Atlas Power Options Inc. has signed a deal to merge with Moser Power Programs by buying 100% of the latter’s excellent capital inventory for $220 million.
“The mix of Atlas’s completion platform and Moser’s distributed energy platform creates an modern, diversified power options supplier with a number one portfolio of proppant, logistics (together with the Dune Categorical) and distributed energy options”, a joint assertion mentioned.
Moser’s “dynamic fleet of pure gas-powered belongings (~212MWs) expands Atlas’s present operations into manufacturing and distributed energy finish markets supported by robust macro tailwinds anticipated to cut back through-cycle volatility related to completions operations”, the businesses added.
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The merger “will increase Atlas’s buyer attain with a significant energy service providing in Atlas’s core geography, the Permian Basin, whereas offering geographic variety with working areas in key oil and gasoline basins throughout the central United States”, the assertion mentioned.
Austin, Texas-based Atlas expects so as to add $40 million-$45 million to its adjusted EBITDA this 12 months from the brand new belongings.
The businesses count on to finish the transaction this quarter topic to customary situations.
“This acquisition diversifies the corporate [Atlas] into engaging high-growth finish markets in each manufacturing and distributed energy whereas strengthening Atlas’s present market place as a number one supplier of power options throughout the oil and gasoline sector throughout North America”, commented Atlas president and chief govt John Turner.
“This transaction highlights our continued dedication to evolve our group by deploying modern and differentiated options to return worth to our shareholders. We’re wanting ahead to persevering with to spend money on our present operations and increase the capabilities of our distributed energy platform”.
The transaction consideration consists of $180 million in money and about 1.7 million frequent shares, valued at $40 million. Atlas could decide to pay the transaction totally in money.
“Atlas has secured funding for the money portion of the consideration, together with the Money Possibility [in lieu of the stock issuance], if exercised, by way of an upsizing modification to its current delayed draw time period mortgage facility”, the assertion mentioned.
Piper Sandler & Co. serves as unique monetary advisor to Atlas, whereas Vinson & Elkins LLP is authorized advisor.
TPH&Co. is Casper, Wyoming-based Moser’s unique monetary advisor. Moser has tapped Katten Muchin Rosenman LLP as authorized advisor.
Concurrently Atlas launched partial annual outcomes, which present an anticipated income of about $1.06 billion for 2024, up from $614 million for 2023.
Gross revenue is anticipated to land between $231 million and $233 million. Adjusted EBITDA is estimated to be $287.9 million-$289.9 million.
Atlas expects $71.7 million in money and money equivalents at yearend 2024.
To contact the writer, e-mail jov.onsat@rigzone.com
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