Shares of Atlas Energy Solutions Inc. (AESI) plummeted 13.99% in after-hours trading on Monday following the release of the company's disappointing third-quarter results and the announcement of its dividend suspension.
The oilfield services provider reported Q3 revenue of $259.6 million, falling short of analyst expectations of $276.3 million. Adjusted EBITDA came in at $40.2 million, significantly below the consensus estimate of $64.7 million. The company attributed the weak performance to an "exceptionally weak West Texas completions market" and higher operating costs at its Kermit facility.
In response to the challenging market conditions, Atlas Energy announced the suspension of its quarterly dividend and introduced a company-wide efficiency initiative targeting $20 million in annualized cost savings. CEO John Turner commented, "Despite an exceptionally weak West Texas completions market, Atlas generated meaningful Adjusted Free Cash Flow, a testament to the strength of our competitive position and cost-advantaged mines and logistics network."
Looking ahead, the company expects further headwinds, projecting lower sequential Adjusted EBITDA for the fourth quarter of 2025. Sand & Logistics volumes are forecast to be approximately 4.8 million tons, with operating expenses per ton expected to remain temporarily elevated. These factors, combined with the dividend suspension, likely contributed to the sharp after-hours sell-off as investors reassessed the company's near-term prospects.
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