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SOI Solaris Oilfield Infrastructure

Participants
Bill Zartler Chairman and CEO
Kyle Ramachandran President and CFO
Yvonne Fletcher SVP, Finance and IR
George O’Leary TPH & Company
John Hunter Cowen & Company
Stephen Gengaro Stifel Financial Corp.
Ian MacPherson Simmons & Company
J.B. Lowe Citi
Thomas Curran B. Riley FBR, Inc.
Chris Voie Wells Fargo
Samantha Hoh Evercore ISI
Call transcript
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Operator

Good day, and welcome to the Solaris Fourth Quarter 2020 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today’s event is being recorded. I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President, Finance and Investor Relations. ma’am. ahead, go Please

Yvonne Fletcher

CFO, morning, Conference to by Call. Bill President and Good Quarter our Solaris XXXX CEO, and our and Earnings I’m Zartler; Ramachandran. and Rocco. the welcome Fourth Chairman Kyle Thanks, joined today

future you a Please Such Before cautionary refer along our include forward-looking of of statements remarks to to we risks. number that risks. our press public of with release regarding yesterday, unknown nature standard known also and the forward-looking point may those to release of statements issued our we earnings that and financial the with filings like will like and reflect begin, that I would outline some recent I’d other results out remind Exchange the and regarding make Securities comments Commission today. Chairman will today’s discussion in as performance. information we isolation considered financial believe evaluating measures, accordance presentation in be non-GAAP should of which of our the results useful Zartler. prepared with this substitute additional over GAAP for News in available release, be earnings section. The conference can our call, not under on measures now at is comparable a contain or posted I’ll turn GAAP. in which our our the Bill are to website Reconciliations and to CEO, solarisoilfield.com call

Bill Zartler

that members community. families company's year and loss friends our joining weather, appears all XXXX twist, water was Solaris week's resulting XXXX today. power in interesting and us in without your the managed are an and Yvonne, you, for for of unprecedented want through the and good it. and most and doubt everyone, last Thank we team make I'm with many to how our off challenging sure thanks cold morning, to a of proud start safe history, of following of

damage full as operational, property, to again, people water. wait much is weather not still repair known, do access completely the running to many are and have still many clean impact not this While homes of infrastructure to event and

so much and and have to return work normal. years, We the customers, quick ensure employees, to with a over several communities, last will overcome we our

close Our to quality earlier got so the work quickly team innovate, safely. half during We year, environments, the halt to activity evolving the in level ramped importantly, came reacted to in of then our a provide the and to back did US to to continued we of completion leaner, XXXX up swiftly and continued service and most back adapted highest customers, year.

prices. another debt-free As year a steady and of $XX, subdued we commodity maintained dividend. to the barrel during holiday cash experienced produced the the activity we a fourth year. We our typically quarter Thanksgiving between free XX WTI mid-XXs that positive the a saw close and a continued improved flow, from in per recover benefited to the to result, from pay and Completions lower frac balance shareholders of end sheet,

generated cash We dividend. million our positive ended $XX and $X over Solaris sequential XX% utilized $XX increase in fourth million. We the ninth with eighth approximately We quarterly systems increase. we a consecutive no paid deployed to basis to the cash on EBITDA generated a sequentially during million. XX% revenue of quarter, our XX XX% quarterly free sequential debt. increased year flow, consecutive Adjusted fully a and

continued activity supporting completion the commodity prices have continued and in rig climb, of quarter to increases count. in the far, So first XXXX,

in by including oil of the driven at and look multiple the levels resulting remainder of potential pace be ultimate supply-demand activity we gas. economic recovery, will and the factors, regulatory the As year, changes, balance

completions, continuing continues M&A despite prices, activity. began sheets to from to and the to as balance from for any Lean lowering industry public on consolidation wellbore the zipper the dividends, well by company well data mature, many as From the plug-and-perf discipline in operational as then fluctuation for they parallel, manufacturing we value from industry and most by recent to operations safely reliable optimization, the core In and its operators, single focused shale continual for Solaris we economical as wellbore, financial of stage. country pads, to one pursuit our at customers. see other two a are shale completions produce fracs. optimizing perform of of carbon being wellbores way prioritizing in to operational customers in mature bring in many fracturing we and and efficiency, energy increases drilling continued on US alternating world. continue digest commodity transition expect areas efficiency about to With to excellence, came fracs, zipper The today. perforating is multi-well is and done utilized technologies the our to this stage of with US footprint, development We transitioning then excited industry, sequence maturation, our while

