrupted West Texas oilfield activity, Atlas incurred expenses\nrelated to maintenance activities at its flagship Kermit facility beyond its\noriginal expectations. We saw a reduction in those higher costs as the quarter\nprogressed and expect improved plant operating costs in the second quarter.\nWith the underlying commodity macro environment having improved rapidly over\nthe course of the first quarter, Atlas remains effectively sold out for the\nsecond quarter and expects volumes to remain elevated for the remainder of\n2026.\n\n“The recently executed incremental 1.4 GW Global Framework Agreement with\nCaterpillar Inc. elevated Atlas’s commercial opportunities almost\nimmediately. With power generating equipment already in short supply, having\naccess to a portfolio of large load, power dense natural gas reciprocating\ngenerator sets that are in high demand, has put Atlas in the driver seat for\nopportunities with customers that were previously unattainable due to lack of\nvisibility on equipment. Atlas has elevated its opportunity set from medium\nsized Industrial opportunities to now squarely in the crosshairs for data\ncenter deployments.\n\n“On April 1, Atlas announced our first behind-the-meter 5-year power\npurchase agreement for 120 MW, with a subsidiary of an investment-grade\ntechnology infrastructure provider. In sum, Atlas is now positioned to\nmeaningfully grow the power business from total expected deployments of 550 MW\nnext year to approximately 2 GW by the end of the decade, which would\ncompletely transform the cash flows of the company and create meaningful value\nto our stakeholders.”\n\nBud Brigham, Executive Chairman, said, “I have never been more excited about\nthe opportunity we are currently facing than what is occurring in the power\nmarkets across the United States. Our first contract along with the exciting\nGlobal Framework Agreement that we signed recently with CAT is a clear sign\nthat we plan to position Atlas to be a leading provider of private power. We\nnow have surety of supply and scale to become a critical player in the\nfast-evolving private grid space. We are just now making our presence known to\nboth investors and to customers who are facing grid constraints across Texas\nand the United States.”\n\nFirst Quarter 2026 Financial Results\n\nFirst quarter 2026 total revenue increased $16.1 million, or 6.5% when\ncompared to the fourth quarter of 2025, to $265.5 million. Product revenue\nincreased by $3.7 million, or 3.5% when compared to the fourth quarter of\n2025, to $108.9 million. Product revenue includes $105.6 million in proppant\nsales and $3.3 million in power equipment sales. First quarter 2026 proppant\nproduct sales volumes were 5.7 million tons, or approximately 7.5% more than\nlevels in the fourth quarter of 2025, which does not include approximately 130\nthousand tons of third-party sand purchased to meet customer obligations.\nService revenue increased $13.0 million, or 10.3% when compared to the fourth\nquarter of 2025, to $139.1 million. First quarter 2026 rental revenue\ndecreased $0.6 million, or (3.3%) when compared to fourth quarter of 2025, to\n$17.5 million.\n\nFirst quarter 2026 cost of sales (excluding depreciation, depletion and\naccretion expense) (“cost of sales”) increased by $26.7 million, or 14.3%\nwhen compared to the fourth quarter of 2025, to $214.0 million. Cost of sales\nconsisted of $74.7 million of proppant plant operating costs, $2.1 million\nfrom power equipment costs, $127.0 million related to service costs, $5.9\nmillion related to rental costs and $4.3 million in royalties.\n\nSelling, general and administrative expenses for the first quarter of 2026\nincreased by $2.0 million when compared to the fourth quarter of 2025, to\n$35.7 million or 5.9%.\n\nNet (loss) for the first quarter of 2026 was ($47.3) million, and Adjusted\nEBITDA for the first quarter of 2026 was $28.4 million.\n\nLiquidity, Capital Expenditures and Other\n\nAs of March 31, 2026, the Company’s total liquidity was $89.5 million, which\nwas comprised of $39.8 million in cash and cash equivalents, and $49.7 million\nof availability under the Company’s 2023 ABL Credit Facility.\n\nFuture Guidance\n\nThe Company is providing financial guidance for the second quarter of 2026.\nGuidance is based on current outlook and plans and is subject to a number of\nknown and unknown uncertainties and risks and constitutes a “forward-looking\nstatement” within the meaning of Section 21E of the Securities Exchange Act\nof 1934 as further described under the Cautionary Statement below. Actual\nresults may differ materially from the guidance set forth below.