Macroeconomic Context - The market has recognized that the primary issue for artificial intelligence is not the availability of GPUs, which are currently accessible [1] Investment Strategy - The focus is on combining top-down macro analysis with bottom-up stock selection to identify mispriced opportunities [1] - Emphasis is placed on earnings, technological disruption, policy shifts, and capital flows as key factors in investment decision-making [1] Market Insights - The analysis includes sharing high-conviction ideas and contrarian views on both growth and value stocks [1]

Revenue Performance - Solaris Power Solutions segment generated revenues of $104.9 million and $229.9 million for the three and nine months ended September 30, 2025, respectively, compared to $4.7 million in the same periods of 2024, reflecting a significant increase due to expanded capacity [202]. - Total revenues for the Company increased by $91.8 million, or 122%, to $166.8 million in the three months ended September 30, 2025, compared to $75.0 million in the same period of 2024 [202]. - Solaris Power Solutions contributed 63% of total revenue and 77% of total segment Adjusted EBITDA in the third quarter of 2025, indicating its dominant role in the Company's financial performance [192]. Capital Expenditures and Investments - The Company expects total capital expenditures for 2025 to be approximately $405 million, with about $190 million allocated to Stateline, primarily to support Solaris Power Solutions growth [196]. - The Company ordered an additional approximately 500 megawatts of power generation equipment, expecting total capacity to reach approximately 2,200 megawatts by early 2028 [195]. - The Company acquired HVMVLV, LLC on August 15, 2025, enhancing its capabilities in power control and distribution solutions [187]. Costs and Expenses - Cost of revenue for Solaris Power Solutions was $44.4 million in the three months ended September 30, 2025, with a cost of revenue percentage of 42%, up from 27% in the same period of 2024 [208]. - Solaris Logistics Solutions' cost of revenue increased by $14.9 million, or 11%, to $146.6 million in the nine months ended September 30, 2025, primarily due to higher last mile and ancillary service costs [210]. - Selling, general and administrative expenses increased by $20.7 million, or 83%, to $45.7 million for the nine months ended September 30, 2025, compared to $25.0 million in the same period of 2024 [214]. Interest and Tax Expenses - Interest expense increased by $15.3 million to $19.7 million for the nine months ended September 30, 2025, compared to $4.4 million in the same period of 2024, primarily due to higher borrowings and interest rates [218]. - The company recognized a combined income tax expense of $13.9 million for the nine months ended September 30, 2025, an increase of $10.3 million compared to $3.7 million in the same period of 2024 [220]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $113.2 million for the nine months ended September 30, 2025, compared to $46.3 million in the same period of 2024, representing an increase of $66.9 million [237]. - Net cash used in investing activities was $422.1 million for the nine months ended September 30, 2025, an increase of $232.1 million from $189.9 million in the same period of 2024 [238]. - As of September 30, 2025, cash and cash equivalents totaled $106.7 million, providing adequate liquidity to meet obligations for the next 12 months and beyond [232]. Debt and Share Repurchase - The company had an outstanding principal balance of $320.9 million under its Term Loan as of September 30, 2025, which was fully repaid on October 8, 2025 [222]. - The company entered into purchase commitments totaling $209.8 million due within the subsequent 12 months and $520.8 million extending beyond one year as of September 30, 2025 [229]. - The company issued $747.5 million aggregate principal amount of the 2031 Notes in October 2025, enhancing liquidity and extending debt maturity [225]. - The company has collectively repurchased and retired 4,272,127 shares of Class A common stock for $34.6 million, with $15.4 million remaining under the authorized share repurchase program as of September 30, 2025 [234].

