Mobile proppant system service issuing IPO

By Luke Geiver | March 21, 2017

Frack sand supplier Solaris Oilfield Infrastructure is filing an initial public offering valued at $100 million. After forming in 2014, the Texas-based company has grown its frack sand mobile supply fleets from two to 33. According to the company, there is currently more demand for its systems that it can meet with its current fleet. By the end of 2017, Solaris could expand to 64 systems.

“We have increased our total system revenue days, defined as the combined number of days our systems earned revenues, in nine of the last ten quarters,” the company said in its Securities and Exchange Commission filings. “The increase in total systems revenue days is attributable to both an increase in the number of systems available for rental and an increase in the rate at which our systems are utilized,” the company also said.

Funds from the IPO will be used by Solaris to purchase units, fund its capital program and for general corporate purposes.

In November 2016, the company said it expected to see a major increase in customer demand throughout its core service areas of the Permian and SCOOP/STACK plays.

“Operators continue to increase their completion intensity, drill longer laterals, increase the number of frack stages per well and place higher concentrations of sand per lateral foot,” said Greg Garcia, executive vice president of sales and marketing. “Our mobile systems enhance the proppant logistics chain by providing increased well-site inventory storage and 24 truck unloading positions,” he said.