Barclays CEO Energy-Power Conference Presentation September 6, 2018
Company Snapshot Ticker SOI (NYSE) IPO Date May 11, 2017 Market Cap 800 million Long-term Debt 0.0 million 2019 Consensus 4.3x EV/EBITDA Multiple(2) 2019 Consensus FCF 11% Yield(2) Ownership (1) EBITDA Growth (2) in…
Leading Independent Provider of Well Site Logistics Solutions Leading Well Site Storage and Delivery Systems Digitalizing the Supply Chain Drive supply chain efficiencies through real time, remote monitoring of proppant inventory across…
Solaris Has A Culture And History Of Innovation Number of Systems in Fleet May-2018 Q1-2017 Reconciling Key Events Urethane Fill Solution Deployed Oct-2015 PropViewTM Pipe Extension WTI Price Deployed Jan-2018 Beta Deployed…
Solaris Active Across Lower-48 Solaris Currently has 138 Systems Operating Across Eight Basins MARCELLUS / UTICA ROCKIES 9 0 1 1 SCOOP/STACK DELAWARE 18 3 40 BARNETT MIDLAND EAGLE FORD 0 1 25 27 9 35…
Diverse, Blue Chip Operator and Pressure Pumper Customer Base Select Operator Customers Select Pressure Pumping Customers Solaris has a broad and growing customer mix 6
Growth Driven by Overall Market Growth Combined with Technology Displacement Well Site Sand Storage Systems by Increasing Sand Intensity Levels Are Pervasive Technology Type (1) MM Lbs MM Tons Traditional SandKing Traditional SandKing…
Bringing Order to Chaos: Solaris Versus Traditional Technology Issues with Traditional Offerings Inadequate on-site inventory and offloading Traditional Rolling capacity Sand Kings Storage Complicated operations and expansive…
Elegant Solution to a Complicated Problem High Capacity Throughput Simple, modern, fully-integrated control system High volume input and output capacity Mobile and flexible equipment Supply Chain Savings Well Site Savings…
Proppant Logistics are Bottleneck Prone; In Basin Sand Increases Need for Wellsite Inventory Buffer Illustrative Solaris Data Illustrative Proppant Flow 20 MM lb Completion Solution Proppant Flow 20 MM lb Completion 10,000 tons of…
Value Proposition to Customers: Trusted Solution and Low Cost Insurance Policy Solaris System…
Our Patented Design Two issued patents; two utility patent applications and one provisional patent application relating to Systems, services and other technologies Silo Loading and Delivery Process Aerial View of System Generator Dual…
Digitalization of the Supply Chain PropView: Real-Time, Remotely Available Inventory Data PropView provides real-time inventory levels, both at the well site and remotely via any browser or Solaris App. 13
Digitalization of the Supply Chain PropView + Railtronix: Real-Time Inventory Data The Railtronix / PropView integration provides real-time visibility of proppant from source mine to well head 14
Kingfisher Facility Fully Operational New High-Capacity Transload Facility Long-Term Contract with Leading STACK E&P Operator The only independent, high-speed, unit-train capable Seven-year agreement transload facility dedicated to…
Kingfisher Facility Phase One Construction Completed 300 Acres Central to the STACK/SCOOP Plays 30,000 Tons of Storage Unit Train Loop Manifest Loop Rail-to-truck Service 16
Bringing Order to ChaosAgain Solaris New Mobile Chemical Silo Systems Chemicals, acid, friction reducer, biocide, etc. stored in multiple totes and iso-containers today Replaced with 3 silos with inventory control and monitoring,…
Continued Growth in Solaris Financial Performance Quarterly Revenue and Revenue Days ( in Millions) Q2 2018 Performance Commentary 47 .2 2Q 2018 revenue and Adjusted EBITDA grew 31% and 37%, respectively, versus 1Q 2018 36.0…
Driven by Sustained Margins Over Cycles and Secular Growth 100% 3 5,046 36,000 Sy stem Rental and Service Gross Margin / Adjusted EBITDA Margin % 90% 80% 7 5% 27,000 7 0% 70% 6 5% 62% 58% 59 % 60% Rev enue Days…
Drivers of Solaris Growth in 2018 and Beyond Leading well site storage and inventory management solution and continuing to grow, e.g., manufacturing up to 8 systems per month Kingfisher Phase One completed July 2018.…
Appendix
EBITDA and Adjusted EBITDA Reconciliation Three months ended, Y ear ended ( in 000s) June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 December 31, 2017 December 31, 2016 December 31, 2015 N et i ncome (l oss) 21 ,448 1…
System Rental and Service Gross Margin Reconciliation Six months ended Year ended ( in 000s) June 30, 2018 December 31, 2017 December 31, 2016 December 31, 2015 System rental and service Revenue: Proppant management system rental…
Margins Driven By System Design and Protected by High Switching Cost High Switching Costs Relative to Savings from Margin Structure is Sustainable Potential Cheaper Solutions Low Personnel Requirement Risk of Switching is Material…
Solaris System Versus Containerized Solutions Solaris System on Postage Stamp Size Location Containerized System on Location Solaris System Containerized System Maximum Storage on Location 2.5 Million Pounds 1.68 Million Pounds…
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