Atlas Energy Solutions Inc. (NYSE: AESI) has announced the commencement of an underwritten public offering of 10,000,000 shares of its common stock, with the intention to use the net proceeds for various purposes. The company plans to use the funds to repay indebtedness, including a portion of its secured pik toggle seller note and outstanding borrowings under its credit facility and term loan credit facility. Additionally, the proceeds will be used to fund a portion of the cash consideration for the company’s acquisition of Moser Engine Service, Inc. (d/b/a Moser Energy Systems) and for general corporate purposes, including power-related growth capital expenditures following completion of the Moser acquisition.
Atlas Energy Solutions Inc. expects to grant the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock at the public offering price, less the underwriting discounts and commissions. Goldman Sachs & Co. LLC and Piper Sandler & Co. are acting as lead-book running managers for the offering.
The offering will be made only by means of a prospectus supplement and the accompanying base prospectus, conducted pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on May 15, 2024.
Atlas Energy Solutions Inc. is a leading proppant producer and proppant logistics provider, operating 14 proppant production facilities across the Permian Basin with a combined annual production capacity of 29 million tons. The company manages a portfolio of logistics assets, including a 42-mile Dune Express conveyor system and a fleet of over 120 trucks. Atlas Energy Solutions Inc. focuses on leveraging technology, automation, and remote operations to drive efficiencies in its proppant production and logistics operations.
The company's core business is aligned with a lower emissions economy, with a focus on maximizing value for stockholders while optimizing outcomes for broader stakeholders, including employees and the communities in which it operates. Since its founding in 2017, Atlas Energy Solutions Inc. has aimed to improve access to hydrocarbons while delivering social and environmental progress. The company's executive chairman, Ben M. "Bud" Brigham, founded Atlas Energy Solutions Inc. in 2017, and the company is led by an entrepreneurial team with a history of constructive disruption and experience as e&p operators.
Investors are cautioned that this press release contains forward-looking statements, and they are advised to read the prospectus supplement, the accompanying base prospectus, and the documents incorporated by reference for more complete information about the company and the offering. Today the company's shares have moved -6.1% to a price of $23.49. For more information, read the company's full 8-K submission here.
