Solaris Oilfield Infrastructure has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 10.6 million shares in the range of $15 to $18 per share, with an overallotment option for an additional 1.59 million shares. At the maximum price the entire offering is valued up to $219.42 million. The company plans to list its shares on the New York Stock Exchange under the symbol SOI.
The underwriters for the offering are Credit Suisse, Goldman Sachs, Morgan Stanley, Evercore ISI, Simmons, Tudor Pickering Holt, Wells Fargo, Raymond James, Oppenheimer, Seaport Global Securities and Wunderlich.
This company manufactures and provides its patented mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. These systems reduce customers’ cost and time to complete wells by improving the efficiency of proppant logistics, in addition to enhancing well-site safety.
Customers include oil and natural gas exploration and production companies, such as EOG Resources, Devon Energy and Apache, as well as oilfield service companies, such as ProPetro Services.
The company’s systems are deployed in many of the most active oil and natural gas basins in the United States, including the Permian Basin, the Eagle Ford Shale and the SCOOP/STACK formation. Since commencing operations in April 2014, Solaris has grown its fleet from two systems to 37. The company currently has more demand for its systems than it can satisfy with its existing fleet. Solaris expects to increase its fleet to between 60 and 64 systems by the end of 2017 in response to customer demand.
The company described its finances in the filing as follows:
We have increased our total system revenue days, defined as the combined number of days our systems earned revenues, in ten of the last eleven quarters, and we have increased our system revenue days by more than 1,400% from the second quarter of 2014 to the first quarter of 2017, representing a 168% compound annual growth rate. The increase in total system revenue days is attributable to both an increase in the number of systems available for rental and an increase in the rate at which our systems are utilized.
Solaris Oilfield Infrastructure intends to use the net proceeds of the offering to buy Solaris LLC units. In turn, Solaris LLC will use the proceeds to fund its capital program, with the remainder going toward general corporate purposes.