Atlas Energy Solutions, which mines and transports frac sand for the oil and gas industry, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $200 million.
Atlas Energy Solutions claims to be a leading provider of proppant and logistics services to the oil and natural gas industry within the Permian Basin. It currently controls 14,500 acres on two giant open dunes of the Winkler Sand Trend. Deposits are believed to be economically superior as they tend to produce higher and more consistent mining yields relative to buried sand deposits. As of 9/30/22, the company had a total annual production capacity of 10 million tons. In addition to its mining operations, Atlas plans to construct The Dune Express, which will serve as the first application of conveyor infrastructure to long-haul proppant. It is expected to originate at the company's Kermit facility and stretch into the middle of the Northern Delaware Basin.
The Austin, TX-based company was founded in 2017 and booked $386 million in revenue for the 12 months ended September 30, 2022. It plans to list on the NYSE under the symbol AESI. Atlas Energy Solutions filed confidentially on February 14, 2022. Goldman Sachs, BofA Securities, Piper Sandler, RBC Capital Markets, Barclays, Citi, Raymond James, and Johnson Rice & Co. are the joint bookrunners on the deal. No pricing terms were disclosed.
