Atlas Energy Solutions has commissioned the Dune Express— a 42-mile, fully electric conveyor system that will move proppant across the Permian Basin from Kermit, Texas, to the state line area into New Mexico, the company said Oct. 10.

Atlas said the system remains on time and on budget with the commercial transportation of proppant into the Delaware Basin scheduled to begin in late fourth-quarter. In its second quarter earnings, Atlas said it installed 39 miles of the conveyor modules and was beginning installation of the conveyor belt, which is expected to finish in late September.

“Following the rebuild of the feed [FEED] system at our Kermit facility that was completed in July, our focus has turned to the commissioning of the Dune Express and ensuring that our mining operations are optimized to produce the increased volumes we expect to provide our customers in the Delaware Basin next year,” Atlas CEO and President John Turner said in the release.

Atlas also previewed its third-quarter earnings, saying it expects higher plant operating expenses to cause results to fall below prior guidance. The company now expects third-quarter 2024 revenue of between $300 million and $310 million with adjusted EBITDA of $70 million to $75 million.

Proppant sales volumes are expected to be approximately 6 million tons. The company also expects to book an asset write-down of approximately $9 million related to one of its dredge mining assets.

“The incident at our Kermit operation catalyzed a full review of all plant systems and processes by our new operational leadership team, which revealed multiple opportunities for improvement,” Turner said. “Additionally, during the quarter, one of our new dredges at the Kermit mine was severely damaged during the commissioning process, resulting in a total loss. The second dredge is currently operating and feeding the plant at reduced levels. Based on the performance of the new dredge models year-to-date, we have made the decision to shift to a well-known domestic dredge manufacturer with a multi-year track record of strong performance at our Kermit dredging operation.”

Turner said the partnership will enable a fully domestic supply chain with improved spare part lead times and local aftermarket support for mining operations.

Atlas will announce third-quarter results after markets close on Oct. 28.

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