Financial Data and Key Metrics Changes - Solaris generated revenue of $167 million and Adjusted EBITDA of $68 million in Q3 2025, with Adjusted EBITDA growing 12% from the prior quarter and increasing more than three times compared to the same quarter last year [19][22] - The company operated approximately 760 megawatts during Q3, reflecting an increase of more than 27% from the prior quarter [19][20] - Total adjusted EBITDA guidance for Q4 is now $65-$70 million, up from the prior guidance of $58-$63 million, and relatively flat from Q3 [22] Business Line Data and Key Metrics Changes - Power solutions contributed more than 60% of total revenue and over three-quarters of segment-level Adjusted EBITDA in Q3 [16] - Segment-adjusted EBITDA for the power solutions segment was $58 million, a 27% increase from Q2 [20] - The logistics solutions segment averaged 84 fully utilized systems, a decline of 11% from Q2 [20] Market Data and Key Metrics Changes - Demand for reliable and efficient power generation is accelerating, particularly driven by data center investments [4][5] - Many data centers now require more than one gigawatt of electricity demand per site, indicating a growing market opportunity [4] Company Strategy and Development Direction - Solaris aims to provide critical infrastructure and services to support the growing demand for power generation, particularly in the data center sector [5][10] - The company is focusing on an all-of-the-above generation approach, incorporating various power sources including natural gas turbines, battery energy storage systems, and renewable technologies [6][7] - Solaris has expanded its capabilities through acquisitions, including the acquisition of HVMVLV, which enhances its power solutions offering [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for power services and the company's ability to secure long-term contracts [14][15] - The company is optimistic about the significant growth opportunities ahead, driven by the increasing size and complexity of infrastructure projects [82] Other Important Information - Solaris raised approximately $748 million in senior convertible notes to repay existing term loans and fund new generation capacity [18] - The company expects pro forma generation capacity to reach approximately 2,200 megawatts by early 2028, up from a prior plan of 1,700 megawatts [9][17] Q&A Session Summary Question: Supply chain challenges and competition for OEM slots - Management acknowledged that the supply chain is stretched and competition for OEM slots has tightened, but emphasized their strong relationships and experience in securing necessary equipment [26][27][29] Question: Impact of HVMVLV acquisition on balance of plant - Management indicated that the acquisition enhances their ability to manage power distribution and generation, contributing to increased revenue per megawatt [30][31] Question: Competitive landscape and growth opportunities - Management stated that the market is large enough to require multiple companies to meet growing power demand, and recent announcements from competitors have not changed their outlook [37][39] Question: Contract tenor and behind-the-meter solutions - Management noted that contract tenors are evolving to longer terms due to grid delays and increasing power needs, with a focus on behind-the-meter solutions [92] Question: Future contract negotiations and flexibility - Management confirmed that future contracts will include options for various types of generation assets, providing flexibility to meet customer demands [100][102] Question: Pipeline size and future capacity - Management described the customer pipeline as enormous, with expectations to exceed current orders in a couple of years [82]

