Atlas Energy Solutions said it has signed a 5-year power purchase agreement for 120 megawatts of private generation capacity, representing half of the 240 megawatts of power equipment it ordered in November 2025.
The company said equipment delivery and construction are expected to begin later this year, with commissioning and energization targeted for the first half of 2027. Atlas said the deployed assets are expected to generate about $50 million to $55 million of adjusted free cash flow on an annualized basis once operational.
Atlas also said it has separately arranged bridge power using mobile generators and related equipment, with units beginning to arrive onsite in March 2026.
On the financial side, Atlas cut its first-quarter 2026 adjusted EBITDA outlook to $26 million to $30 million, down from prior guidance of roughly flat with fourth-quarter 2025 levels. The company said first-quarter sand sales volume is still expected to be about 5.8 million tons, but it had to buy about 150,000 tons of third-party sand to satisfy customer demand.
Atlas said it has now contracted an additional 1 million tons of sand for the rest of 2026. It also said mining operations are effectively sold out for the second quarter at current production levels.
For the second quarter, Atlas expects adjusted EBITDA of about $50 million, up sequentially from the first quarter outlook. The company said its power business executed multiple contracts in the first quarter that are expected to add about $35 million in incremental adjusted EBITDA over the remaining nine months of 2026. Today the company's shares have moved 3.25% to a price of $14.00. If you want to know more, read the company's complete 8-K report here.
