Atlas Energy Solutions (AESI) 2024 Southwest IDEAS Conference summary

Leadership and strategic background

• Bud Brigham's history of innovation and successful exits in energy, including Brigham Exploration and Brigham Resources, set the foundation for the current business strategy.

• The team leveraged E&P expertise to identify and secure prime sand geology in the Permian Basin, focusing on the Winkler Sand Trend.

• Leadership's track record and alignment with Bud Brigham have been key to attracting talent and capital.

Operational advantages and cost structure

• Surface mining in the north and south dunes yields 90%-95% product recovery, supporting low-cost operations.

• Exclusive dredge mining enabled by a unique water table further reduces costs by about $2/ton compared to traditional methods.

• Remote operations from Austin lower labor costs and turnover, with 1,500 trucks loaded daily offsite.

• Overall OpEx per ton is $10-$11, well below the industry average of $15, positioning the company at the bottom of the cost curve.

Dune Express and logistics transformation

• The 42-mile Dune Express conveyor, structurally complete and commissioning, will halve logistics costs compared to $20-$25/ton for trucking.

• Conveyor enables heavier, more efficient deliveries, bypassing public road weight limits and reducing haul distances from 70 to 10 miles.

• Expected to be fully operational by Q2 next year, with a capacity of 13 million tons and 80%-90% uptime.

• $400 million project cost, with a projected 3-year payback and $125-$175 million annual EBITDA contribution.

• Advanced technology, including smart idlers and weather resilience, aims to make it one of the most reliable conveyors globally.