Solaris Energy Infrastructure Announces Fourth Quarter 2024 Financial and Operational Update and Power Solutions Growth Capital Developments
Solaris Energy Infrastructure (NYSE:SEI) has raised its Q4 2024 Adjusted EBITDA guidance to $36-39 million, up from the previous $33-36 million range. The improvement is driven by enhanced utilization levels and better cost absorption in the Power Solutions segment, with an expected deployment of approximately 250 MW during Q4.
The company has ordered 9 additional 16.5 MW gas-fired turbines, adding 145 MW in generation capacity. Solaris plans to invest $160 million in growth capital, including $120 million for new turbines and $40 million for Selective Catalytic Reduction technology. The company expects to reach 680 MW of generation capacity by Q1 2026.
Solaris Energy Infrastructure (NYSE:SEI) ha rivisto al rialzo la sua previsione di EBITDA rettificato per il quarto trimestre del 2024 a 36-39 milioni di dollari, rispetto alla precedente fascia di 33-36 milioni di dollari. Il miglioramento è sostenuto da una maggiore attivazione e da una migliore assorbimento dei costi nel segmento delle Soluzioni Energetiche, con un dispiegamento previsto di circa 250 MW durante il Q4.
L'azienda ha ordinato 9 turbine a gas aggiuntive da 16,5 MW, aumentando la capacità di generazione di 145 MW. Solaris prevede di investire 160 milioni di dollari in capitale di crescita, di cui 120 milioni di dollari destinati a nuove turbine e 40 milioni di dollari per la tecnologia di Riduzione Catalitica Selettiva. L'azienda si aspetta di raggiungere una capacità di generazione di 680 MW entro il primo trimestre del 2026.
Solaris Energy Infrastructure (NYSE:SEI) ha aumentado su guía de EBITDA ajustado para el cuarto trimestre de 2024 a 36-39 millones de dólares, desde el rango anterior de 33-36 millones de dólares. La mejora se debe a niveles de utilización mejorados y una mejor absorción de costos en el segmento de Soluciones Energéticas, con un despliegue esperado de aproximadamente 250 MW durante el cuarto trimestre.
La compañía ha ordenado 9 turbinas de gas adicionales de 16.5 MW, agregando 145 MW en capacidad de generación. Solaris planea invertir 160 millones de dólares en capital de crecimiento, incluyendo 120 millones de dólares para nuevas turbinas y 40 millones de dólares para tecnología de Reducción Catalítica Selectiva. La compañía espera alcanzar 680 MW de capacidad de generación para el primer trimestre de 2026.
Solaris Energy Infrastructure (NYSE:SEI)는 2024년 4분기 조정 EBITDA 전망을 3,600만-3,900만 달러로 상향 조정했으며, 이전의 3,300만-3,600만 달러 범위에서 상승했습니다. 이번 개선은 전력 솔루션 부문에서의 활용 수준 향상과 비용 흡수 개선에 의해 이루어졌으며, 4분기 동안 약 250 MW의 배치가 예상됩니다.
회사는 추가로 9개의 16.5 MW 가스 터빈을 주문하여 145 MW의 발전 용량을 추가하고 있습니다. Solaris는 새로운 터빈에 1억 2천만 달러, 선택적 촉매 환원 기술에 4천만 달러를 포함하여 1억 6천만 달러를 성장 자본에 투자할 계획입니다. 회사는 2026년 1분기까지 680 MW의 발전 용량을 달성할 것으로 예상하고 있습니다.
Solaris Energy Infrastructure (NYSE:SEI) a relevé sa prévision d'EBITDA ajusté pour le quatrième trimestre 2024 à 36-39 millions de dollars, contre une fourchette précédente de 33-36 millions de dollars. L'amélioration est due à des niveaux d'utilisation accrus et une meilleure absorption des coûts dans le segment des Solutions Énergétiques, avec un déploiement prévu d'environ 250 MW au cours du quatrième trimestre.
L'entreprise a commandé 9 turbines à gaz supplémentaires de 16,5 MW, ajoutant 145 MW à la capacité de génération. Solaris prévoit d'investir 160 millions de dollars en capital de croissance, dont 120 millions de dollars pour de nouvelles turbines et 40 millions de dollars pour la technologie de réduction catalytique sélective. L'entreprise s'attend à atteindre une capacité de génération de 680 MW d'ici le premier trimestre 2026.
Solaris Energy Infrastructure (NYSE:SEI) hat seine EBITDA-Prognose für das vierte Quartal 2024 auf 36-39 Millionen Dollar angehoben, gegenüber der vorherigen Spanne von 33-36 Millionen Dollar. Die Verbesserung wird durch eine höhere Auslastung und eine bessere Kostenabsorption im Segment der Energielösungen erzielt, mit einem erwarteten Einsatz von etwa 250 MW im vierten Quartal.
