Solaris Oilfield Infra (SOI) Valuation Update - Aug 2
Posted: Tue Aug 02, 2022 11:01 am
At the time of this post SOI was trading at $10.77. TipRanks' price target is $15.
I have updated my forecast/valuation for their strong Q2 results and the expectation that the Company's revenues will continue to move back to pre-pandemic levels as D&C Capex spending continues to grow. My valuation increases by $1 to $18/share.
Solaris is small oilfield services company that is the best at what they do, which is the very important job of managing frac sand at the wellsites for lots of upstream companies. Solaris equipment and services save upstream companies a lot of money during well completions that cost several million dollars per well.
Key for this one: The Company gained market share during the pandemic because most of their competitors went out of business. Solaris is basically debt free and they pay a dividend of $0.105/quarter. I am expecting them to raise the dividend by year-end because they have very low maintenance capex requirements, so they generate a lot of DCF.
This stock went over $23 in early 2018 and the Company is in much better shape today than it was back them.
I have updated my forecast/valuation for their strong Q2 results and the expectation that the Company's revenues will continue to move back to pre-pandemic levels as D&C Capex spending continues to grow. My valuation increases by $1 to $18/share.
Solaris is small oilfield services company that is the best at what they do, which is the very important job of managing frac sand at the wellsites for lots of upstream companies. Solaris equipment and services save upstream companies a lot of money during well completions that cost several million dollars per well.
Key for this one: The Company gained market share during the pandemic because most of their competitors went out of business. Solaris is basically debt free and they pay a dividend of $0.105/quarter. I am expecting them to raise the dividend by year-end because they have very low maintenance capex requirements, so they generate a lot of DCF.
This stock went over $23 in early 2018 and the Company is in much better shape today than it was back them.