we're step the change, Now, simul-fracs. seeing next

result day. more levels have The operations, day, jobs is we’re pumped simul-frac of recently, our these same sand at wellbores separate achieve During customers more per fracturing a on number of and reduced of per time. significantly stages throughput been or evolution record net of this completed and the pumping We've amount helped sand two time. idle per day,

the for simul-fracs supply, important operator, benefit technology stake. every to when pad While trend become our is large, well wells more are believe having of continue, them. delivery every work try increasing won't We two and should this sand, at capabilities, and a likely of on positioned seeing are reliable number buffer most as even water operators and we an chemical,

we've operators increase reduce seen frac an electric look fleets. their in carbon to As overall footprint,

lower further The years, for and improving noise, integrated has our power reminder, reliability, used into push equipment eliminating the and a tying As the frac and reliability need been increased direct Sustainability on as has pump efficiency, electric fleets, of overall improving the to a with sustainability our committed cost. reducing goals. but carbon footprint costs, to XXXX% also for by the for just several And not giving and generators This cost always directly fuel, and facets access, electric. community. and we improve lower Solaris affordable energy to have social trucks, such tie environmental to Solaris’ aspects, being to diesel includes same back means emissions, equally industry's continuing and side, ESG. the all

shareholder is energy and I'll us, with our we’ve important as to a capital multiple cycle. all last of our ensure we fellow to over progress. shown on creates As to by and Kyle stakeholders which returns, to insiders, through good societies energy I shown, weather help sustainability over affordable throughout goals. on event for our of week's stewardship company these can XX% strong this of strong a requirement extreme basic past to working access support including a to and to our discipline is look has only balance flourish, our capital equally of our engagement further alignment I are on types reliable Governance forward shareholders. that. to turn dividend investors what next continuing with is held through further the it our hope expand

Kyle Ramachandran

low focus which good created Solaris. Bill, on well years start where a From has bottlenecks saw water, improving catalyst ago, there site, pressure and stored. chemicals We and seven our side on our Thanks, a the sand, always beginning, of morning, to are everyone. operations been

course to seven challenges to of Today, for Over introduce latest additional I'd identify years, and the last Solaris to the we've innovation. our innovate. opportunities like continued disruptive

years, the system, that in patent-pending physical and team plus innovative We're solution it. industry our technology and the design design human footprint both extends automation, a our up electric a pressurized operated automatically blender problematic down driving our sand unit team and replacing the as Our eliminating on built basic our the chemicals, The pack manufacturing slurry system of reducing sand and the At remotely. mixing or we has function missile, deliver location, improved costs hydrated directly screws blender The first sand has built blenders under from frac sand high Like hasn't to over the sits silos. a and changed delivery and a freeing we years. storage customers. a but has traditional traditional engineering all and equipment, space traditional either will XX to all a equipment our is designed immediately of and that hydraulics. true six with combine know water, for level, traditional and have through to it

day been open in to it Please to show have thought With industry delivery key important new amount will simul-fracs, system have is commercial interested setup, but and move an Solaris and to also immediately opportunity and and during a on pumped In addition, multiple working at stationed new need location, to hopper to industry, increasing XXXX, us innovative you're we blender been for to further of highlighting yet attending. particularly one mixed roots, our our expect Technology towards. is equipment if you out weeks. maximum reliability per full be model dust system to of to during trials eliminates sands, to location in traditional technology a potential focus on the what customers outdoors has this The delivery our for I'll and distance We've with our uptime. higher testing a also detailed March of field the for of will reduce ensure which review. and person mine, hand Yvonne completed in we be levels more the early suite the due of hopper. of addition Midland our sand now that, plenty final the in the We've we've determined begin increasing turbidity say that continuing water. found auto on at with dust. allow sand safe. some to of to was initial regional financial at the sand a over is coming Dust for reach In not becoming times the We'll as social to the true fugitive and for technology, newest redundancies house it it two-day

Yvonne Fletcher

Thanks, increase basis. last from XX an customers, driven revenue has that systems fourth reminder, cash $X $X contribution Kyle. some similar can sequential mile of flow services, typical we a system, tires as as sequentially, generated of free averaged which revenue component which quarter, trucking million, large on To approximately positive as to the adjusted million a XX% a numbers, EBITDA a deployed recap and dollar increase. activity, nearly a Total We during our margins in than $XX increased well multiple contributes XX% rental utilized fully increase but represents million. of by of revenue, over the an in be

