Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on the Dune Express and its current operational status? A: Chris Scholla, Chief Operating Officer, explained that the Dune Express is currently running at 50% to 60% capacity. The ramp-up phase is progressing as expected, with full capacity anticipated by midyear. Some initial programming and power issues have been addressed, and the focus is now on increasing daily runtime and reducing downtime.
Q: How is Atlas Energy Solutions balancing capital allocation between growth opportunities and returning cash to shareholders? A: John Turner, CEO, stated that the company aims to maintain a stable base dividend while evaluating high-return growth projects. The recent Moser acquisition is expected to stabilize cash flows, allowing for potential dividend increases and stock buybacks. The focus remains on maximizing returns for investors.
Q: What are the future plans for the Moser Energy Systems acquisition? A: John Turner, CEO, mentioned that Moser provides a platform for growth in the power market, with plans to expand its fleet from 212 megawatts to 310 megawatts by 2026. The acquisition offers opportunities for organic growth and potential expansion into other areas of the power business.
Q: Can you discuss the cost savings and growth potential of the autonomous trucking program? A: Chris Scholla, COO, highlighted that the partnership with Kodiak Robotics has been successful, with autonomous trucks expected to reach an inflection point at 50 to 70 trucks. The cost savings are significant, as labor accounts for about 70% to 80% of trucking costs. The program is expected to expand rapidly once over-the-road capabilities are included.
Q: What are the expectations for sand pricing and market conditions in 2025? A: Blake McCarthy, CFO, noted that sand prices have stabilized after a spike due to cold weather disruptions. The market is showing more rational pricing behavior, and Atlas is optimistic about a gradual recovery in sand pricing, although significant improvements are not expected until later in the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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