Atlas Energy Solutions: The Road Must Roll!

Summary

  • Atlas Energy Solutions Inc. is a locally sourced producer of high-grade sand for fracking and is introducing a step-change in last mile sand logistics with the Dune Express conveyor belt.
  • Analysts have a bullish outlook for Atlas, with estimates for Q4 EPS slightly above Q3's and estimates for Q2 and Q3 2024 showing an increase.
  • Atlas has several advantages, including the Dune Express conveyor belt, access to the Pecos aquifer for sand mining, and efficient last mile logistics using triple-trailers.
  • We like Atlas, but are hoping for a slightly better price, so it's a hold at present.

alvarez

Introduction

The case for Atlas Energy Solutions Inc. (NYSE:AESI) is not complex. The company is a locally sourced producer of high grade sand for fracking. It is introducing a step-change in last mile sand logistics later this yearDune Express

AESI Price Chart (Seeking Alpha)

The thesis for Atlas Energy Solutions

Permian basin outlook (Atlas Energy services)

Why Atlas?

Dune Express

Dune Express (Atlas Energy)

The Monahans Sand Hills

Atlas Advantage (Atlas Energy)

Atlas Delaware Footprint (Atlas Energy)

Proven history of value creation

Atlas Management (Atlas Energy)

Big capital spending to decline

Our three major capital projects to grow our business the Dune Express conveyor system, the new Kermit facility addition and the build-out of our trucking fleet are progressing as planned on time and on budget.

Atlas Energy Investment thesis (Atlas Energy)

Shareholder rewards

Atlas Energy Capital Return plans (Atlas Energy)

Risks to the thesis

Q3 2023 Financials

Your takeaway

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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