Atlas Energy sees Q1 adjusted EBITDA $26M-$30M

The company said, “Atlas is updating its first quarter 2026 financial guidance ahead of its full earnings release. The Company now expects first quarter Adjusted EBITDA in a range of approximately $26M-30M, compared to prior guidance of approximately flat with Q4 2025 levels. Following severe winter weather in January that disrupted West Texas oilfield activity, Atlas incurred expenses related to maintenance activities at its flagship Kermit facility beyond its original expectations. These incremental maintenance projects addressed production inefficiencies identified during restart and were necessary to ensure the asset is operating at full capacity ahead of an anticipated period of higher demand. This temporarily elevated maintenance spending constrained production and sales inventory during February and early March. While overall sand sales volume is expected to be in-line with prior guidance of 5.8 million tons, the Company was required to purchase approximately 150 thousand tons of third-party sand to meet customer obligations and to turn away incremental sales opportunities during the quarter, negatively impacting margins. Following the completion of the maintenance projects, the Kermit facility is better positioned to operate efficiently, which the Company deems timely due to improving market conditions and an increase in customer demand. First quarter results were further impacted by a temporary spike in third-party trucking rates and a late-quarter increase in diesel prices. The contractual recapture process with customers on both items is now substantially complete. With the underlying commodity macro environment having improved rapidly over the course of the first quarter, the Company has begun to see the beginnings of increased customer demand that is positioned to accelerate over the coming months if current commodity price trends hold. Atlas has contracted an incremental one million tons of sand for the remainder of 2026, and contracted customer volumes are at a level where mining operations are effectively sold out for the second quarter at current production levels. Any incremental tonnage beyond current capacity would likely require meaningfully higher pricing to justify a production ramp. Additionally, Atlas’s Power business is building contracting momentum rapidly. During the first quarter, the Company executed multiple contracts, spanning upstream and midstream micro-grid projects and bridge power deployments in the commercial and industrial market. These agreements are expected to contribute approximately $35M in incremental Adjusted EBITDA over the remaining nine months of 2026. Combined with the landmark private grid power agreement announced today that is expected to contribute approximately $50M to $55M of Adjusted Free Cash Flow on an annualized basis once operational in the first half of 2027, Atlas’s Power business is emerging as a material and growing contributor to Atlas’s earnings profile, one management expects to scale significantly as demand for distributed power infrastructure continues to accelerate.”