Atlas Energy Solutions Inc. Q1 FY2026 earnings call

• Sand and logistics: West Texas market is recovering with trucking rates increasing and logistic margins improving. Mining operations are sold out for the second quarter. • Power: Secured significant generation capacity through the global framework agreement with Caterpillar and made progress with the first private grid power purchase agreement. Bridge power and microgrid deployments are contributing to adjusted EBITDA. • Financials: Q1 revenue was $265.5 million, logistics business set a quarterly delivered record of 5.5 million tons. • Capital: Priced $450 million of convertible senior notes and used proceeds for debt reduction and financing the initial order

Sand and logistics: In the first quarter, revenue breakdown was profit sales $105.6 million, power equipment sales $3.3 million, logistics $139.1 million, and power rentals $17.5 million. Total revenue was $265.5 million with EBITDA of $28.4 million (11% margin). The West Texas sand and logistics market is turning; trucking rates have moved up from lows, logistic margins expanded from low single digits in January to mid-teens by March. Mining operations are effectively sold out. Power: Signed a global framework agreement with Caterpillar securing 1.4 gigawatts of generation capacity. Announced the first private grid power purchase agreement (120 megawatt deployment) from the initial 240 megawatt November order with Caterpillar

• Q2 is expected to have sequentially improved sales volumes, with the logistics business effectively sold out for the second quarter. • OPEX per ton is forecasted to decline in the second quarter to approximately $12.75 and continue improving later in the year. • Logistics margins are forecasted to be in the mid-teens for Q2. • Expect Q2 EBITDA to be approximately $50 million. • The power business is expected to contribute approximately $35 million in incremental adjusted EBITDA over the remaining nine months of 2026 from bridge and microgrid deployments

• Volatility in oil prices and commodity markets which can impact the business. • Dependence on completion activity and customer commitments for sand and logistics. • Challenges in hiring labor for sand production plants. • Impact of diesel prices on trucking margins and subsequently on mine gate pricing. • Complexity and time required for power contract negotiations and deployments

Q: Jim Rolison from Raymond James asked about how the global framework agreement impacted the power commercial opportunity set.

A: Jim, the global framework agreement had a profound impact. Before it, the pipeline was weighted towards smaller industrial deployments. The combination of secured supply and access to premium equipment from Caterpillar changed the customer conversation, with reverse inquiries now active and the queue for power projects growing.

Q: Derek Podhazer from Piper Sandler asked about trucking rates and their change with activity uptick.

A: Derek, Permian trucking rates are still below the national average. Diesel prices and trucking company decisions are key factors. Higher trucking rates are expected but there are many moving variables.

Q: Sean Mitchell from Daniel Energy Partners asked about power equipment in the global framework agreement and its suitability for private grid.

A: Tim Ondrak responded that the assets from Caterpillar are medium - speed and high - speed engines designed for continuous duty, from a respected OEM, making them well - suited for private grid as they help support customer needs and allow for matching to project requirements.

Q: Scott Gruber from Citigroup asked about OPEX per ton and dredge implementation.

A: Blake McCarthy corrected that Q2 OPEX per ton guide is $12.75. Dredges are expected to impact variable costs later in the year as they are commissioned and optimized.

Q: Keith Mackey from RBC Capital Markets asked about sand price theme and contract durations.

A: They mentioned that a portion of sand contracts could reprice between now and the end of the year, and the dredge implementation timeline with impact on variable costs.

Q: Don Crist from Johnson Rice asked about delivery schedule of the global framework agreement.

A: It was stated that the delivery schedule is weighted to 2027 and 2028, with complicated negotiations for power contracts due to their complexity and length