Atlas Energy Solutions Announces Fourth Quarter and Year End 2023 Results; Signs Transformative Agreement to Acquire Hi-Crush Inc.
Year End 2023 Financial Highlights and Operational Updates
-
Total sales of
$614.0 million (on sales volumes of 11.0 million tons) -
Net income of
$226.5 million (37% Net Income Margin) -
Adjusted EBITDA of
$329.7 million (54% Adjusted EBITDA Margin) (1) -
Net cash provided by operating activities of
$299.0 million -
Adjusted Free Cash Flow of
$291.1 million (47% Adjusted Free Cash Flow Margin) (1) - Dune Express construction remains on-time and on-budget
-
New
Kermit facility was fully commissioned inDecember 2023 -
Increased quarterly dividend by 5% to
$0.21 per share ($0.16 per share fixed,$0.05 per share variable), payableFebruary 29, 2024 -
Announced transformative acquisition of
Hi-Crush Inc. Please refer to our accompanying materials on this acquisition released today
Financial Summary
|
|
For Year Ended |
|
|||||||||
|
|
|
|
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|||
Sales |
|
$ |
613,960 |
|
|
$ |
482,724 |
|
|
$ |
172,404 |
|
Net income |
|
$ |
226,493 |
|
|
$ |
217,006 |
|
|
$ |
4,258 |
|
Net Income Margin |
|
|
37 |
% |
|
|
45 |
% |
|
|
2 |
% |
Adjusted EBITDA |
|
$ |
329,655 |
|
|
$ |
264,026 |
|
|
$ |
71,968 |
|
Adjusted EBITDA Margin |
|
|
54 |
% |
|
|
55 |
% |
|
|
42 |
% |
Net cash provided by operating activities |
|
$ |
299,027 |
|
|
$ |
206,012 |
|
|
$ |
21,356 |
|
Adjusted Free Cash Flow |
|
$ |
291,131 |
|
|
$ |
228,553 |
|
|
$ |
64,253 |
|
Adjusted Free Cash Flow Margin |
|
|
47 |
% |
|
|
47 |
% |
|
|
37 |
% |
(1) Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP. |
Year End 2023 Financial Results
Total sales for the year ended
Cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) for the year ended
Selling, general and administrative expenses (“SG&A”) for the year ended
Net income for the year ended
Fourth Quarter 2023 Financial Results
Fourth quarter 2023 total sales decreased
Fourth quarter 2023 cost of sales decreased by
Liquidity, Capital Expenditures and Other
As of
Net cash used in investing activities was
As of
Subsequent Events
Acquisition of Hi-Crush
Subsequent to year end, Atlas announced that it has entered into a definitive agreement with
Acquisition Financing
In connection with the acquisition, we upsized our ABL facility to
Quarterly Cash Dividend
On
Conference Call Information
The Company will host a conference call to discuss financial and operational results on
The Company will also post an updated investor presentation titled “Investor Presentation February 2024”, in addition to a "Year End 2023 Capital Projects Update" video, at https://ir.atlas.energy/ in the "Presentations” section under “News & Events” tab on the Company’s Investor Relations webpage prior to the conference call.
