Atlas Energy Solutions Inc. (NYSE:AESI) Q4 2023 Earnings Conference Call February 27, 2024 9:00 AM ET

Company Participants

Kyle Turlington - VP, IR

Bud Brigham - Chairman and CEO

John Turner - President and CFO

Brian Leveille - VP, Finance

Conference Call Participants

Don Crist - Johnson Rice

Luke Lemoine - Piper Sandler

Jim Rollyson - Raymond James

Sean Mitchell - Daniel Energy Partners

Operator

Greetings. Welcome to the Atlas Energy Solutions' Acquisition of Hi-Crush and 2023 Fourth Quarter Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Kyle Turlington, Vice President of Investor Relations. Thank you. You may begin.

Kyle Turlington

Hello and welcome to the Atlas Energy Solutions' conference call and webcast for the fourth quarter of 2023. With us today are Bud Brigham, CEO and John Turner, President and CFO. Bud and John will be sharing their comments on the company's operational and financial performance for the fourth quarter and full year 2023 and insights on the acquisition of Hi-Crush that we announced today. After which, we will open the call up for Q&A.

Before we begin our prepared remarks, I would like to remind everyone that this call will include forward-looking statements as defined under the U.S. Securities laws. Such statements are based on the current information and management's expectations as of this statement and are not guarantees of future performance.

Forward-looking statements involve certain risks, uncertainties, and assumptions that are difficult to predict. As such, our actual outcomes or results could differ materially. You can learn more about these risks in the prospectus we filed with the SEC on September 12th, 2023 in connection with our recent corporate reorganization, our quarterly reports on Form 10-Q; and our other SEC filings. You should not place undue reliance on forward-looking statements and we undertake no obligation to update these forward-looking statements.

We will also make reference to certain non-GAAP financial measures, such as adjusted EBITDA, adjusted free cash flow, and other operating metrics and statistics. You will find the GAAP reconciliation comments and calculations in this morning's press release.

With that said, I will turn the call over to Bud Brigham.

Bud Brigham

Thank you, Kyle. Today, it's an exciting day, not only for Atlas, but for Hi-Crush and their stakeholders, the Permian Basin sand and logistics market, and our customers. Atlas is acquiring Hi-Crush for $450 million, which consists of $175 million in equity, $150 million in cash, and a $125 million deferred cash payment in the form of a seller's note.