XX of fourth total Over the quarter, a course quarter. systems, with the of which of utilization worked degrees the proppant in deployed we varying

calculation believe utilized quarter, Our XX modeling in the systems reflects purposes. that which measure every of fully the is systems the we of for generated revenue best day equivalent number

For full in response XXXX. In an to generated industry of year we the million, fully for XX million, capital $X of XXXX, adjusted and nearly systems. EBITDA reduced year compared average $XX expenditures about we of to million utilized $XX on the spent downturn, $XXX to revenue million

approximately a in $XX expenditures cash went flat cash, year, share ended year. quarter the towards to was the in total was million. systems, cash and the despite million. million enhancements well year. in developments million our dividend of $XX million, capital nearly We Kyle $X.X $XX from approximately the the third million returned $XX CapEx million new existing following design in quarter, $XX a the was earlier which as fourth flow Our dividends, XXXX with positive $XX the in approximately in for approximately downturn, which of payment after repurchases highlighted. was We slightly of $XX as free to with predominantly Operating product down in shareholders million year XXXX, $X And total some of our prior flow million

Turning to our outlook.

XX% deployed systems from quarter in approximately fourth XXXX levels. up January, Solaris’ were

cases, completion were first on by other now will basins get and continue in initially gas service American financials. that the event North Many bottlenecks in supply last chain another worked week delayed by weather week, some the seeing flip Texas jobs and have noted an As companies, quarter out. a impact we in as to oil are week's

SG&A activity levels return next up activity in we to the XX% to fourth range our $X.X first inclusive compensation. costs to be approximately were a the the the normal million, XX% Total in quarter. for in Assuming of stock-based non-cash expect week, quarter

non-cash inclusive $X.X $X For compensation. of stock the million, expensing the to XXXX, we total to normally first quarterly quarter expect of SG&A be of between million

For $XX million $X the compared in to capital XXXX. full spending year XXXX, we million expect to to in of $X our be million range

development, be on We technology. enhancements, system focused similarly expect spending software new to and

industry. Looking into while to investments cash during excited capital product an made XXXX, with shown our maintaining and and as company our prospects enhanced commitment We've we an debt-free entering balance a about sheet downturn, We and balance. a were discipline maintaining our are XXXX the dividend strong recycle, by offering.

but matches threshold. our M&A right both have have not and found fit We many the return that opportunities, evaluated strategic yet

continue will that, evaluate We and returning opportunities, we your happy opportunistically to and With growth to remain committed be cash both inorganic would questions. and we thoughtfully take organic to to shareholders.

Operator

& first Please from [Operator the go session. Thank you. Company. O’Leary question begin Instructions] We’ll Today's now with question-and-answer ahead. comes TPH George

George O’Leary

Morning, Kyle, morning, Bill, morning, Yvonne.

of you like removes fairly yet, the and what displace one talk smaller have know more underneath done wonder idea trials around you this found bit you those field make given thoughts from what size seems I be problematic can to or silos. the kind side. - most but new a looks well on it way up reliability the this - the Just thing blender the on the replaces that like blender haven't fits little the how it could and I that side, with you a about and the the of here, blender well is the guys important technology components often to came if rollout

Bill Zartler

it drew pieces out George, equipment what the blender sort the you'll being is on think well what us of I are unreliable started see the your of Well, company jobs half the last That's visiting how problematic, and evaluating, and most side? took close a And to next you sentence, backup exactly that time there, a our going works because parking of we the at look in created system, problem. a together, was belt. as sort replaces did what blank what lot as the a fits, sitting how to it's door possible, system and know blender be

the two unreliable pieces systems. the are most belt So blender the and

that And tubs it's it's the of of that's And so, yet, of to And mixing set on the millions as on going delivery promising. fluid silos, details pumps it's to reliably. so far a between Obviously, all all millions way with blender where flow we sand and reliability minimizing it taken but we've worked those done we'll far it replaced it put up, that, is the away to need belt very movement. that another put ensure mechanisms so we're you've the are say the the piece and problem, that's but and all the that we under-screw, allowing through way is sets worked work replacing there, setup. and on millions pounds of rotating to and

