Solaris Energy Infrastructure (SEI) 10-Q 30 Jul 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 27, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-38090
Entity Registrant Name	SOLARIS OILFIELD INFRASTRUCTURE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-5223109
Entity Address, Address Line One	9811 Katy Freeway, Suite 700
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	281
Local Phone Number	501-3070
Title of 12(b) Security	Class A Common Stock
Trading Symbol	SOI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001697500
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		29,376,398
Class B Common Stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		15,889,169

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 63,632	$ 66,882
Accounts receivable, net of allowances for credit losses of $1,076 and $339 as of June 30, 2020 and December 31, 2019, respectively	11,160	38,554
Prepaid expenses and other current assets	4,809	5,002
Inventories	1,016	7,144
Total current assets	80,617	117,582
Property, plant and equipment, net	255,539	306,583
Non-current inventories	3,555
Operating lease right-of-use assets	4,738	7,871
Goodwill	13,004	17,236
Intangible assets, net	3,372	3,761
Deferred tax assets	58,478	51,414
Other assets	545	625
Total assets	419,848	505,072
Current liabilities:
Accounts payable	3,998	3,824
Accrued liabilities	6,333	14,447
Current portion of payables related to Tax Receivable Agreement		1,416
Current portion of operating lease liabilities	579	596
Current portion of finance lease liabilities	30	30
Other current liabilities	75	74
Total current liabilities	11,015	20,387
Operating lease liabilities, net of current	7,499	7,855
Finance lease liabilities, net of current	115	130
Payables related to Tax Receivable Agreement	68,132	66,582
Other long-term liabilities	607	460
Total liabilities	87,368	95,414
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000 shares authorized, none issued and outstanding
Additional paid-in capital	178,511	191,843
Retained earnings	31,516	74,222
Treasury stock (at cost), 0 shares and 163 shares as of June 30, 2020 and December 31, 2019, respectively		(2,526)
Total stockholders' equity attributable to Solaris	210,314	263,847
Non-controlling interest	122,166	145,811
Total stockholders' equity	332,480	409,658
Total liabilities and stockholders' equity	419,848	505,072
Class A Common Stock
Stockholders' equity:
Common stock	287	308
Class B Common Stock
Stockholders' equity:
Common stock

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Allowance for credit losses	$ 1,076	$ 339
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000	50,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock (in shares)	0	163
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	600,000	600,000
Common stock, shares issued	28,673	30,928
Common stock, shares outstanding	28,673	30,765
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	180,000	180,000
Common stock, shares issued	15,839	15,939
Common stock, shares outstanding	15,839	15,939

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Revenue	$ 9,339	$ 64,101	$ 57,169	$ 119,225
Operating costs and expenses:
Depreciation and amortization	6,671	6,622	13,785	12,967
Selling, general and administrative (excluding $172 and $146 and $324 and $265 of depreciation and amortization for the three and six months ended June 30, 2020 and 2019, respectively, shown separately)	3,967	5,006	8,373	9,034
Impairment losses			47,828
Other operating expenses	2,274	69	3,472	282
Total operating costs and expenses	20,072	36,778	107,244	64,175
Operating income (loss)	(10,733)	27,323	(50,075)	55,050
Interest income (expense), net	(35)	(656)	76	(767)
Total other expense (income)	(35)	(656)	76	(767)
Income (loss) before income tax expense	(10,768)	26,667	(49,999)	54,283
Benefit (provision) for income taxes	1,272	(4,158)	7,350	(8,339)
Net income (loss)	(9,496)	22,509	(42,649)	45,944
Less: net (income) loss related to non-controlling interests	3,956	(9,234)	18,026	(20,352)
Net income (loss) attributable to Solaris	(5,540)	13,275	(24,623)	25,592
System rental
Revenue:
Revenue	5,463	39,740	31,522	77,088
Operating costs and expenses:
Cost of revenue	823	2,552	2,836	4,899
Depreciation and amortization	6,034	5,481	12,035	10,707
System services
Revenue:
Revenue	3,419	19,031	24,376	30,468
