Bud Brigham
About Bud Brigham
Ben M. “Bud” Brigham is Executive Chairman and founder of Atlas Energy Solutions (AESI), age 65, Executive Chairman since 2017 and CEO from August 2022 to March 2024. He holds a B.S. in Geophysics from the University of Texas at Austin and previously founded and led multiple upstream ventures, including Brigham Exploration (IPO 1997; sold to Statoil in 2011) and Brigham Minerals (IPO 2019; merged with Sitio Royalties in 2022). AESI reported 2024 total shareholder return (TSR) of 34.6% following dividend increases and a $200M buyback authorization; Brigham’s 2024 LTI was 100% PSUs tied to absolute/relative TSR and ROCE, aligning pay with shareholder outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Brigham Exploration Company | President, CEO, Chairman | 1990–2011 | Built and IPO’d in 1997; sold to Statoil in Dec-2011 |
| Brigham Resources Operating, LLC | Founder | 2012–2017 | Sold to Diamondback Energy in 2017 |
| Brigham Minerals, Inc. | Executive Chairman | 2012–2022 | IPO in 2019; merged with Sitio Royalties in 2022 |
| Brigham Exploration Company, LLC (non-op) | Founder | 2017–present | Permian-focused non-operating investments via BEXP I/II |
| Rosewood Resources / Western Geophysical | Exploration/Seismic Geophysicist | ~1984–1990 | Technical foundation in geophysics prior to founding Brigham Exploration |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Anthem Ventures, LLC (family office) | Founder | 2012–present | Investment platform for Brigham’s ventures |
| Langford Energy Partners LLC | Co-founder | 2022–present | Operated oil & gas properties in top-tier shale plays |
| Brigham Royalties | Co-founder | 2023–present | Private mineral interests focus in Permian |
| National Petroleum Council; Bureau of Economic Geology Visiting Committee | Member | — | Industry policy and advisory contributions |
| All American Wildcatters; Hart Energy Hall of Fame | Inductee | 2012; 2023 | Industry recognition and network |
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | 497,692 | 469,231 (reduced when transitioning to Executive Chairman; base reset to $450,000 target) |
Notes:
- In March 2024, base salary set to $450,000 as Executive Chairman; he does not participate in the STI plan .
Performance Compensation
Brigham’s 2024 LTI is 100% PSUs with a 3-year performance period tied to relative TSR (vs peer group), absolute TSR cap, and ROCE, with linear interpolation and 50–200% payout scale .
| Metric | Weight | Threshold | Target | Maximum | Actual/Payout Basis | Vesting |
|---|---|---|---|---|---|---|
| Relative TSR (vs compensation peer group) | 75% | 30th percentile | 60th percentile | 90th percentile | Capped at 100% if AESI absolute TSR is negative | 3-year cliff subject to performance |
| ROCE | 25% | 15% | 20% | 25% | Linear interpolation between thresholds | 3-year cliff subject to performance |
Company-wide STI scorecard (Brigham does not participate; shown to evidence performance/pay alignment):
| Performance Goal | Goal Weight | Threshold | Target | Maximum | Result | Payout |
|---|---|---|---|---|---|---|
| Adjusted Free Cash Flow ($MM) | 50% | 270 | 300 | 345 | 251.3 | 23.3% of component (interpolated) |
| Dune Express Timing | 10% | 2/28/25 | 12/31/24 | 11/1/24 | 12/20/24 | 10% |
| Dune Express Budget ($MM) | 10% | 450 | 400 | 350 | 396 | 10% |
| Discretionary Evaluation | 30% | — | — | — | 30% | 30% |
| Total | 100% | — | — | — | — | 73.3% overall |
2024 LTI grants (share counts reflect targets at grant):
| Executive | LTIP Target ($) | PSUs (#) | RSUs (#) |
|---|---|---|---|
| Ben M. “Bud” Brigham | 4,050,000 | 209,194 | — |
2024 Summary Compensation (equity grant-date fair value):
| Component | FY 2023 | FY 2024 |
|---|---|---|
| Stock Awards ($) | 5,608,333 | 6,290,464 |
| Total Compensation ($) | 6,106,025 | 6,759,695 |
Equity Ownership & Alignment
| Item | Data |
|---|---|
| Beneficial Ownership | 15,197,576 shares; 12.30% of outstanding (123,578,181 shares) |
| Holding Structures | Anne and Bud Oil & Gas Unvested LLC: 2,518,721 shares; Anne and Bud Oil & Gas Vested LLC: 10,526,880 shares; Brigham Children’s Family LP: 1,564,346 shares; spouse: 54,388 shares |
| Pledging | All shares held by Anne and Bud Oil & Gas Vested LLC (10,526,880 shares) are pledged as security (alignment risk) . Insider trading policy prohibits pledging that exceeds 15% of the market value of pledged Company securities; hedging is prohibited . |
| Outstanding Equity (12/31/24) | PSUs unearned: 418,388 (shows 200% representation per SEC footnote; actual vest contingent on performance); prior 555,556 PSUs from 2023 also outstanding at 200% representation . |
| Stock Vested in 2024 | None for Brigham . |
Employment Terms
| Provision | Terms |
|---|---|
| Employment Agreements | None; executives, including Brigham, are not party to employment agreements . |
| Change in Control Severance Plan | Non-CIC Qualifying Termination: 2x (salary+target bonus) for Brigham; CIC Qualifying Termination: 3x (salary+target bonus) for Brigham; COBRA lump sums; accruals; subject to release and restrictive covenants . |
| Equity Acceleration | RSUs accelerate upon CIC, death/disability, or Qualifying Termination; PSUs: deemed 100% of target if termination occurs in first two years; otherwise performance to actual; CIC payout based on performance to date, with service deemed satisfied . |
| Clawback Policy | Adopted in 2023 to comply with SEC Rule 10D; recovery of erroneously awarded comp following restatement . |
| Hedging & Pledging Policy | Hedging prohibited; pledging limited as noted above . |
Board Governance
- Role: Executive Chairman since 2017; CEO from Aug-2022 to Mar-2024; current Board leadership separates CEO and Chair roles, with Brigham as Executive Chairman post-March 2024 .