\n\nFor the second quarter, higher sales volume and improved margin flow-through\nin sand and logistics, combined with meaningfully increased power\ncontribution, are expected to result in sequentially improved financial\nresults with Adjusted EBITDA expected to total approximately $50 million.\n\nConference Call Information\n\nThe Company will host a conference call to discuss financial and operational\nresults on May 5, 2026 at 9:00am Central Time (10:00am Eastern Time).\nIndividuals wishing to participate in the conference call should dial (877)\n407-4133. A live webcast will be available at https://ir.atlas.energy/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fir.atlas.energy%2F&esheet=54528344&newsitemid=20260504705464&lan=en-US&anchor=https%3A%2F%2Fir.atlas.energy%2F&index=1&md5=bc19f39cde1bde164599ecf617d97e9d)\n. Please access the webcast or dial in for the call at least 10 minutes ahead\nof the start time to ensure a proper connection. An archived version of the\nconference call will be available on the Company’s website shortly after the\nconclusion of the call.\n\nAbout Atlas Energy Solutions\n\nAtlas Energy Solutions Inc. (NYSE: AESI) is a leading solutions provider to\nthe energy industry. Atlas’s portfolio of offerings includes oilfield\nlogistics, distributed power systems, and the largest proppant supply network\nin the Permian Basin. With a focus on leveraging technology, automation, and\nremote operations to enhance efficiencies, Atlas is centered on a core mission\nof improving human access to the hydrocarbons that power our lives and, by\ndoing so, maximizing value creation for our shareholders.\n\nCautionary Statement Regarding Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended (the “Securities\nAct”), and Section 21E of the Securities Exchange Act of 1934, as amended\n(the “Exchange Act”). Statements that are predictive or prospective in\nnature, that depend upon or refer to future events or conditions or that\ninclude the words “may,” “assume,” “forecast,” “position,”\n“strategy,” “potential,” “continue,” “could,” “will,”\n“plan,” “project,” “budget,” “predict,” “pursue,”\n“target,” “seek,” “objective,” “believe,” “expect,”\n“anticipate,” “intend,” “estimate” and other expressions that are\npredictions of or indicate future events and trends and that do not relate to\nhistorical matters identify forward-looking statements. Examples of\nforward-looking statements include, but are not limited to statements\nregarding: expectations regarding the leverage profile, including our\nconvertible notes, and expectations of Atlas, our Executed Global Framework\nAgreement with Caterpillar Inc., our plans and expectations regarding our\nstock repurchase program; expected expansion and growth opportunities in\nAtlas’s power business, including our ability to enter into and execute on\nbehind-the-meter power purchase agreements, long-term power segment, our\nbusiness strategy, industry, future operations and profitability, expected\ncapital expenditures and the impact of such expenditures on our performance,\nstatements about our financial position, production, revenues and losses, our\ncapital programs, management changes, current and potential future long-term\ncontracts and our future business and financial performance.\n\nAlthough forward-looking statements reflect our good faith beliefs at the time\nthey are made, we caution you that these forward-looking statements are\nsubject to a number of risks and uncertainties, most of which are difficult to\npredict and many of which are beyond our control. These risks include but are\nnot limited to: limitations on our financial flexibility due to our existing\nand any future indebtedness; our ability to successfully execute our share\nrepurchase program or implement future share repurchase programs; higher than\nexpected costs to operate our proppant production and processing facilities or\nthe Dune Express; the amount of proppant we are able to produce, which could\nbe adversely affected by, among other things, operating difficulties and\nunusual or unfavorable geologic conditions; the volume of proppant we are able\nto sell and our ability to enter into supply contracts for our proppant on\nacceptable terms; the prices we are able to charge, and the margins we are\nable to realize, from our sales of proppant, logistics services, or mobile\npower generation; hazards customary to the operation of power generation\nfacilities, including transporting, storing and handling fuel, operating\nindustrial, electrical and other equipment, and connecting to high voltage\ntransmission and distribution systems; the demand for and price of proppant\nand power