About Atlas Energy Solutions
Our company was founded in 2017 by long-time E&P operators and led by
Atlas is a leader in the proppant and proppant logistics industry and is currently solely focused on serving customers in the
Our core mission is to maximize value for our stockholders by generating strong cash flow and allocating our capital resources efficiently, including providing a regular and durable return of capital to our investors through industry cycles. Further, we recognize that our long-term profitability is maximized by being good stewards of the environments and communities in which we operate. In our pursuit of this mission, we work to improve the processes involved in the development of hydrocarbons, which we believe will ultimately contribute to providing individuals with access to the energy they need to sustain or improve their quality of life in a clean, safe, and efficient manner. We take great pride in contributing positively to the development of the hydrocarbons that power our lives.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements about the
Condensed Consolidated Statements of Income (in thousands, except per share data) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
||||||
Product sales |
|
$ |
99,988 |
|
|
$ |
114,773 |
|
|
$ |
121,881 |
|
|
$ |
468,119 |
|
|
$ |
408,446 |
|
|
$ |
142,519 |
|
Service sales |
|
|
41,150 |
|
|
|
42,843 |
|
|
|
27,984 |
|
|
|
145,841 |
|
|
|
74,278 |
|
|
|
29,885 |
|
Total sales |
|
|
141,138 |
|
|
|
157,616 |
|
|
|
149,865 |
|
|
|
613,960 |
|
|
|
482,724 |
|
|
|
172,404 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) |
|
|
66,567 |
|
|
|
67,770 |
|
|
|
67,285 |
|
|
|
260,396 |
|
|
|
198,918 |
|
|
|
84,656 |
|
Depreciation, depletion and accretion expense |
|
|
11,625 |
|
|
|
10,221 |
|
|
|
7,791 |
|
|
|
39,798 |
|
|
|
27,498 |
|
|
|
23,681 |
|
Gross profit |
|
|
62,946 |
|
|
|
79,625 |
|
|
|
74,789 |
|
|
|
313,766 |
|
|
|
256,308 |
|
|
|
64,067 |
|
Selling, general and administrative expense (including stock and unit-based compensation expense of |
|
|
13,648 |
|
|
|
14,301 |
|
|
|
7,903 |
|
|
|
48,636 |
|
|
|
24,317 |
|
|
|
17,071 |
|
Operating income |
|
|
49,298 |
|
|
|
65,324 |
|
|
|
66,886 |
|
|
|
265,130 |
|
|
|
231,991 |
|
|
|
46,996 |
|
Interest expense, net |
|
|
(2,230 |
) |
|
|
(1,496 |
) |
|
|
(3,990 |
) |
|
|
(7,689 |
) |
|
|
(15,760 |
) |
|
|
(42,198 |
) |
Other income |
|
|
(8 |
) |
|
|
136 |
|
|
|
121 |
|
|
|
430 |
|
|
|
2,631 |
|
|
|
291 |
|
Income before income taxes |
|
|
47,060 |
|
|
|
63,964 |
|
|
|
63,017 |
|
|
|
257,871 |
|
|
|
218,862 |
|
|
|
5,089 |
|
Income tax expense |
|
|
11,010 |
|
|
|
7,637 |
|
|
|
434 |
|
|
|
31,378 |
|
|
|
1,856 |
|
|
|
831 |
|
Net income |
|
$ |
36,050 |
|
|
$ |
56,327 |
|
|
$ |
62,583 |
|
|
$ |
226,493 |
|
|
$ |
217,006 |
|
|
$ |
4,258 |
|
Less: Pre-IPO net income attributable to |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
54,561 |
|
|
|
|
|
|
|
|||
Less: Net income attributable to redeemable noncontrolling interest |
|
|
313 |
|
|
|
26,887 |
|
|
|
|
|
|
66,503 |
|
|
|
|
|
|
|
|||
Net income attributable to |
|
$ |
35,737 |
|
|
$ |
29,440 |
|
|
|
|
|
$ |
105,429 |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.36 |
|
|
$ |
0.51 |
|
|
|
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|||
Diluted |
|
$ |
0.36 |
|
|
$ |
0.51 |
|
|
|
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
