Jeff LeCorgne

Jeff LeCorgne of TPH&Co. asked for color on the expected cost savings in the second half of the year once Atlas Energy Solutions' two new Twinkle dredges come online.

Answer

CFO Blake McCarthy explained that the new Twinkle dredges, scheduled for commissioning in Q2, will alleviate bottlenecks at the Kermit facility, which has been operating without a steady dredge feed for over a year. This is expected to significantly enhance dredge feed quality, improve watershed operations, reduce stress on dryers, and make the entire facility run more efficiently, potentially reducing overall variable costs by about $1 per ton across the complex.

Jeff LeCorgne asked for color on the expected cost savings in the second half of the year for Atlas Energy Solutions once the new Twinkle dredges become operational.

Answer

CFO Blake McCarthy explained that the Kermit facility's OpEx per ton has been elevated by approximately $1 across the complex due to inconsistent dredge feed. He anticipates that the commissioning of the two new Twinkle dredges will significantly improve dredge feed quality, leading to positive knock-on effects throughout the process, such as improved watershed operations and reduced dryer stress, resulting in a significant improvement in OpEx per ton in the second half of the year, assuming consistent volume throughput.