Solaris Oilfield Infrastructure (SOI) Update - Dec 23

[dan_s]

I think it is a good bet that drilling activity and horizontal well completions will increase in 2023. If you agree with me, then there is a very good chance that SOI share price will increase.

The company is virtually debt free because the long-term liability labeled "Payables related to Tax Receivable Agreement" is likely (IMO) never going to be paid. Solaris pays a nice dividend and it gained market share during 2020 thru 2021. Since 2020, Solaris' revenues and operating cash flow have significantly increased. That trend is expected to continue in 2023.

SOI is the "Best in Class" for providing equipment and services for handling frac sand at the wellsite.
Send five minutes here to learn what this company does: https://www.solarisoilfield.com/

SOI maintained their dividend ($0.105/qtr) throughout the pandemic. Based on my forecast, they will be able to increase their dividend in 2023. They were free cash flow positive in 2022 and FCF should triple in 2023.

Today the shares are trading for $9.89. My Fair Value Estimate today is $14.50.

TipRanks: "In the last 3 months, 3 ranked analysts set 12-month price targets for SOI. The average price target among the analysts is $13.50. The three price targets range from $10.50 to $16.00."

My updated forecast has been posted to the EPG website.