Solaris Energy Infrastructure Inc (SEI) 2024 Q3 法說會逐字稿

Good morning and welcome to the Solaris third quarter, 2024 earnings conference call.

早安，歡迎參加 Solaris 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員指令）

I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President of Finance and Investor Relations. Please go ahead.

現在，我想將會議交給財務和投資者關係高級副總裁 Yvonne Fletcher。請繼續。

Thank you operator. Good morning and welcome to the Solaris third quarter 2024 earnings conference call. Joining us today are our Chairman and CEO Bill Zartler and our President and CFO Kyle Ramachandran. Before we begin, I'd like to remind you of our standard cautionary remarks regarding the forward-looking nature of some of the statements that we will make today.

謝謝接線生。早安，歡迎參加 Solaris 2024 年第三季財報電話會議。今天與我們一起出席的有我們的董事長兼執行長 Bill Zartler 和總裁兼財務長 Kyle Ramachandran。在我們開始之前，我想提醒大家，我們對今天所發表的一些聲明的前瞻性提出了標準的警告。

Such forward-looking statements may include comments regarding future financial results and reflect a number of known and unknown risks. Please refer to our press release issued yesterday along with other recent public filings with the Securities and Exchange commission that outline those risks.

此類前瞻性陳述可能包括對未來財務結果的評論，並反映許多已知和未知的風險。請參閱我們昨天發布的新聞稿以及最近向美國證券交易委員會提交的其他概述這些風險的公開文件。

I would also like to point out that our earnings release and today's conference call will contain discussion of non-GAAP financial measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP reconciliations to comparable GAAP measures are available in our earnings release which is posted on the news section on our website. I'll now turn the call over to our Chairman and CEO Bill Zartler.

我還想指出，我們的收益報告和今天的電話會議將討論非公認會計準則財務指標，我們認為這些指標有助於評估我們的績效。呈現這些附加資訊不應被孤立地看待，也不應該將其作為按照 GAAP 對帳編制的結果的替代，這些結果與可比較 GAAP 指標相一致，可在我們網站新聞欄目的收益報告中查閱。現在我將電話轉給我們的董事長兼執行長比爾‧札特勒 (Bill Zartler)。

Thank you, Yvonne and thank you everyone for joining us this morning. The Solaris team had a great third quarter. The highlights include the following. We announced and closed on the transformative acquisition of mobile energy rentals, a distributed power business which we supported with new financing to fund the growth and integration of their team into the organization.

謝謝你，伊馮娜，也謝謝大家今天早上加入我們。Solaris 隊在第三節表現出色。亮點包括以下內容。我們宣布並完成了對行動能源租賃的變革性收購，這是一家分散式電力企業，我們為其提供新融資，以資助其團隊的發展和融入組織。

We renamed the company Solaris Energy Infrastructure, which we believe more accurately reflects our broader solution offering that now includes providing power as a service to companies both inside and outside the energy industry.

我們將公司更名為 Solaris Energy Infrastructure，我們認為這更準確地反映了我們提供的更廣泛的解決方案，現在包括為能源產業內外的公司提供電力服務。

We delivered strong service quality and performance to our customers across both our legacy business and our newly acquired business in our Solaris logistics segment, which is our legacy business. We continue to generate free cash flow and maintain multiple Solaris systems on over 60% of our customer locations during the quarter, primarily driven by the continued success of our product.

我們透過傳統業務和 Solaris 物流部門新收購的業務（即我們的傳統業務）為客戶提供了卓越的服務品質和效能。本季度，我們繼續產生自由現金流，並在 60% 以上的客戶地點維護多個 Solaris 系統，這主要得益於我們產品的持續成功。

In our newly established Solaris Power Solutions segment, which represented the acquired me business. We are currently running more than 220 megawatts of power and have signed new customer contracts for more than 80% of our pro forma capacity under agreements for two to four years. With a line of sight to having all of our order capacity fully contracted.

在我們新成立的 Solaris Power Solutions 部門，代表收購的業務。我們目前正在運行超過 220 兆瓦的電力，並已根據為期兩到四年的協議簽署了超過 80% 的預計容量的新客戶合約。我們的訂單量預計將全部達成。

These accomplishments helped to drive our third quarter results of $75 million in revenue and $22 million in adjusted EBITDA which includes only a twenty day stub period in September from the Power Solutions Business. We also returned $5 million to shareholders in dividends during the quarter and yesterday announced fourth quarter dividend of $0.12 per share which will result in approximately $190 million returned to shareholders through dividends and share repurchases since 2018.

這些成就助力我們第三季實現 7,500 萬美元的營收和 2,200 萬美元的調整後 EBITDA，其中僅包括 9 月份電源解決方案業務的 20 天殘差期。我們也本季向股東返還了 500 萬美元的股息，昨天宣布第四季每股股息為 0.12 美元，這將導致自 2018 年以來透過股息和股票回購向股東返還約 1.9 億美元。

I'd like to provide an update on the progress within our new power business. It has been less than two months since we closed on our acquisition of Mobile Energy Rentals and both the integration, and the commercial opportunity set are advancing rapidly. The Power Solutions team has been a great addition to Solaris. They're innovative problem solvers focused on safety, customer service through performance and entrepreneurship.

我想介紹一下我們新電力業務的進展。我們完成對 Mobile Energy Rentals 的收購至今不到兩個月，整合和商業機會都在快速推進。Power Solutions 團隊對 Solaris 來說是一個很大的補充。他們是富有創新精神的問題解決者，專注於透過績效和創業精神來關注安全性、客戶服務。

This aligns well with our company values and culture we have identified attractive opportunities to grow our Power Solutions business organically and through acquisitions. These opportunities include expansion of our fleet of turbines, additional sport equipment such as switch gear, transformers, cables and other items needed to deliver a valuable high quality and reliable power solution to our customers.

