Atlas Energy Solutions Inc. (NYSE: AESI) announced it has executed a 5-year power purchase agreement with a subsidiary of an investment-grade technology infrastructure provider. The agreement includes two additional 5-year extension options and covers 120 megawatts of power generation capacity.

The equipment represents 50% of the 240MW of power generation equipment Atlas ordered from a Caterpillar Inc. (NYSE: CAT) dealer, which was previously announced in November 2025. Equipment delivery and construction are expected to begin later this year, with commissioning and energization planned for the first half of 2027.

Atlas expects the power assets to generate approximately $50 to $55 million of adjusted free cash flow annually once operational. Under the agreement, Atlas will provide high-efficiency natural gas reciprocating engine generators designed for continuous power delivery and operational flexibility.

The company has also entered into a separate agreement to provide bridge power using mobile generators during construction and commissioning phases, with equipment beginning to arrive onsite in March 2026.

Atlas updated its first quarter 2026 financial guidance, expecting adjusted EBITDA of approximately $26-30 million, compared to prior guidance of flat with fourth quarter 2025 levels. The company cited severe winter weather in January that disrupted West Texas oilfield activity and required additional maintenance at its Kermit facility.

For the second quarter, Atlas expects adjusted EBITDA of approximately $50 million due to higher sand sales volume, improved margins, and increased power business contribution. The company contracted an additional one million tons of sand for the remainder of 2026, with mining operations effectively sold out for the second quarter at current production levels.

The power business executed multiple contracts during the first quarter spanning upstream and midstream micro-grid projects, expected to contribute approximately $35 million in incremental adjusted EBITDA over the remaining nine months of 2026.