Atlas Energy Solutions Inc. NYSE: AESI It is North America’s largest producer of proppant used in hydraulic fracturing, or “fracking,” to extract oil and gas. Fracking is the technology that allowed the United States to double its oil production over the past decade to become the world’s largest oil producer. Atlas Energy produces and processes proppant, which is a combination of dry and wet clays in various mesh sizes.
Atlas Energy Solutions today
(Up to 05:37 PM)
- 52-week range
- $15.55
▼
$24.93
- Dividend yield
- 4.09%
- P/E ratio
- 29.71
- Price target
- $24.44
The Oil/Energy Sector The company operates 12 proppant facilities in the Permian Basin producing up to 28 million tons and offers comprehensive last-mile logistics services. It primarily serves customers in the Permian Basin of West Texas and New Mexico, incl Devon Energy Inc. NYSE: DVN And EOG Resources Inc. NYSE: EOG. Its competitors include Smart Sand Inc. (NASDAQ SND) and competitor Hi-Crush Inc.
Atlas Energy was added to the S&P SmallCap 600 Index on November 26, 2024. Donald Trump’s return to the White House is a major tailwind, as he strongly supports fracking and drilling to lower energy prices.
The Fracking Controversy
Hydraulic fracking is a controversial oil and gas extraction technique that involves injecting high-pressure fluid into underground rocks (shale), creating new fissures that allow oil to flow into a well. The process can take three to six million gallons of water, mixed with proppants, which often contain sand and chemicals.
This process makes oil and gas easier to collect. However, it is also controversial due to radioactive elements and toxic chemicals being collected, disposed of or recycled. Some critics argue that fracking can cause earthquakes because it fractures rocks deep below the surface. However, President Trump has already acknowledged full support for fracking with his “drill, baby, drill” statements, indicating that he will expand fracking on federal lands to make America an energy dominant nation.
Atlas revenue increases from acquisitions
Atlas acquired competitor Hi-Crunch for $450 million, including its Permian Basin proppant production assets. The acquisition was completed on March 5, 2024, giving an immediate boost to Atlas’s YoY revenue. Atlas reported Q3 2024 EPS of 18 cents, missing consensus estimates by 5 cents. Revenue rose 93.15% YoY to $304.43 million but still missed consensus estimates by $2.93 million. Net sales increased to $16.9 million, up 6% sequentially. Product sales increased to $17.1 million, up 13% sequentially. Sales volume increased to 6 million tonnes, up 22% sequentially.
Atlas Energy Solutions stock forecast today
$24.44
4.15% upbuy medium
Based on 12 analyst ratings
| High forecast | $28.00 |
|---|---|
| Average forecast | $24.44 |
| Less predictable | $19.00 |
Net income was $3.9 million, with a 1% net income margin. Adjusted free cash flow was $58.7 million, representing a 19% adjusted free cash flow margin. The Company had $253.6 million in total liquidity, including $78.6 million in cash and cash equivalents, $74.8 million under its ABL Facility, and $100 million under its Delayed Draw Term Loan Facility.
The board of directors declared an enhanced dividend of 24 cents per share payable on November 14 to shareholders of record on November 7, 2024. During the quarter, the company repurchased $200 million in stock.
John Turner, CEO of Atlas Energy Solutions commented, “Our third quarter results were impacted by higher operating expenses related to the prolonged costs associated with rebuilding the Kermit feed system and our follow-on initiatives to improve our operational processes and systems. were to ensure that the production capacities of our main plants are optimized.”
Turner concluded, “Significantly, Dune Express launched earlier this month. Our focus is on ensuring that Atlas’ diverse network of mines and logistics solutions are supported by the transformative Dune Express delivery system and 2025 has been optimized for our possible expansion of sales in
AESI stock tries a cup and handle pattern
A cup and handle chart pattern includes a swing-high cup lip line. The stock falls to a swing low and forms a circular bottom as it returns a rally to retest the cup lip line. The stock declines and drops to a higher low, forming a higher circular bottom, staging another rally to test the cup lip line to either breakout above it or reverse it.
AESI stock formed a cup lip line at $24.40 before falling to a swing low of $15.55, making a rounding bottom, a rally back up to retest the cup lip line and another swing at $17.51. Rejected the low. AESI bounced back, forming a handle as it retests the $24.40 cup lip line again for either a breakout or a triple top on rejection. Daily anchored VWAP support is at $21.07. The daily RSI is flat around the 59-band. Fibonacci (Fib) Pullback support levels are at $21.20, $19.04, $17.51, and $16.59.
Average of PSTG Agreed price target is $24.44This represents an increase of 3.71% And it has the highest analyst price target $28.00. The stock has eight analysts with a buy rating and four with a hold rating. The stock has 16.30% short interest.
Actionable alternative strategies: Bullish investors may consider using Cash-secured put Fib pullback at support levels to buy the dip. If the shares are fixed, writing a covered call at the fib levels is a Wheel strategy 4.54% for income other than annual dividend yield.
Before you consider Atlas Energy Solutions, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified Five stocks That’s what top analysts are quietly telling their clients to buy now before the broader market hits… and Atlas Energy Solutions wasn’t on the list.
While Atlas Energy Solutions currently has an “average buy” rating among analysts, top analysts believe these five stocks are better buys.
As the AI market heats up, investors with a vision for artificial intelligence are likely to see real returns. Learn about the industry as a whole, as well as seven companies that are harnessing the power of AI.