這與我們的公司價值觀和文化非常契合，我們已經發現了透過有機成長和收購來發展我們的電源解決方案業務的誘人機會。這些機會包括擴大我們的渦輪機隊、額外的運動設備（如開關設備、變壓器、電纜和為我們的客戶提供有價值的高品質和可靠的電力解決方案所需的其他物品）。

Since the acquisition announcement, we have observed an acceleration in demand for rapid deploy, configurable power as wait times to obtain grid connectivity continue to extend today. Solaris power solutions customers include a large hyperscale data centre and various upstream and midstream energy companies requiring power for various applications including production processing and transportation projects.

自收購公告發布以來，我們觀察到對快速部署、可配置電力的需求加速成長，因為獲得電網連接的等待時間如今不斷延長。Solaris 電力解決方案的客戶包括一個大型超大規模資料中心以及各種上游和中游能源公司，這些公司需要電力來滿足各種應用需求，包括生產加工和運輸專案。

Data centre Power demand is being propelled by rapid growth for artificial intelligence computing applications, timely access to reliable power is critical for data centres. Given the competitive landscape and high capital investment in computing infrastructure. Our customers appreciate our swift deployment of dependable power solutions and a ruling them to maximize their investments for our energy customers.

資料中心 人工智慧運算應用的快速成長推動了電力需求，及時獲得可靠的電力對於資料中心至關重要。考慮到競爭格局和計算基礎設施的高資本投入。我們的客戶對我們快速部署可靠的電力解決方案以及為我們的能源客戶實現投資最大化的裁決表示讚賞。

Power demand is motivated by production and processing operations which are less correlated to short term commodity prices in certain geographies such as West Texas and New Mexico where grid infrastructure may not be available or reliable. Our customers generally have access to low cost natural gas which can significantly decrease the cost of generating their own behind the meter power. An attractive feature of our mobile turbine offering is our ability to produce power in dense power blocks utilizing stranded gas as fuel.

電力需求是由生產和加工操作所推動的，而這些操作與西德克薩斯州和新墨西哥州等電網基礎設施可能不具備或不可靠的特定地區的短期商品價格關聯性較小。我們的客戶通常可以使用低成本的天然氣，這可以顯著降低他們自己發電的成本。我們的移動式渦輪機產品的一大吸引人的特點是，我們能夠利用滯留氣體作為燃料，在密集的發電區內發電。

As delays for grid connectivity continue to extend. We're working with our customers to solve their longer-term power needs beyond a short to medium term bridge. Our customers are assessing how behind the meter solutions combined with the grid power over the longer term can provide baseload power, flexibility, enhance backup in case of grid disruption options for efficient operational expansion and manage load variability.

隨著電網連接延遲不斷延長。我們正在與客戶合作解決他們短期至中期以外的長期電力需求。我們的客戶正在評估電錶後解決方案如何與電網電力長期結合，提供基載電力和靈活性，在電網中斷的情況下增強備用電源，從而實現高效的營運擴展並管理負載變化。

Additionally, because our equipment is located on or close to the demand centre and uses local fuel. We can generally be cost competitive on a relative basis with line power over time we believe our value proposition for behind the meter power, they find more appeal as capital investments required to augment interruptible sources of generation and upgrade transmission infrastructure by upward pressure on power prices exasperate the interconnection delays.

此外，由於我們的設備位於需求中心或靠近需求中心，並使用當地的燃料。隨著時間的推移，我們通常可以在相對基礎上與線路電力實現成本競爭，我們相信，我們對電錶後電力的價值主張會更具吸引力，因為增加可中斷發電源和升級輸電基礎設施所需的資本投資會因電價上行壓力而加劇互連延遲。

We believe this transition from short term bridge power to medium to long term power is already underway and likely to continue. This transition is demonstrated by our recent success in contracting our fleet. We have committed to new orders that will grow the power generation fleet size from approximately 150 megawatts at acquisition closing to an expected 535 megawatts by the end of the third quarter of 2025.

我們相信，從短期過渡性權力到中長期權力的轉變已經在進行中，而且很可能會持續下去。我們最近成功簽約船隊就體現了這一轉變。我們已承諾新的訂單，將使發電機組規模從收購時的約 150 兆瓦擴大到 2025 年第三季末預計的 535 兆瓦。

At acquisition closing almost all of the power solution segment capacity was operating under short term agreements and our commitment to fleet expansion was predicated upon advanced customer interactions. In the two months since closing, we have converted those engagements into contracts for approximately 450 megawatts or more than 80% of our ordered fleet capacity these contracts have tenors that range from two to four years.

在收購結束時，幾乎所有的電力解決方案部門的產能都是在短期協議下運作的，而我們對擴大產能的承諾是以先進的客戶互動為前提的。自交易完成以來的兩個月內，我們已將這些約定轉換為約 450 兆瓦或超過我們訂購機組容量的 80% 的合同，這些合同的期限為兩年至四年。

We also have visibility to the full effective utilization of our ordered fleet based on advanced discussions with our customers and prospects. Our clients value our team's ability to execute and they've indicated interest in expansion beyond our currently planned capacity. We are carefully assessing our planned capacity alongside the range of market opportunities.

根據與客戶和潛在客戶的深入討論，我們也了解所訂購船隊的充分有效利用。我們的客戶看重我們團隊的執行能力，並表示有興趣超越我們目前計劃的產能進行擴張。我們正在仔細評估我們的計劃產能以及一系列市場機會。

According to our Solaris logistics solution segment, the US drilling and completions levels remain choppy in the third quarter. But activity on average was roughly in line with our expectations of flat compared to the second quarter of 2024. Our logistic solution activity generally follow the industry as we average 91 fully utilized systems roughly flat with the second quarter.

根據我們的 Solaris 物流解決方案部門，美國鑽井和完井水準在第三季仍然不穩定。但總體而言，與 2024 年第二季相比，活動量大致符合我們的預期，持平。我們的物流解決方案活動總體上跟隨行業，因為我們平均有 91 個充分利用的系統，與第二季度基本持平。

We followed 56 completion crews on a fully utilized basis in the third quarter which was flat sequentially and we maintained multiple systems on over 60% of those locations. That 60% is also double where we were in early 2023. Highlighting the success of our strategic investment in building and deploying a fleet of top fill equipment that drives efficiencies for our customers as well as increased earnings opportunities per location for Solaris.

