Solaris with a interesting deal and an update SOI

[Fraser921]

This is in Dan's small cap porfolio SOI

Announced after hours:

https://seekingalpha.com/pr/19781083-solaris-announces-agreement-to-acquire-mobile-energy-rentals-announces-renaming-to-solaris?hasComeFromMpArticle=false&source=section%253Amain_content%257Cbutton%253Abody_link%257Cfirst_level_url%253Anews

Update:

Solaris expects second quarter revenue to be between $70 million and $75 million and Adjusted EBITDA to be between $20 million and $21 million for the second quarter of 2024

Dan had revenue of 67 m and EBITDA of 20.4.

So a beat top line and inline with Dan's forecast.

This deal looks like synergistic power generation for Ai. Journey and Riley are looking at doing similar things. Use low price NG to generate electricity

Attractive capital redeployment opportunity: MER’s existing power generation asset base of 153 MW is currently fully-utilized; the fleet is expected to grow to 478 MW by the end of the third quarter of 2025** through the purchase of additional mobile turbines for approximately $308 million and is expected to be deployed at similar return profiles across a diverse customer base

They are having a conference call tomorrow Am to discuss it.

[Fraser921]

Link to the webcast

https://event.choruscall.com/mediaframe/webcast.html?webcastid=hMajhc3O

The only initial concern I have is the business case/plan and returns for the project.

Buying the expertise/business is 200 m, plus the turbines will cost 300 m , plus whatever it costs to install them. They will incur debt

[Fraser921]

market likes the deal, up 25 %