Atlas Energy Solutions this week reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2024.

Year End 2024 Financial Highlights and Operational Updates

• Total sales of $1.1 billion
• Net income of $59.9 million (6% Net Income Margin)
• Adjusted EBITDA of $288.9 million (27% Adjusted EBITDA Margin) (1)
• Net cash provided by operating activities of $256.5 million
• Adjusted Free Cash Flow of $251.3 million (24% Adjusted Free Cash Flow Margin) (1)
• Increased quarterly dividend to $0.25 per share, payable February 28, 2025
• Completed previously announced acquisition of Moser Energy Systems

(1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures

John Turner, President & Chief Executive Officer, commented,
“The acquisition of Moser Energy Systems is a platform investment that provides Atlas with exposure to the production-end of the oil and gas value chain, along with new distributed power end-markets. The acquisition strengthens Atlas's market position as a leading provider of energy solutions and we expect the acquisition to help mitigate the volatility of future cash flows. This acquisition, coupled with our January equity offering, provides the company with a compelling runway for future growth. We expect 2025 to be a year of operational excellence as we continue to ramp up Dune Express operations, execute upon our leading last-mile and logistics platform, and look to enhance our new distributed power solutions offerings."

Year End 2024 Financial Results

Total sales for the year ended December 31, 2024 increased $442.0 million, or 72.0% when compared to the year ended December 31, 2023, to $1.1 billion. Product sales increased $47.3 million, or 10.1% when compared to the prior year, to $515.4 million. Service sales increased by $394.7 million, or 270.7% when compared to the prior year, to $540.5 million.

Cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) for the year ended December 31, 2024 increased by $464.8 million, or 178.5% when compared to the prior year, to $725.2 million. The increase in our cost of sales was primarily driven by an increase in product and service sales associated with the addition of the Hi-Crush operations acquired in March 2024, higher costs incurred in the second and third quarters of 2024 due to fire-related temporary loadout operations at one of our Kermit facilities, our operational improvement initiatives, and delays in dredge commissioning.

Selling, general and administrative expenses (“SG&A”) for the year ended December 31, 2024 increased by $57.6 million, or 118.5% when compared to the prior year, to $106.2 million. Included within our SG&A is $22.4 million in stock-based compensation and $19.2 million in other acquisition related costs.

Net income for the year ended December 31, 2024 was $59.9 million, and Adjusted EBITDA for the year ended December 31, 2024 was $288.9 million.

Fourth Quarter 2024 Financial Results

Fourth quarter 2024 total sales decreased $33.1 million, or 10.9% sequentially, to $271.3 million. Product sales decreased $16.9 million, or 11.6%, sequentially, to $128.4 million. Fourth quarter sales volumes decreased to 5.1 million tons or by 15%, coupled with lower average pricing recognized during the period. Service sales decreased by $16.2 million, or 10.2%, sequentially, to $142.9 million.

Fourth quarter 2024 cost of sales decreased by $34.3 million, or 15.2%, sequentially, to $191.0 million, which consists of product costs of sales, inclusive of royalties, of $66.7 million and services cost of sales of $124.3 million. SG&A for the fourth quarter of 2024 increased $0.05 million, or 0.2%, sequentially, to $25.5 million. Net Income for the fourth quarter of 2024 was $14.4 million, representing an increase of $10.5 million, or 269.2%, sequentially. Adjusted EBITDA for the fourth quarter of 2024 was $63.2 million, representing a decrease of $7.9 million, or 11.1%, sequentially.

Liquidity, Capital Expenditures and Other

As of December 31, 2024, the Company’s total liquidity was $206.5 million, which was comprised of $71.7 million in cash and cash equivalents, $54.8 million of availability under the Company’s ABL Facility, and $80.0 million of availability under the Company's Delayed Draw Term Loan Facility. The Company had $70.0 million of borrowings outstanding under the ABL Facility and $0.2 million of outstanding undrawn letters of credit.

Net cash used in investing activities was $512.7 million for the year ended December 31, 2024, driven largely by costs associated with the construction of the Dune Express, the acquisition of Hi-Crush, and additional OnCore deployments.

As of December 31, 2024, the Company had 110,217,322 shares of its commons stock, par value $0.01 per share ("common stock"), outstanding.

Acquisition of Moser Energy Systems

On February 24, 2025, Atlas acquired Moser Acquisition, Inc. and its wholly-owned subsidiary Moser Engine Service, a leading provider of distributed power solutions, in a transaction valued at $220.0 million. The transaction consideration included $180.0 million of cash and approximately 1.7 million shares of common stock, valued at $40.0 million based on the 20-day trailing volume-weighted average price ending at the close of trading on Friday, January 24, 2025. The Stock Consideration is subject to revision for customary post-closing adjustments. For 90 days following the closing, all or any portion of the Stock Consideration is subject to redemption at the option of Atlas, with any such redemption to be paid in cash.

KeyFacts Energy: Acquisitions & Mergers news