Kyle Ramachandran

footprints. Yes. got in right? interesting So efficiency expand but you footprint One of the their perspectives. a out other there. an lose to that more the It’s footprint, operators point The simul-frac don't some simul-frac, trend number equipment of the on the challenges you’ve more in is the sense one exist want from money,

horsepower. You've got more pumping

the between system, sand, And simul-fracs. what to is we've chemicals, able to so, further continue compress been now allow to more to do mixing footprint those pumps this water, get and service and in to

George O’Leary

strokes how systems or broad wells of ago share for Got sit Have where were as with both. dual-frac it. any you simul-fraction, seeing Could your simul-fracs that thought sticking many you in And were today? Thank you then six the frame us? you you that months a topic, versus XX on, where brush simul-frac is pie. completions That’s increasing very helpful. overall about

Kyle Ramachandran

up. It's

One multiple different talk there's the to approaches simul-fracs. about is, we always things of

ironed looks has out really like. anyone think setup don't standard the what I So

challenges certain the much benefit pads that numbers clean as three a or have don't five at eight, wells, seven and of four not nice or is One sort even you look when like nearly simul-frac. of drive

had operators them never starting couple and who more of try this more previously year. it's So, to momentum. a We've seen done them, gain

momentum. on think a is the may we’ll not it it we work I enough the next simul-frac, So a percent it say flow gaining from where is pad because X it's data our simul-fracs be something that quantification standpoint, pad, tend to one points at But does be. that's don't where of with definitely to have customer

George O’Leary

flattens prices fair in thinking across And count issues in Okay, of are exit And spread of going thought seem but are, really the where there production frac growth enough. US most schools rig another next guys school table. year. assume up the of just February chasing they as of some year, kind that be And helpful. kind count hang fracs about then just the That’s thought. acutely the weather Texas we related on rise this early the to there's to in out that then US, trajectory be two and commodity year, quickly if aside. of across flat One, year,

you to you seeing? achieve guess, customers? think the in in you frac So beyond are to of that spread the from quarter? half, start what count that term kind are growth I hearing XXXX. back What just you medium about How do ramping next have

Kyle Ramachandran

do they Well, I growth oil multiple think at it got got $X that kind this together, their where dynamics in it's were we most not the when probably high fleets, spending in against certainly go and we activity we capital sort from on about calculate putting budget, you've thinking look year, weren't $XX efficiencies of spending. capital But at of I think budgets, the budgets a continued level at if frac least margin. when see increase When operator we look gas.

So very the is commodity think I constructive.

going that's commodity. to of just the I supply pent component the demand a support on demand think overall up there's ton

we operators out remarks, prepared There the the I mean, shoots the of mentioned we in about year. there be - excited will rest of like will I disciplined, there. green as think feel are be but we kind So, some feel

George O’Leary

Thanks, right, guys. All I'll over. it turn back

Operator

And Please from today the go John with ahead. Hunter comes Cowen. next question

John Hunter

Hey, good morning.

So I'm different a I along curious, bit as and December have the you that were, year? with plan same November line perhaps guess conversations discussions XXXX your you customers more constructive, price questioning, than being little with the of commodity for initial had in

Bill Zartler

a it's interested. I think mean, I I folks we've think more net seen increase.

this a little third price It what privates guys XXXX the the to up may really quarter what I and even between and plan, the of looking here. think a completion and it's large pricing spread on the fourth stack, moving but maybe publics, the been have at a depends bit all are happens to XXXX.

there an be ending will and well. increase, the drilling season prices, are, is So constructive obviously gas-only very inventories, where gas the on low they maybe as

John Hunter

January, And for XX% the XX%. think about me XX% Bill. that with up the first equivalent XX%, the January to or is thought guidance tracking exit Thanks, the where there were to help XX%? bookends then for those in activity can you way to one we Is on any quarter, up March is of

Kyle Ramachandran

of had as sand turning last easy limits much bookends the before how back down. ramp or the persisted. to not they dry chain The gas were them take a bit The We it's supply out know, so. everything we time And on. does things of consume sand. could slow that's Many XX obviously mines. on by as I Houston, see driven in to just back days storm and are Midland, hit don’t days XX And the really to started

So some there. tightness we'll see

tight, little trucking is probably pockets going to and a bit ramping is chain So here of challenges have up. the some back supply

when piece, our more been these in nearly provide the really guidance. much has business So that's you'd about on we've of count business. for stage range not as the business had weather say mile driven But many sort our grown last talked I Historically, as events, has we see a impacted as think we've in quarters.

