Atlas Energy Solutions Inc.

Atlas Energy Solutions' ProjectCo unit agreed to purchase 283 MW of Caterpillar natural gas generation equipment for AI-focused data center projects, supported by cost reimbursement deals with a frontier AI lab. The AI power agreements arrive after a volatile run for Atlas Energy Solutions, with the share price jumping 13.47% in the past day but still sitting below its recent peak after a 26.65% decline over 90 days and a 3-year total shareholder return that is down 37.59%. Atlas Energy Solutions is trading at $12.47 versus a most-followed fair value of $18.50, a 33% undervalued narrative. The launch of Atlas' Power business, following the Moser Energy Systems acquisition, offers a new, diversifying growth engine with exposure to fast-growing commercial, industrial, and technology sectors that are signing multi-year contracts beyond traditional oil and gas. Still, the Atlas Energy Solutions story depends on Permian demand and sand pricing holding up, and on a P/S of 1.5x the stock trades richer than the US Energy Services industry on 1.2x and above a fair ratio of 0.9x.

Akamai Technologies announced a seven-year contract and $11.6 billion deal with Anthropic, sending its shares up 5%, and issued a warrant letting Anthropic buy up to roughly 5% of its shares at an exercise price of $111.33 each. Atlas Energy Solutions rallied 17% after saying two subsidiaries executed separate cost reimbursement agreements with a leading frontier AI lab, while Genius Sports jumped 13% on a JPMorgan overweight initiation and Twilio fell about 6% after HSBC cut its rating to a sell equivalent. People Inc, the publisher owned by Barry Diller, rose 10% after The Wall Street Journal reported that MGM Resorts is weighing a bid to purchase the publishing giant, following People's withdrawal of its proposal to buy the casino operator. Scholastic slid 9% after posting an adjusted fiscal first-quarter loss of $3.63 per share on revenue of $216.8 million, a 4% year-over-year decline. Costco Wholesale rose 2.7% on better-than-expected fiscal fourth-quarter results, earning an adjusted $6.60 per share on revenue of $95.72 billion, above the $6.53 per share and $94.86 billion analysts polled by LSEG expected, while Microsoft gained 3% on a refreshed Copilot app and Meta Platforms fell more than 3% as traders took profits.

Atlas Energy Solutions Inc shares jumped 13% in premarket trading Friday after the company signed power equipment deals with a leading frontier AI lab for data center projects. Two wholly owned subsidiaries executed separate cost reimbursement agreements with the AI lab alongside equipment purchase agreements to secure long-lead-time supporting equipment and incremental power generation equipment for specific data center projects. The first cost reimbursement agreement covers balance-of-plant equipment, including emissions control systems, electrical distribution equipment, battery energy storage systems, and other supporting infrastructure to support deployment of Atlas' existing generator orders under its previously announced Global Framework Agreement with Caterpillar Inc. The second cost reimbursement agreement supports an incremental 283 megawatts of purchase commitments for Caterpillar power generation equipment to facilitate the initial power ramp of a separate data center project, in addition to Atlas's obligations under the GFA with Caterpillar. Atlas also executed a purchase agreement for 328 megawatts of generating capacity, consistent with its obligations under the GFA for 2027 deliveries. President and CEO John Turner said the customer's willingness to enter into cost reimbursement agreements is a clear sign of commitment to these projects as the companies work toward execution of long-term power purchase agreements.

Atlas Energy Solutions reported second-quarter 2026 revenue of $293.2 million and adjusted EBITDA of $49.5 million, while announcing its first behind-the-meter power contract and a deliberate shift in commercial strategy for its sand business. The company secured a 120-megawatt power purchase agreement with a subsidiary of an investment-grade technology infrastructure provider, a project expected to generate $55 million in annualized adjusted free cash flow starting in the second quarter of 2027, with total project capital of approximately $190 million and a cash-on-cash payback of less than 3.5 years. Management stated that the capital for this Socorro, Texas facility is within previously announced guidance and does not require a budget increase. On the sand side, the company is holding pricing on certain tenders rather than chasing volume, which is expected to result in a temporary volume decline in the third quarter, with EBITDA guidance of $30 million to $45 million and volume guidance of 5.3 million to 6 million tons. Atlas also highlighted that its uncommitted power capacity of 470 megawatts—120 megawatts arriving by the end of 2026 and 350 megawatts scheduled for delivery throughout 2027—could be contracted by just 2 to 4 projects, down from a previous assumption of 8 to 10, as hyperscaler demand shifts toward larger, longer-tenure deals of 15 to 20 years. Second-quarter sand sales volume was flat at 5.6 million tons, with an average sales price of $17.70 per ton and plant operating costs of $12.39 per ton, while logistics margins improved to 14% and autonomous deliveries rose 70% sequentially to 4,600 shipments. The company ended the quarter with total liquidity of $293 million, comprising $168 million in cash and $125 million in undrawn ABL capacity, and expects second-half growth capital expenditures of $175 million to $190 million, mostly for the private grid power business.

Oilfield services stocks reported a strong first quarter, with aggregate revenues beating analyst consensus estimates by 3.8%, though share prices have since fallen an average of 10.3%. TechnipFMC posted revenue of $2.49 billion, up 11.6% year on year but missing expectations by 1%, and its stock dropped 15.4% to $65.12. Select Water Solutions was the best performer, with revenue of $366 million exceeding estimates by 6.8%, while Borr Drilling was the weakest, missing revenue estimates by 2.1% and seeing its stock plunge 31.4% to $4.24. Other notable results included Atlas Energy Solutions beating revenue estimates by 3.5% and TETRA Technologies beating by 3.4%.