Oil Below $70 Squeezes Atlas Energy—Analyst Cuts Rating
In a shifting energy landscape marked by fluctuating oil prices and strategic production moves from global players, Atlas Energy Solutions Inc. (NYSE:AESI) is feeling the pressure.
The backdrop for Atlas Energy Solutions "remains challenging," with oil prices remaining below $70 per barrel due to tariffs and OPEC+ production hikes, according to Piper Sandler.
The Atlas Energy Solutions Analyst: Analyst Derek Podhaizer downgraded the rating from Overweight to Neutral, while establishing a price target of $16.
The Atlas Energy Solutions Thesis: U.S. land rig count is expected to decline from the current 522 to 500 by the end of the year, which creates "downward pressure on frac activity" and spot market pricing in the mid-to-high teens, Podhaizer said in the downgrade note.
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Atlas Energy Solutions lowered its estimates to reflect customer deferrals and management guided to sequentially flat EBIDTA for the second quarter, despite "the Dune Express ramp and a full quarter contribution from its power acquisition, Moser," the analyst stated.
"A combination of customer deferrals, unwillingness to sign contracts, and excess supply remaining online presents a challenging set up for AESI as we begin to look into 2026," he further wrote.
AESI Price Action: Atlas Energy Solutions shares were down 2.72% at $13.60 at the time of publication Tuesday, according to Benzinga Pro.
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