Atlas Energy Solutions Inc. has recently announced its agreement to acquire Moser Energy Systems, a leading provider of distributed power solutions, in a transaction valued at $220 million. The transaction consideration includes $180 million of cash and approximately 1.7 million shares of the company’s common stock. The acquisition is expected to diversify Atlas into attractive high-growth end markets in both production and distributed power while strengthening its current market position as a leading provider of energy solutions within the oil and gas sector across North America.
The acquisition highlights several key points, including the combination of Atlas’s completion platform and Moser’s distributed power platform, which is expected to create an innovative, diversified energy solutions provider with a leading portfolio of proppant, logistics, and distributed power solutions. Additionally, Moser’s strong EBITDA margin profile of 50%+ and robust cash flow generation are expected to enhance Atlas’s pro forma cash flow generation and shareholder returns.
The transaction is expected to close before the end of the first quarter of 2025. Assuming 10 months of contribution, the acquired assets are expected to generate $40-45 million in adjusted EBITDA in 2025, implying a valuation of approximately 4.3x 2025 adjusted EBITDA.
John Turner, President and Chief Executive Officer of Atlas, stated that the acquisition diversifies the company into attractive high-growth end markets in both production and distributed power while strengthening its current market position as a leading provider of energy solutions within the oil and gas sector across North America. He also emphasized the company's commitment to evolving by deploying innovative and differentiated solutions to return value to shareholders.
In addition to the acquisition announcement, the company provided preliminary unaudited financial results for the fourth quarter and year-end 2024. The estimated preliminary unaudited financial results and other data for the fourth quarter ended December 31, 2024, and the corresponding period of the prior fiscal year, as well as fiscal year ended December 31, 2024, and the corresponding period of the prior fiscal year will provide investors with insights into the company's performance. However, it's important to note that these estimates are subject to change and should not be viewed as a substitute for the full interim or annual audited financial statements prepared in accordance with U.S. generally accepted accounting principles. Following these announcements, the company's shares moved 2.7%, and are now trading at a price of $24.57. For more information, read the company's full 8-K submission here.