我們在第三季度追蹤了 56 個完井隊的滿載情況，與上一季度持平，並且我們在 60％ 以上的地點維護了多個系統。這一 60% 也是 2023 年初的兩倍。凸顯了我們在建置和部署頂部填充設備方面的策略性投資的成功，這些設備不僅提高了客戶的效率，還增加了 Solaris 每個地點的獲利機會。

As we look at the fourth quarter of 2024 we expect to see some seasonal impact from E&P budget exhaustion. We believe this could drive a decline in activity as measured by fully utilized systems of roughly 10%. However, we have increasing visibility and growing momentum into the first quarter where we see most of this activity coming back with specific customer wins.

展望 2024 年第四季度，我們預期 E&P 預算枯竭將帶來一些季節性影響。我們認為，這可能會導致活動量下降，以充分利用的系統來衡量，下降幅度約為 10%。然而，在第一季度，我們的可見度和成長動能不斷增強，我們看到大多數活動都隨著特定客戶的贏得而回歸。

The Solaris logistics segment produced $18 million of free cash flow in the third quarter. We are using that cash flow in addition to funds from our recent financing to fund the growth of our power Solutions business. As I mentioned earlier, the Solaris board recently approved our fourth quarter dividend of $0.12 per share. And I'd like to reiterate our commitment to shareholder returns.

Solaris 物流部門第三季產生了 1,800 萬美元的自由現金流。我們將利用該現金流和最近融資的資金來支持我們電力解決方案業務的成長。正如我之前提到的，Solaris 董事會最近批准了我們第四季每股 0.12 美元的股息。我想重申我們對股東回報的承諾。

We continue to demonstrate strong free cash flow generation from our logistics solutions business and we've increased visibility to free cash flow generation from our recently signed Power Solutions contracts. This should lead to a significant inflection in free cash flow during the second half of 2025. Following the completion of our current growth capital plans.

我們的物流解決方案業務持續展現出強勁的自由現金流產生能力，我們最近簽署的電力解決方案合約也提高了自由現金流產生的可見度。這將導致 2025 年下半年自由現金流出現顯著變化。在我們完成目前的成長資本計劃之後。

The end market diversification and enhanced growth profile of our pro forma earnings and cash flow stream combined with the multiyear tenures of the power contracts we are signing are expected to provide support for our shareholder returns program. Even as we continue to invest to grow our powerfleet's capacity, we will continue to focus on executing the right organic and inorganic opportunities that enhance our return on capital, helping us maximize total shareholder returns, strengthen our balance sheet and bolster liquidity. With that, I will turn it over to Kyle for a more detailed financial review.

終端市場多樣化、我們預期收益和現金流的成長前景，加上我們簽署的多年期電力合同，預計將為我們的股東回報計劃提供支持。即使我們繼續投資以擴大我們的動力艦隊的容量，我們也將繼續專注於執行正確的有機和無機機會，以提高我們的資本回報率，幫助我們最大化股東總回報，加強我們的資產負債表並增強流動性。說完這些，我將把問題交給凱爾進行更詳細的財務審查。

Thanks bill and Good morning everyone. I'll start by recapping our third quarter, financial and operational results. We will also provide a financing and guidance update during the third quarter. We generated total company revenue of $75 million adjusted EBITDA of $22 million adjusted pro forma net income of $4 million and adjusted pro forma earnings per share of $0.08.

謝謝比爾，大家早安。我將首先回顧我們第三季度的財務和營運表現。我們還將在第三季提供融資和指導更新。我們公司總營收為 7,500 萬美元，調整後 EBITDA 為 2,200 萬美元，調整後預測淨收入為 400 萬美元，調整後預測每股收益為 0.08 美元。

Our acquisition of MER closed on September eleventh and our third quarter results include contribution from MER for the final twenty days of the quarter. We established two new reporting segments. Solaris logistics solutions which consists of our legacy energy business and Solaris Power Solutions, which consists of the acquired MER business contribution from our continued growth, capital investment for new power related equipment as it is deployed, I will discuss our segment profitability results which exclude the impact of corporate SG&A and is reported separately.

我們對 MER 的收購於 9 月 11 日完成，我們的第三季業績包括 MER 在本季最後 20 天的貢獻。我們建立了兩個新的報告分部。Solaris 物流解決方案由我們的傳統能源業務和 Solaris 電力解決方案組成，其中包括我們持續成長所帶來的 MER 業務貢獻，以及部署新電力相關設備的資本投資，我將討論我們的分部盈利能力結果，該結果不包括企業 SG&A 的影響並單獨報告。

Our logistics solutions segment generated revenue of $70 million and segment adjusted EBITDA of $24 million revenue is down 5% sequentially due to lower last mile trucking volumes in our ancillary service offering and a slight decline in activity to 91 fully utilized systems deployed from 92 fully utilized systems deployed in the second quarter.

我們的物流解決方案部門創造了 7,000 萬美元的收入，部門調整後 EBITDA 為 2,400 萬美元，環比下降 5%，原因是我們的輔助服務產品中最後一英里的運輸量減少，以及活動量從第二季度部署的 92 個充分利用的系統略微下降到部署的 91 個充分利用的系統。

Logistics segment adjusted EBITDA declined 6% relatively in line with the revenue decline. As bill mentioned, we expect activity in this segment as measured by fully utilized systems to decline roughly 10% in the fourth quarter 2024. As a result of typical seasonality, we expect some temporary detrimental impact on our per system profitability levels due to cost absorption as we expect to hold on to some costs in anticipation of most of this activity coming back in the first quarter.

物流部門調整後 EBITDA 下降 6%，與收入下降相對一致。正如比爾所提到的，我們預計，以充分利用的系統衡量，這一領域活動將在 2024 年第四季下降約 10%。由於典型的季節性，我們預計成本吸收將對每個系統的盈利水平產生一些暫時的不利影響，因為我們預計大部分成本將在第一季恢復，因此我們預計會保留一些成本。

Turning to our Power Solutions segment over the last 20 days of the third quarter, Power Solutions generated approximately $5 million in revenue and $3 million in segment adjusted EBITDA. These results were in line with the expectations we shared at the acquisition announcement in July considering annual run rate, EBITDA of $50 million based on contracts in place at that time.

回顧第三季最後 20 天的電源解決方案部門，電源解決方案創造了約 500 萬美元的收入和 300 萬美元的部門調整後 EBITDA。根據當時簽訂的合同，考慮到年運行率、EBITDA 為 5000 萬美元，這些結果符合我們在 7 月收購公告中所述的預期。

As bill shared, we've made tremendous progress in contracting our ordered power fleet equipment with more than 80% of our expected capacity pro forma for all equipment deliveries now contracted with identified growth opportunities that could result in our capacity being fully committed during the quarter, we were able to procure an additional 57 megawatts of mobile gas turbines.

正如比爾所說，我們在簽訂訂購的電力車隊設備合約方面取得了巨大進展，目前所有設備交付的預期容量已超過 80%，並且已確定的增長機會可能導致我們的產能在本季度得到充分投入，我們能夠採購額外的 57 兆瓦的移動燃氣渦輪機。

In addition, we were able to pull forward equipment deliveries for previously ordered equipment so that we could service near term customer needs. Our team's ability to problem solve. Continues to differentiate our offering as a result of these fleet updates, we expect to deploy an average of at least 240 megawatts on contracted revenue during the fourth quarter compared to approximately 156 megawatts in the third quarter.

此外，我們也能夠提前交付先前訂購的設備，以便滿足近期客戶的需求。我們團隊解決問題的能力。透過這些機組更新，我們繼續提供差異化的產品，我們預計第四季度合約收入中平均部署至少 240 兆瓦，而第三季約為 156 兆瓦。

Our contract profile provides significant visibility into 2025. For Q1 we expect an average of at least 300 megawatts contracted in generating revenue. We expect the remaining bookings for megawatts generating revenue to be more evenly split between the second and third quarters of 2025.

我們的合約概況為 2025 年提供了顯著的可視性。我們預計第一季平均合約發電量至少為 300 兆瓦。我們預計，兆瓦發電收入的剩餘訂單將更均勻地分配在 2025 年第二季和第三季之間。

Turning to guidance on corporate items for the fourth quarter of 2024 we expect total SG&A of approximately $9.5 million. We provided new detail of our segment level adjusted EBITDA and our earnings release and the corporate adjusted EBITDA reflects corporate level SG&A and other expenses or income less stock-based compensation and other nonrecurring items for modelling purposes.

談到 2024 年第四季的公司專案指引，我們預期銷售、一般及行政開支總額約為 950 萬美元。我們提供了分部層級調整後的 EBITDA 和收益報告的新細節，出於建模目的，公司層級調整後的 EBITDA 反映了公司層級的銷售、一般和行政費用以及其他費用或收入減去股票薪酬和其他非經常性項目。

Total SG&A guidance less stock compensation should get you close to that segment level impact. Netting these impacts to the total company adjusted EBITDA level should result in fourth quarter, 2024 adjusted EBITDA of between $33 million and $36 million for the first quarter of 2025. Our ability to deploy megawatts in our power business quicker than we originally forecast. Combined with the visibility from our recently signed power contracts should drive a total adjusted EBITDA in excess of $40 million.

總銷售、一般及行政管理指導減去股票薪酬應該會接近該分部層級的影響。將這些影響計入公司調整後 EBITDA 總額，將導致 2024 年第四季的調整後 EBITDA 在 2025 年第一季達到 3,300 萬美元至 3,600 萬美元之間。我們在電力業務中部署兆瓦的能力比我們最初預測的要快。加上我們最近簽署的電力合約的可見性，應能推動調整後 EBITDA 總額超過 4,000 萬美元。

Below the operating line. We expect interest expense to be approximately $9 million for the fourth quarter. We expect the total pro forma tax rate to be approximately 26% and the pro forma diluted share count to be approximately $61 million shares.

低於操作線。我們預計第四季的利息支出約為 900 萬美元。我們預計總形式稅率約為 26%，形式稀釋股數約為 6,100 萬股。

Turning to an update on our balance sheet, cash and liquidity picture. In conjunction with the transaction, we closed on a $325 million senior secured term loan. And shortly after the quarter ended, we finalize our new senior secured credit facility that provides additional liquidity of up to $75 million.

回顧我們的資產負債表、現金和流動性狀況的更新。配合此交易，我們還獲得了一筆 3.25 億美元的優先擔保定期貸款。本季結束後不久，我們完成了新的優先擔保信貸安排，可提供高達 7,500 萬美元的額外流動資金。

We expect to use funds from these financings as well as cash from operations to fund our near term growth capital plans and liquidity needs.

我們預計利用這些融資資金以及經營活動現金來資助我們近期的成長資本計畫和流動性需求。

We ended the quarter with total debt of approximately $325 million and $117 million in total cash of which $98 million is restricted for growth capital expenditures. Our new credit facility remains undrawn during the quarter, we generated operating cash flow of approximately $11 million and deployed $58 million for capital expenditures.

截至本季末，我們的總債務約為 3.25 億美元，總現金為 1.17 億美元，其中 9,800 萬美元被限制用於成長資本支出。我們新的信貸額度在本季仍未提取，我們產生了約 1,100 萬美元的營運現金流，並部署了 5,800 萬美元用於資本支出。

The vast majority of these investments were for progress payments on our power equipment order book with approximately $2 million of this CapEx for sustaining capital at Solaris logistics. Looking at the fourth quarter, we expect total company capital expenditures of approximately $130 million which should trend down to approximately $75 million in Q1 of 2025 and approximately $75 million in Q2 of 2025 and finally approximately $15 million in Q3 of 2025.

這些投資的絕大部分是用於支付我們電力設備訂單的進度款，其中約 200 萬美元的資本支出用於維持 Solaris 物流的資本。展望第四季度，我們預計公司總資本支出約為 1.3 億美元，將在 2025 年第一季下降至約 7,500 萬美元，2025 年第二季下降至約 7,500 萬美元，最終在 2025 年第三季下降至約 1,500 萬美元。

Our capital expenditure assumptions include only the equipment we have on order today and we will provide an update if opportunities materialize that require additional investment and provide attractive returns. Our forecast also includes approximately $3 million to $4 million of quarterly sustaining capital expenditure for Solaris logistics as the majority of our capital expenditures will be for progress payments for our equipment on order.

我們的資本支出假設僅包括我們今天訂購的設備，如果出現需要額外投資並提供可觀回報的機會，我們將提供更新。我們的預測還包括 Solaris 物流約 300 萬至 400 萬美元的季度維持資本支出，因為我們的大部分資本支出將用於支付訂購設備的進度款。

We anticipate taking final delivery of all equipment currently on order by the end of the third quarter of 2025 and expect free cash flow to inflect back to positive during the second half of 2025. Other uses of cash include our shareholder returns program. As bill mentioned, our board recently approved our twenty fifth consecutive dividend of $0.12 per share which will be paid on December Sixteenth to holders of record as of December sixth 2024.

我們預計在 2025 年第三季末最終交付目前訂購的所有設備，並預計自由現金流將在 2025 年下半年回升為正值。現金的其他用途包括我們的股東回報計劃。正如比爾所提到的，我們的董事會最近批准了連續第二十五次派息，每股 0.12 美元，將於 12 月 16 日支付給截至 2024 年 12 月 6 日登記在冊的持有人。

On our current share count, this should equate to a little more than $7 million per quarter in dividend payments pro forma for the fourth quarter dividend payment Solaris has returned $190 million to shareholders since we began our shareholder returns program in 2018. We remain committed to sharing our success with our shareholders and employees each of whom own shares with flare stock and are aligned with management to continue growing earnings, cash flow and shareholder returns. With that we'd be happy to take your questions.

按照我們目前的股份數量計算，這應該相當於第四季度股息支付形式上每季度略高於 700 萬美元的股息。我們始終致力於與我們的股東和員工分享我們的成功，他們每個人都持有 Flare 股票，並與管理層保持一致，繼續增加收益、現金流和股東回報。我們很樂意回答您的問題。

(Operator Instruction)

（操作員指令）

Stephen Gengaro, Stifel.

史蒂芬·根加羅（Stephen Gengaro），Stifel。

Thanks and good morning, everybody.

謝謝大家，早安。

Good morning, Stephen

早安，史蒂芬

Well, first, thanks for all the great detail. That was a lot of detail, especially from Kyle. I think the first question just on the mobile energy rental side, you talked about, you know, what's contracted and how it's evolving into the fleet. So sort of two parts to the question, one is how is availability of equipment beyond kind of what you have your eyes on currently and the other one that's connected to that business is, do you see any material change to kind of profitability per megawatt deployed as we sort of try to model this out over the next couple of years?

嗯，首先感謝您提供如此詳細的資訊。細節非常多，尤其是凱爾的細節。我認為第一個問題只是關於行動能源租賃方面，您談到了合約的內容以及它如何演變成車隊。所以問題分為兩部分，一個是除了您目前關注的之外，設備的可用性如何？ 另一個與該業務相關的問題是，在我們嘗試模擬未來幾年的情況時，您是否認為每兆瓦部署的盈利能力會發生重大變化？

Availability is still very tight. Like I said, we have a great team in the Mobile Energy Rentals guys and we've been able to find a few things and horse trade, a few around with the manufacturers and move some things up in the queue. But in general, it still remains very tight in the marketplace. So it happened, I think from a contractual perspective, we were very pleased to turn up at rates, you know, fairly similar to where we were using shorter terms.

供應仍然十分緊張。就像我說的，我們有一個很棒的行動能源租賃團隊，我們已經能夠找到一些東西並進行交易，與一些製造商進行交易，並將一些東西列入隊列中。但整體來說，市場供應仍然十分緊張。所以，我認為從合約的角度來看，我們很高興能夠以與我們使用較短期合約時的利率相當的利率出現。

So I think the market is telling us that it's tight and it's willing to lock the lock the power up for longer periods of time. Recognizing that, you know, the chunkier stuff, you know, in the data centre world needs to be there for much longer than some of the original very short term bridge. I think the same goes for the Oilfield customers as well that the recognition that Permian Basin are based in, you're seeing, you know, long lead times to get connected up and might as well lock this term, lock the power up for a longer term. So we're seeing that happen, we're seeing pricing, you know, probably remains, you know, flat to up over a period over the next several years.

所以我認為市場告訴我們，供給很緊張，而且願意在更長的時間內鎖定權力。認識到資料中心世界中較大區塊的東西需要存在的時間比原來的一些短期橋樑要長得多。我認為對於油田客戶來說也是如此，二疊紀盆地所處的認可，您會看到，您知道，連接的準備時間很長，不妨鎖定這個期限，將電力鎖定更長時間。所以我們看到了這種情況的發生，我們看到價格在未來幾年的一段時間內可能會保持穩定或上漲。

Great. Yeah, that helps. And then the other question is just kind of on the end market just kind of refresh us on. I mean, you talked about data centres and are the assets being that are currently being deployed right now and they have visibility out to three Q 2025? Are they all around kind of the oil field and the data centre customers? And how do you think that evolves.

偉大的。是的，這有幫助。另一個問題只是關於終端市場，請讓我們重新認識。我的意思是，您談到了資料中心，以及目前正在部署的資產，它們是否可以預見到 2025 年第三季？他們都是油田和資料中心周圍的客戶嗎？您認為這將如何發展？

Evolves, you know, Kyle can probably give you a detailed percentage, but currently we've got six sites under contract. But the majority will be in two big hyperscale data facilities with the bulk of the power. And what's that percentage? It's about 75% of the power probably goes into the data centre market. You know, when we look forward to what it the look as of the end of the third quarter, beginning of third quarter, next year is probably 75% data centre.

你知道，凱爾可能可以給你一個詳細的百分比，但目前我們已經簽了六個站點。但大多數將位於擁有大部分電力的兩個大型超大規模數據設施中。這個百分比是多少？約75%的電力可能流入資料中心市場。您知道，當我們展望第三季末和第三季初的情況時，明年的資料中心可能佔 75%。

I think when we originally bought the business, we were sort of thinking it would evolve fifty-fifty. We'll tell you the Hyperscaler's demand for power has been significant and growing and they're recognizing the need to turn that up and so I think that's weighted us heavier in that direction than we originally forecast.

我想，當我們最初收購這家公司的時候，我們就曾想過，它會以各佔一半的股份發展。我們會告訴您，超大規模資料中心對電力的需求一直很大且不斷增長，他們認識到需要提高電力需求，因此我認為這對我們在這方面的負擔比我們最初的預測更大。

And the overall size of those installations is significant. So when you look at the weighted average of the megawatts, you know, from a location standpoint, it's probably closer to the fifty-fifty. But as far as megawatts go, the data centres are very intense as far as the power demand.

這些設施的整體規模十分巨大。因此，當您查看兆瓦的加權平均值時，從位置的角度來看，它可能更接近五五開。但就兆瓦而言，資料中心的電力需求非常強烈。

Okay. Alright, great. Thank you for the colour.

好的。好的，太棒了。謝謝你的顏色。

Thank you.

謝謝。

Sean W Mitchell, Simmons.

肖恩·W·米切爾、西蒙斯。

Hey guys, can you hear me? Okay.

嘿夥計們，你聽得到我說話嗎？好的。

Yeah. Hear you Great, Sean.

是的。聽到你的聲音，太好了，肖恩。

So a couple of for me, what are you? How do you, you have any options on the back of the solar turbine capacity that you have locked up? Meaning beyond third quarter. Are there any options there for you?

那麼對我來說有幾個，你是什麼？您如何看待您已經鎖定的太陽能渦輪機容量背後的任何選擇？意義超越第三季。那裡有你可用的選擇嗎？

And then Kyle, maybe for you just how valuable are the slots of the capacity you currently have locked up in terms of, you know, dollar amount? I mean, these things have gotten way more valuable since you signed this deal. I've got to believe. So just is there any way to put a value on that.

然後凱爾，也許對你來說，就美元金額而言，你目前鎖定的容量槽有多大價值？我的意思是，自從你簽署這項協議以來，這些東西就變得更有價值了。我必須得相信。那麼有沒有什麼方法可以對此進行估值呢？

Value of the slots? I mean, we want to take delivery of them, you know, we've got them filled into our demand. And so the return on that capital as we've turned it up is roughly in line maybe slightly better on average, but it's all firmed up in much longer places than we originally forecast. I think we're actually up a little bit on an overall basis. Kyle can dig into that a little bit with you. And, and then in terms, in terms of looking forward, yes, we're in active dialogue about what what we're willing to commit to going forward and what kind of contractual arrangements that our customers would like to see with that with those incremental assets.

插槽的價值是多少？我的意思是，我們想要接收它們，你知道，我們已經滿足了我們的需求。因此，我們所獲得的資本回報率大致相當，平均而言可能略高一些，但比我們最初預測的要穩定得多。我認為從整體來看我們確實有所進步。凱爾可以和你一起深入探討這個問題。然後，就展望未來而言，是的，我們正在積極對話，討論我們願意在未來做出什麼承諾，以及我們的客戶希望對這些增量資產達成何種合約安排。

And I think, you know, specific to a couple of our OEM partners, our team that, came in through the acquisition has a long history with effectively product development with a lot of these guys. And so I think we're we and in the OEMs are thinking about, you know, what is the medium to long term solutions look like for this evolving power space?

而且我認為，具體到我們的幾個 OEM 合作夥伴，我們透過收購而加入的團隊，與其中的許多人有著長期有效的產品開發歷史。所以我認為我們和 OEM 廠商正在思考，對於這個不斷發展的電力領域，中長期解決方案是什麼樣的？

So I think there's a fair amount of value in that relationship. So slots, yes, those are here today. But I think as we look forward and we're in a position, I think to really be on the cutting edge of what the market looks like as far as the balance of different solutions for this evolving market. So today, we've got a fleet of the 5.5 megawatt turbines, 16.5 megawatts in, a 35-megawatt unit.

所以我認為這種關係有相當大的價值。所以老虎機，是的，今天就在這裡。但我認為，展望未來，我們處於一個位置，我認為我們真正處於市場的前沿，在這個不斷發展的市場中平衡不同的解決方案。所以今天，我們擁有一批 5.5 兆瓦的風力渦輪機，其中有 16.5 兆瓦的風力渦輪機，以及一個 35 兆瓦的機組。

And so as we look forward that we're very, you know, comfortable with that fleet but are also evaluating you know, other options within the broadly distributed fleet that we see developing here over the medium to long term for the company.

因此，我們期待著，我們對該機隊非常滿意，但我們也在評估廣泛分佈的機隊中的其他選擇，這些選擇將在中長期內為公司發展。

And I would add that, I think that the notion of, of this behind the meter bridge power, the bridge is getting longer. And that implies you need to do a few more things with the assets in terms of how long they may there, what we need to do from a regulatory perspective and permanent perspective, so that market is evolving. And I think it's looking, you know, closer to longer medium-term bridges as opposed to what we thought may have been just kind of temporary short, short term, you know, startup power needs if you will.

