Solaris Oilfield Infrastructure (SEI) added to Sweet 16

[dan_s]

SEI was officially added to the Sweet 16 on 5/23/2025. I have been following it for over 7 years.

Solaris Energy Infrastructure (SEI) is a highly respected oilfield services company that gained market share during the Pandemic. On July 9, 2024 they announced an agreement to acquire Mobile Energy Rentals LLC (MER).

SEI’s Q4 2024 and Q1 2025 results beat my forecasts, and their fresh guidance increases my confidence level in my forecast model.

I am extremely bullish on the potential for the Distributed Power Market in North American. Several of the upstream companies that I follow have already started using produced natural gas to generate electricity for their field operations. Riley Exploration Permian (REPX) is doing it in West Texas. Chevron Corp. (CVX) and Diamondback Energy (FANG), two of the largest and most profitable upstream companies in the Permian Basin are going to do it.

The U.S. energy transition is the “Electrification of Everything”. Just to meet the electricity demand growth for electric vehicles and AI data centers, hundreds of natural gas fired power plants of all sizes will need to be built over the next three years. This is why I am bullish on the impact of SEI’s acquisition of MER, a premier provider of distributed power solutions that closed on September 11, 2024.

“We believe reliable power access will become a growing challenge that larger scale, distributed power generation assets are well-positioned to address. Together with MER, we will continue to build on the ten plus years of innovation and leading service quality delivery across our business lines." – Bill Zartler, SEI’s Chairman & CEO

We will be publishing an updated profile on SEI early in June.

[dan_s]

I don't like to add a company to the Sweet 16 until I have followed and modeled it for at least a year.