HOUSTON - Solaris Energy Infrastructure, Inc. (NYSE:SEI), a provider of equipment-based solutions for distributed power generation, announced today the commencement of an underwritten public offering of 6.5 million shares of its Class A common stock. The company, which has demonstrated strong financial health according to InvestingPro analysis, maintains a solid balance sheet with a current ratio of 3.61x and has delivered an impressive 247% return year-to-date. In this offering, Yorktown Energy Partners X, L.P., a selling stockholder, is expected to grant underwriters a 30-day option to purchase up to an additional 975,000 shares.
The net proceeds from the offering received by Solaris Energy will be contributed to Solaris Energy Infrastructure, LLC in exchange for membership units equivalent to the number of shares issued. This capital will fund the expansion of power generation equipment, including new natural gas turbines and associated electrical components, to meet growing customer demand. Operating with a moderate debt-to-equity ratio of 1.51x, Solaris Energy will not receive any proceeds from the sale of shares by Yorktown.
Santander (BME:SAN) US Capital Markets LLC is serving as the book-running manager for the offering. The offering is made in accordance with a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and effective as of November 25, 2024. Relevant documents, including the preliminary prospectus supplement and the final prospectus supplement when available, will be accessible on the SEC's website.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Solaris Energy, headquartered in Houston, Texas, serves various U.S. markets, including energy, data centers, and commercial and industrial sectors. The company's press release contains forward-looking statements regarding the offering and anticipated use of proceeds, which are subject to market conditions and other factors that may cause actual results to differ materially.
The information in this article is based on a press release statement from Solaris Energy Infrastructure, Inc. According to InvestingPro analysis, SEI is currently trading above its Fair Value, with 14 additional ProTips and comprehensive financial metrics available to subscribers. Access the detailed Pro Research Report, part of InvestingPro's coverage of 1,400+ US equities, for deeper insights into SEI's valuation and growth prospects.
In other recent news, Solaris Energy Infrastructure raised its adjusted EBITDA forecast for Q4 2024, now expecting it to be between $36 million and $39 million, up from the previous guidance of $33 million to $36 million. This update comes on the back of strategic moves and increasing demand from customers, leading to the company placing orders for nine additional gas-fired turbines, each with a capacity of 16.5 megawatts. These orders are projected to increase the company's generation capacity by approximately 145 megawatts.
In terms of leadership, Solaris Energy announced that its COO, Kelly Price, will retire at the end of 2024. The company is currently seeking Price's successor from both internal and external candidates, ensuring a smooth transition with Price's continued support.
In other developments, Solaris Energy's Q1 2024 financial results revealed revenues of $68 million and an adjusted EBITDA of $23 million. The company also increased the available shares for issuance in its Long Term Incentive Plan by 1.6 million.
Moreover, Solaris Energy's shareholders approved the acquisition of Mobile Energy Rentals, expected to be finalized in September 2024. The company also provided a $29.75 million loan to facilitate the purchase of power generation equipment. Piper Sandler, an investment firm, maintained its Overweight rating on Solaris following these developments.
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