|
99,566 |
|
|
|
57,237 |
|
|
|
|
|
|
70,450 |
|
|
|
|
|
|
|
|||
Diluted |
|
|
100,242 |
|
|
|
57,928 |
|
|
|
|
|
|
71,035 |
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows (in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
||||||
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
$ |
36,050 |
|
|
$ |
56,327 |
|
|
$ |
62,583 |
|
|
$ |
226,493 |
|
|
$ |
217,006 |
|
|
$ |
4,258 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and accretion expense |
|
|
12,266 |
|
|
|
10,746 |
|
|
|
8,089 |
|
|
|
41,634 |
|
|
|
28,617 |
|
|
|
24,604 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,922 |
|
Amortization of debt discount |
|
|
292 |
|
|
|
231 |
|
|
|
119 |
|
|
|
761 |
|
|
|
457 |
|
|
|
7,320 |
|
Amortization of deferred financing costs |
|
|
67 |
|
|
|
79 |
|
|
|
110 |
|
|
|
337 |
|
|
|
442 |
|
|
|
739 |
|
Stock and unit-based compensation |
|
|
3,749 |
|
|
|
1,414 |
|
|
|
135 |
|
|
|
7,409 |
|
|
|
678 |
|
|
|
129 |
|
Deferred income tax |
|
|
10,142 |
|
|
|
9,432 |
|
|
|
(2 |
) |
|
|
29,201 |
|
|
|
(2 |
) |
|
|
360 |
|
Interest paid-in-kind through issuance of additional term loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,039 |
|
Repayment of paid-in-kind interest borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22,233 |
) |
Commodity derivatives gain |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
(1,842 |
) |
|
|
(55 |
) |
Settlements on commodity derivatives |
|
|
— |
|
|
|
— |
|
|
|
141 |
|
|
|
— |
|
|
|
2,137 |
|
|
|
— |
|
Other |
|
|
(4 |
) |
|
|
(42 |
) |
|
|
232 |
|
|
|
139 |
|
|
|
293 |
|
|
|
(105 |
) |
Changes in operating assets and liabilities: |
|
|
22,941 |
|
|
|
(22,781 |
) |
|
|
(21,410 |
) |
|
|
(6,947 |
) |
|
|
(41,774 |
) |
|
|
(8,622 |
) |
Net cash provided by operating activities |
|
|
85,503 |
|
|
|
55,406 |
|
|
|
50,012 |
|
|
|
299,027 |
|
|
|
206,012 |
|
|
|
21,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
|
(119,793 |
) |
|
|
(98,858 |
) |
|
|
(35,428 |
) |
|
|
(365,486 |
) |
|
|
(89,592 |
) |
|
|
(19,371 |
) |
Net cash used in investing activities |
|
|
(119,793 |
) |
|
|
(98,858 |
) |
|
|
(35,428 |
) |
|
|
(365,486 |
) |
|
|
(89,592 |
) |
|
|
(19,371 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from equity issuances |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,613 |
|
Net proceeds from IPO |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
303,426 |
|
|
|
— |
|
|
|
— |
|
Payment of offering costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,020 |
) |
|
|
— |
|
|
|
— |
|
Member distributions prior to IPO |
|
|
— |
|
|
|
— |
|
|
|
(15,000 |
) |
|
|
(15,000 |
) |
|
|
(45,024 |
) |
|
|
(10,000 |
) |
Proceeds from term loan borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
178,200 |
|
Principal payments on term loan borrowings |
|
|
— |
|
|
|
— |
|
|
|
(7,987 |
) |
|
|
(16,573 |
) |
|
|
(28,544 |
) |
|
|
(172,872 |
) |
Prepayment fee on 2021 Term Loan Credit Facility |
|
|
— |
|
|
|
(2,649 |
) |
|
|
— |
|
|
|
(2,649 |
) |
|
|
— |
|
|
|
— |
|
Debt extinguishment cost |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,514 |
) |
Issuance costs associated with debt financing |
|
|
— |
|
|
|
(3,645 |
) |
|
|
— |
|
|
|
(4,397 |
) |
|
|
(233 |
) |
|
|
(660 |
) |
Payments under finance and capital leases |
|
|
(69 |
) |
|
|
(232 |
) |
|
|
(307 |
) |
|
|
(2,001 |
) |
|
|
(1,010 |
) |
|
|
(423 |
) |
Dividends and distributions |
