Solaris Energy Infrastructure, Inc. Q4 FY2021 Earnings Call

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Solaris Oilfield Infrastructure Q4 & Full Year 2021 Earnings Summary

  • Key Context: 2021 marked a recovery year with strengthening commodity prices, increased drilling/completion activity, and redeployment of systems. Solaris maintained its dividend commitment while advancing new technologies (Top Fill and AutoBlend) to address industry bottlenecks in sand, trucking, and labor.
  • Balance Sheet: Ended 2021 with $36 million cash, zero debt, and $86 million total liquidity ($50M undrawn credit facility). Returned ~$5M in dividends in Q4 (13th consecutive quarter); cumulative ~$92M returned to shareholders since 2018 via dividends and repurchases.

Q4 2021 Financial & Operational Performance (vs. Q3 2021)

  • Revenue: ~$46 million (strategic shift to higher-margin last-mile work reduced revenue but boosted profitability).
  • Fully utilized systems: 63 (up 7% sequentially); total deployed proppant systems: 98 (up 10 from Q3).
  • Adjusted EBITDA: ~$10 million (up 28% sequentially), driven by fixed cost absorption, Top Fill optimization, 9/12-pack mix shift, and full-quarter benefit of August 2021 price increases.
  • Gross profit margin per system: Up 14% sequentially.
  • Operating cash flow: ~$5 million (after ~$1M net working capital build and ~$3M long-lead prepayments for 2022 growth CAPEX).

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Operator: Good morning and welcome to the Solaris Oilfield Infrastructure, Inc. Q4 and Full Year 2021 Earnings Call. All participants will be in listen-only mode. . After today's presentation, there will be an opportunity to ask questions. . Please note this event is being recorded. I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President, Finance and Investor Relations. Ms. Fletcher, please go ahead. Yvonne Fletcher: Good morning, and welcome to the Solaris fourth quarter 2021 earnings conference call. I'm joined today by our Chairman and CEO, Bill Zartler; and our President and CFO, Kyle Ramachandran. Before we begin, I'd like to remind you of our standard cautionary remarks regarding the forward-looking nature of some of the statements that we will make today. Such forward-looking statements may include comments regarding future financial results and reflect a number of known and unknown risks. Please refer to our press release issued yesterday, along with other recent public filings with the Securities and Exchange Commission that outline those risks. I would also like to point out that our earnings release and today's conference call will contain discussion of non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures

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