Solaris Energy Infrastructure, Inc 8-K, filed Apr 7, 2020
Solaris Energy Infrastructure, Inc. (SEI)
About this 8-K
Solaris Energy Infrastructure, Inc filed this 8-K on April 7, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 7, 2020
SOLARIS OILFIELD INFRASTRUCTURE, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
001-38090 |
81-5223109 |
|
(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
|
|
|
|
|
9811 Katy Freeway, Suite 700 Houston, Texas 77024 (Address of principal executive offices) (Zip Code)
(281) 501-3070 |
||
|
(Registrant’s telephone number, including area code) |
||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
|
|
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
|
Class A Common Stock, $0.01 par value |
“SOI” |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 2.02Results of Operations and Financial Condition
On April 7, 2020, Solaris Oilfield Infrastructure, Inc. issued a press release announcing an operational update and response to current market conditions. A copy of the press release is furnished as Exhibit 99.1 and incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1 to this Current Report on Form 8-K, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
|
|
|
|
|
Exhibit Number |
|
Description |
|
99.1 |
|
Solaris Oilfield Infrastructure, Inc. press release dated April 7, 2020. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 7, 2020
|
|
|
|
|
|
|
|
SOLARIS OILFIELD INFRASTRUCTURE, INC. |
|||
|
|
|
|||
|
|
By: |
/s/ KYLE S. RAMACHANDRAN |
||
|
|
Name: |
Kyle S. Ramachandran |
||
|
|
Title: |
President and Chief Financial Officer |
||
3
Exhibit 99.1
Solaris Oilfield Infrastructure Provides Operational Update and Response to Current Market Conditions
HOUSTON, April 7, 2020 (BUSINESS WIRE) – Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) (“Solaris”) provided an operational update today to address current market conditions. Due to a combination of geopolitical and COVID-19 pandemic related pressures on the global supply-demand balance for crude oil and related products, oil and gas operators have significantly reduced development budgets and activity. During the first quarter of 2020, Solaris believes the average number of working frac crews was down as much as 10%, driven by a significant decline beginning in March. The Company expects activity will continue to decline by more than 50% sequentially during the second quarter of 2020.
The Company has taken the following steps to right size the business to ensure its strong balance sheet and service quality are preserved:
|
· |
Reduced direct operating costs, SG&A expenses and other support costs related to decreasing activity levels; |
|
· |
Reduced workforce across the company; and |
|
· |
Lowered 2020 capital expenditures budget to $10 million or less from $20-40 million previously |
As of March 31, 2020, the Company had no debt outstanding, approximately $46 million of cash and $50 million available under its undrawn credit facility. The Company will continue to evaluate further actions to match its cost structure with evolving market conditions. Additional detail and updated operating cost guidance will be provided on the Company’s first quarter 2020 earnings conference call.
“We have had to make some very difficult decisions to protect the company and its constituents during this global crisis,” commented Bill Zartler, Solaris’ Chairman and Chief Executive Officer. “We’ve maintained a debt-free balance sheet and have ample liquidity to weather this storm. We will continue to support our customers’ operations around the clock. We will also continue to invest in improving our existing equipment as well as innovate new ways to help our customers operate more efficiently.”
About Solaris Oilfield Infrastructure, Inc.
Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) manufactures and rents mobile equipment that drives supply chain and execution efficiencies in the completion of oil and natural gas wells. Solaris’ patented mobile proppant and chemical systems are deployed in many of the most active oil and natural gas basins in the United States, including the Permian Basin, the Eagle Ford Shale, the STACK/SCOOP formation, the Marcellus and Utica Shales, the Haynesville Shale and the Rockies. Additional information is available on our website, www.solarisoilfield.com.
Contacts:
Yvonne Fletcher
Senior Vice President, Finance and Investor Relations
(281) 501-3070
IR@solarisoilfield.com
Solaris Oilfield Infrastructure, Inc.