- Independence and committees: Independent directors include Howard, Langford, Mills, Voyles, Burleson, Hock; Audit Committee (Voyles, Mills, Burleson; Voyles chair); Compensation Committee (Burleson chair; Langford, Mills, Hock); Nominating & Corporate Governance Committee (Langford chair; Howard, Hock) .
- Board structure: Classified board (three classes), nine members; meeting cadence in 2024: 4 regular, 7 special; each director attended ≥75% of meetings; independent executive sessions occur at least annually .
- Stockholders’ Agreement: Brigham (or affiliates) may designate up to four Board nominees currently, and at all times has the right to designate at least one member for each key committee (subject to law/rules). Certain corporate actions require consent while Principal Stockholders own a majority .
- Annual Meeting attendance: Executive Chairman attended the 2024 Annual Meeting .
Director Compensation
| Component | Annual Amount ($) |
|---|---|
| Non-Employee Director Retainer | 75,000 |
| Audit Committee Chair | 30,000 |
| Compensation Committee Chair | 20,000 |
| Nominating & Corporate Governance Chair | 20,000 |
| Annual Equity (RSUs) | Target $145,000 |
Notes:
- Brigham and the CEO do not receive additional director compensation; their pay is reported in the executive section .
Related Party Transactions
| Counterparty | Relationship | Nature | 2024 Payments ($) |
|---|---|---|---|
| Anthem Ventures, LLC | Owned/controlled by Brigham | Transportation services | ~200,000 |
| Brigham Land Management LLC | Owned/controlled by Vince Brigham (brother) | Landman services | ~700,000 |
| Earth Resources, LLC (f/k/a Brigham Earth) | Owned/controlled by Brigham | Consulting/services, access to systems | ~500,000 |
| In a Good Mood, LLC | Owned/controlled by Brigham | Moody Center suite access at cost | ~300,000 |
The Audit Committee reviews/approves related party transactions per policy; Sealy & Smith mining royalties totaled ~$5.0M in 2024 (0.7% of cost of sales) .
Compensation Peer Group
| Peer Companies (2024) |
|---|
| Cactus, Helmerich & Payne, Select Water Solutions, ChampionX, Liberty Energy, Solaris Oilfield Infrastructure, Core Laboratories, Oil States International, U.S. Silica Holdings, Dril-Quip, Patterson-UTI, Expro Group, ProPetro |
Atlas was ~60th percentile by EV, ~59th by market cap, ~60th by total assets vs peers (as of Jul-31-2024) .
Investment Implications
- Alignment: Brigham’s large ownership (12.3%) and all-PSU LTI sharpen pay-for-performance linkage; the PSU design requires >50th percentile relative TSR and ROCE goals, with caps if absolute TSR is negative, discouraging windfalls in down markets .
- Risks: Pledging of 10.53M shares via Anne and Bud Oil & Gas Vested LLC introduces collateral-driven selling risk in adverse markets; the company prohibits pledging above a 15% value threshold, but the pledge itself is a governance red flag to monitor alongside related party transactions (transportation, land, consulting, suite access) .
- Retention and change-in-control: Robust severance multipliers (2x non-CIC; 3x CIC) and equity acceleration terms reduce near-term departure risk but increase CIC economics, a consideration for M&A scenarios and potential dilution from accelerated PSUs .
- Board influence and independence: Brigham’s designation rights (up to four directors and committee representation) concentrate influence; the Board maintains independent majorities and committee chairs, with annual independent sessions, mitigating but not eliminating dual-role implications from an Executive Chairman with historical CEO tenure .