Atlas Energy Solutions, which mines and transports in-basin frac sand for the oil and gas industry, announced terms for its IPO on Tuesday.
The Austin, TX-based company plans to raise $387 million by offering 18 million shares at a price range of $20 to $23. At the midpoint of the proposed range, Atlas Energy Solutions would command a market value of $2.2 billion.
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 over 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 12/31/22, 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.
Atlas Energy Solutions was founded in 2017 and booked $483 million in revenue for the 12 months ended December 31, 2022. It plans to list on the NYSE under the symbol AESI. Goldman Sachs, BofA Securities, Piper Sandler, RBC Capital Markets, Barclays, and Citi are the joint bookrunners on the deal. It is expected to price during the week of March 6, 2023.
