Solaris Oilfield Infrastructure, Inc. (NYSE: SOI) is experiencing a significant uptick in its stock value today, spurred by a strategic acquisition move in the energy sector. As of the last check during the current-market session, SOI’s stock soared 35.05% to $11.16.
Acquisition of Mobile Energy Rentals LLC
Solaris (SOI) has formally announced its agreement to acquire Mobile Energy Rentals LLC (“MER”), marking a pivotal step in expanding its operational footprint. The acquisition, valued at $200 million, comprises $60 million in cash and approximately 16.5 million shares of Solaris Class B common stock issued to MER’s founders and management team upon completion.
Solaris Strengthening Position in Distributed Power Solutions
Established in 2022 and headquartered in Houston, Texas, MER specializes in customizable sets of mobile turbines primarily fueled by natural gas. These solutions cater predominantly to energy, data center, and commercial & industrial (C&I) sectors, addressing challenges posed by unreliable or unavailable grid infrastructure.
Solaris anticipates leveraging MER’s capabilities to enhance its mobile infrastructure offerings, particularly complementing its existing all-electric portfolio. This strategic alignment is poised to unlock new market opportunities across oil and gas production, midstream, downstream activities, and various C&I applications.
Future Growth Prospects and Synergies
The integration of MER into Solaris promises to capitalize on emerging trends such as the ‘electrification of everything’ and the escalating demand for robust power solutions in expanding computing environments. Solaris, equipped with over a decade of industry leadership, aims to consolidate its innovative edge and uphold superior service quality across its diverse business lines.
MER acknowledges the substantial synergies inherent in Solaris’ operational framework, including proficient field services, advanced engineering, and manufacturing capabilities. This integration is expected to streamline operations, optimize customer satisfaction, and fuel sustained growth in the competitive landscape.
Solaris plans to finance the transaction with a combination of debt financing and internal cash flows, encompassing the acquisition of approximately $308 million worth of turbines slated for delivery by the third quarter of 2025. This financial strategy underscores Solaris’ commitment to bolstering its market position and meeting evolving energy demands effectively.