is business a tons And so, obviously driven that pumped metrics. on

a when not So being lot that we've week, down of a got there's pumped. jobs for are whole tons obviously

aside, about of we're Had sort the providing why quarter and I weather event weather that's well. up the January range. we think feel the is, very talked XX%, think evolving we I not So like being happened,

have think that looked weather little I a So event. we if seen hadn't would bit different our - guidance that

the that's - figure to again, why trying early range. still provided So but on that's all we're and we’ve it out,

John Hunter

and And then dividend. That's flow me helpful, outlook on year, the for one last the your Kyle. cash I guess for after just cash is

$XX how remain So your that? levels of adjust million $X that at gave you cash cash or you'll you are about CapEx. thought you thinking us the can Is such this in neutral million that CapEx least generative, to or XXXX,

Bill Zartler

depends spending ultimately new success our going be. it is capital swing the to think is I on in where

we're product a that managing we're to spend whether on. we think I cash. we that necessarily managing want not to have money

spending have we on so, developments. new these ramp started up And some to of

a that's And else so, anything probably point swing greater this than time. at in

John Hunter

Okay. Thanks. I'll turn it back.

Operator

from Gengaro comes Stephen Stifel. today question ahead. next the with Please And go

Stephen Gengaro

Good everybody. Thanks. morning,

levels? $X curious new think when Just $XX much maintenance million and a new at developing is is guided the of much about that of vein, similar to the technology, targeted you think we I million How sort of technology on and CapEx year. how this

Kyle Ramachandran

year spent Last and new on $X technology. bit a was million, little we

So the capital March, in technology rolled year. the being spent here of was last lot out a that's

the But year-over-year, will non-growth increment So having in you growth I where $X that this a think perspective, million, is the be. think be will about from the mix think both. of $XX million most to the the about so flat I can of piece we year, when think million $X

Stephen Gengaro

more captures And maybe of at as your your forward? silos but there share does, you site, about And recently. share at customer have technology, talked it evolved? it when as much Great. of then which benefits new you sort think as has this about mitigation clearly was think do you those do along change the that pricing well one there structure, same and Thank your there least sand about the been think you. then revenue you things out came going far lines, it think affects market When

Bill Zartler

how share. to early tell on too is impacts It that

because I with think and today. fits and for share new a setup target so And blender, have But have the that's market the minimizes our think it market in high that been I share - real new (unintelligible) pricing electric has forward service think frac we model. looking when footprint. relative I fleets well at we a economics,

level down some So our as have, it as with job commoditized done it on hopefully customers, pricing that a not we’ve more much we're really sustaining moving and products and good pretty up steady. a kept

I a So try going price throughout to don't of suspect the we're create that whole lot to year. increases

I got the want capacity, and us Hopefully want in whenever to put We We but provide to downturn, the customer. it to think it's that we work. with we've plenty want of be a for there good job to is. we'll next them see. XXXX,

Stephen Gengaro

Okay. Thank you.

Operator

next Simmons. question ahead. MacPherson the Please. Go comes from Ian And with today

Ian MacPherson

also ask The friction wanted Thanks. Good - blending I system. capital-intensive you're I pressure could have pumpers late everyone. points would some you're a as whenever be morning, new imagine about incumbent. there displacing your to setup.

simul-frac fleet wonder to this sites. points I - electric your friction be side, to aligned obviously more seems and and well on well so, you're But as see you a where the how you sort your look problem-solver you with congested see natural of And penetrate alliance you where this? - for do

Bill Zartler

silo and start a ago, but you seven I’ll capital if equipment Kyle a that pumper displaced years let of maybe back go finish, piece every owned.

the well reliable, seen safer So equipment, that providing more equipment adds the some better we've value. on side actually evolution of

think there. add So value a there's we

But have the that. model be energy, through think equipment and fracking. believe yet going customers, to I with we're working revenue a reliability, we As the fully model that we the place saves of mentioned, that fundamentally, improves the will structure that saves people, in of we chain and and haven't our defined business

Kyle Ramachandran

And last and we lots I this ago, blenders cadence worked. a is own year And the looks to interesting, with I've looks year interesting. around pumpers. be operators pumpers I'm That got was, this discussions my technology. going the of the of And having focusing that lot really of from getting but that really spent think a mainly

of and incurred capital blenders Over it it's like keep continued the lot to a work, sort anything going. maintenance last maintenance else, year, those of and to have

it and think how update theoretical, more more seeing the And we've built they're the I is. given condense the us. actually with being are isn't work much it. interested and business are and in rolled and of their they capabilities so, this and as people evolve well the out here seeing people can need more here and of footprint, benefits figuring This consumed it, to We’ve sand with out

