Atlas Energy Solutions Inc.

Greetings and welcome to the Atlas Energy Solutions first quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kyle Turlington, Vice President of Investor Relations. Thank you. You may begin.

Hello, and welcome to the Atlas Energy Solutions conference call and webcast for the first quarter of 2026. With us today are John Turner, President and CEO, Blake McCarthy, CFO, Tim Ondrak, President of Power, and Bud Brigham, Executive Chair. John, Blake, and Bud will be sharing their comments on the company's operational and financial performance for the first quarter of 2026, 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's expectations as of this statement and are not guarantees of future performance. Forward-looking statements involve certain risks, 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 filed with the SEC on February 24, 2026, and our quarterly report on Form 10-Q for the first quarter, and current reports on Form 8-K and our other SEC filings. You should not place undue reliance on forward-looking statements, and we undertake no obligations 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. Before turning to the quarter, I want to frame where Atlas stands today. On the sand and logistics side, the West Texas market is turning. Trucking rates have moved meaningfully off their lows Logistic margins expanded from low single digits in January to mid-teens by March. Completion activity is building, and our mining operations are effectively sold out. On the power side, we have signed a global framework agreement with Caterpillar securing 1.4 gigawatts of generation capacity, and we have just announced our first private grid power purchase agreement, 120 megawatt deployment drawn from our initial 240 megawatt November order with Caterpillar. The strategic and commercial momentum heading into the balance of the year is the strongest it has been in some time. Turning to our first quarter results, Atlas generated revenue of $265.5 million and EBITDA of $28.4 million, representing an EBITDA margin of 11%. Results were impacted by severe winter weather, elevated maintenance at our Kermit facility, and higher third-party logistics costs. Each of these items has been resolved, and we expect underlying margins to normalize beginning in the second quarter as the headwinds roll off and contracted volumes ramp. The clear signal of the demand recovery is in our bone book of business. Customer volumes have moved our mining operations to a sold-out position for the second quarter at current production rates. and we expect our plants to remain very busy for the balance of the year. As contracts roll off, or if we elect to increase production, additional sand sales this year should come at higher pricing. The macro backdrop is supportive. WTI is hovering near $100 a barrel, and the 2027 strip has moved higher. But we want to be clear that our outlook is anchored in customer commitments and completion activity we can see today, not in any single price level holding. While the West Texas sand and logistics market has been in a rut for the better part of two years, Atlas never stopped investing in our infrastructure. When the markets get tight, our investment in our plants, logistics network, and last mile equipment reinforce our position as the most reliable supplier in the Permian. Now let me turn to power. where we are deploying capital with the same operating discipline that built our sand and logistics franchise and where we believe Atlas's industrial capabilities translate directly. We have intentionally structured our power strategy differently from some peers by pursuing full-scope power purchase agreements in which Atlas owns and operates the complete solution, including balance of plan. This creates stickier, longer-term customer relationships provides significant advantages at contract renewal, delivers superior reliability compared to the grid in many cases, allows for greater pricing flexibility once equipment costs are recovered, and creates high barriers for competitors due to the sunk cost and complexity of the facility. With grid constraints likely to persist for years, we believe this PPA model is the right long-term strategy for our shareholders. In November, Atlas placed an initial order with Caterpillar for 240 megawatts of power generation equipment, sized in response to specific customer projects. As commercial momentum built early this year, we recognized the generational nature of this opportunity and entered into a separate global framework agreement with Caterpillar that secures an additional 1.4 gigawatts of power generation assets for delivery between 2027 and 2029. Together, With the initial 240 megawatt order, these commitments support our objective of owning and operating more than 2 gigawatts by 2030. The announcement of the Global Framework Agreement immediately elevated our commercial position. Our commercial team went from hunting deals to being hunted. With power generation equipment in short supply, our secure supply chain and our ability to offer surety of delivery have moved us from medium-sized industrial projects into serious contention for data center deployments. On April 1st, we announced our first private grid power purchase agreement, 120 megawatt deployment that will be supplied from the initial 240 megawatt November order. The PPA carries an initial five-year term with two additional five-year extension options. Equipment delivery and construction are expected to begin later this year with commissioning targeted for the first half of 2027. We expect this 120 megawatt deployment to generate approximately 50 to 55 million of adjusted free cash flow on an annualized basis once fully deployed. To support the customer during construction and commissioning, we have already begun providing bridge power with mobile generators. A combination of these bridge deployments and other recently executed microgrid deployments is expected to contribute approximately $35 million in the incremental adjusted EBITDA over the remaining nine months of 2026, weighted toward the back half of the year of deployment's ramp. Finally, in April, we successfully priced $450 million of half a percent convertible senior notes due 2031. Concurrently, we entered into a cap call transaction with initial cap price of $22.32 per share, a 28% premium of our last Thursday's closing price of 1738. We used a portion of the $386 million in net proceeds to pay down our outstanding balance under our ABL and outstanding advances under our master lease agreement and interim funding agreement. We intend to use a portion of the remaining net proceeds to finance the initial 240 megawatt order. On a cash coupon basis, this transaction reduces cash interest expense of this quantum of capital from high single digits to half a percent. The cap call meaningfully mitigates dilution up to the cap price, though we recognize residual equity optionality remains embedded in the structure. In summary, Atlas is well-positioned to grow our power business from expected deployments of roughly 550 megawatts next year to approximately 2 gigawatts by the end of the decade. Combined with a recovering sand and logistics business, this trajectory would meaningfully transform our cash flow profile and create substantial long-term value for our shareholders. With that, I will now turn the call over to our CFO, Blake McCarthy, who will review our financials in more detail and provide an update on our standard logistics operations. Thanks, John.