Solaris Oilfield Infrastructure, Inc. has recently released its 10-Q report, providing a detailed insight into its financial condition and results of operations. The company, founded in 2014 and headquartered in Houston, Texas, specializes in designing and manufacturing equipment for oil and natural gas operators in the United States. Solaris Oilfield Infrastructure offers mobile proppant and fluid management systems, last mile logistics management services, and develops software solutions to drive efficiencies for oil and natural gas operators and their suppliers.
In the second quarter of 2024, Solaris Inc. reported a decrease in U.S. drilling and completion activity, influenced by a 7% decline in the Baker Hughes U.S. Land Rig Count. The company's fully utilized total system count averaged 92 systems, dropping from 102 systems in the first quarter of 2024. The decrease was attributed to a 5% decrease in the number of oil-directed rigs and a 13% decrease in gas-directed rigs. The company expects its revenue and profitability to track the overall direction of U.S. drilling and completion activity for the remainder of 2024.
During the first six months of 2024, Solaris Inc.'s capital expenditures were approximately $4 million, down about 90% from the first six months of 2023 following the completion of its prior growth capital program in 2023. The company highlighted that the sustainability of favorable supply-demand dynamics and a strong commodity environment will depend on multiple factors, including potential regulatory changes, economic slowdown, and geopolitical disruptions.
The 10-Q report also disclosed recent developments, including the acquisition of MER, a premier provider of distributed power solutions serving the energy and commercial and industrial end-markets. Additionally, Solaris Inc. secured committed financing for the acquisition in the form of a $300.0 million senior secured bridge term loan facility.
In terms of financial performance, Solaris Inc. reported a decrease in total revenue by $3.3 million, or 4%, to $73.9 million in the second quarter of 2024 compared to the same period in 2023. This was primarily due to a decrease in fully utilized systems, partially offset by an increase in last mile tonnage. The company also experienced a decrease in revenue by $18.1 million, or 11%, to $141.8 million in the first six months of 2024 compared to the same period in 2023, primarily due to a decrease in last mile logistics services revenue.
Moreover, Solaris Inc. provided a comparison of non-GAAP financial measures, presenting EBITDA and Adjusted EBITDA as important indicators of performance. These measures are used to assess the company's results of operations and provide useful information regarding trends and other factors affecting its business.
Today the company's shares have moved 0.3% to a price of $11.71. For more information, read the company's full 10-Q submission here.
