Solaris Oilfield Infrastructure (SOI) Update - Dec 19

[dan_s]

My profile on SOI has been updated and posted to the EPG website.

Solaris Oilfield Infrastructure (SOI) is a small oilfield services company in our Small-Cap Growth Portfolio. I consider it one of my "Growth & Income" stocks. My current valuation is $16.00, which is just 5X annualized operating cash flow per share. Operating CFPS should be going up in 2024 to approximately $3.75/share. In addition to rising free cash flow, SOI is aggressively buying back their common stock.

Based on their recently increased quarterly dividend ($0.12/share), SOI's current dividend yield is 5.87%.

Solaris's 2023 capital program was front end loaded, so they should be generating a lot of free cash flow in Q4 2023 and during the first half of 2024. The Company already has a pristine balance sheet, so I expect them to raise their dividend again in 2024.

TipRanks: "On November 13th Piper Sandler analyst Luke Lemoine maintained a Buy rating on SOI and set a price target of $15.00. The company’s shares closed on December 18th at $8.18".