Solaris Increases Liquidity to Support Future Growth, Provides Operational Update and Schedules Fourth Quarter 2017 Conference Call
Release Highlights
-
Closed $70 million credit facility, including $20 million revolver and
$50 million delayed draw term loan -
Commenced commercial operations at Kingfisher Transload Facility with
first proppant rail shipment -
Forecasting 96 to 98 mobile proppant management systems in fleet by
end of first quarter 2018; up from 77 at year-end 2017 -
Fourth quarter and full year 2017 conference call scheduled for
Wednesday, March 7, 2018 at 7:30 a.m. Central Time (8:30 a.m. Eastern
Time)
HOUSTON–(BUSINESS WIRE)–Solaris Oilfield Infrastructure, Inc. (NYSE: SOI) (“Solaris” or the
“Company”) today announced that the Company has entered into a new
credit agreement with certain lenders. The credit facility has a term of
four years, is composed of a $20 million revolver and a $50 million
delayed draw term loan and is undrawn. Solaris currently has more than
$120 million of liquidity, including availability under the credit
facility.
Solaris’ Chief Financial Officer Kyle Ramachandran commented, “The
increased borrowing capacity, combined with our cash balance, provides
ample liquidity to not only fund the expansion of our rental fleet and
finance the completion of phase one of the Kingfisher Facility, but also
enhanced flexibility to execute on additional opportunities we may
identify in the market.”
The credit facility syndicate is composed of Woodforest National Bank
(“Woodforest”), Cadence Bank, N.A., Community Bank of Texas, N.A. and
Credit Suisse AG, Cayman Islands Branch. Woodforest will serve as the
administrative agent for the new Credit Facility. For further
information regarding the credit facility, please refer to the Company’s
current report on Form 8-K filed with the Securities and Exchange
Commission today.
Operational Update
Earlier this month, Solaris commenced commercial operations at its
Kingfisher Facility when it took delivery of its first rail shipment of
proppant for its anchor tenant under a seven-year contract previously
announced on August 2, 2017. Simultaneously, Solaris has completed the
first phase of integration between its Railtronix and PropView™
inventory management systems, providing our customer full visibility
from the mine to well site. Solaris announced the acquisition of
Railtronix on December 11, 2017. Construction of the Kingfisher phase
one build-out, including 30,000 tons of silo storage, is on budget and
on track for completion by mid-2018.
Solaris’ Chief Executive Officer Greg Lanham commented, “We are very
excited about the progress we have made on the Kingfisher terminal. Our
team is focused on providing exceptional service at the facility and
ensuring phase one is completed on time and on or below budget.”
Solaris ended 2017 with 77 mobile proppant management systems in the
fleet, exceeding the previously provided forecast. Solaris currently has
81 systems in the rental fleet, all of which are deployed to customers,
and expects to end first quarter 2018 with 96 to 98 systems in the
fleet. Solaris has entered into 2018 term pricing and capacity
arrangements with several customers and has secured take-or-pay
arrangements on more than 40% of Solaris’ current fleet through 2018.
Lanham continued, “Our current backlog for 2018 is very strong. Driven
by increased proppant loading levels and pad drilling activity, along
with the execution and supply-chain logistics benefits that our systems
provide to our customers, we are seeing rising demand, including for our
12-pack configuration. We have increased demand from our long-term
customers, as well as a robust pipeline of orders from new customers, as
we increase our total addressable market. Our operations team has once
again stepped up to the challenge, increasing our manufacturing capacity
from six systems per month to eight.”
Fourth Quarter and Full-Year 2017 Results Conference Call
Solaris will host a conference call to discuss its fourth quarter and
full year 2017 results on Wednesday, March 7, 2018 at 7:30 a.m. Central
Time (8:30 a.m. Eastern Time). Solaris will issue its fourth quarter and
full year 2017 earnings release and 2017 Form 10-K prior to the
conference call.
To join the conference call from within the United States, participants
may dial (844) 413-3978. To join the conference call from outside of the
United States, participants may dial (412) 317-6594. When instructed,
please ask the operator to be joined to the Solaris Oilfield
Infrastructure, Inc. call. Participants are encouraged to log in to the
webcast or dial in to the conference call approximately ten minutes
prior to the start time. To listen via live webcast, please visit the
Investor Relations section of the Company’s website, www.solarisoilfield.com.
An audio replay of the conference call will be available shortly after
the conclusion of the call and will remain available for approximately
seven days. It can be accessed by dialing (877) 344-7529 within the
United States or (412) 317-0088 outside of the United States. The
conference call replay access code is 10116267. The replay will also be
available in the Investor Relations section of the Company’s website
shortly after the conclusion of the call and will remain available for
approximately seven days.
About Solaris Oilfield Infrastructure, Inc.
Solaris Oilfield Infrastructure, Inc. (NYSE: SOI) manufactures and
provides patented mobile proppant management systems that unload, store
and deliver proppant at oil and natural gas well sites. These patented
systems are deployed in many of the most active oil and natural gas
basins in the United States, including the Permian Basin, the Eagle Ford
Shale, the STACK/SCOOP, the Marcellus Shale and the Haynesville Shale.
Solaris’ high-capacity transload facility in Kingfisher, Oklahoma serves
customers with operations in the STACK/SCOOP formation. Additional
information is available on Solaris’ website, www.solarisoilfield.com.
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Examples of forward-looking
statements include, but are not limited to, outlook for the construction
and operation of our new Kingfisher Facility, current and potential
future long-term contracts and our future business and financial
performance. Forward-looking statements are based on our current
expectations and assumptions regarding our business, the economy and
other future conditions. Because forward-looking statements relate to
the future, by their nature, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict. As a
result, our actual results may differ materially from those contemplated
by the forward-looking statements. Factors that could cause our actual
results to differ materially from the results contemplated by such
forward-looking statements include, but are not limited to effectively
integrating the acquisition of Railtronix’s assets and customer
acceptance of our combined offerings and the factors discussed or
referenced in our filings made from time to time with the SEC, including
those described in our Registration Statement on Form S-1 (File No.
333-221389) filed with the Securities and Exchange Commission and
declared effective on November 9, 2017. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak only as
of the date hereof. Factors or events that could cause our actual
results to differ may emerge from time to time, and it is not possible
for us to predict all of them. We undertake no obligation to publicly
update or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise, except as
may be required by law.
Contacts
Solaris Oilfield Infrastructure, Inc.
Kyle Ramachandran,
281-501-3070
Chief Financial Officer
[email protected]