|
|
(20,005 |
) |
|
|
(27,158 |
) |
|
|
— |
|
|
|
(62,163 |
) |
|
|
— |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
(20,074 |
) |
|
|
(33,684 |
) |
|
|
(23,294 |
) |
|
|
194,623 |
|
|
|
(74,811 |
) |
|
|
2,344 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
(54,364 |
) |
|
|
(77,136 |
) |
|
|
(8,710 |
) |
|
|
128,164 |
|
|
|
41,609 |
|
|
|
4,329 |
|
Cash and cash equivalents, beginning of period |
|
|
264,538 |
|
|
|
341,674 |
|
|
|
90,720 |
|
|
|
82,010 |
|
|
|
40,401 |
|
|
|
36,072 |
|
Cash and cash equivalents, end of period |
|
$ |
210,174 |
|
|
$ |
264,538 |
|
|
$ |
82,010 |
|
|
$ |
210,174 |
|
|
$ |
82,010 |
|
|
$ |
40,401 |
|
Condensed Consolidated Balance Sheets (in thousands) |
||||||||
|
|
As of |
|
|
As of |
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
210,174 |
|
|
$ |
82,010 |
|
Accounts receivable, including related parties |
|
|
71,170 |
|
|
|
74,392 |
|
Inventories, prepaid expenses and other current assets |
|
|
37,342 |
|
|
|
22,329 |
|
Total current assets |
|
|
318,686 |
|
|
|
178,731 |
|
Property, plant and equipment, net |
|
|
934,660 |
|
|
|
541,524 |
|
Right-of-use assets |
|
|
4,151 |
|
|
|
23,222 |
|
Other long-term assets |
|
|
4,189 |
|
|
|
7,522 |
|
Total assets |
|
$ |
1,261,686 |
|
|
$ |
750,999 |
|
Liabilities, redeemable noncontrolling interest, and stockholders' and members' equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, including related parties |
|
$ |
61,159 |
|
|
$ |
31,799 |
|
Accrued liabilities and other current liabilities |
|
|
31,433 |
|
|
|
36,289 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
20,586 |
|
Total current liabilities |
|
|
92,592 |
|
|
|
88,674 |
|
Long-term debt, net of discount and deferred financing costs |
|
|
172,820 |
|
|
|
126,588 |
|
Deferred tax liabilities |
|
|
121,529 |
|
|
|
1,906 |
|
Other long-term liabilities |
|
|
6,921 |
|
|
|
22,474 |
|
Total liabilities |
|
|
393,862 |
|
|
|
239,642 |
|
Total stockholders' and members' equity |
|
|
867,824 |
|
|
|
511,357 |
|
Total liabilities, redeemable noncontrolling interest and stockholders’ and members’ equity |
|
$ |
1,261,686 |
|
|
$ |
750,999 |
|
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis.
These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies.
Non-GAAP Measure Definitions:
- We define Adjusted EBITDA as net income before depreciation, depletion and accretion, interest expense, income tax expense, stock and unit-based compensation, loss on extinguishment of debt, unrealized commodity derivative gain (loss), and non-recurring transaction costs. Management believes Adjusted EBITDA is useful because it allows management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period and against our peers without regard to financing method or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.
- We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total sales.
- We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital Expenditures. Management believes that Adjusted Free Cash Flow is useful to investors as it provides a measure of the ability of our business to generate cash.
- We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total sales.
- We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow divided by Adjusted EBITDA.
- We define Maintenance Capital Expenditures as capital expenditures excluding growth capital expenditures.
Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to Net Income (unaudited, in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
Net income |
|
$ |
36,050 |
|
|
$ |
56,327 |
|
|
$ |
62,583 |
|
|
$ |
226,493 |
|
|
$ |
217,006 |
|
|
$ |
4,258 |
|
Depreciation, depletion and accretion expense |
|
|
12,266 |
|
|
|
10,746 |
|
|
|
8,089 |
|
|
|
41,634 |
|
|
|
28,617 |
|
|
|
24,604 |
|
Interest expense |
|
|
4,731 |
|
|
|
4,673 |
|
|
|
3,993 |
|
|
|
17,452 |
|
|
|
15,803 |
|
|
|
30,290 |
|
Income tax expense |
|
|
11,010 |
|
|
|
7,637 |
|
|
|
434 |
|
|
|
31,378 |
|
|
|
1,856 |
|
|
|
831 |
|
EBITDA |
|
$ |
64,057 |
|
|
$ |
79,383 |
|
|
$ |
75,099 |
|
|
$ |
316,957 |
|
|
$ |
263,282 |
|
|
$ |
59,983 |
|
Stock and unit-based compensation |
|
|
3,749 |
|
|
|
1,414 |
|
|
|
135 |
|
|
|
7,409 |
|
|
|
678 |
|
|
|
129 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,922 |
|
Unrealized commodity derivative loss |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
66 |
|
|
|
(66 |
) |
Non-recurring transaction costs |
|
|
892 |
|
|
|
3,281 |
|
|
|
— |
|
|
|
5,289 |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
68,698 |
|
|
$ |
84,078 |
|
|
$ |
75,235 |
|
|
$ |
329,655 |
|
|
$ |
264,026 |
|
|
$ |
71,968 |
|
Maintenance Capital Expenditures |
|
$ |
12,180 |
|
|
$ |
15,557 |
|
|
$ |
8,186 |
|
|
$ |
38,524 |
|
|
$ |
35,473 |
|
|
$ |
7,715 |
|
Adjusted Free Cash Flow |
|
$ |
56,518 |
|
|
$ |
68,521 |
|
|
$ |
67,049 |
|
|
$ |
291,131 |
|
|
$ |
228,553 |
|
|
$ |
64,253 |
|
Reconciliation of Adjusted Free Cash Flow to Net Cash Provided by Operating Activities (unaudited, in thousands, except percentages) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
Net cash provided by operating activities |
|
$ |
85,503 |
|
|
$ |
55,406 |
|
|
$ |
50,012 |
|
|
$ |
299,027 |
|
|
$ |
206,012 |
|
|
$ |
21,356 |
|
Repayment of paid-in-kind interest borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22,233 |
|
Current income tax expense (benefit)(1) |
|
|
868 |
|
|
|
(1,795 |
) |
|
|
436 |
|
|
|
2,177 |
|
|
|
1,858 |
|
|
|
471 |
|
Change in operating assets and liabilities |
|
|
(22,941 |
) |
|
|
22,781 |
|
|
|
21,410 |
|
|
|
6,947 |
|
|
|
41,774 |
|
|
|
8,622 |
|
Cash interest expense(1) |
|
|
4,371 |
|
|
|
4,363 |
|
|
|
3,764 |
|
|
|
16,354 |
|
|
|
14,904 |
|
|
|
19,173 |
|
Maintenance capital expenditures(1) |
|
|
(12,180 |
) |
|
|
(15,557 |
) |
|
|
(8,186 |
) |
|
|
(38,524 |
) |
|
|
(35,473 |
) |
|
|
(7,715 |
) |
Non-recurring transaction costs |
|
|
892 |
|
|
|
3,281 |
|
|
|
— |
|
|
|
5,289 |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
5 |
|
|
|
42 |
|
|
|
(387 |
) |
|
|
(139 |
) |
|
|
(522 |
) |
|
|
113 |
|
Adjusted Free Cash Flow |
|
$ |
56,518 |
|
|
$ |
68,521 |
|
|
$ |
67,049 |
|
|
$ |
291,131 |
|
|
$ |
228,553 |
|
|
$ |
64,253 |
|
Adjusted EBITDA Margin |
|
|
49 |
% |
|
|
53 |
% |
|
|
50 |
% |
|
|
54 |
% |
|
|
55 |
% |
|
|
42 |
% |
Adjusted Free Cash Flow Margin |
|
|
40 |
% |
|
|
43 |
% |
|
|
45 |
% |
|
|
47 |
% |
|
|
47 |
% |
|
|
37 |
% |