generation, particularly in the Permian Basin; the success of our\nelectric dredging transition efforts; fluctuations in the demand for certain\ngrades of proppant; the domestic and foreign supply of and demand for oil and\nnatural gas; the effects of actions by, or disputes among or between, members\nof OPEC+ with respect to production levels or other matters related to the\nprices of oil and natural gas; changes in the price and availability of\nnatural gas, diesel fuel or electricity that we use as fuel sources for our\nproppant production facilities and related equipment; development of\nalternative power generation technologies or changes in the availability of\ngrid power that would reduce the need for mobile power supply, particularly in\nthe Permian Basin; customer concentration, the potential for future\nconsolidation amongst current or potential customers and the possibility that\ncustomers may not continue to outsource their power system needs, which could\naffect demand for our products and services, especially in the power\ngeneration industry; the availability of capital and our liquidity; the level\nof competition from other companies; pending legal or environmental matters;\nchanges in laws and regulations (or the interpretation thereof) or increased\npublic scrutiny related to the proppant production and oil and natural gas\nindustries, silica dust exposure or the environment; facility shutdowns in\nresponse to environmental regulatory actions; technical difficulties or\nfailures; liability or operational disruptions due to pit-wall or pond\nfailure, environmental hazards, fires, explosions, chemical mishandling or\nother industrial accidents; unanticipated ground, grade or water conditions;\ninability to obtain government approvals or acquire or maintain necessary\npermits or mining, access or water rights; changes in the price and\navailability of transportation services; inability of our customers to take\ndelivery; difficulty collecting on accounts receivable; the level of\ncompletion activity in the oil and natural gas industry; inability to obtain\nnecessary proppant production or power generation equipment or replacement\nparts; the amount of water available for processing proppant; any planned or\nfuture expansion projects or capital expenditures; our ability to finance\nequipment, working capital and capital expenditures; inability to successfully\ngrow organically, including through future land acquisitions; inaccuracies in\nestimates of volumes and qualities of our frac sand reserves; failure to meet\nour minimum delivery requirements under our supply agreements; material\nnonpayment or nonperformance by any of our significant customers; development\nof either effective alternative proppants or new processes that replace\nhydraulic fracturing; our ability to borrow funds and access the capital\nmarkets; our ability to comply with covenants contained in our debt\ninstruments; the potential deterioration of our customers’ financial\ncondition, including defaults resulting from actual or potential insolvencies;\nchanges in tariffs, trade barriers, price and exchange controls and other\nregulatory requirements, including such changes that may be implemented by\nU.S. and foreign governments; volatility in political, legal and regulatory\nenvironments; changes in global political or economic conditions, including\nsustained inflation as well as financial market instability or disruptions to\nthe banking system due to bank failures, both generally and in the markets we\nserve; the impact of geopolitical developments and tensions, war and\nuncertainty in oil-producing countries (including the invasion of Ukraine by\nRussia, geopolitical developments involving Iran and disruptions to shipping\nthrough the Strait of Hormuz, continued instability in the Middle East, the\nrecent events in Venezuela and any related political or economic responses and\ncounter-responses or otherwise by various global actors or the general effect\non the global economy); health epidemics, such as the COVID-19 pandemic,\nnatural disasters or inclement or hazardous weather conditions, including but\nnot limited to cold weather, droughts, flooding, tornadoes and the physical\nimpacts of climate change; physical, electronic and cybersecurity breaches;\nthe effects of litigation; plans, objectives, expectations and intentions\ndescribed in this press release that are not historical; and other factors\ndiscussed or referenced in our filings made from time to time with the U.S.\nSecurities and Exchange Commission (“SEC”), including those discussed\nunder the heading “Risk Factors” in our Annual Report on Form 10-K, filed\nwith the SEC on February 24, 2026 and any subsequently filed Quarterly Reports\non Form 10-Q and Current Reports on Form 8-K.