Solaris Oilfield Infrastructure Inc (SOI) Announces Q3 2023 Results and Q4 Dividend
Solaris Oilfield Infrastructure Inc (NYSE:SOI) reported a net income of $7.6 million for Q3 2023, compared to $12.2 million in Q2 2023.
SOI's Q3 2023 revenues were $69.7 million, down 10% sequentially and 25% year over year.
The company announced a $0.12 per share dividend, marking the second increase in 2023.
SOI generated positive free cash flow and reduced revolver borrowings in Q3 2023.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
On October 27, 2023, Solaris Oilfield Infrastructure Inc (NYSE:SOI) released its Q3 2023 financial and operational results. Despite industry activity bottoming during the quarter, SOI continued to see adoption of its new technology offerings. As a result, nearly 55% of industry frac crews deployed either a top fill or AutoBlend system, up from over 40% in the prior quarter.
Financial Performance
SOI reported a net income of $7.6 million, or $0.16 per diluted Class A share, for Q3 2023. This is a decrease compared to Q2 2023's net income of $12.2 million, or $0.24 per diluted Class A share. The company's revenues for Q3 2023 were $69.7 million, down 10% sequentially and 25% year over year. Adjusted EBITDA for Q3 2023 was $23.4 million, down 13% from Q2 2023.
Dividend Announcement
SOI's Board approved a $0.12 per share dividend, marking the second increase in 2023. The current per share dividend is a 9% increase over the Q3 dividend and a 14% increase over the Q4 2022 dividend. Since 2018, SOI has returned approximately $158 million to shareholders through dividends and share repurchases.
Capital Expenditures and Cash Flow
Capital expenditures in Q3 2023 were approximately $15 million, primarily related to the manufacturing of top fill systems. The company expects Q4 2023 capital expenditures to be approximately $10 million. Free cash flow in Q3 2023 was positive $6 million, and distributable cash flow was approximately $20 million, covering quarterly dividend distributions of $5 million by approximately four times.
Balance Sheet and Liquidity
As of September 30, 2023, SOI had approximately $3 million of cash on the balance sheet. The company reduced net borrowings on the credit facility by $6 million and ended Q3 2023 with $37 million in borrowings outstanding and $41 million of liquidity.
Shareholder Returns
SOI did not repurchase shares during Q3 2023 and approximately $24 million remains in the companys stock repurchase authorization. Since initiating the repurchase authorization in Q1 2023, SOI has repurchased a total of 3.1 million Class A common shares, or 6.5% of the companys total outstanding shares.
Explore the complete 8-K earnings release (here) from Solaris Oilfield Infrastructure Inc for further details.
This article first appeared on GuruFocus.