Financial Data and Key Metrics Changes - Solaris achieved record levels of quarterly revenue and profit in Q3 2025, generating revenue of $167 million and adjusted EBITDA of $68 million, reflecting a 12% growth from the prior quarter and more than three times the adjusted EBITDA compared to the same quarter last year [23][24] - The adjusted EBITDA for the Power Solutions segment was $58 million, a 27% increase from the second quarter [24] Business Line Data and Key Metrics Changes - The Power Solutions segment contributed over 60% of total revenue and more than three-quarters of segment-level adjusted EBITDA [20] - The company operated approximately 760 megawatts during Q3 2025, up from approximately 150 megawatts a year ago, representing an increase of more than 27% from the prior quarter [10][24] - The Logistics Solutions segment averaged 84 fully utilized systems, a decline of 11% from the second quarter [24] Market Data and Key Metrics Changes - Demand for reliable and efficient power generation is accelerating, particularly due to the growth in data center investments, with many data centers now requiring over one gigawatt of electricity demand per site [5][6] - The company expects to have a pro forma generation capacity of approximately 2,200 megawatts by early 2028, up from a prior plan of 1,700 megawatts by 2027 [11][21] Company Strategy and Development Direction - Solaris aims to provide a comprehensive range of power solutions, including natural gas turbines, reciprocating engines, battery energy storage systems, and renewable technologies, to meet the diverse needs of its customers [9][10] - The company has expanded its capabilities through acquisitions, including the acquisition of HVMV LV, which enhances its offerings in high-growth end markets [12][13] - The strategic focus is on maintaining a strong balance sheet, optimizing capacity, and ensuring operational excellence to support growth [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for power services and the company's ability to capitalize on significant growth opportunities in the market [18] - The management highlighted the importance of executing well across all business aspects, including supply chain management, to meet customer demands effectively [32][34] Other Important Information - Solaris raised approximately $748 million in senior convertible notes to repay existing term loans and fund new generation capacity, unlocking significant financial flexibility [22][23] - The company is experiencing a near-term bottom in drilling and completion activity in the oil and gas industry, but expects the Logistics Solutions segment to generate significant free cash flow [16][24] Q&A Session Summary Question: Supply chain challenges and competition for OEM slots - Management acknowledged that the supply chain is tightening and emphasized the importance of exploring multiple sources of generation to meet power demands [32][34] Question: Impact of recent announcements from competitors on growth opportunities - Management stated that the market is large enough to require multiple companies to meet growing power demand, and recent announcements from competitors have not changed their outlook [47][48] Question: Competitive advantages of the HVMV LV acquisition - Management highlighted the integrated solution approach and the ability to regulate and distribute power effectively as key differentiators in the market [70][72] Question: Future contract negotiations and flexibility in power generation sources - Management confirmed that they provide options for customers regarding the type of assets generating power, allowing for flexibility in meeting customer demands [106][108] Question: Pipeline size and future growth expectations - Management indicated that the customer pipeline is enormous and expects to exceed current orders in a couple of years [91] Question: Insights on the second data center order and contract tenor - Management provided details on the second data center's operational status and noted that contract tenors are extending due to grid delays and increasing power needs [98][99]

Financial Performance & Guidance - Q3 2025 Adjusted EBITDA was $68 million[6], which annualizes to a run rate of $272 million[6] - Q4 2025 Adjusted EBITDA guidance is $65-70 million[13] - Q1 2026 Adjusted EBITDA guidance is $70-75 million[13] - Power Solutions Adjusted EBITDA for Q3 2025 was $58 million[13], with Q4 2025 guidance of $56-60 million[13] - Logistics Solutions Adjusted EBITDA for Q3 2025 was $17 million[13], with Q4 2025 guidance of $18-20 million[13] Capital Expenditures & Debt - Consolidated Capex for Q3 2025 was $63 million[9] - Remaining consolidated capex spend reflects standalone SEI needs as JV has its own third-party financing[9] - Pro Forma Potential Gross Debt with Fully Deployed JV Capacity is approximately $1403 million[6, 15] - Net to SEI Debt with Convertible Notes considered as Debt is approximately $1153 million[6, 15] - Net to SEI Debt with Convertible Notes considered as Shares is approximately $250 million[6, 15] Fleet & Capacity - Pro Forma Adjusted EBITDA at 2200 MW Operated is projected at $575-625 million Net SEI and $700-750 million Consolidated SEI[6] - The company expects to grow to a 2200 MW operated fleet by early 2028[9]

Core Viewpoint - Sintana Energy, Inc. has reached a significant milestone in its proposed all-share acquisition of Challenger Energy Group plc, with a Scheme Document published for Challenger shareholders [1] Transaction Rationale - The acquisition is driven by three main factors: diversification, exposure to emerging high-impact geographies, and the opportunity to strengthen existing partnerships [4] - Diversification is crucial as Sintana has significant exposure to Namibia, and the acquisition will help mitigate risks associated with being singularly focused on one environment [5] - The acquisition provides access to Uruguay's offshore licenses, which have seen increased interest from major players like Shell and Chevron, indicating potential for significant geological and commercial outcomes [6] - The partnership with Chevron is expected to expand, enhancing opportunities for collaboration in both Namibia and Uruguay [7] - The transaction uniquely allows Sintana to diversify its portfolio while deepening its relationship with a major industry player [8] Management of Conflicts - Sintana's board has taken proactive measures to ensure independence in the acquisition process, including forming a special committee of disinterested directors [10][11] - External counsel from both the UK and Canada has been involved to oversee the process and ensure compliance with regulatory requirements [10][11] Shareholder Interests - Charlestown holds approximately 21 million shares of Sintana, representing about 5.7% of the outstanding shares, along with additional options and warrants [12] - The total value of Charlestown's positions in Sintana is estimated at around C$15 million based on recent share prices [12] - Charlestown has also committed a US$4 million working capital facility to support the combined entity's liquidity needs [13] Regulatory Compliance - Sintana is navigating Canadian securities regulations regarding shareholder votes, with a detailed analysis conducted to ensure compliance with Multilateral Instrument 61-101 [15] - The company is committed to adhering to all relevant regulatory requirements throughout the transaction process [16]

