Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
HOUSTON - Solaris Oilfield Infrastructure , Inc. (NYSE:SOI) announced the approval by its shareholders of all proposals concerning the acquisition of Mobile Energy Rentals LLC (MER), during a special meeting held today. This ratification moves the company closer to finalizing the deal, which is expected to conclude in September 2024, subject to customary closing conditions.
Bill Zartler, Chairman and Chief Executive Officer of Solaris, expressed satisfaction with the stockholder's support and anticipates the completion of the transaction within the forthcoming weeks. Following the closure of the acquisition, the company aims to launch an integrated service offering under the name 'Solaris Energy Infrastructure.'
The official results of the vote will be disclosed in a Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission after the company's inspector of elections has certified the results.
Solaris Oilfield Infrastructure specializes in providing mobile equipment that enhances supply chain and operational efficiencies in the completion of oil and natural gas wells. The company's patented systems are utilized across various oil and natural gas basins in the United States.
This development follows Solaris's strategic efforts to expand its offerings in the energy infrastructure sector. The acquisition is seen as a step towards consolidating their market position by broadening their service capabilities.
The information for this article is based on a press release statement.
In other recent news, Solaris Oilfield Infrastructure has made significant strides in expanding its asset base and market offerings. The company recently secured a $29.75 million loan for Mobile Energy Rentals (MER) to facilitate the purchase of power generation equipment, a move that followed Solaris's announcement to acquire all outstanding equity interests of MER. This acquisition, seen as a strategic expansion into the mobile power generation market, is set to enhance Solaris's position in the industry.
In terms of financial performance, Solaris reported Q1 2024 revenues of $68 million, adjusted EBITDA of $23 million, and free cash flow of $14 million. Despite projected flat North American land activity and a 5-10% decrease in frac crews, the company intends to capitalize on industry trends such as consolidation, efficiency, and electrification.
Piper Sandler, an investment firm, maintained its Overweight rating on Solaris following the announcement of the MER acquisition. The firm believes that this strategic move will assist Solaris in navigating the complex landscape of the oil and gas industry. These are the latest developments in Solaris's ongoing commitment to maximize return on capital for its shareholders.
InvestingPro Insights
As Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) shareholders give the green light for the acquisition of Mobile Energy Rentals LLC, the company's financial health and market performance remain a key interest for investors. Solaris has demonstrated a commitment to returning value to shareholders, maintaining dividend payments for the past seven years, a testament to its financial stability. In line with this, the company boasts a moderate level of debt, which allows for strategic maneuvers such as the current acquisition without overleveraging its balance sheet.
InvestingPro Tips reveal that Solaris is trading near its 52-week high, reflecting investor confidence and a strong market position. Additionally, the company has experienced a significant price increase over the last six months, with a 55.71% total return, underlining a robust performance in the market. For investors seeking more detailed analysis, InvestingPro offers additional tips on the company's financials and market performance.
The company's market capitalization stands at a solid $557.52 million, and the price-to-earnings (P/E) ratio is at 19.39, indicating a reasonable valuation relative to its earnings. The gross profit margin for the last twelve months, as of Q2 2024, is at a healthy 39.31%, showcasing the company's ability to maintain profitability. These InvestingPro Data metrics provide a snapshot of Solaris's financial health as it embarks on this strategic expansion.
For those interested in further insights, InvestingPro has a comprehensive list of additional tips to guide investment decisions, available at https://www.investing.com/pro/SOI.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.