Atlas Energy To Acquire Moser Energy In $220 Million Deal, Sees Q4 & FY Revenue Below Consensus

Atlas Energy Solutions Inc. AESI shares are trading higher on Monday. The company inked a deal to acquire Moser Energy Systems for $220 million.

The transaction comprises $180 million in cash and approximately 1.7 million shares of Atlas’ common stock, valued at $40 million based on the 20-day trailing volume-weighted average price as of January 24, 2025.

Atlas may opt to pay the entire consideration in cash instead of issuing stock. The final mix of cash and stock will be determined at closing, with stock consideration subject to customary adjustments.

If the cash option is not exercised, Atlas retains the right to redeem all or part of the issued shares for cash post-closing. The transaction is expected to close by the end of the first quarter of 2025.

The merger of Atlas’s completion platform and Moser’s distributed power solutions is expected to create a diversified energy provider with a strong portfolio in proppant, logistics (including Dune Express), and distributed power.

Also, Moser’s fleet of natural gas-powered assets (~212MWs) expands Atlas’s reach into production and distributed power markets, benefiting from strong macro trends that mitigate volatility in completions operations.

Moreover, Atlas’s customer base will expand, particularly in the Permian Basin, while gaining access to other key U.S. basins.

The transaction is expected to be immediately accretive, with an estimated $40 million-$45 million in adjusted EBITDA for 2025. The acquisition implies a valuation of 4.3X 2025 adjusted EBITDA on a full run-rate basis.

Preliminary Results: For the fourth quarter, Atlas expects revenue of $270.0 million-$272.0 million (vs. consensus of $276.7 million), up 92% year-over-year at the midpoint and adjusted EBITDA of $62.2 million-$64.2 million, a decrease of about 8% Y/Y at the midpoint.

For 2024, the company expects revenue of $1.055 billion-$1.057 billion (vs. consensus of $1.062 billion), up 72% Y/Y at the midpoint and adjusted EBITDA of $287.9 million-$289.9 million, down approximately 12% Y/Y at the midpoint.

The company sees cash and cash equivalents of about $71.7 million at the end of the fourth quarter. As of the third quarter-end, the company had $78.6 million in cash and equivalents.

Atlas expects to release fourth-quarter results on Monday, February 24, 2025.

Investors can gain exposure to the stock via FT Vest SMID Rising Dividend Achievers Target Income ETF SDVD.

Price Action: AESI shares are up 1.59% at $24.30 at the last check Monday.

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