Solaris Oilfield Infrastructure Announces Enhanced Shareholder Return Framework, Dividend Increase and Authorization of $50 Million Share Repurchase Program

Rhea-AI Summary

Solaris Oilfield Infrastructure (NYSE:SOI) announced an enhanced shareholder return program, increasing its quarterly cash dividend to $0.11 per share and authorizing a $50 million share repurchase program. The dividend reflects a 5% increase and will be paid on March 24, 2023. Solaris has returned approximately $112 million to shareholders since 2018. The share buyback could retire approximately 11% of outstanding shares, enhancing shareholder value. The company aims to return at least 50% of free cash flow to shareholders, showing confidence in its future prospects.

Positive

• Increased quarterly cash dividend to $0.11 per share, up 5%.
• Authorized $50 million share repurchase program, potentially retiring 11% of outstanding shares.
• Return of approximately $112 million to shareholders since 2018.
• Plan to distribute at least 50% of free cash flow to shareholders.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) (“Solaris” or the “Company”) announced today that its Board of Directors has approved an enhanced shareholder return program, including an increase in the Company’s quarterly cash dividend to $0.11 per share and authorization of a $50 million share repurchase program.

“Solaris has a strong record of returning cash to shareholders. We have returned approximately $112 million since 2018 through dividends and share repurchases and were one of the few companies in our industry that maintained its dividend through all points of the cycle,” Solaris’ Chairman and Chief Executive Officer Bill Zartler commented. “Our recent investments in new technology have increased, and we expect will continue to increase, Solaris’ cash flow. We plan to return at least 50% of free cash flow to shareholders through dividends and share repurchases, demonstrating our confidence in Solaris’ offerings, customers, employees and value proposition.”

The first quarter 2023 dividend of $0.11 per share represents an increase of approximately 5% and is to be paid on March 24, 2023 to holders of record as of March 14, 2023. A distribution of $0.11 per unit has also been approved for holders of units in Solaris Oilfield Infrastructure, LLC, which is subject to the same payment and record dates. This announcement represents Solaris’ 2^nd dividend increase and its 18^th consecutive quarterly dividend.

The $50 million share repurchase authorization is effective immediately and does not have a fixed expiration date. Assuming full execution of the repurchase program at the current share price, the Company would expect the retirement of approximately 11% of the Company’s outstanding shares. All purchases will be made in accordance with applicable securities laws from time to time in the open-market or through private transactions, depending on market conditions, may be made pursuant to a trading plan meeting the requirements of Rule 10b-18 under the Securities Exchange Act of 1934, and may be discontinued at any time.

The shareholder return target, including the amount and timing of any dividend payments and/or share repurchases, are subject to the discretion of the Company's Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company's credit agreements and other factors. Free cash flow, a non-GAAP financial measure, is defined as net cash provided by operating activities less investment in property, plant and equipment.

About Solaris Oilfield Infrastructure, Inc.

Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) provides mobile equipment that drives supply chain and execution efficiencies in the completion of oil and natural gas wells. Solaris’ patented equipment and systems are deployed across oil and natural gas basins in the United States. 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, 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, the Company’s share repurchase program and the projected timing, our business strategy, our industry, our future profitability, the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the volatility in global oil markets and the COVID-19 pandemic, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future 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/20230302005859/en/

Yvonne Fletcher

Senior Vice President, Finance and Investor Relations

(281) 501-3070

IR@solarisoilfield.com

Source: Solaris Oilfield Infrastructure, Inc.

FAQ

What is the new dividend amount for Solaris Oilfield Infrastructure (SOI)?

The new quarterly cash dividend for Solaris Oilfield Infrastructure (SOI) is $0.11 per share.

When will the new dividend be paid for Solaris Oilfield Infrastructure (SOI)?

The new dividend will be paid on March 24, 2023, to holders of record as of March 14, 2023.

What is the purpose of the $50 million share repurchase program for SOI?

The $50 million share repurchase program aims to enhance shareholder value by potentially retiring approximately 11% of the company's outstanding shares.

How much has Solaris Oilfield Infrastructure (SOI) returned to shareholders since 2018?

Solaris Oilfield Infrastructure (SOI) has returned approximately $112 million to shareholders since 2018 through dividends and share buybacks.