Operating costs and expenses:
Cost of revenue	6,013	21,675	30,143	35,294
Depreciation and amortization	274	391	631	789
Transloading services
Revenue:
Revenue	264	4,881	729	10,714
Operating costs and expenses:
Cost of revenue	202	689	540	1,399
Depreciation and amortization	0	411	411	820
Inventory software services
Revenue:
Revenue	192	449	542	955
Operating costs and expenses:
Cost of revenue	122	165	267	300
Depreciation and amortization	$ 191	$ 193	$ 384	$ 386
Class A Common Stock
Operating costs and expenses:
Earnings per share of Class A common stock - basic (in dollars per share)	$ (0.20)	$ 0.42	$ (0.85)	$ 0.85
Earnings per share of Class A common stock - diluted (in dollars per share)	$ (0.20)	$ 0.42	$ (0.85)	$ 0.85
Basic weighted-average shares of Class A common stock outstanding (in shares)	28,638	30,609	28,975	29,326
Diluted weighted-average shares of Class A common stock outstanding (in shares)	28,638	30,644	28,975	29,387

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2020USN ($)	Jun. 30, 2019USD ($)	Jun. 30, 2019USN ($)
Depreciation and amortization	$ 6,671	$ 6,622	$ 13,785		$ 12,967
Stock-based compensation expense	1,326	1,178		$ 2,656		$ 2,040
Selling, general and administrative expenses
Depreciation and amortization	172	146	324		265
Stock-based compensation expense	1,231	1,112		2,345		1,903
System rental
Depreciation and amortization	6,034	5,481	12,035		10,707
Stock-based compensation expense	18	10		31		14
System services
Depreciation and amortization	274	391	631		789
Stock-based compensation expense	73	52		273		116
Transloading services
Depreciation and amortization	0	411	411		820
Stock-based compensation expense	4	4		$ 7		$ 7
Inventory software services
Depreciation and amortization	$ 191	$ 193	$ 384		$ 386

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Non-controlling Interest	Total
Balance at beginning of year at Dec. 31, 2018	$ 271		$ 164,086	$ 35,507	$ (1,414)	$ 142,428	$ 340,878
Balance at beginning of year (in shares) at Dec. 31, 2018	27,091,000	19,627,000			91,000
Changes in Stockholders' Equity
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock	$ 32		24,925			(24,957)
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock (in shares)	3,245,000	(3,245,000)
Net effect of deferred tax asset and payables related to parties pursuant to Tax Receivable Agreement from the exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock			(1,895)				(1,895)
Stock option exercises	$ 1		601		$ (427)	(336)	(161)
Stock option exercises (in shares)	65,000				28,000
Stock-based compensation			553			346	899
Vesting of restricted stock			2		$ (4)	(2)	(4)
Solaris LLC distribution paid to Solaris LLC unitholders						(1,638)	(1,638)
Dividends paid Class A common stock				(3,119)			(3,119)
Net (loss) income				12,317		11,118	23,435
Balance at end of year at Mar. 31, 2019	$ 304		188,458	44,173	$ (1,845)	126,773	357,863
Balance at end of year (in shares) at Mar. 31, 2019	30,401,000	16,382,000			119,000
Balance at beginning of year at Dec. 31, 2018	$ 271		164,086	35,507	$ (1,414)	142,428	$ 340,878
Balance at beginning of year (in shares) at Dec. 31, 2018	27,091,000	19,627,000			91,000
Changes in Stockholders' Equity
Treasury stock retirements (in shares)							0
Net (loss) income							$ 45,944
Balance at end of year at Jun. 30, 2019	$ 309		192,734	54,284	$ (2,144)	131,000	376,183
Balance at end of year (in shares) at Jun. 30, 2019	30,905,000	15,940,000			135,000
Changes in Stockholders' Equity
Effect of ASU No. 2016-02 implementation			186	(532)		(186)	(532)
Balance at beginning of year at Mar. 31, 2019	$ 304		188,458	44,173	$ (1,845)	126,773	357,863
Balance at beginning of year (in shares) at Mar. 31, 2019	30,401,000	16,382,000			119,000
Changes in Stockholders' Equity
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock	$ 4		3,571			(3,575)
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock (in shares)	442,000	(442,000)
Net effect of deferred tax asset and payables related to parties pursuant to Tax Receivable Agreement from the exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock			(397)				(397)
Stock option exercises			48			(20)	28
Stock option exercises (in shares)	11,000
Stock-based compensation			809			428	1,237
Vesting of restricted stock	$ 1		245		$ (299)	(246)	(299)
