Solaris Oilfield Infrastructure (SOI) Update - June 17
Posted: Thu Jun 17, 2021 11:05 am
I have updated my forecast/valuation model for SOI and posted it to the EPG Website. I am keeping my current valuation at $13.25, but there is a clear path to significant upside for SOI in 2022.
SOI is trading at $9.78 this morning. It pays a $0.105/quarter dividend for annual yield of 4.29%.
Solaris is an oilfield services company that provides frac sand management systems at the wellsite. It is the industry leader in this "niche" that has gained market share during the pandemic. It has a very strong balance sheet with over $50 million of cash and no long-term debt. It has generated free cash flow from operations for nine straight quarters and I am forecasting a steady rise in their FCF in 2H 2021 and a doubling of FCF next year; from ~$21 million in 2021 to ~$45 million in 2022. This Company's financial results are directly tied to upstream D&C activity, which needs to increase sharply next year since the global oil market will be under-supplied a year from now.
My updated profile on the Company will be posted to the EPG website this afternoon.
SOI is trading at $9.78 this morning. It pays a $0.105/quarter dividend for annual yield of 4.29%.
Solaris is an oilfield services company that provides frac sand management systems at the wellsite. It is the industry leader in this "niche" that has gained market share during the pandemic. It has a very strong balance sheet with over $50 million of cash and no long-term debt. It has generated free cash flow from operations for nine straight quarters and I am forecasting a steady rise in their FCF in 2H 2021 and a doubling of FCF next year; from ~$21 million in 2021 to ~$45 million in 2022. This Company's financial results are directly tied to upstream D&C activity, which needs to increase sharply next year since the global oil market will be under-supplied a year from now.
My updated profile on the Company will be posted to the EPG website this afternoon.