Solaris Oilfield Infrastructure (SOI) Update - Sept 11

[dan_s]

I am very bullish on Solaris Energy Infrastructure (SEI). I believe this is the best way to invest in the big demand for "Distributed Power Generation" coming from AI data centers and in the oilfield.

HOUSTON, September 11, 2024--(BUSINESS WIRE)--Solaris Energy Infrastructure, Inc. (NYSE:SEI) (f/k/a Solaris Oilfield Infrastructure, Inc. (NYSE:SOI)) ("Solaris" or the "Company") announced today the completion of its acquisition of Mobile Energy Rentals LLC ("MER").

In connection with the previously announced acquisition and associated growth capital commitments to scale MER’s distributed power fleet, Solaris has entered into a new $325 million senior secured term loan and is in the process of finalizing a new $75 million revolving credit facility. After finalizing the new revolving credit facility, the Company expects to be undrawn on the facility. These new credit agreements replace the $300 million secured bridge term loan facility secured at the time of the transaction announcement.

The Company has also completed its previously announced renaming to "Solaris Energy Infrastructure, Inc." The Company’s Class A Common Stock ceased trading under the ticker symbol "SOI" on the New York Stock Exchange as of the close of trading today and will begin trading under the new symbol "SEI" on September 12, 2024.

"We’d like to welcome the MER employees to the Solaris family. We are excited to combine our complementary skill sets and differentiated technologies under the new ‘Solaris Energy Infrastructure’ name," Bill Zartler, Chairman and Chief Executive Officer of Solaris, commented. "This transaction brings to us an experienced team, a highly-contracted base business and visible growth via committed deliveries for new equipment that position Solaris for growth across multiple end markets, including both the oilfield and commercial and industrial areas such as data centers. We believe our customers, employees and shareholders will benefit as the combined company delivers a growing and diversified cash flow stream, which should, in turn, enhance our ability to continue pursuing adjacent growth opportunities and to accelerate shareholder returns."

About Solaris Energy Infrastructure, Inc.

Solaris Energy Infrastructure, Inc. (NYSE:SEI) (f/k/a Solaris Oilfield Infrastructure, Inc. (NYSE:SOI)) provides mobile and scalable equipment-based solutions for use in distributed power generation as well as the management of raw materials used in the completion of oil and natural gas wells. Headquartered in Houston, Texas, Solaris serves multiple U.S. end markets, including energy, data centers, and other commercial and industrial sectors. For more details, visit solaris-energy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240911042972/en/

Contacts

Yvonne Fletcher
Senior Vice President, Finance and Investor Relations
(281) 501-3070
IR@solaris-energy.com

[ajootian]

Dan, curious what you think of this stock after today's earnings release and CC. It looks like their power solutions business is really taking off. The stock is trading at right around your PT from a few months ago but I would imagine that you would be jacking that up at this point....

[dan_s]

I am working on the SEI forecast model now.

Stephen Gengaro at Stifel Nicolaus is the only analyst that has submitted a price target to TipRanks. His price target is $15.00.

You should all listen to the Q3 conference call. Listen carefully to the Q&A with the analysts on the call to get a feel for how fast they can ramp up the power generation business. Demand for "Distributed Power Generation" is HUGE and the AI Data Centers will pay whatever it takes to get online.