Vesting of restricted stock (in shares)	51,000				16,000
Solaris LLC distribution paid to Solaris LLC unitholders						(1,594)	(1,594)
Dividends paid Class A common stock				(3,164)			$ (3,164)
Treasury stock retirements (in shares)							0
Net (loss) income				13,275		9,234	$ 22,509
Balance at end of year at Jun. 30, 2019	$ 309		192,734	54,284	$ (2,144)	131,000	376,183
Balance at end of year (in shares) at Jun. 30, 2019	30,905,000	15,940,000			135,000
Balance at beginning of year at Dec. 31, 2019	$ 308		191,843	74,222	$ (2,526)	145,811	409,658
Balance at beginning of year (in shares) at Dec. 31, 2019	30,765,000	15,940,000			163,000
Changes in Stockholders' Equity
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock	$ 1		460			(461)
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock (in shares)	50,000	(50,000)
Net effect of deferred tax asset and payables related to parties pursuant to Tax Receivable Agreement from the exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock			(303)				(303)
Stock option exercises			66		$ (80)	(11)	(25)
Stock option exercises (in shares)	9,000				7,000
Share and unit repurchases and retirements	$ (24)		(14,804)	(10,177)		(1,711)	(26,716)
Share and unit repurchases and retirements (in shares)	(2,374,000)
Stock-based compensation			907			492	1,399
Vesting of restricted stock	$ 1		471		$ (373)	(473)	(374)
Vesting of restricted stock (in shares)	105,000				37,000
Solaris LLC distribution paid to Solaris LLC unitholders						(1,668)	(1,668)
Dividends paid Class A common stock				(3,087)			(3,087)
Treasury stock retirements			(1,247)	(1,732)	$ 2,979
Treasury stock retirements (in shares)					(207,000)
Net (loss) income				(19,081)		(14,071)	(33,152)
Balance at end of year at Mar. 31, 2020	$ 286		177,393	40,145		127,908	345,732
Balance at end of year (in shares) at Mar. 31, 2020	28,555,000	15,890,000
Balance at beginning of year at Dec. 31, 2019	$ 308		191,843	74,222	$ (2,526)	145,811	$ 409,658
Balance at beginning of year (in shares) at Dec. 31, 2019	30,765,000	15,940,000			163,000
Changes in Stockholders' Equity
Treasury stock retirements (in shares)							(207,382)
Net (loss) income							$ (42,649)
Balance at end of year at Jun. 30, 2020	$ 287		178,511	31,516		122,166	332,480
Balance at end of year (in shares) at Jun. 30, 2020	28,673,000	15,840,000
Balance at beginning of year at Mar. 31, 2020	$ 286		177,393	40,145		127,908	345,732
Balance at beginning of year (in shares) at Mar. 31, 2020	28,555,000	15,890,000
Changes in Stockholders' Equity
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock	$ 1		395			(395)	1
Exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock (in shares)	50,000	(50,000)
Net effect of deferred tax asset and payables related to parties pursuant to Tax Receivable Agreement from the exchange of Solaris LLC Units and shares of Class B common stock for shares of Class A common stock			(310)				(310)
Stock option exercises			36			(16)	20
Stock option exercises (in shares)	7,000
Stock-based compensation			895			497	1,392
Vesting of restricted stock			171			(171)
Vesting of restricted stock (in shares)	80,000
Cancelled shares withheld for taxes from RSU vesting			(69)			(38)	(107)
Cancelled shares withheld for taxes from RSU vesting (in shares)	(19,000)
Solaris LLC distribution paid to Solaris LLC unitholders						(1,663)	(1,663)
Dividends paid Class A common stock				(3,089)			(3,089)
Net (loss) income				(5,540)		(3,956)	(9,496)
Balance at end of year at Jun. 30, 2020	$ 287		$ 178,511	$ 31,516		$ 122,166	$ 332,480
Balance at end of year (in shares) at Jun. 30, 2020	28,673,000	15,840,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Distributions paid to unit holders (in dollars per unit)	$ 0.105	$ 0.105	$ 0.10	$ 0.10
Cash dividends paid (in dollars per share)	$ 0.105	$ 0.105	$ 0.10	$ 0.10

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net (loss) income	$ (42,649)	$ 45,944
Adjustment to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	13,785	12,967
Loss on disposal of asset	1,402	284
Allowance for credit losses	1,633	0
Stock-based compensation	2,656	2,040
Amortization of debt issuance costs	88	665
Deferred income tax expense	(7,369)	7,880
Impairment losses	47,828
Other	(145)	(169)
Changes in operating assets and liabilities:
Accounts receivable	25,760	(4,597)
Prepaid expenses and other assets	(217)	1,990