\n\nReaders are cautioned not to place undue reliance on forward-looking\nstatements, which speak only as of the date hereof. Factors or events that\ncould cause our actual results to differ may emerge from time to time, and it\nis not possible for us to predict all of them. We undertake no obligation to\npublicly update or revise any forward-looking statement, whether as a result\nof new information, future developments or otherwise, except as may be\nrequired by law.\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Statements of Income \n \n \n \n(unaudited, in thousands, except per share data) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n                   \n Product revenue       $ 108,940     $ 105,173     $ 139,645   \n Service revenue         139,113       126,167       150,609   \n Rental revenue         17,530       18,090       7,337   \n Total revenue         265,583       249,430       297,591   \n Cost of sales (excluding depreciation, depletion and accretion expense)         214,025       187,298       206,063   \n Depreciation, depletion and accretion expense         45,226       41,896       37,000   \n Gross profit         6,332       20,236       54,528   \n Selling, general and administrative expense (including stock-based         35,746       33,724       34,412   \n compensation expense of $8,442, $9,075, and $6,518, respectively) \n Credit loss expense         17       571       —   \n Amortization expense of acquired intangible assets         6,371       6,414       4,785   \n Change in fair value of contingent consideration         —       (3,360 )     —   \n Insurance recovery (gain)         (3,326 )     (2,217 )     —   \n Operating income (loss)         (32,476 )     (14,896 )     15,331   \n Interest (expense), net         (15,784 )     (16,110 )     (12,078 ) \n Other income (expense), net         486       101       259   \n Income (loss) before income taxes         (47,774 )     (30,905 )     3,512   \n Income tax expense (benefit)         (510 )     (8,661 )     2,293   \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219   \n                   \n Net income (loss) per common share                 \n Basic       $ (0.38 )   $ (0.18 )   $ 0.01   \n Diluted       $ (0.38 )   $ (0.18 )   $ 0.01   \n Weighted average common shares outstanding                 \n Basic         124,626       124,019       118,245   \n Diluted         124,626       124,019       119,747   \n\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Statements of Cash Flows \n \n \n \n(unaudited, in thousands) \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n                   \n Operating activities:                 \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219   \n Adjustments to reconcile net income to net cash provided by (used in)                 \n operating activities: \n Depreciation, depletion and accretion expense         46,883       43,430       38,264   \n Amortization expense of acquired intangible assets         6,371       6,414       4,785   \n Amortization of debt discount         1,057       1,781       1,109   \n Amortization of deferred financing costs         97       102       106   \n Change in fair value of contingent consideration         —       (3,360 )     —   \n Stock-based compensation         8,442       9,075       6,518   \n Gain on sales of power equipment         (1,284 )     —       —   \n Deferred income tax         (5,127 )     (6,665 )     1,379   \n Credit loss expense         17       571       —   \n Other         (51 )     2,301       (122 ) \n Changes in operating assets and liabilities:         9,855       (27,698 )     (60,708 ) \n Net cash provided by (used in) operating activities         18,996       3,707       (7,450 ) \n                   \n Investing activities:                 \n Purchases of property, plant and equipment         (29,275 )     (21,808 )     (52,389 ) \n Proceeds from sales of power equipment         3,336       —       —   \n Proceeds from insurance recovery         3,326       2,217       5,398   \n Acquisition, net of cash acquired         —       —       (181,511 ) \n Net cash used in investing activities         (22,613 )     (19,591 )     (228,502 ) \n                   \n Financing Activities:                 \n Proceeds from ABL credit facility         25,000       25,000       —   \n Principal payments on term loan borrowings         (5,190 )     (3,259 )     (4,725 ) \n Payment on Deferred Cash Consideration Note         (11,085 )     —       (101,252 ) \n