Das Unternehmen hat 9 zusätzliche Gas-Turbinen mit je 16,5 MW bestellt und damit die Erzeugungskapazität um 145 MW erhöht. Solaris plant, 160 Millionen Dollar in Wachstumskapital zu investieren, darunter 120 Millionen Dollar für neue Turbinen und 40 Millionen Dollar für die selektive katalytische Reduktionstechnik. Das Unternehmen erwartet, bis zum ersten Quartal 2026 eine Erzeugungskapazität von 680 MW zu erreichen.
- Increased Q4 2024 Adjusted EBITDA guidance by $3 million
- Full utilization of current asset base with 250 MW deployment
- Strong operating cash flow generation expected in Q4
- 145 MW capacity expansion through new turbine orders
- Growing customer demand exceeding available capacity
- Significant capital expenditure of $160 million required for growth initiatives
Insights
The updated Q4 2024 guidance shows strong operational momentum, with Adjusted EBITDA projected at
The addition of 145 MW capacity through 9 new gas-fired turbines, bringing total capacity to 680 MW by Q1 2026, represents a substantial
Full utilization of current assets at 250 MW average deployment suggests strong pricing power and market positioning. The combination of capacity expansion and enhanced emissions technology positions SEI well for sustained growth in the power-as-a-service market.
The strategic expansion into emissions control technology through SCR implementation represents a significant competitive advantage in the power-as-a-service market. This move aligns with increasing environmental regulations and customer demands for cleaner power solutions.
The full utilization of current assets and rapid capacity expansion indicates strong market dynamics in behind-the-meter power applications. The decision to increase fleet size by 145 MW suggests confidence in sustained demand and ability to secure long-term contracts. The focus on site design and engineering complexities for longer-term installations demonstrates evolution from simple power provision to comprehensive energy infrastructure solutions.
Fourth Quarter 2024 Financial and Operational Update
The Company is increasing its fourth quarter 2024 Adjusted EBITDA* guidance to a range of
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
“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.”
Footnotes:
* |
|
Non-GAAP financial measure. Please see “About Non-GAAP Measures” below. |
About Solaris Energy Infrastructure, Inc.
Solaris Energy Infrastructure, Inc. (NYSE:SEI) provides scalable equipment-based solutions for use in distributed power generation as well as the management of raw materials used in the completion of oil and natural gas wells. Headquartered in
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, statements with respect to the Company’s expectations of business plans, strategies, objectives and anticipated financial and operating results of the Company for the three months ending December 31, 2024, including the Company’s future profitability, expected capital expenditures and the impact of such expenditures on performance, current and potential future long-term contracts, the Company’s business and financial performance and results of operations and other guidance included in this press release, and the other risks discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 27, 2024 and in Part II, Item 1A. “Risk Factors” in our Quarterly Report on Form 10-Q for the quarters ended June 30, 2024 and September 30, 2024 filed with the SEC on August 9, 2024 and November 7, 2024, respectively. 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.
About Non-GAAP Measures
Management believes that Adjusted EBITDA provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects the core operating results of the Company’s businesses and helps facilitate comparisons of operating performance across periods. We define EBITDA as net income, plus (i) depreciation and amortization expense, (ii) interest expense and (iii) income tax expense. We define Adjusted EBITDA as EBITDA plus (i) stock-based compensation expense and (ii) certain non-cash items and extraordinary, unusual or non-recurring gains, losses or expenses.
Although management believes the aforementioned non-GAAP financial measure is a good tool for internal use and the investment community in evaluating Solaris’s overall financial performance, the foregoing non-GAAP financial measure should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. However, no reconciliations of this non-GAAP measure to its most directly comparable GAAP measure is available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of our control and/or cannot be reasonably predicted given we have not completed any reporting processes for the period presented.
Preliminary Estimate
This press release provides a preliminary estimate of our Adjusted EBITDA for the three months ending December 31, 2024. This preliminary estimate is derived from our internal records and is based on the most current information available to management. Our normal reporting processes with respect to the foregoing preliminary estimate have not been fully completed and, during the course of our review process on this preliminary estimate, we could identify items that would require us to make adjustments and which could affect our final results. Any such adjustments could be material. This preliminary estimate has not been audited or reviewed by our independent auditors nor have our independent auditors performed any procedures with respect to this information or expressed any opinion or any form of assurance on such information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241204678559/en/
Yvonne Fletcher
Senior Vice President, Finance and Investor Relations
(281) 501-3070
IR@solaris-energy.com
Source: Solaris Energy Infrastructure, Inc.
FAQ
What is Solaris Energy Infrastructure's (SEI) updated Q4 2024 EBITDA guidance?
How many new turbines has SEI ordered in Q4 2024?
What is SEI's expected total generation capacity by Q1 2026?
How much is SEI investing in its growth capital program?
