Solaris Oilfield Infrastructure (SOI) Update - June 2

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Solaris Oilfield Infrastructure (SOI) Update - June 2

Post by dan_s »

SOI has no relationship to Solaris Resources.

SOI is a small-cap oilfield services company in our Small-Cap Growth Portfolio. I will be posting an updated profile on SOI to our website this afternoon.

SOI is a "Screaming Buy" up to $10.00. Prior to the pandemic, SOI traded in the high-teens and spiked to over $22.00 in early 2018.
The company is in MUCH BETTER FINANCIAL SHAPE TODAY.
> It has a PRISTINE balance sheet with just a small amount drawn on their credit facility because this year's capex program was frontloaded.
> They raised their dividend to $0.11/quarter and I expect them to keep raising it.
> They are also funding an aggressive stock buyback that is large enough to have a significant impact on per share results.
> The stock's 52-week trading range is $7.15 to $14.50.
> My current valuation of $15.75 is just 5X annualized operating cash flow per share.
> TipRanks' updated forecast for 2024 is net income per share of $1.49, which is higher than my forecast of $1.28 EPS.

SOI is a technology company that is highly respected by the upstream oil & gas companies. Several of our Sweet 16 use Solaris equipment to complete wells.
Dan Steffens
Energy Prospectus Group
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