Payments under finance leases         (2,134 )     (1,340 )     (959 ) \n Repayment of equipment finance notes         (2,599 )     (1,804 )     (841 ) \n Taxes withheld on vesting equity awards         (1,227 )     (1,295 )     (595 ) \n Proceeds from equity offering, net of issuance costs         —       —       253,070   \n Proceeds from term loan borrowings         —       (2,000 )     188,805   \n Payment on ABL credit facility         —       —       (70,000 ) \n Dividends         —       —       (30,435 ) \n Issuance costs associated with debt financing         —       (135 )     (146 ) \n Net cash provided by financing activities         2,765       15,167       232,922   \n Net increase (decrease) in cash and cash equivalents         (852 )     (717 )     (3,030 ) \n Cash and cash equivalents, beginning of period         40,632       41,349       71,704   \n Cash and cash equivalents, end of period       $ 39,780     $ 40,632     $ 68,674   \n\n Atlas Energy Solutions Inc. \n \n \n \nCondensed Consolidated Balance Sheets \n \n \n \n(in thousands) \n         As of     As of   \n         March 31, 2026     December 31, 2025   \n         (unaudited)         \n Assets                 \n Current assets:                 \n Cash and cash equivalents       $ 39,780     $ 40,632   \n Accounts receivable, including related parties, net         208,381       180,783   \n Inventories, prepaid expenses and other current assets         87,736       86,099   \n Total current assets         335,897       307,514   \n Property, plant and equipment, net         1,561,601       1,540,813   \n Right-of-use assets         70,793       43,783   \n Goodwill         152,903       152,903   \n Intangible assets         176,283       182,238   \n Other long-term assets         1,101       1,177   \n Total assets       $ 2,298,578     $ 2,228,428   \n Liabilities and stockholders' equity                 \n Current liabilities:                 \n Accounts payable, including related parties         101,039       69,203   \n Accrued liabilities and other current liabilities         119,446       101,180   \n Current portion of long-term debt         65,632       40,681   \n Total current liabilities         286,117       211,064   \n Long-term debt, net of discount and deferred financing costs         557,040       538,240   \n Deferred tax liabilities         216,496       221,622   \n Other long-term liabilities         70,050       48,578   \n Total liabilities         1,129,703       1,019,504   \n Total stockholders' equity         1,168,875       1,208,924   \n Total liabilities and stockholders’ equity       $ 2,298,578     $ 2,228,428   \n\n\nNon-GAAP Financial Measures\n\nAdjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted\nFree Cash Flow Margin, Adjusted Free Cash Flow Conversion, Maintenance Capital\nExpenditures and Adjusted Cash SG&A are non-GAAP supplemental financial\nmeasures used by our management and by external users of our financial\nstatements such as investors, research analysts and others, in the case of\nAdjusted EBITDA, to assess our consolidated operating performance on a\nconsistent basis across periods by removing the effects of development\nactivities, provide views on capital resources available to organically fund\ngrowth projects and, in the case of Adjusted Free Cash Flow, assess the\nfinancial performance of our assets and their ability to sustain dividends or\nreinvest to organically fund growth projects over the long term without regard\nto financing methods, capital structure, or historical cost basis.\n\nThese measures do not represent and should not be considered alternatives to,\nor more meaningful than, net income, income from operations, net cash provided\nby operating activities or any other measure of financial performance\npresented in accordance with GAAP as measures of our financial performance.\nAdjusted EBITDA and Adjusted Free Cash Flow have important limitations as\nanalytical tools because they exclude some but not all items that affect net\nincome, the most directly comparable GAAP financial measure. Our computation\nof Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted\nFree Cash Flow Margin, Adjusted Free Cash Flow Conversion, Maintenance Capital\nExpenditures and Adjusted Cash SG&A may differ from computations of\nsimilarly titled measures of other companies.