Solaris Oilfield Infrastructure (SOI) Tops Q2 EPS by 2c, Revenues Miss

Solaris Oilfield Infrastructure (NYSE: SOI) reported Q2 EPS of ($0.16), $0.02 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $9.34 million versus the consensus estimate of $11.55 million.

Second Quarter 2020 Highlights

• Net loss of $(5.5) million, or $(0.20) per diluted Class A share, for the quarter ended June 30, 2020; Adjusted pro forma net income of $(7.0) million, or $(0.16) per diluted share for the quarter ended June 30, 2020 (see below for a reconciliation of adjusted pro forma net income to net income attributable to Solaris)
• Adjusted EBITDA of $(0.4) million for the quarter ended June 30, 2020
• Net cash provided by operating activities of $22.6 million for the quarter ended June 30, 2020
• Positive free cash flow of $21.8 million for the quarter ended June 30, 2020
• Paid a regular quarterly dividend of $0.105 per share on June 16, 2020

Operational Update and Outlook

During the second quarter 2020, an average of 20 mobile proppant management systems were fully utilized, a 76% decrease from the 83 fully utilized systems averaged in the first quarter of 2020. The decrease in fully utilized systems was primarily due to a sharp decline in active hydraulic fracturing crews that began in March and bottomed in May as oil and gas operators reduced budgets and activity in response to lower oil and gas demand and prices. Activity has since increased and the Company expects activity could increase by 35-45% sequentially in the third quarter 2020 as many operators resume a modest level of completions activity.

“I’m pleased that the Solaris team was able to respond quickly to the global pandemic pressures and produce a near breakeven Adjusted EBITDA result at what we believe was the bottom of the cycle while continuing to generate significant free cash flow,” Solaris’ Chairman and Chief Executive Officer Bill Zartler commented. “While the pace and the ultimate level of this recovery are still unknown, we are encouraged by the modest return to activity we are seeing from our customers. Our debt free balance sheet, ample cash and liquidity allow us to continue offering our customers the highest level of service quality and vendor dependability while continuing to invest in our business and return cash to shareholders.”

For earnings history and earnings-related data on Solaris Oilfield Infrastructure (SOI) click here.

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