Atlas Energy Solutions Inc.

Greetings and welcome to the Atlas Energy Solutions First Quarter 2025 Financial and Operational Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Kyle Turlington, Investor Relations. Please go ahead, sir.

Hello, and welcome to the Atlas Energy Solutions conference call and webcast for the first quarter of 2025. With us today are John Turner, President and CEO, Blake McCarthy, CFO, Chris Sciola, COO, and Bud Brigham, Executive Chair. John, Blake, Chris, and Blood will be sharing their comments on the company's operational and financial performance for the first quarter of 2025, after which we will open the call for Q&A. Before we begin our prepared remarks, I would like to remind everyone that this call will include forward-looking statements as defined under the U.S. securities laws. Such statements are based on the current information and management expectations as of this statement and are not guarantees of future performance. Forward-looking statements involve certain risks and uncertainties and assumptions that are difficult to predict. As such, our actual outcomes and results could differ materially. You can learn more about these risks in the annual report on Form 10-K we filed with the SEC on February 25, 2025, our quarterly reports on Form 10-Q, and current reports on Form 8-K and other SEC filings. You should not place undue reliance on forward-looking statements, and we undertake no obligation to update these forward-looking statements. We will also make reference to certain non-GAAP financial measures, such as adjusted EBITDA, adjusted free cash flow, and other operating metrics and statistics. You will find the GAAP reconciliation comments and calculations in yesterday's press release. With that said, I will turn the call over to John Turner.

Thank you, Kyle. For the first quarter of 2025, Atlas delivered revenues of $297.6 million and adjusted EBITDA of $74.3 million, representing a margin of 25%. While results were modestly impacted by a few discrete items, primarily higher than expected commissioning costs related to the Dune Express, our core performance remains strong. Blake will speak to those items in more detail here shortly. Overall, Q1 was a milestone quarter for Atlas. We completed the acquisition of Moser Energy Systems, executed a successful equity raise, refinanced our debt, set production records at our core facilities, and launched commercial operations for the Dune Express. Before diving into those accomplishments, I want to directly address the uncertainty currently facing the oilfield sector and how Atlas is uniquely positioned to navigate this environment with confidence. Recent volatility, largely driven by global trade concerns and macroeconomic uncertainty, has pressured commodity prices. WTI's forage trip has declined approximately 20% since early April. These dynamics are influencing customer spending behavior and deferring some near-term activity. That said, what management teams and markets dislike most is uncertainty. And we've structured Atlas from the outset to perform through both up cycles and downturns. We are not reacting from a position of weakness. We are executing from a position of strength. Atlas was built to lead through cycles, not follow them. In times like these, companies that control costs, prioritize capital discipline, and innovate with purpose will be the ones that emerge stronger. On the sand and logistics side, our Kermit and Monahan's operations in combination with our Encore network and now the Dune Express position Atlas has the absolute low end of the Permian sand cost curve. On the power side, Mosier Energy's integrated manufacturing and field service platform allows us to offer lower cost, higher uptime solutions that create meaningful value for our customers. Moreover, our business model is designed for resilience. We operate with low sustaining capital requirements. Our annual maintenance capex is approximately $45 to $50 million, and we maintain the flexibility to scale this spending up or down in response to market conditions. Our recent refinancing consolidates our debt into a single facility with Eldridge, reducing our annual amortization to under $20 million and enhancing liquidity and optionality. Unlike many oilfield service peers who struggle to break even in downturns, Atlas' structural advantages enable us to generate healthy free cash flow in weak markets while capturing outsized returns when conditions tighten. We're already seeing some customers pause growth plans and adopt a flat until further clarity stance. While this has delayed some second quarter volumes into the back half of the year, we We entered 2025 with a strong allocation base of approximately 22 million tons and continue to bid on meaningful new lenders. This pause is not a reset. It's a recalibration, and we expect activity to resume as visibility improves. Turning to what gives us confidence, the Dune Express, while contributing minimally to Q1's financials, is entering a critical phase. volumes are stabilizing, and we begin routing deliveries through our end-of-line facility, optimizing last-mile execution. We continue to expect Q2 to be the first period where the economic benefits of the New Express are reflected in our logistics margins. This is a long-term infrastructure advantage, and its early traction is already validating the strategy. Similarly, the integration of Mosier Energy Systems is progressing exceptionally well. The cultural alignment has been seamless, and customer feedback has been overwhelmingly positive. Just as we disrupted the status quo in the standard logistics business, we are taking a fresh approach in distributed power, exploring new business models and strategic partnerships to increase efficiency and lower customer costs. Mojo's spirit of innovation is evident, with next-generation offerings already in development that will further differentiate our power platform. In closing, while short-term uncertainty remains, our long-term outlook is grounded in strategic clarity, operational discipline, and structural advantage across our portfolio. We are confident in the platform we built and in the teams executing our vision every day. With that, I'll turn the call over to Chris Schola.