\n\nNon-GAAP Measure Definitions:\n\n\n * We define Adjusted EBITDA as net income before depreciation, depletion and\naccretion, amortization expense of acquired intangible assets, interest\nexpense, income tax expense, stock and unit-based compensation, loss on\nextinguishment of debt, loss on disposal of assets, insurance recovery (gain),\nunrealized commodity derivative gain (loss), other acquisition related costs,\nand other non-recurring costs. Management believes Adjusted EBITDA is useful\nbecause it allows management to more effectively evaluate the Company’s\nconsolidated operating performance and compare the results of its operations\nfrom period to period and against our peers without regard to financing method\nor capital structure. We exclude the items listed above from net income in\narriving at Adjusted EBITDA because these amounts can vary substantially from\ncompany to company within our industry depending upon accounting methods and\nbook values of assets, capital structures and the method by which the assets\nwere acquired. Certain prior period non-recurring costs of goods sold are now\nincluded as an add-back to adjusted EBITDA in order to conform to the current\nperiod presentation and to more accurately describe the Company’s\nconsolidated operating performance and results period over period.\n\n * We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.\n\n * We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital\nExpenditures. Management believes that Adjusted Free Cash Flow is useful to\ninvestors as it provides a measure of the ability of our business to generate\ncash.\n\n * We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by\ntotal revenue.\n\n * We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow\ndivided by Adjusted EBITDA.\n\n * We define Maintenance Capital Expenditures as capital expenditures excluding\ngrowth capital expenditures, reconstruction of previously incurred growth\ncapital expenditures, equipment assets acquired through debt, and asset\nretirement obligations. Certain prior period equipment assets acquired through\ndebt and asset retirement obligations have been removed from capital\nexpenditures in order to conform to the current period presentation and to\nmore accurately describe the Company’s consolidated operating performance\nand results period-over-period.\n\n * We define Adjusted Cash SG&A as selling, general and administrative\nexpenses (“SG&A”) less stock-based compensation, depreciation in\nSG&A, non-recurring transaction expenses, and certain litigation expenses,\nnet of insurance reimbursements.\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income \n \n \n \n(unaudited, in thousands) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Net income (loss)       $ (47,264 )   $ (22,244 )   $ 1,219 \n Depreciation, depletion and accretion expense         46,883       43,430       38,264 \n Amortization expense of acquired intangible assets         6,371       6,414       4,785 \n Interest expense         15,914       16,214       13,046 \n Income tax expense (benefit)         (510 )     (8,661 )     2,293 \n EBITDA       $ 21,394     $ 35,153     $ 59,607 \n Stock-based compensation         8,442       9,075       6,518 \n Insurance recovery (gain) (1)         (3,326 )     (2,217 )     — \n Other non-recurring costs (2)         1,750       1,048       849 \n Other acquisition related costs (3)         142       (6,315 )     7,317 \n Adjusted EBITDA       $ 28,402     $ 36,744     $ 74,291 \n Maintenance Capital Expenditures (4)       $ 24,624     $ 14,351     $ 15,533 \n Adjusted Free Cash Flow       $ 3,778     $ 22,393     $ 58,758 \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating \n Activities \n \n \n \n(unaudited, in thousands, except percentages) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Net cash provided by (used in) operating activities       $ 18,996     $ 3,707     $ (7,450 ) \n Current income tax expense (benefit) (4)         4,617       (1,996 )     914   \n Change in operating assets and liabilities         (9,855 )     27,698       60,708   \n Cash interest expense (4)         14,760       14,331       11,831   \n Maintenance capital expenditures (4)         (24,624 )     (14,351 )     (15,533 ) \n Gain on sales of power equipment         1,284       —       —   \n Credit loss expense         (17 )     (571 )     —   \n Change in fair value of contingent consideration         —       3,360       —   \n Other non-recurring costs (2)         1,750       1,048       849   \n Other acquisition related costs (3)         142       (6,315 )     7,317   \n Insurance recovery (gain) (1)         (3,326 )     (2,217 )     —   \n Other         51       (2,301 )     122   \n Adjusted Free Cash Flow       $ 3,778     $ 22,393     $ 58,758   \n Adjusted EBITDA Margin         11 %     15 %     25 % \n Adjusted Free Cash Flow Margin         1 %     9 %     20 % \n Adjusted Free Cash Flow Conversion         