Financial Performance - Third quarter 2025 revenue reached $167 million, a 12% increase sequentially from the second quarter 2025[4] - Net income for the third quarter 2025 was $25 million, translating to $0.31 per diluted Class A common share[4] - Total Adjusted EBITDA for the third quarter 2025 was $68 million, also a 12% sequential increase from the second quarter 2025[4] - Total revenues for the three months ended September 30, 2025, were $166,843,000, a significant increase from $75,018,000 in the same period of 2024, representing a growth of 122%[22] - Adjusted EBITDA for the three months ended September 30, 2025, was $67,961,000, compared to $22,231,000 for the same period in 2024, reflecting an increase of 205%[30] - The company reported a net income of $24,814,000 for the three months ended September 30, 2025, compared to a net loss of $2,210,000 in the same period of 2024[30] - Net income attributable to Solaris for the three months ended September 30, 2025, was $14.55 million, compared to a net loss of $0.968 million for the same period in 2024[38] - Adjusted pro forma net income for the nine months ended September 30, 2025, was $60.625 million, significantly up from $17.381 million in 2024, reflecting a growth of approximately 248%[38] - Adjusted pro forma earnings per share (diluted) for the three months ended September 30, 2025, was $0.32, compared to $0.08 in the same period of 2024, indicating a 300% increase[38] Segment Performance - Third quarter 2025 revenue for the Power Solutions segment was $105 million, a 39% sequential increase from the second quarter 2025[8] - Segment Adjusted EBITDA for the Power Solutions segment was $58 million, a 27% increase from the second quarter 2025[8] - Solaris Power Solutions segment generated revenues of $104,939,000 for the three months ended September 30, 2025, up from $4,739,000 in the same period of 2024[22] - Solaris Logistics Solutions segment reported revenues of $61,904,000 for the three months ended September 30, 2025, compared to $70,279,000 in the previous quarter, indicating a decrease of 12%[22] Capital and Investments - The company increased its fourth quarter 2025 Total Adjusted EBITDA guidance to $65-70 million, up from the previous guidance of $58-63 million[4] - Solaris ordered approximately 500 MW of additional generation capacity, expecting consolidated pro forma capacity to reach about 2,200 MW by early 2028[4] - In October 2025, Solaris issued approximately $748 million of 0.25% senior convertible notes due 2031 to enhance financial flexibility and fund growth[4] - Capital expenditures for Solaris Power Solutions were $61,205,000 for the three months ended September 30, 2025, compared to $55,957,000 in the same period of 2024, an increase of 9%[22] - The company plans to continue expanding its market presence through strategic acquisitions and investments in new technologies[20] Debt and Cash Position - Cash and cash equivalents attributable to Solaris as of September 30, 2025, were $106,704,000, down from $114,255,000 as of December 31, 2024[33] - Total consolidated debt and convertible notes attributable to Solaris increased to $532,274,000 as of September 30, 2025, from $315,730,000 as of December 31, 2024[33] Corporate Actions - The acquisition of HVMVLV was completed in the third quarter, enhancing capabilities in voltage distribution and regulation equipment[4] - The board approved a fourth quarter 2025 dividend of $0.12 per share, marking Solaris' 29th consecutive dividend[4] Shareholder Information - The diluted weighted average shares of Class A common stock outstanding increased to 43.77 million for the three months ended September 30, 2025, from 28.38 million in 2024[38] - The total number of potentially dilutive shares increased to 30.831 million for the three months ended September 30, 2025, compared to 19.903 million in the same period of 2024[38] Tax and Other Expenses - Incremental income tax expense for the three months ended September 30, 2025, was $(5.646) million, compared to $(1.102) million in the same period of 2024[38] - The company recognized a change in tax receivable agreement liability of $3.024 million for the nine months ended September 30, 2025[38] - Transaction and acquisition costs for the three months ended September 30, 2025, were $0.278 million, down from $3.065 million in the previous quarter[38] - The company incurred a loss on extinguishment of debt of $4.085 million during the three months ended June 30, 2025[38] - The net loss attributable to Stateline non-controlling interest was $2.432 million for the three months ended September 30, 2025[38]

