Solaris Oilfield Infrastructure, Inc. (NYSE: SOI) released its financial and operational results for the first quarter of 2024. Bill Zartler, Chairman and CEO, expressed satisfaction with the company’s strong free cash flow at the start of the year, attributing it to the ongoing yield from previous investments.
Zartler also highlighted the company’s commitment to shareholder returns, noting that nearly half of the company’s current market capitalization has been returned to shareholders. He expressed confidence in sustained growth of free cash flow throughout the year, supporting ongoing shareholder returns while maintaining a healthy balance sheet for future investments.
In terms of shareholder returns, Solaris’ Board of Directors approved a cash dividend of $0.12 per share of Class A common stock on February 19, 2024. This dividend was paid on March 21, 2024. Additionally, a distribution of $0.12 per unit was approved for holders of units in Solaris Oilfield Infrastructure, LLC, amounting to approximately $5 million in aggregate.
During the first quarter of 2024, Solaris repurchased 1.1 million shares for approximately $8 million. This brings the total shares repurchased since the initiation of the repurchase authorization in the first quarter of 2023 to 4.3 million shares, approximately 10% of Solaris’ total current outstanding shares.
Looking ahead, the Board of Directors approved a second quarter 2024 cash dividend of $0.12 per share of Class A common stock, payable on June 17, 2024, to holders of record as of June 7, 2024. A distribution of $0.12 per unit to Solaris LLC Unitholders was also approved.
Pro forma for the announced second quarter 2024 dividend, Solaris has returned approximately $178 million to shareholders through dividends and share repurchases. Since the initiation of shareholder returns in 2018, the company has increased the dividend per share by 20% and reduced total shares outstanding by 7%.
In terms of financials, net income for the first quarter of 2024 was $7 million, or $0.14 per diluted Class A share, compared to $7 million in the fourth quarter of 2023 and $12 million in the first quarter of 2023. Revenue for the first quarter of 2024 was $68 million, up 7% from the fourth quarter of 2023 but down 18% from the first quarter of 2023.
Adjusted EBITDA for the first quarter of 2024 was $23 million, up 7% from the fourth quarter of 2023 but down 10% from the first quarter of 2023. These increases were attributed to higher-margin ancillary last mile logistics services activity and improved system pricing.
Solaris will hold a conference call on April 26, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its first quarter 2024 results. An audio replay of the conference call will be available shortly after its conclusion.
