Atlas Energy expects Kermit facility to restart operations next week

As previously reported, on Sunday, April 14, a mechanical fire occurred at the Atlas Energy Solutions mine in Kermit, Texas. Atlas noted that no injuries occurred or environmental impacts have been reported. The company has conducted a preliminary assessment of the facility, which is ongoing, and can provide the following information. The fire primarily impacted the “feed system,” which transports sand from the dryers and separators to storage silos. The full “feed system” rebuild is expected to be completed by the end of the second quarter. The team began moving temporary loadout equipment to the Kermit facility within 48 hours of the incident. The facility remains closed and initial restart of operations is expected at the beginning of next week. Once the facility is restarted and the temporary loadout equipment is fully operational, the company expects to fulfill all Kermit facility customer commitments with sand produced and loaded from that facility. Atlas is assessing the cost to repair the feed system and reviewing the financial impact of the incident. In addition, the company filed an insurance claim and expect coverage to be available to reimburse us for the cost of the repairs. The temporary closing of the Kermit facility will have no impact on the timing or cost of the Dune Express construction. Atlas will provide additional updates to its second quarter operations on our first quarter earnings call scheduled for Monday, May 6.