Adjusted Free Cash Flow Conversion |
|
|
82 |
% |
|
|
81 |
% |
|
|
89 |
% |
|
|
88 |
% |
|
|
87 |
% |
|
|
89 |
% |
(1) A reconciliation of the adjustment of these items used to calculate Adjusted Free Cash Flow to the Consolidated Financial Statements is included below. |
Reconciliation of Maintenance Capital Expenditures to Purchase of Property, Plant and Equipment (unaudited, in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
Maintenance Capital Expenditures, accrual basis reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
$ |
119,793 |
|
|
$ |
98,858 |
|
|
$ |
35,428 |
|
|
$ |
365,486 |
|
|
$ |
89,592 |
|
|
$ |
19,371 |
|
Changes in operating assets and liabilities associated with investing activities(1) |
|
|
(1,828 |
) |
|
|
40,153 |
|
|
|
6,031 |
|
|
|
66,132 |
|
|
|
20,747 |
|
|
|
2,362 |
|
Less: Growth capital expenditures |
|
|
(105,785 |
) |
|
|
(123,454 |
) |
|
|
(33,273 |
) |
|
|
(393,094 |
) |
|
|
(74,866 |
) |
|
|
(14,018 |
) |
Maintenance Capital Expenditures, accrual basis |
|
$ |
12,180 |
|
|
$ |
15,557 |
|
|
$ |
8,186 |
|
|
$ |
38,524 |
|
|
$ |
35,473 |
|
|
$ |
7,715 |
|
(1) Positive working capital changes reflect capital expenditures in the current period that will be paid in a future period. Negative working capital changes reflect capital expenditures incurred in a prior period but paid during the period presented. |
Reconciliation of Current Income Tax Expense to Income Tax Expense (unaudited, in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
Current tax expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense |
|
$ |
11,010 |
|
|
$ |
7,637 |
|
|
$ |
434 |
|
|
$ |
31,378 |
|
|
$ |
1,856 |
|
|
$ |
831 |
|
Less: deferred tax expense |
|
|
(10,142 |
) |
|
|
(9,432 |
) |
|
|
2 |
|
|
|
(29,201 |
) |
|
|
2 |
|
|
|
(360 |
) |
Current income tax expense (benefit) |
|
$ |
868 |
|
|
$ |
(1,795 |
) |
|
$ |
436 |
|
|
$ |
2,177 |
|
|
$ |
1,858 |
|
|
$ |
471 |
|
Cash Interest Expense to Income Expense, Net (unaudited, in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||||
Cash interest expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
$ |
2,230 |
|
|
$ |
1,496 |
|
|
$ |
3,990 |
|
|
$ |
7,689 |
|
|
$ |
15,760 |
|
|
$ |
30,276 |
|
Less: Interest paid-in-kind through issuance of additional term loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,039 |
) |
Less: Amortization of debt discount |
|
|
(292 |
) |
|
|
(231 |
) |
|
|
(119 |
) |
|
|
(761 |
) |
|
|
(457 |
) |
|
|
(7,320 |
) |
Less: Amortization of deferred financing costs |
|
|
(67 |
) |
|
|
(79 |
) |
|
|
(110 |
) |
|
|
(337 |
) |
|
|
(442 |
) |
|
|
(739 |
) |
Less: Interest income |
|
|
2,500 |
|
|
|
3,177 |
|
|
|
3 |
|
|
|
9,763 |
|
|
|
43 |
|
|
|
14 |
|
Less: Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19 |
) |
Cash interest expense |
|
$ |
4,371 |
|
|
$ |
4,363 |
|
|
$ |
3,764 |
|
|
$ |
16,354 |
|
|
$ |
14,904 |
|
|
$ |
19,173 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227616947/en/
Investor Contact
T: 512-220-1200
IR@atlas.energy
Source: