Solaris Energy Infrastructure, Inc. has released its financial and operational update for the fourth quarter of 2024, alongside exciting developments in its growth capital program. These updates highlight the Company’s continued efforts to support its rapidly expanding Solaris Power Solutions segment, responding to growing customer demand for scalable energy solutions.
Fourth Quarter 2024 Financial and Operational Performance
The Company has increased its fourth-quarter 2024 Adjusted EBITDA* guidance to a range of $36 million to $39 million, up from the prior estimate of $33 million to $36 million. This upward revision is primarily driven by enhanced utilization levels and improved cost absorption within the Solaris Power Solutions segment. Solaris expects to deploy an average of approximately 250 MW during the fourth quarter, reflecting the full utilization of its current asset base.
In the Solaris Logistics segment, the Company anticipates results to align with expectations, continuing to support strong total company operating cash flow generation through the remainder of the quarter.
Power Solutions Growth Capital Developments
To meet the accelerating demand for its power-as-a-service solutions, Solaris has placed orders for nine additional 16.5 megawatt (“MW”) gas-fired turbines, adding approximately 145 MW of incremental generation capacity. With this new equipment, Solaris expects to exit the first quarter of 2026 with a total generation capacity of about 680 MW. The Company plans to invest up to $120 million for the turbine order, including associated ancillary equipment.
In addition to the turbine orders, Solaris is committing approximately $40 million to Selective Catalytic Reduction (“SCR”) technology. This investment aims to improve the emissions profile of the Company’s fleet, supporting multi-year installations at selected locations. Together, these investments, totaling around $160 million, will occur primarily in 2025, with equipment deliveries expected from the fourth quarter of 2025 through the first quarter of 2026.
CEO Commentary on Demand and New Opportunities
“We continue to see strong demand for Solaris’ power-as-a-service offering, which is driving our decision to place this additional turbine order,” said Bill Zartler, Chairman and Chief Executive Officer of Solaris. “Furthermore, the increasing complexity of site design and engineering, driven by the longer-term nature of our contracts, presents an opportunity to offer complementary equipment such as the SCR technology. This will enhance our emissions control capabilities and improve returns on our power generation services. This new equipment will also provide our customers with near-term solutions for some of the most demanding ‘behind-the-meter’ power applications in operation today.”
