HOUSTON--(BUSINESS WIRE)--
Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) (“Solaris” or the
“Company”) announced today an amendment to the contract with its primary
customer at the Company’s transloading facility in Kingfisher, Oklahoma
(the “Kingfisher Facility”). The amended contract (1) reduces the
minimum contracted annual revenue to approximately $3.6 million
beginning in March 2019, (2) shortens the initial term to December 31,
2020, (3) triggers a partial termination payment to Solaris of
approximately $26.0 million, which was paid in cash during December
2018, and (4) allows the use of a portion of the previously dedicated
storage and rail track for additional third-party customers’ use.
In addition, Solaris has secured a two-year commitment from this
customer to be its exclusive provider of well site proppant storage in
Oklahoma, Texas and New Mexico.
Management Commentary
Solaris Chairman and Chief Executive Officer Bill Zartler commented, “We
are pleased to reach a mutually-beneficial agreement to accommodate the
shifting needs of both our customer and the industry.”
Zartler continued, “While the industry shift to in-basin sand has
lowered potential demand for many transload facilities, including
Kingfisher, it has the opposite effect on our mobile proppant systems.
In-basin sand logistics removes a storage buffer from the supply chain
and relies heavily on trucking, which introduces increased volatility to
the total supply chain. We help our customers manage that volatility
through our market leading mobile proppant management systems which
provide a highly reliable and large inventory buffer at the blender in a
relatively small footprint. In addition, our integrated software
solutions provide complete last mile supply chain visibility which
facilitates enhanced logistics management.”
About Solaris’ Kingfisher Facility
The Kingfisher Facility is a 300-acre, unit-train capable facility
located on the Union Pacific Railroad in Central Oklahoma. The facility
consists of over 45,000 feet of rail track and 30,000 tons of high
efficiency silo storage. The facility was completed in August 2018 and
capital expenditures related to completion totaled approximately $40
million. In the quarter ended September 30, 2018, Kingfisher revenues
accounted for less than 5% of total company revenue.
About Solaris Oilfield Infrastructure, Inc.
Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) manufactures and rents
mobile equipment that drives supply chain and execution efficiencies in
the completion of oil and natural gas wells. Solaris’ patented mobile
proppant 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, the STACK/SCOOP formation, the Marcellus and Utica Shales,
the Haynesville Shale, the Rockies, the Bakken and the Barnett Shale.
Additional information is available on our website, www.solarisoilfield.com.
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Examples of forward-looking
statements include, but are not limited to, statements we make regarding
the outlook for the operation of our Kingfisher Facility, current
long-term contracts and our future business and financial performance.
Forward-looking statements are based on our current expectations and
assumptions regarding our business, the economy and other future
conditions. Because forward-looking statements relate to the future, by
their nature, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. As a result, our
actual results may differ materially from those contemplated by the
forward-looking statements. Factors that could cause our actual results
to differ materially from the results contemplated by such
forward-looking statements include, but are not limited to the factors
discussed or referenced in our filings made from time to time with the
SEC. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict all
of them. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181220005949/en/
Yvonne Fletcher
Senior Vice President, Finance and Investor
Relations
(281) 501-3070
[email protected]
Solaris
Oilfield Infrastructure, Inc.
Source: Solaris Oilfield Infrastructure, Inc.