13 %     61 %     79 % \n\n   (1) Represents insurance recovery (gain) related to the dredge mining assets at \n the Kermit facility. \n   (2) Other non-recurring costs includes costs incurred during our 2025 Term Loan \n Credit Facility transaction and other infrequent and unusual costs. \n   (3) Represents transactions costs incurred in connection with acquisitions, \n including fees paid to finance, legal, accounting and other advisors, employee \n retention and benefit costs, and other operational and corporate costs. \n   (4) A reconciliation of these items used to calculate Adjusted Free Cash Flow to \n comparable GAAP measures is included below. \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Maintenance Capital Expenditures to Purchase of Property, \n Plant and Equipment \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Maintenance Capital Expenditures, accrual basis reconciliation:                 \n Purchases of property, plant and equipment       $ 29,275     $ 21,808     $ 52,389   \n Changes in operating assets and liabilities associated with investing         37,801       2,088       (13,526 ) \n activities, equipment assets acquired through debt, and asset retirement \n obligations (1) \n Less: Equipment assets acquired through debt and asset retirement obligations         (35,470 )     (4,422 )     (3,374 ) \n Less: Growth capital expenditures and reconstruction of previously incurred         (6,982 )     (5,123 )     (19,956 ) \n growth capital expenditures \n Maintenance Capital Expenditures, accrual basis       $ 24,624     $ 14,351     $ 15,533   \n\n   (1) Positive working capital changes reflect capital expenditures in the current \n period that will be paid in a future period. Negative working capital changes \n reflect capital expenditures incurred in a prior period but paid during the \n period presented. In addition, this amount includes equipment assets acquired \n through debt and asset retirement obligations. \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nReconciliation of Current Income Tax Expense to Income Tax Expense \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Current tax expense reconciliation:                 \n Income tax expense (benefit)       $ (510 )   $ (8,661 )   $ 2,293   \n Less: deferred tax expense         5,127       6,665       (1,379 ) \n Current income tax expense (benefit)       $ 4,617     $ (1,996 )   $ 914   \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nCash Interest Expense to Interest Expense, Net \n \n \n \n(unaudited, in thousands) \n           \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Cash interest expense reconciliation:                 \n Interest expense, net       $ 15,784     $ 16,110     $ 12,078   \n Less: Amortization of debt discount         (1,057 )     (1,781 )     (1,109 ) \n Less: Amortization of deferred financing costs         (97 )     (102 )     (106 ) \n Less: Interest income         130       104       968   \n Cash interest expense       $ 14,760     $ 14,331     $ 11,831   \n\n Atlas Energy Solutions Inc. – Supplemental Information \n \n \n \nSG&A to Adjusted Cash SG&A \n \n \n \n(unaudited, in thousands) \n   \n         Three Months Ended \n         March 31, 2026   December 31, 2025   March 31, 2025 \n Selling, general and administrative expense       $ 35,746   $ 33,724     $ 34,412 \n Less: Stock-based compensation expense         8,442     9,075       6,518 \n Less: Depreciation expense recognized in selling, general and administrative         1,656     1,535       1,267 \n expense \n Less: Non-recurring transaction expenses (1)         1,892     (1,907 )     8,166 \n Less: Litigation expenses, net of insurance reimbursements         413     3,127       386 \n Adjusted Cash SG&A       $ 23,343   $ 21,894     $ 18,075 \n\n   (1) Represents other non-recurring costs and other acquisition related costs \n recorded in SG&A. \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260504705464/en/\n(https://www.businesswire.com/news/home/20260504705464/en/)\n\nInvestor Contact \n\nKyle Turlington\n\n5918 W Courtyard Drive, Suite #500\n\nAustin, Texas 78730\n\nUnited States\n\nT: 512-220-1200\n\nIR@atlas.energy (mailto:IR@atlas.energy)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-04T20:40:00.361249146Z","server_sent_at_ms":1777927200361},"received_at":"2026-05-04T20:40:00.638Z","source_url":"https://www.businesswire.com/news/home/20260504705464/en/"},"analysis":{"id":"14499","press_release_id":"19796","analysis_json":{"industry":{"label":"Energy","sector":"Energy"},"redFlags":["Q1 net loss of $47.3 million vs net income of $1.2 million in prior year period","Q1 Adjusted EBITDA declined to $28.4 million from $74.3 million in prior year period"],"eventType":"earnings","narrative":"Atlas Energy Solutions reported Q1 revenue of $265.5 million with a net loss of $47.3 million, citing higher plant operating costs due to severe winter weather.