Atlas Energy Solutions (AESI)2025-02-25 21:24Financial Data and Key Metrics Changes - Total company's adjusted EBITDA was 271.3 million and adjusted EBITDA of 14.4 million or 5.3% of revenue, with earnings per share at 47.9 million or 17.7% of revenue [35] - CapEx during the quarter was 15.3 million [36] Business Line Data and Key Metrics Changes - Revenue from proppant sales was 25.31, adjusted to 140.5 million [29] Market Data and Key Metrics Changes - Spot sand prices fell to cyclical lows during the fourth quarter due to reduced customer demand and aggressive pricing from competitors [18] - The company expects a gradual return to normalcy in sand pricing, with expectations for a return to mid-teen levels [21][36] Company Strategy and Development Direction - The company aims to ramp up volumes and achieve full effective utilization of the Dune Express by midyear [8] - The acquisition of Mosier Energy Systems is seen as a platform investment into the distributed power market, with plans to grow its fleet from 212 megawatts to approximately 310 megawatts by the end of 2026 [15][16] - The company is focused on shareholder returns, having increased its quarterly dividend by 4% [13][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a gradual recovery in the Permian profit market and rational pricing behavior among competitors [20][21] - The company expects Q1 volumes to be up 10% to 15% sequentially and anticipates adjusted EBITDA for Q1 to be between 85 million [41] - Full-year 2025 adjusted EBITDA is expected to reflect the contribution from the Mosier acquisition [42] Other Important Information - The company has paid out $252 million in total dividends and distributions since inception [53] - The Dune Express is described as the world's first commercial driverless delivery operation, enhancing logistics efficiency [10][49] Q&A Session Summary Question: Can you speak to the volume moved down the Dune Express and gating factors for full utilization? - The company is currently running at 50% to 60% of capacity and expects to reach full utilization by midyear, with some planned downtime for optimization [60][62] Question: How are you balancing growth opportunities with returning cash to shareholders? - The company aims to maintain a stable dividend while pursuing high-return growth projects, with a focus on optimizing cash flow [66][68] Question: Can you discuss plans for the Mosier acquisition and future power generation? - The Mosier acquisition is viewed as a platform for growth in the power business, with potential for rapid expansion based on customer demand [75][76] Question: What are the cost savings of using autonomous trucks versus regular trucks? - The company noted that labor constitutes about 70-80% of truck operating costs, indicating significant potential savings with autonomous trucks [82] Question: What is the current contract coverage for the year? - The company has approximately 22 million tons contracted for 2025, with expectations for this number to increase [117] Question: Are you seeing interest from customers for longer-term contracts? - There is a trend towards longer-term contracts, which may have lower pricing but provide volume stability [120]