Core Points - Sintana Energy Inc. is acquiring Challenger Energy Group plc through a Court-sanctioned scheme of arrangement under the Isle of Man Companies Act 1931 [1] - The Scheme Document has been published, detailing the terms and conditions of the acquisition, including a timetable of principal events [3][4] - The Independent Challenger Directors have recommended that shareholders vote in favor of the Scheme, with irrevocable undertakings for approximately 7.25% of Challenger's ordinary share capital [7] Acquisition Details - The acquisition will be implemented via a Court-sanctioned scheme, requiring majorities at both the Court Meeting and General Meeting [5][14] - The Court Meeting is scheduled for 26 November 2025 at 12:00 p.m., followed by the General Meeting at 12:15 p.m. [5] - Gneiss Energy has advised that the terms of the Acquisition are fair and reasonable [6][8] Shareholder Actions - Shareholders are required to vote in favor of the resolution at the Court Meeting and the Special Resolution at the General Meeting [9] - Hard copies of the Scheme Document and Forms of Proxy are being sent to Challenger Shareholders [4] Timetable of Events - Key dates include the publication of the Scheme Document on 3 November 2025 and the last day of dealings in Challenger Shares on 10 December 2025 [31][16] - The Effective Date of the Scheme is expected to be 11 December 2025, with the admission of New Sintana Shares on 24 December 2025 [33][31] Legal and Advisory Information - Clyde & Co LLP and SW Legal Limited are acting as legal advisers to Challenger, while Pinsent Masons LLP and Fogler Rubinoff LLP are advising Sintana [19] - Pareto has been engaged as the independent financial adviser for Sintana's Special Committee [12]

Core Insights - SEI has launched a streamlined implementation model and scalable platform specifically designed for community banks and trust companies managing less than $1 billion in assets, with Clermont Trust USA being the first to utilize this platform [1][3]. Company Overview - SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services, focusing on helping clients effectively deploy their capital [6][7]. - As of September 30, 2025, SEI manages, advises, or administers approximately $1.8 trillion in assets [7]. Strategic Partnership - Clermont Trust USA aims to deliver customized trust and advice solutions, leveraging SEI's Wealth Platform to enhance operational efficiency and client service [2][3]. - The partnership emphasizes the need for scalable, integrated solutions to address complex wealth management challenges [2][4]. Platform Features - The SEI Wealth Platform offers a comprehensive suite of services, including advanced reporting and analytics tools, business process outsourcing, and access to SEI's asset management offerings [3][6]. - The platform is designed for quick implementation, allowing firms to enhance technology and user experience with minimal disruption [3][5]. Market Context - SEI has been serving trust companies and community banks for over 55 years, recognizing the challenges they face in a competitive wealth management landscape [4]. - The new model aims to reduce costs and improve access to modern solutions, addressing the limitations posed by high technology costs and complex implementations [4][5].

Core Insights - SEI Investments Company has approved an increase in its stock repurchase program by an additional $650 million, raising the total authorization to approximately $773.2 million, which includes $123.2 million remaining as of October 20, 2025 [1] Company Overview - SEI (NASDAQ: SEIC) is a prominent global provider of financial technology, operations, and asset management services within the financial services industry, managing, advising, or administering approximately $1.8 trillion in assets as of September 30, 2025 [2]