Solaris Oilfield Infrastructure (SOI) Q1 Results - May 1

[dan_s]

First Quarter 2020 Highlights < my comments in blue.

Net loss of $33.2 million, or $(0.65) per diluted Class A share, for the quarter ended March 31, 2020; Adjusted pro forma net
income of $14.8 million, or $0.32 per diluted share for the quarter ended March 31, 2020 < Compares to my Q1 forecast of $4.4 million, $0.15/share.

Adjusted EBITDA of $18.0 million for the quarter ended March 31, 2020 < $1.7 million higher than my forecast.

Net cash provided by operating activities of $11.7 million for the quarter ended March 31, 2020

Positive free cash flow of $11.0 million for the quarter ended March 31, 2020 < SOI can easily live within cash flow from operations because their capex budget is EXTREMELY FLEXIBLE.

Paid a regular quarterly dividend of $0.105 per share on March 27, 2020

Repurchased 2.4 million shares for $26.7 million which exhausted the Company’s original $25 million authorization and included
an additional $5 million authorization made by the Company’s Board on February 27, 2020

Operational Update and Outlook < I will be dropping SOI back to our Small-Cap portfolio because of the sharp and likely to be prolonged drop in well completions. That does not mean it is a SELL. This company has a super strong balance sheet and the definitely have the ability to "Survive 2020 to Thrive in 2021". This company should gain a lot of market share during the rebound phase of what is sure to be a BIG OIL PRICE CYCLE.

During the first quarter 2020, an average of 83 mobile proppant management systems were fully utilized, a 6% decrease from the
88 fully utilized systems averaged in the fourth quarter of 2019, and a 27% decrease compared to first quarter 2019. The decrease
in fully utilized systems was primarily due to a sharp decline in active hydraulic fracturing crews that began in March and has continued
through April as oil and gas operators reduced budgets and activity in response to lower oil and gas demand and prices.

The Company expects activity could decline by 75% to 85% sequentially in the second quarter as many operators continue to
indicate plans to temporarily pause completion activities while awaiting a recovery in oil demand. As a result, we have taken steps to
right size our business and have reduced direct operating costs as well as salaries, headcount and other SG&A expenses. The
Company also expects capital expenditures for the full year 2020 to be $10 million or below, unchanged from the guidance issued in
the Company’s operational update in early April but reduced from its original $20-$40 million expectation.

“The Solaris team continues to execute well, despite the challenges presented by the global crisis,” Solaris’ Chairman and Chief
Executive Officer Bill Zartler commented. “Our debt-free balance sheet and ample liquidity will ensure that Solaris will not only
continue to weather this storm, but will continue to support our customers with the same high levels of service and innovation
they’ve grown to expect from us. Our team innovated and earned the trust of new customers through the last downturn and we
intend to do the same this time around.”

As of March 31, 2020, the Company had approximately $46.0 million of cash on the balance sheet. As of April 30, 2020, the
Company had approximately $55 million of cash on the balance sheet, which reflects approximately $1.20 per fully diluted share of
available cash. The Company’s $50.0 million credit facility remains undrawn.