So but model the I innovation is due technology out will recognizing to piece worked that commercial it's and industry a is course, in innovative be think success. the of key

Ian MacPherson

Thank we your margin you regarding to Kyle, higher. also ask for you incrementals outlook a Very interesting. wanted follow-up I the to continue as both. ramp

technology from we to behind you business, margins current aspiration? what do get but then During that EBITDA the revenues cycle last And separate do XX%, we've business, the just we've true XX% might of mid back them been EBITDA think on of your to north XX%, new growing get off plausible as or cycle is some into I a momentum quarters, bottom from opportunity bit ‘XX consistently, were pretty couple XX%. and into ‘XX as were coming irrespective when the think, incrementals seen little the business the the the more the past

Kyle Ramachandran

Yes, Yes. evolved. business Thanks, has Ian. I think the

margin at we last component. the speaking, ‘XX large to generally The sort we last XX% didn't And period, looked because ‘XX XX% to it business, do so, has the mile call of when of mile a time any work. trucking

back because would the to business So we're on we did basis, it's we look like where doing and has then, EBITDA at today more I that say an percentage really we and are things. look evolved hard think

maintenance a same is, lean do So the I that with think of of figured that do we've operations hit becomes the run people got to insights a challenge. ways out would to to really But our cost things remote one us business sort structure. work. intelligently, more required of allow I on the into fewer We’ve and amount

we’re think those I peak-over-peak the but evolved. EBITDA just kinds making because margins of challenging So investments, are business has the

Ian MacPherson

XX% to forma Yes, you been ask higher time. more, Would in XX the one been QX, XX% that if pro Q&A the activity a little it at have going would teased stab has weather excluding that? This could or but was take there's for us, you increase sense. recent impacts? a that or I makes points already to bit, X

Kyle Ramachandran

Well, I think what we talked was about is up January XX%.

what it's And sort be, pro weather not be a will frank. so, think we're trying I perfectly to to forma, because impact quite done from yet the out still

Ian MacPherson

quote the We'll follow Thank Okay. later up you, gentlemen. on that. on

Operator

And go ahead. next from Lowe with today J.B. Citi. question our comes Please

J.B. Lowe

well. Yvonne. doing Hey, morning, Bill, guys Kyle, Hope are you

know your to about initiatives I Just quickly I the technology the on careful that guys Street. messaging mean, - you are pretty

that customers it new strictly it So you're to some downtime like you're piece of have pitch? types in effort? that it's downtime Was was could reduction the guys What's to the reduction potential put a around Was be you of kind the the talking new good footprint potential pitch? side? If when when and when this to out. like that could customers, helpful. what talking thing you this - more on have about wondering, were I'm just numbers hear to what would your going customers technology, you coming

Bill Zartler

a the pieces equipment pitching old of that mechanically numbers idea. more This is point. than are in this bunch much things. I the way at an challenges. of reliability doing process sound mean, We've removed not We’re this is of

of but it more something is removes and - as helps itself gather that's That’s footprint. benefits obviously, when lot think, amongst just people. through And that put when so more those on more driver, a important, well have important not that I as much pretty shrink - having we the outstanding look on is it. And automated does an that are Really to sort you reliable. does side. what that data you

Kyle Ramachandran

logical, mean, to plan, just I today. what's you it's lean look going if on the manufacturing, at back And

We’re has then it that a and on delivering a that loading belts it tub. hopper silos, into into them putting conveyors move

We’re just eliminating lot steps. a kind of those of

So the reliable let's is efficient it why do all doing pitch are more this? basically, we way. in a and And

well. So, I think resonates it

J.B. Lowe

mentioned looking which I at just guys at, just look what next to maybe you're looking is in you're you the bit. side? potential of the a that hearing it more acquisitions. into? that Yes. exactly you but more kind about to terms could Is look piece. it mile little Just front. discuss that. about a wondering Okay. becoming to a on sense is Is I'll know, necessarily guys on The if bigger want we one I more you talk forward of would direction of last software know something equipment? don't M&A well-side that expand that Kyle, Is