\n\nDespite the miss, the company secured a major 1.4 GW Global Framework Agreement with Caterpillar and a 120 MW power purchase agreement with a technology infrastructure provider, positioning it in the data center power market.\n\nThe company also completed a $450M convertible notes offering and raised Q2 guidance, expecting Adjusted EBITDA of approximately $50 million driven by improved margins and power contributions.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Near-term earnings miss overshadowed by massive Caterpillar partnership and power sector pivot."},"keyFigures":{"guidance":"Q2 2026 Adjusted EBITDA expected to total approximately $50 million","dealValueUsd":450000000,"customDimensions":{"adj_ebitda":28402000,"adj_free_cash_flow":3800000}},"quotedText":"Atlas has elevated its opportunity set from medium sized Industrial opportunities to now squarely in the crosshairs for data center deployments.","namedEntities":{"people":[{"name":"John Turner","role":"President & CEO"},{"name":"Bud Brigham","role":"Executive Chairman"}],"products":[],"companies":[{"name":"Atlas Energy Solutions Inc.","ticker":"AESI"},{"name":"Caterpillar Inc.","ticker":"CAT","relationship":"partner"}],"dollarAmounts":[{"amount":"$265.5 million","context":"Q1 2026 total revenue"},{"amount":"$47.3 million","context":"Q1 2026 net loss"},{"amount":"$28.4 million","context":"Q1 2026 Adj. EBITDA"},{"amount":"$450 million","context":"private placement of 0.50% convertible notes due 2031"},{"amount":"$386.2 million","context":"estimated net proceeds from convertible notes"},{"amount":"$50 million","context":"Q2 2026 Adj. EBITDA guidance"}]},"materialImpact":{"score":4,"reasoning":"Despite a quarterly net loss driven by weather-related costs, the company announced transformative commercial wins including a 1.4 GW framework agreement with Caterpillar and a 120 MW PPA. Additionally, a $450M convertible raise provides growth capital, and management raised Q2 EBITDA guidance to ~$50M, signaling a strong operational recovery and pivot to higher-growth power markets."},"tickerRelevance":{"others":[{"ticker":"CAT","relevance":"partner"}],"primary":"AESI"},"globalImportance":35,"audienceRelevance":30,"eventTypeSecondary":["guidance_update","offering"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings-plus-strategic-partnership","sectorWeight":"energy","marketCapAdjustment":"moderate"}},"event_type":"earnings","event_type_secondary":["guidance_update","offering"],"sentiment":"bullish","material_impact_score":4,"narrative":"Atlas Energy Solutions reported Q1 revenue of $265.5 million with a net loss of $47.3 million, citing higher plant operating costs due to severe winter weather.\n\nDespite the miss, the company secured a major 1.4 GW Global Framework Agreement with Caterpillar and a 120 MW power purchase agreement with a technology infrastructure provider, positioning it in the data center power market.\n\nThe company also completed a $450M convertible notes offering and raised Q2 guidance, expecting Adjusted EBITDA of approximately $50 million driven by improved margins and power contributions.","key_figures":{"guidance":"Q2 2026 Adjusted EBITDA expected to total approximately $50 million","dealValueUsd":450000000,"customDimensions":{"adj_ebitda":28402000,"adj_free_cash_flow":3800000}},"named_entities":{"people":[{"name":"John Turner","role":"President & CEO"},{"name":"Bud Brigham","role":"Executive Chairman"}],"products":[],"companies":[{"name":"Atlas Energy Solutions Inc.","ticker":"AESI"},{"name":"Caterpillar Inc.","ticker":"CAT","relationship":"partner"}],"dollarAmounts":[{"amount":"$265.5 million","context":"Q1 2026 total revenue"},{"amount":"$47.3 million","context":"Q1 2026 net loss"},{"amount":"$28.4 million","context":"Q1 2026 Adj. EBITDA"},{"amount":"$450 million","context":"private placement of 0.50% convertible notes due 2031"},{"amount":"$386.2 million","context":"estimated net proceeds from convertible notes"},{"amount":"$50 million","context":"Q2 2026 Adj. EBITDA guidance"}]},"model_name":"glm-4.7","prompt_hash":"sha256:a2703c5a1b5285fe","schema_hash":"sha256:1f8af1196c7db48c","created_at":"2026-05-04T21:33:26.136Z","global_importance":35,"audience_relevance":30,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings-plus-strategic-partnership","sectorWeight":"energy","marketCapAdjustment":"moderate"}},"durationMs":39769,"modelName":"glm-4.7"}}