Atlas Energy Solutions Signs Sand Supply Agreement for the Dune Express Conveyor-Based Logistics Solution

AUSTIN, Texas–(BUSINESS WIRE)–Atlas Energy Solutions (referred to as “Atlas”) today announced that it has signed sand supply and logistics agreements with major oil companies, including a multi-year agreement with bpx energy, that includes the delivery of proppant via Atlas’s Delaware Basin conveyor-based logistics solution (the “Dune Express”). Commercial in-service of the Dune Express is currently expected to take place in 2024. In January 2023, Atlas plans to deploy built-for-purpose trucking assets in advance of this transformational piece of logistics infrastructure.

The Dune Express, which will originate at Atlas’s Kermit, TX facility, will serve the Delaware Basin, and represents the first long-haul proppant conveyor system in the world. The Dune Express is designed to be 42-miles in length and will feature more than 75,000 tons of dry storage within the system. The Dune Express is expected to take thousands of trucks off public roads, resulting in the avoidance of traffic accidents and associated fatalities in the region, while significantly reducing the emissions footprint of sand delivery in the Permian. In combination with Atlas’s high-efficiency trucking fleet, Atlas offers a proppant and logistics solution that is purpose-built to reliably deliver value to Permian Basin operators and improve the safety of the local communities of the region.

Bud Brigham, Executive Chairman and CEO of Atlas commented, “These agreements represent a validation of our differentiated logistics platform. We recognized from day one when we started Atlas that the intensity of sand delivery trucks on the road, and the associated societal and environmental consequences, was unacceptable. We therefore greatly appreciate the commitment of bpx energy to transform the Permian into a more reliable, prosperous, safe and environmentally friendly energy producing region, one that is so very vital to the future of our country and the world.”

Kyle Koontz, bpx energy COO of Development, added “bpx energy is committed to safely producing high-margin barrels while driving down emissions. This agreement with Atlas is another step in our journey and shows that we can use the latest technology to fundamentally improve safety in the Permian by reducing truck traffic while enhancing our development program through logistics and planning initiatives like The Dune Express.”

About Atlas Energy Solutions

Founded as Atlas Sand Company, LLC in 2017 by long-time E&P operators and led by Bud Brigham, we rebranded as Atlas Energy Solutions in 2022. Our experience as E&P operators, combined with our focus on using technology to deliver novel solutions to difficult challenges differentiates us as a provider of dynamic solutions fit for purpose to our customers’ toughest challenges and mission-critical needs.

Atlas is a leader in the proppant and proppant logistics industry and is currently solely focused on serving customers in the Permian Basin of West Texas & New Mexico, the most active oil and natural gas producing region in North America. Our Kermit, TX & Monahans, TX facilities are strategically located and specifically designed to maximize reliability of supply and product quality, and our planned deployment of trucking assets and the Dune Express is expected to drive significant logistics efficiencies.

Forward Looking Statements

This press release contains forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Atlas expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements pertaining to Atlas’s Dune Express system and built-for-purpose trucking assets and the expectations of plans, strategies, objectives and anticipated financial and operating results of Atlas, including the expected timing and results thereof. These statements are based on certain assumptions made by Atlas based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Atlas’s control and difficult to predict, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, Atlas’s ability to complete construction or begin operation of the Dune Express by the date or at the cost currently estimated, the worldwide economic outlook and the supply and demand of oil and natural gas, global or national health events, such as the COVID-19 pandemic, and economic and competitive conditions, including those resulting from the ongoing conflict between Russia and Ukraine and elevated inflation levels resulting from global supply and demand imbalances. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Atlas’s actual results and plans could differ materially from those expressed in any forward-looking statements. These statements are made as of today’s date and Atlas undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, except as required by applicable law.


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