Solaris Oilfield Infrastructure(US:SOI)2025-05-07 20:53Revenue Performance - Solaris Power Solutions generated revenue from an average of approximately 390 megawatts (MW) of generation capacity in Q1 2025, with a forecast to increase to approximately 1,700 MW by the first half of 2027 [127]. - Total revenues for Q1 2025 were $126.3 million, a significant increase of $58.4 million compared to $67.9 million in Q1 2024, driven by a $49.4 million contribution from Solaris Power Solutions [135]. - Solaris Logistics Solutions revenues increased by $9.1 million, or 13%, to $77.0 million in Q1 2025, primarily due to a $11.7 million increase in last mile and ancillary services [135]. Cost and Expenses - The cost of revenue for Solaris Logistics Solutions increased by $11.3 million, or 28%, to $51.2 million in Q1 2025, with a cost of revenue as a percentage of revenue rising to 67% [137][138]. - Interest expense increased by $4.4 million to $5.2 million in Q1 2025, primarily due to higher borrowings and effective interest rates [143]. - Net cash used in investing activities was $144.3 million for the three months ended March 31, 2025, a significant increase from $3.3 million during the same period in 2024, primarily due to $142.0 million paid for turbines and ancillary equipment [160]. - Net cash used in financing activities totaled $24.5 million for the three months ended March 31, 2025, compared to $15.9 million in the same period of 2024, reflecting various payments including dividends and share cancellations [161]. Capital Expenditures and Financing - The company expects total capital expenditures of approximately $490 million in 2025, with $295 million expected to be provided by the Stateline joint venture [129]. - The company issued $155.0 million in convertible senior notes with a 4.75% interest rate, with $100.0 million restricted for capital expenditures to support Solaris Power Solutions [121]. - The formation of the Stateline joint venture involved a contribution of non-cash assets and pre-funded expenses valued at approximately $86.4 million for a 50.1% equity interest [120]. - The company completed a public offering of $155.0 million aggregate principal amount of 4.75% Convertible Senior Notes due 2030, with $100.0 million restricted for capital expenditures in the Solaris Power Solutions segment [150]. - Interest payments for the Convertible Senior Notes are estimated to total approximately $7.4 million over the next 12 months, with the first installment due on November 1, 2025 [150]. - The net proceeds from the Convertible Senior Notes offering were approximately $148.3 million after deducting underwriting discounts and commissions [154]. Liquidity and Cash Flow - The company’s liquidity sources include cash flows from operations and availability under a revolving credit facility, enhanced by recent developments such as the Stateline joint venture and convertible notes issuance [145]. - As of March 31, 2025, the company had cash and cash equivalents totaling $16.7 million, with projected operating cash flows and borrowing capacity expected to meet operational needs for the next 12 months [153]. - The company’s liquidity position is supported by cash reserves, projected operating cash flows, and borrowing capacity, ensuring adequate liquidity for operational needs including debt service obligations and purchase commitments [153]. - Net cash provided by operating activities increased to $25.7 million for the three months ended March 31, 2025, up from $16.9 million in the same period of 2024, representing an increase of 52.2% [159]. Shareholder Actions - The company authorized a share repurchase program with a limit of $50.0 million, having repurchased 4,272,127 shares for $34.6 million as of March 31, 2025, leaving $15.4 million remaining under the program [155]. - The company has short-term purchase commitments due within 12 months totaling $153.0 million and long-term commitments of $774.5 million, with $324.1 million scheduled for fulfillment in 2025 [151]. Taxation - The effective combined United States federal and state income tax rates were 23.2% for Q1 2025, compared to 20.3% for Q1 2024, reflecting changes in operating gains [144].