Atlas Energy Solutions Inc. Income Taxes Disclosure

Note 14—Income Taxes

Atlas Inc. is a corporation and is subject to U.S. federal, state and local income taxes. In March 2023, Atlas Inc. completed its initial public offering of 18,000,000 shares of Old Atlas Class A Common Stock at a price to the public of $18.00 per share, and in October 2023, Old Atlas and the Company completed the Up-C Simplification. Prior to the initial public offering, Atlas Predecessor was treated as a partnership for U.S. federal income tax purposes and, therefore, was not subject to U.S. federal income tax at an entity level during the periods prior to the initial public offering. In addition, prior to the Up-C Simplification, Atlas Operating was treated as a partnership for U.S. federal income tax purposes, and as a result, a portion of our net taxable income was allocable for U.S. federal income tax purposes to the non-controlling interest holders of Atlas Operating, who generally incurred U.S. federal, state and local income taxes on their share of such net taxable income, instead of Atlas Inc. Following the Up-C Simplification, all the interests of Atlas Operating are now held directly or indirectly by Atlas Inc., and Atlas Inc. is subject to U.S. federal income tax on all of Atlas Operating’s net taxable income.

The tax implications of the Reorganization, the IPO and the tax impact of Atlas Inc.’s status as a taxable corporation subject to U.S. federal income tax, in each case, as of their effective dates, have been reflected in the accompanying Financial Statements. On March 13, 2023, the date on which the Company completed the IPO, a corresponding deferred tax liability of approximately $27.5 million was recorded associated with the differences between the tax and book basis of the investment in Atlas LLC. The offset of the deferred tax liability was recorded to additional paid-in capital.

The tax implications of the Up-C Simplification as of the effective date have been reflected in the accompanying Financial Statements. On October 2, 2023, a corresponding deferred tax liability of approximately $64.0 million was recorded associated with the exchange of the redeemable noncontrolling interest in Old Atlas for shares of the Company’s Common Stock. The offset of the deferred tax liability was recorded to additional paid-in capital.

For the years ended December 31, 2025, 2024, and 2023, the effective combined U.S. federal and state income tax rate was 26.2% 20.9%, and 12.2%, respectively. For the year ended December 31, 2025, the Company recognized an income tax benefit of $(17.9) million, and for the years ended December 31, 2024, and 2023, the Company recognized income tax expense of $15.8 million and $31.4 million, respectively.

State income taxes are primarily attributable to Texas, which represents more than 50% of the total state tax provision (benefit) for the years ended December 31, 2025, 2024, and 2023.

Deferred income tax assets and liabilities are recognized for temporary differences between the basis of assets and liabilities for financial reporting and tax purposes. Deferred tax assets are reduced by a valuation allowance if, based on all available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. In determining the need for a valuation allowance, the Company considers all available evidence, both positive and negative, including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years if carryback is permitted by the tax law, and the availability of prudent and feasible tax planning strategies that can be implemented, if necessary, to realize deferred tax assets.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. Among other provisions, the OBBBA modified the limitation on business interest expense under Internal Revenue Code Section 163(j), which allowed the Company to deduct a greater amount of interest expense in the current year and reinstated bonus depreciation. This legislation did not have a material impact on our overall income tax provision.

As of December 31, 2025 and 2024, we have federal net operating loss carryforwards of approximately $244.3 million and $210.4 million, respectively. These losses are limited in usage to 80% of taxable income and can be carried forward indefinitely. As of December 31, 2025 and 2024, we have Internal Revenue Code Section 163(j) interest expense limitation carryforwards of $32.1 million and $34.6 million, respectively. The Internal Revenue Code Section 163(j) carryforwards result in future tax benefits of $6.9 million and $7.4 million as of December 31, 2025 and 2024, respectively, and have an indefinite carryforward period.

As of December 31, 2025, 2024, and 2023, the Company did not have any liabilities for uncertain tax positions or gross unrecognized tax benefits. Our income tax returns from 2021, 2022, 2023, and 2024 are subject to examinations by U.S. federal, state or local tax authorities.