Bill Zartler

above. well the they has I like that piece the do it clearly what all need we’re right or price do low that ability improve acquiring at think build it's pressure to do of something up our side that. still that it and all side logistics whether the be the tucking the into to all - have additional And and return right supply sense we’re Whether they like platform. of of before that? we activity. you - support needs and additional other or technologies, But profile companies look to of for and manage it's we anything. ourselves But at acquiring recreate. above at, We to businesses can't how to the into, the wrapped make improve it's selective skillsets the it's from We

J.B. Lowe

there? or new Just does technology? of with the And any systems, any last chemical of me great. piece the front it be the on is system, How great. just does the how chemical combined kind with that on update Okay, this does would update - one for combine -

Kyle Ramachandran

into well well. well the of system. chemical Yes. The as No, notion delivery we're it system, this running I that think ties as does all combine remotely, the

of there the of couple and and put three back silos back history When kind So update, little water the the the we proposition. it acquired were go as couple in a had we again, most XX customers, of been like piece value silos, continue out I'll think an have - a of maybe just do for them the on to add, but of built really fence built picked they was we XX ago, company, for a last one number And we XX-K, together. we think months and we business quarters working couple a set One I year. the probably for they've but for to well XXXX, last in water of had year. up I

that you condensing it's again, allows your so, well to efficiently. the And pumping to a hydrostatic providing site footprint, head use more capacity

on. that so, our we've eyes got And something that's

them about we've and again, so, talked blending always water, sand, chemicals, And now all.

that's well. interesting watch as to so, And kind of

J.B. Lowe

Okay, great. Thanks for taking the questions.

Yvonne Fletcher

say really that. clarify we When on to belt, we Just mean converted.

So what two is you'll have then see the we sets of silos, and chemicals. XX K in XXX systems sand and water now,

Okay.

J.B. Lowe

the time. Okay. That’s interesting. right. All for Thanks

Operator

Please Curran question comes B. today ahead. go Thomas Securities. with from Riley The next

Thomas Curran

aspects Are to system morning. in there new this enable the create that Good potential Solaris leverage lens ways? new or blending should of any

Bill Zartler

support how you data we the all is mean, same that the what in manage in I platform. deliver Absolutely. and

that is level, the the getting the and ways So Solaris blending. to lens blender and now through tracking densitometer, we're feedback at accurate ensure and monitoring activity

All same platform. of coming is through data that the

Thomas Curran

private what you critical box market what then private side? consolidation And competitive smaller pursue Just seen turning that especially reactivate mass? on changes Great. happening to side? trends to you you silo highlight more or Have or the you've would would on pursue recent landscape, and rivals, the seen ones, highlight the that start or assets,

Kyle Ramachandran

I a and people that through really XX one been go ton. provider lot The sand it continuing hasn't and not seeing, mean, consolidation. truckload. we're process. We seeing Chapter of more get to innovations more I'm per saw try are honestly, their a

our quickly? we've continue trucks use pricing, that become How that more more but of that drive a efficiency. not constructive a work to see economics turn theme. was continues think I be another some to picked I be become because And some make continues are a to ways you people do seen us you in do - - factor or in which got continues different in to with aggressive drive how to for ways. pricing we provider trucking use That to pricing, up not mean, the pricing us anecdotally, require to marketplace, up return. good

little bit we on have margin. the a So seen

Thomas Curran

That's Thanks questions. taking Interesting. my helpful. for

Operator

question ahead. Fargo. go comes And Please from Wells Chris with Voie today our next

Chris Voie

morning. Good Thanks.

how question Just one systems systems. on or chemical a with for more well? will to the have chemical to Will conventional new need blender silo work, as interacts it you the this work with

Kyle Ramachandran

well. systems No. It work as with will conventional

Chris Voie

Okay. And … it. then Got

Kyle Ramachandran

side you system. the more - making people, to condensed, well go the safer more think chemical and you eliminating are obviated some efficiencies just I traditional when around a

Chris Voie

it. Got

chemical Okay. And this expect well? CapEx systems year higher. do mean, in invest more then, budget the you I as to is much not

You it didn't invest year. last in much

if to at curious you all. Just that expect grow

Kyle Ramachandran

adoption we of I for increase before additional add. pretty any a I in level We'd capital deploy we’re No. current rate mean, see significant have supplied well our kind think of to activity. the today

Chris Voie

across the there. it Okay. That's plus I Just describe more that Is just helpful. can curious And sneak the in. looking that's out? spread of growth how if XX% you this little is of And in vast majority one for basins? Permian? XX% the to can maybe growth a some quarter, color

Kyle Ramachandran

I pretty think distributed. well it's

- I we're oil based a if commodity, think So seeing on gas perform and well. right?

it look to So East But a Northeast, Louisiana, be. well. performing basin our large we time, I are the when and those at mean, for very has Permian continues Texas, basins been yes, the long

as the growth benefiting that so we up from And well. picked are there has that

Chris Voie

Thank Great. you.

