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Solaris Oilfield Infrastructure Inc - Ordinary Shares (SOI) 9 Aug 24 2024 Q2 Earnings call transcript

AInvestSaturday, Aug 10, 2024 3:12 pm ET
1min read

In a recent earnings call, Solaris, a leading provider of wellsite equipment and rental services, showcased its robust financial performance and outlined key growth initiatives. The company, led by Chairman and CEO, Bill Zartler, and President and CFO, Kyle Ramachandran, highlighted the strong financial position and strategic acquisitions that are poised to drive future growth.

Financial Highlights and Shareholder Returns

Solaris reported impressive financial results for the second quarter, generating $74 million in revenue, $21 million in adjusted EBITDA, and $18 million in free cash flow. The company also returned $5 million to shareholders in dividends and announced a third quarter dividend of $0.12 per share, reflecting its commitment to shareholder returns. Since 2018, Solaris has returned approximately $183 million to shareholders through dividends and share repurchases.

Acquisition of Mobile Energy Rentals (MER)

A significant highlight of the call was the announcement of Solaris' acquisition of MER, a mobile distributed power company, which is expected to bolster Solaris' product line and expand its reach into new markets. This acquisition, subject to shareholder approval, will provide Solaris with an accretive entry into mobile distributed power and access to significant growth opportunities. MER's inflection point in growth trajectory, coupled with Solaris' strong financial position, sets the stage for a transformative combination.

Market Outlook and Strategic Focus

Solaris' management expressed optimism about the market outlook, with a stable U.S. land completion activity and a focus on shareholder returns. The company's strategic investments in new technology and market expansion, including its top fill loading system and expansion in the Northeast, have positioned Solaris well to capture market share and capitalize on the evolving energy landscape.

Financial Guidance and Future Prospects

Looking ahead, Solaris expects to maintain a strong financial position, with a focus on sustaining and growing its shareholder return programs, increasing liquidity, and executing on strategic organic and inorganic opportunities. The company's diversification into mobile distributed power through the MER acquisition is expected to enhance its earnings power and cash flow resilience moving forward.

In summary, Solaris' strong second quarter performance and strategic acquisitions underscore its commitment to growth and innovation. With a solid financial foundation, a clear vision for future expansion, and a focus on shareholder returns, Solaris is well-positioned to capitalize on the opportunities ahead.

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