Atlas Energy Solutions Announces Major Power Purchase Agreement and Provides Updated Guidance

Austin, TX – April 1, 2026: Atlas Energy Solutions Inc. (NYSE: AESI) has announced a significant commercial development, marking a major milestone in the company’s expansion into private grid power generation and distributed power infrastructure.

Key Highlights

• Executed 5-Year Power Purchase Agreement (PPA): Atlas has signed a 5-year PPA with a subsidiary of an investment-grade technology infrastructure provider for 120 megawatts (MW) of private generation capacity. The agreement includes two additional 5-year extension options, potentially covering up to 15 years.
• Equipment Delivery and Construction Timeline: The equipment represents 50% of the 240 MW of power generation equipment recently ordered from a Caterpillar Inc. dealer. Delivery and construction are scheduled to begin late 2026, with commissioning and energization expected in the first half of 2027.
• Financial Impact: Atlas anticipates the deployment of these power assets to generate approximately \$50 to \$55 million of Adjusted Free Cash Flow on an annualized basis once operational.
• Bridge Power Solution: To support the customer’s power needs during construction and commissioning, Atlas is providing bridge power via mobile generators and related equipment, which began arriving onsite in March 2026.

CEO Commentary

John Turner, President & CEO, stated: “The commercial opportunity set for our Power segment is accelerating rapidly, highlighting the demand for private grid power generation across various end markets. These transactions prove our strategy of using our power platform and experience to meet the full-cycle needs of our customers—from bridge to permanent on-site generation solutions. This marks another achievement in Atlas’s history of large-scale, innovative solutions. We continue to pursue opportunities for similar systems and contracts as Atlas furthers our goals and America’s goals of energy dominance.”

Updated Financial and Operational Guidance

• Q1 2026 Adjusted EBITDA Guidance: Atlas now expects first quarter Adjusted EBITDA in the range of \$26-30 million, compared to prior guidance of approximately flat with Q4 2025 levels.
• Impact of Severe Winter Weather: Severe weather in January disrupted West Texas oilfield activity, leading to unexpected maintenance expenses at the flagship Kermit facility. Incremental maintenance projects addressed production inefficiencies and ensured the asset operates at full capacity ahead of higher anticipated demand. This temporarily elevated maintenance spend, constrained production, and required Atlas to purchase ~150,000 tons of third-party sand to meet customer obligations, negatively impacting margins.
• Sales Volume: Sand sales volume is expected to be in line with prior guidance of 5.8 million tons, but the necessity to buy third-party sand and turn away incremental sales opportunities affected profitability.
• Improving Market Conditions: Following maintenance completion, the Kermit facility is better positioned for efficient operations, which is timely given improving market conditions and increased customer demand. There was also a temporary spike in third-party trucking rates and an increase in diesel prices, but the contractual recapture process with customers is now largely complete.
• Power Business Momentum: Atlas’s Power business is gaining traction, with multiple contracts executed in Q1 across upstream and midstream micro-grid projects and commercial/industrial bridge power deployments. These agreements are expected to contribute ~\$35 million in incremental Adjusted EBITDA over the remaining nine months of 2026.
• Second Quarter Outlook: Atlas has contracted an incremental one million tons of sand for the remainder of 2026, and current contracted customer volumes mean mining operations are effectively sold out for Q2 at current capacity. Incremental tonnage beyond that would require higher pricing to justify production ramp-up. Adjusted EBITDA for Q2 is expected to total approximately \$50 million, driven by higher sales volume, improved margin flow-through, and increased contribution from the Power segment.

Strategic and Market Implications

• Emergence of the Power Segment: The Power business is becoming a material and growing contributor to Atlas’s earnings profile. Management expects to scale this segment significantly as demand for distributed power infrastructure accelerates.
• Atlas’s Positioning: Atlas is leveraging its technology, automation, and remote operations to maximize efficiencies and value creation for shareholders. The company’s offerings span oilfield logistics, distributed power systems, and the largest proppant supply network in the Permian Basin.

Risks and Shareholder Considerations

• Forward-Looking Statements: The company notes that these forecasts are subject to risks and uncertainties, including commodity price volatility, regulatory changes, customer concentration, and unforeseen costs. Investors should consider these risks when evaluating the impact of the announced agreements.
• Non-GAAP Financial Measures: Atlas’s guidance includes non-GAAP measures such as Adjusted EBITDA and Adjusted Free Cash Flow, which may differ from similarly titled metrics at other companies and are not directly comparable to GAAP metrics.

Investor Contact

Kyle Turlington
918 W Courtyard Drive, Suite #500
Austin, Texas 78730, USA
T: 512-220-1200
[email protected]

Disclaimer

This article contains information derived from company disclosures and forward-looking statements, which are inherently subject to risks and uncertainties. Actual results may differ materially from those projected. Investors should consider all available information and consult their financial advisors before making investment decisions. The author is not responsible for any actions taken based on this article.

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