我想補充一點，我認為，在米橋電力後面的概念是，橋樑越來越長。這意味著你需要對資產做更多的事情，例如它們可能存在多長時間，我們需要從監管角度和永久角度做些什麼，以便市場能夠持續發展。而且我認為，它更接近長期的中期橋樑，而不是我們所想的可能只是暫時的短期、啟動電力需求。

Got it. And then bill just on that point, you talked a little bit earlier in the call about the delays for good connectivity that are the customers basically saying it's getting longer. I mean, I guess it's not getting better.

知道了。然後比爾，就這一點而言，您在電話會議中早些時候談到了良好連接的延遲問題，客戶基本上說延遲時間越來越長。我的意思是，我猜情況並沒有好轉。

So getting longer and the demands for some of the especially the Artificial Intelligence driven data centers are higher than the utility can even get to it in the near future. So it's both longer lead times on incremental and then pure size perspective. It's, you know, much longer term.

因此，隨著時間的推移，對某些資料中心特別是人工智慧驅動的資料中心的需求將高於公用事業在不久的將來可以達到的需求。因此，從增量角度和純規模角度來看，這都是更長的交付週期。你知道，這是一個長期的過程。

Thanks for all the colour. It's been fun to watch. Thank you.

感謝所有的色彩。看起來很有趣。謝謝。

Thank you.

謝謝。

David Smith, Pickering Energy Partners.

大衛史密斯 (David Smith)，Pickering Energy Partners。

Hey, good morning and congratulations on the contract coverage.

嘿，早上好，恭喜您簽訂了合約。

Thanks.

謝謝。

And you announced the MER deal. I think you showed plans year end 2025 capacity at 478 megawatts. Went up to 525 in the September investor presentation. It's 535 now, could you give some colour on the additional 57 megawatts? Maybe how opportunistic that was and how you see the potential for additional capacity growth beyond placing orders for new equipment.

你們也宣布了 MER 協議。我認為您顯示的計劃到 2025 年底的容量將達到 478 兆瓦。在 9 月的投資者演示中上升至 525。現在是 535，您能介紹額外的 57 兆瓦嗎？也許是因為這是多麼具有機會主義的性質，以及您如何看到除了訂購新設備之外的額外產能增長的潛力。

Well, I think, David at the point, the market is very tight and that nothing has changed there. I think importantly, all of those increments were tied directly to a demand on the customer side. So the incremental orders were to meet a specific need. So I think that's important, you know, the reality is there were a couple of ones and twos that we were able to cobble together.

嗯，大衛，我認為，目前市場非常緊張，而且什麼都沒有改變。我認為重要的是，所有這些增量都與客戶方面的需求直接相關。因此增量訂單是為了滿足特定需求。所以我認為這很重要，你知道，事實上我們能夠拼湊出幾個一和二。

You know, from a short-term perspective, really don't see a whole lot available out of the OEMs at least through the balance of this year. And for most of next year, you know, options out, there are other bits on the secondary market where people have secured capacity for perhaps their own end use and, and projects have been delayed. And so again we've got a really strong pulse on the market. Our team has been doing this for twenty, thirty, or forty years.

您知道，從短期角度來看，至少在今年年底之前，OEM 確實不會提供太多可用產品。你知道，在明年的大部分時間裡，二級市場上還有其他選擇，人們在這些市場上確保了也許用於自己最終用途的產能，而專案已經被推遲。因此，我們再次對市場有了非常強勁的把握。我們的團隊已經這樣做了二十年、三十年或四十年。

And so those relationships are sort of hard to put a dollar figure on to Sean's earlier point on the value of the slots. I think that the pulse that we have in the market is, really allowing us to, you know, have some edge in terms of sourcing in the turbine side, but also on the balance of plant side, it's not just about the prime mover, it's also about all the components that are required to deliver the, the customer, the voltage and capacity that they're looking for their, their end use. So, it's very much in the spirit of our culture and the entrepreneurship and, and we've got a lot of different ways to win. But, you know, I importantly, those ads were directly tied to needs for the customer.

因此，這些關係很難用美元來衡量肖恩先前關於老虎機價值的觀點。我認為，我們在市場上的脈搏確實讓我們在渦輪機方面的採購方面具有一定優勢，而且在工廠平衡方面，這不僅涉及原動機，還涉及向客戶提供他們最終用途所需的電壓和容量所需的所有組件。所以，這非常符合我們的文化和創業精神，而且我們有很多不同的方法來獲得勝利。但是，你知道，重要的是，這些廣告與客戶的需求直接相關。

Appreciate it. And then quick follow up is just regarding the line of sight you mentioned to have, you know, all the remaining in order to pass the contract of the 85 megawatts. Just wondering if you could provide any colour there, if this, you know, line of sight is contracts that haven't been signed yet.

非常感謝。然後快速的跟進只是關於您提到的視線，您知道，為了通過 85 兆瓦的合同，所有剩餘的部分。只是想知道您是否可以提供任何細節，如果您知道，視線是尚未簽署的合約。

You know, and also just speak to what you're interested in seeing how that the market might, you know, evolve before the equipment gets delivered middle of next year.

你知道，也請談談你感興趣的市場在明年年中設備交付之前可能會如何發展。

Yeah, I think it's a combo of both, you know, demand from our current customer base as well as work that we're working collaborative with customers on what their 2025 opportunities look like. I mean, what's nice about this business is we're seeing, you know, six twelve eighteen months, look forward.

是的，我認為這是我們現有客戶群的需求和我們與客戶合作探討 2025 年機會的結合。我的意思是，這項業務的優點在於，我們可以看到未來六到十二個月的前景。

And so from a planning perspective, that's super helpful. So that's sort of the cadence of the timing of executing an opportunity from a contractual standpoint, but, you know, actually needing it on site. Yeah, I think it might be helpful to update a little bit on how we're seeing the exit rate, you know, sort of the balance of the deliveries coming in with the original Solaris logistics business.