Operator

Hoh And with ahead. go comes Evercore the ISI. Please Samantha next question from

Samantha Hoh

discernible stations? the gas just I the seeing and just in trends XQ. Bill Are involved oily operators, guys. of and And see could the aggressiveness wanted more between the in Quick you if operators. large private about larger private Hey, his about on any elaborate versus getting spread in comment potentially to guys their terms question Good also morning. the

Bill Zartler

on Well, point information I course. are people's anecdotal plans at this all for there's think the - what it's

I maybe certain think it has thought up certainly prices a than gone people commodity little would. the quicker

have quite quiet versus may XXXX. year something eyebrows word, incrementally towards to right but and And there and steady here, of steady, the steady plans of so, the it's really - not big be make half last or to the had some sense be some that some year the may guys it raised very this is add maybe in

that's we folks speed that at I have to the very it privates’ bigger seen of operators. reaction increase how a think quick than do I react quickly. pricing active some activity small think the and the And quicker time general midsize and in and just

It's cost. - gas different so, is board. It’s the the market And in it react they a reacting - of to that, differently. to but the it’s to we've of oil are all our none customers of things alike of exactly reacting seen obviously all anticipations mix market And and across that.

Samantha Hoh

deep period. water the systems existing do your this be trial new had I of or I'm require some more during curious of what just such. Okay. intensely, with And your Is ability to I'm kind - and had if proppant there then the other to actually question as as that convert to to converted into I silos year-end? curious expect of blenders the to guess Is proppant well? new a the system the to blenders mid and potentially into converted of being Is long be working you trial? digital the blender built able of how get technologies that's trials to remotely sense actually in this of going run? terms through expectations there before analyze to revenue can that sort you're running see it there

Bill Zartler

convert and but the replace belts between our the are, current that a one. belts would are designed revenue, to system position it to hope I in the last be address want to We is the silos. where

the utilization which change The dust unload whatsoever. be designed And are a to it change obviously. point unloaded and the no that an They'll the that will themselves, needs into to there's belt. so, current blender, We've fit way silos right onto it within sand. point silos atmospheric made on neatly eliminates that

no So to the way the it whatsoever. silos fits, capital required change there’s

with be with that In with run currently our that delivery and can run unchanged. will of the all same sensing Services is Web tracking the platform want track our data in the with it equipment the they the and and in with data Along or as fact, the to you research we'll of the technology what we that, kind of with that equipment - happened integration designed allow future. - That technology less it running be Amazon which to see customers and data, the gather it bit platform to there. mechanism through using all was particular wellbore. feedbacks and studying well still This the that a parse and do we're in that lens little to the data Solaris do today,

significantly being data there's more it's into storage. a that fact, In enhanced lot because dumped

Samantha Hoh

guys. Congratulations, great. really sounds That

Operator

this session. concludes the for remarks. the any like I’d to to gentlemen, final over turn question-and-answer back Mr. and Zartler Ladies conference

Bill Zartler

own the by like and I'd adaptability employees to The results Rocco. clearly in has partners finish you, without with be for the inside team, our your didn't company challenges. possible outside. wouldn't as started perseverance thanking year. its It both and XXXX all end, off Thank of and this

a only and political is customers we’re innovation landscape. oil well critical new has sides. know to extremely we renewable help And unpopular in to like energy strong to very their with have to that. Oil and lower Solaris in media improvements the push positions, emerged carbon our and it We be times, feels make at certainly cost you role and this an drive proud the our gas helps on continue customers from position world's and such not gas Solaris that enables the continued technologies all know around to sustainability. our accessible plays drive efficiency which year as more stay footprint world. Have even and great environmental helps day. as safe. Thank but more and to all of and possible, that I'm industry the oil in our of gas, a people directly affordable the energy

Operator

conference We for call. thank you, This today’s today’s presentation. Thank concludes attending all sir. you

have now your a day. lines and disconnect wonderful may You