Solaris Oilfield Infrastructure(SOI) - 2025 Q1 - Quarterly Results

Acquisition Details - Solaris Energy Infrastructure, Inc. completed the acquisition of Mobile Energy Rental LLC for a total consideration of $136.7 million, which includes $60 million in cash and 16,464,778 units of Solaris LLC and an equal number of shares of Class B Common Stock[2] - Solaris incurred $162 million of additional debt to refinance existing debt and fund the cash due at closing of the transaction[3] - The acquisition method of accounting was used, with assets and liabilities recorded at their fair values as of the acquisition date[3] - The transaction is subject to closing adjustments that have not yet been finalized, indicating potential variability in the final accounting[8] Financial Projections - The pro forma combined total revenue for the year ended December 31, 2024, is projected to be $339.033 million, reflecting an increase from historical revenues[11] - The pro forma operating income is estimated at $43.655 million, with total operating costs and expenses amounting to $295.378 million[11] - Net income attributable to common shareholders is projected to be $6.246 million, with earnings per share of $0.22 on a diluted basis[11] - Total revenues for the pro forma year ended December 31, 2024 are projected to be $23,721 thousand, with lease income contributing $7,821 thousand and service revenue at $2,103 thousand[20] - Net income for the pro forma year ended December 31, 2024 is estimated at $12,930 thousand, reflecting a significant increase from historical figures[20] Revenue Breakdown - The transaction is expected to enhance Solaris's service and leasing revenue, with service revenue projected at $264.260 million and leasing revenue at $60.141 million[11] Pro Forma Adjustments - The pro forma adjustments are preliminary and may change as additional information becomes available, potentially impacting the financial statements materially[8] - Solaris management believes the pro forma financial statements reflect necessary adjustments to present the combined financial information fairly[6] - The pro forma adjustment to interest expense for the year ended December 31, 2024 is estimated to be a net reduction of $5,442 thousand, with a variable interest rate assumed at 10.8%[24] - The company anticipates an additional pro forma depreciation and amortization expense of $8,422 thousand related to the acquisition of identifiable property and equipment[26] - The effective combined U.S. federal and state income tax rate used for pro forma adjustments is 20.2%, leading to a provision for income taxes of $5.7 million[29] - The pro forma adjustment includes the elimination of historical non-leasing depreciation and amortization expenses, resulting in a new depreciation expense of $219 thousand[25] Equipment Depreciation - The company expects to depreciate equipment held for lease once it is delivered and ready for use within the next twelve months[28] Non-Controlling Interests - The transaction resulted in a net loss related to non-controlling interests of $1.5 million due to the issuance of 16.5 million Solaris LLC units[30] Earnings Per Share - Pro forma earnings per share for Class A common stock are projected at $0.22 (basic) and $0.21 (diluted) for the year ended December 31, 2024[32]