Solaris Energy Infrastructure, Inc. (NYSE:SEI) (“Solaris”), announced a financial and operational update for the fourth quarter 2024 as well as updates to its growth capital program to further support the Solaris Power Solutions segment in response to rapidly evolving customer demand.
Fourth Quarter 2024 Financial and Operational Update
The Company is increasing its fourth quarter 2024 Adjusted EBITDA* guidance to a range of $36 million to $39 million, compared to its prior expectation for a range of $33 million to $36 million. The primary drivers behind the updated range are continued enhanced utilization levels and improved cost absorption in the Solaris Power Solutions segment. The Company expects to deploy an average of approximately 250 MW during the fourth quarter, which reflects full utilization of its currently available asset base. In its Solaris Logistics Segment, the Company expects results to be relatively in line with expectations, which should continue to support strong total company operating cash flow generation in the fourth quarter.
Solaris Power Solutions Growth Capital Update
The Company recently placed orders for 9 additional 16.5 megawatt (“MW”) gas-fired turbines to support rapidly accelerating customer demand, totaling approximately 145 MW in incremental generation capacity. Solaris now expects to exit first quarter 2026 with approximately 680 MW of generation capacity. The Company expects to invest up to $120 million for the new turbine order, including ancillary equipment. Additionally, the Company expects to invest approximately $40 million in Selective Catalytic Reduction (“SCR”) technology to further enhance the emissions profile of the fleet in support of multi-year installations on selected locations. This expected approximately $160 million growth capital investment should occur primarily over the course of 2025, with equipment deliveries scheduled to occur from fourth quarter 2025 through first quarter 2026.
“Demand for Solaris’ power-as-a-service offering continues to exceed our available capacity, providing us with the confidence to place this additional equipment order,” commented Bill Zartler, Solaris’ Chairman and Chief Executive Officer. “Additionally, the increasing site design and engineering complexities associated with the extending tenor of our contract fixtures presents an opportunity for Solaris to offer incremental ‘balance of plant’ equipment, such as the emissions control technology, that complements our power generation offering and is expected to enhance returns. This new equipment order will provide Solaris’ customers with near-term solutions in support of some of the most demanding ‘behind-the-meter’ power applications in operation today.”