因此從規劃角度來看，這非常有幫助。因此，從合約的角度來看，這就是執行機會的時間節奏，但您知道，實際上需要在現場執行。是的，我認為更新我們對退出率的了解可能會有所幫助，您知道，原始 Solaris 物流業務的交付平衡。

And, you know, when we announced the deal, and as we've provided some updates on guidance, we've really kind of talked about a midrange of $230 million of EBITDA on an exit run rate basis next year. With where we are from a contracted standpoint with the 450 megawatts, we've effectively contracted up that level of EBITDA from the power side of things.

而且，您知道，當我們宣布這筆交易時，並且我們已經提供了一些指導更新，我們實際上已經談到了明年退出運行率基礎上 2.3 億美元的 EBITDA 中間值。從我們與 450 兆瓦簽訂的合約角度來看，我們已經從電力方面有效地提高了該水準的 EBITDA。

And we've got another 15% of pro forma capacity available, which, you know, could add $20 million to $30 million of EBITDA on a run rate basis. And so we feel very confident that will get turned up and will be contributing to cash flow here in the business. So, you know, we view this as just a series of steps, steps for the business from announcement to closing to, you know, this is our first quarter of a little bit of earnings from the business under our belt. And then, you know, I think the big stories on the contracting side of things. So just feel like this story is unfolding one step at a time and we're really excited about it.

我們還有另外 15% 的可用產能，以運行率計算，這可以增加 2,000 萬至 3,000 萬美元的 EBITDA。因此，我們非常有信心，這一數字將會出現成長，並將為公司的現金流做出貢獻。所以，你知道，我們認為這只是一系列步驟，從宣佈到結束，這是我們從這項業務中獲得一點收益的第一個季度。然後，您知道，我認為重大新聞是關於承包方面的。所以感覺這個故事正在一步步展開，我們對此感到非常興奮。

Yeah, really good steps. Thank you for the colour.

是的，確實採取了很好的措施。謝謝你的顏色。

Mike Beard, Private Investor

Mike Beard，私人投資者

How much natural gas do you need to buy to make your smaller units profitable? And how much do you need for your larger units?

您需要購買多少天然氣才能讓您的小型單位獲利？那麼，您的大型單位需要多少呢？

I think from a contractual standpoint, you know, we're providing the turbines and the balance of plant to allow the customer to generate electricity power on their location. So they're ultimately purchasing, the gas or they're using their own gas in the app in the oilfield applications in a number of instances.

我認為從合約的角度來看，我們提供渦輪機和電廠平衡設備，以便客戶在其所在地發電。因此，在許多情況下，他們最終會購買天然氣或在油田應用中使用自己的天然氣。

But when we look at sort of the total cost of ownership between the rental of the equipment and then the gas consumption for fuel, we do see the solutions being relatively competitive with alternative baseload power, particularly when you're looking in the energy side where you've got, you know, stranded gas that really doesn't have a market.

但當我們考慮設備租賃和燃料天然氣消耗之間的總擁有成本時，我們確實看到該解決方案與替代基載電力相比具有相對競爭力，特別是當你從能源方面來看，你知道，擱淺的天然氣實際上沒有市場。

It actually may be, you know, significantly lower than what they're paying the utilities. But, you know, the turbines are very efficient. And, and are good consumers of fuel and, and we're actually working on a couple of different applications that could drive improvements in the heat rate on the units.

事實上，這可能比他們支付的水電費要低得多。但你知道，渦輪機的效率非常高。而且，它們是良好的燃料消耗者，而且我們實際上正在研究幾種不同的應用，這些應用可以提高設備的熱效率。

And mike, you can refer to our website, each one of the spec sheets on the equipment has their heat rates and their efficiency curves.

麥克，您可以參考我們的網站，每台設備的規格表上都有其熱率和效率曲線。

Okay. I was just wondering how much natural gas would be required either for you to buy, for the customer to buy.

好的。我只是想知道您需要購買多少天然氣，或者客戶需要購買多少天然氣。

Yeah, it will be embedded in the heat rate and temperature curve. It varies at ambient temperatures. And so there's an ISO number and all that specs, there's actually some graphs on our website that explain that for the 5.7 and the 16.5 megawatts.

是的，它將嵌入到熱速率和溫度曲線中。它會隨環境溫度而變化。因此有一個 ISO 編號和所有規格，我們的網站上實際上有一些圖表可以解釋 5.7 和 16.5 兆瓦的情況。

Okay. Thank you.

好的。謝謝。

Thanks

謝謝

Thank you.

謝謝。

We have reached the end of the session.

會議已結束。

I'd now like to turn the call back over to Mr Bill Zartler for any final closing remarks.

現在我想將電話轉回給比爾·札特勒先生，請他做最後的總結發言。

Thank you, I'd like to conclude today's call by reiterating that Solaris remains committed to providing exceptional service quality and value add to all of our customers. We leverage our innovative technologies across both of our business segments and our leading market position within a logistics solution segment underscores our unwavering commitment to our customer base, which will remain a core focus of Solaris going forward.

謝謝，在今天的電話會議結束時，我想重申 Solaris 仍然致力於為所有客戶提供卓越的服務品質和增值服務。我們在兩個業務部門中都充分利用了創新技術，並且在物流解決方案領域處於領先的市場地位，這凸顯了我們對客戶群的堅定承諾，這仍將是 Solaris 未來的核心關注點。

And we are equally focused on executing the large commercial opportunity set in the power solutions segment. It's accelerating rapidly and it highlights the further need for bespoke behind the meter power generation applications across a variety of end markets. Together, the combined businesses are uniquely positioned for significant growth and increased total shareholder value. I'd like to thank our employees, customers and suppliers for their continued partnership in making the Solaris successful. Thank you.

我們同樣專注於抓住電源解決方案領域的巨大商業機會。它正在迅速發展，並凸顯了各種終端市場對客製化電錶後發電應用的進一步需求。合併後的業務將具有獨特的優勢，能夠實現顯著成長並提高股東總價值​​。我要感謝我們的員工、客戶和供應商，感謝他們為 Solaris 的成功而持續的合作。謝謝。