Inventories	(533)	(3,296)
Accounts payable	147	(4,661)
Accrued liabilities	(8,063)	4,696
Deferred revenue		(6,304)
Net cash provided by operating activities	34,323	57,439
Cash flows from investing activities:
Investment in property, plant and equipment	(1,558)	(28,717)
Cash received from insurance proceeds	713	38
Net cash used in investing activities	(845)	(28,679)
Cash flows from financing activities:
Share repurchases	(26,717)
Distribution and dividend paid to Solaris LLC unitholders (other than Solaris Inc.) and Class A common shareholders	(9,507)	(9,515)
Payments under finance leases	(18)	(18)
Payments under insurance premium financing		(932)
Proceeds from stock option exercises	64	294
Payments for shares withheld for taxes from RSU vesting and cancelled	(96)
Payments related to purchase of treasury stock	(454)	(730)
Payments related to debt issuance costs		(197)
Repayment of senior secured credit facility		(13,000)
Net cash used in financing activities	(36,728)	(24,098)
Net increase (decrease) in cash	(3,250)	4,662
Cash at beginning of period	66,882	25,057
Cash at end of period	63,632	29,719
Non-cash activities
Capitalized depreciation in property, plant and equipment	316	372
Capitalized stock based compensation	135	96
Property and equipment additions incurred but not paid at period-end	6	829
Property, plant and equipment additions transferred from inventory	356	4,939
Insurance premium financing		1,812
Cash paid for:
Interest	66	183
Income taxes	$ 813	$ 663

Organization and Background of

Organization and Background of Business	6 Months Ended
	Jun. 30, 2020
Organization and Background of Business
Organization and Background of Business	1. Organization and Background of Business Description of Business We are an independent provider of supply chain management and logistics solutions designed to drive efficiencies and reduce costs for the oil and natural gas industry. We manufacture and provide patented mobile proppant and chemical management systems that unload, store and deliver proppant and chemicals used in hydraulic fracturing of oil and natural gas wells. The systems are designed to address the challenges associated with transferring large quantities of proppant and chemicals to the well site, including the cost and management of last mile logistics, which includes coordinating proppant and chemical delivery to systems. Our systems are deployed in most of the active oil and natural gas basins in the United States. We also provide software solutions to remotely monitor proppant inventory from the source mine to well site through our Solaris Lens® and Railtronix® inventory management systems. Our customers use data from our software solutions to manage distribution of proppant and chemicals throughout their supply chain. Recent Developments The global response to the coronavirus 2019 pandemic (“COVID-19”) as well as the actions taken by a number of global oil producers has contributed to steep declines in the demand and pricing for oil, natural gas and NGLs, negatively impacting U.S. producers and reducing demand for our services. Our revenues have decreased materially as a result of these lower activity levels. In response, we have reduced direct operating costs and SG&A expenses, including reducing workforce levels across the Company and lowered our capital expenditures. We have also recognized impairments on certain assets which is discussed further in Note. 2. Although pricing has stabilized in the second quarter, the commodity price environment is expected to remain depressed based on over-supply, decreased demand and a potential global economic recession. In response, in addition to other measures, the Company has reduced costs and lowered its capital budget for the year.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying interim unaudited condensed consolidated financial statements of Solaris Oilfield Infrastructure, Inc. (either individually or together with its subsidiaries, as the context requires, “Solaris Inc.” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These financial statements reflect all normal recurring adjustments that are necessary for fair presentation. Operating results for the three and six months ended June 30, 2020 and 2019 are not necessarily indicative of the results that may be expected for the full year or for any interim period. The unaudited interim condensed consolidated financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with Solaris Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 and notes thereto. Solaris Inc. is the managing member of Solaris Oilfield Infrastructure, LLC (“Solaris LLC”) and is responsible for all operational, management and administrative decisions relating to Solaris LLC's business. Solaris Inc. consolidates the financial results of Solaris LLC and its subsidiaries and reports non-controlling interest related to the portion of the units in Solaris LLC (the “Solaris LLC Units”) not owned by Solaris Inc., which will reduce net income attributable to the holders of Solaris Inc.’s Class A common stock All material intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these condensed consolidated financial statements include, but are not limited to, collectability of accounts receivable, stock-based compensation, depreciation associated with property, plant and equipment and related impairment considerations of those assets, impairment considerations of goodwill, determination of fair value of intangible assets acquired in business combinations, income taxes, determination of the present value of lease payments and right-of-use assets, inventory valuation and certain other assets and liabilities. Actual results could differ from management’s best estimates as additional information or actual results become available in the future, and those differences could be material. Inventories consist of materials used in the manufacturing of the Company’s systems, which include raw materials and purchased parts and is stated at the lower of cost or net realizable value. Net realizable value is determined, giving consideration to quality, excessive levels, obsolescence and other factors. Adjustments that reduce stated amounts will be recognized as impairments in the condensed consolidated statements of operations. The Company recognized a write down of the carrying value of inventory of $2.6 million to its net realizable value during the six months ended June 30, 2020. There were no impairments recorded for the three months ended June 30, 2020 and 2019 or for the six months ended June 30, 2019. Goodwill Due to the impact of the outbreak of COVID-19 and recent oil market developments on our business, we updated our goodwill impairment assessment as of March 31, 2020. ​ We estimated the fair value for each reporting unit using an income approach including a discounted cash flow analysis and the use of significant unobservable inputs representative of a Level 3 fair value measurement. Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. The Company selected assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions, near term declines and estimated growth rates. These estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, particularly in the current volatile market, actual results may differ from those used in the Company’s valuations which could result in additional impairment charges in the future. The discount rates used to value the Company’s reporting units were between 10.35% and 13.00%. As a result of the March 31, 2020 evaluation of goodwill, $4,231 of goodwill associated with the 2017 purchase of the assets of Railtronix was impaired during the three months ended March 31. 2020. The goodwill associated with the Loadcraft Industries Ltd. purchase was not impaired. An impairment charge would have resulted if our estimate of fair value was approximately 40% less than the amount determined. No additional facts or circumstances warranted an impairment assessment as of June 30, 2020 and no impairment charges were recognized for the three month period then ended. As a result of recent volatility in global oil markets driven by significant reductions in demand for oil due to COVID-19 and certain actions by oil producers globally and the expected impact on our businesses, operations and earnings, the Company concluded that such circumstances warranted an evaluation of whether indicators of impairment are present for its asset groups as of March 31, 2020. Based on this evaluation, the Company performed tests for recoverability of the carrying value of these assets using forecasted undiscounted cash flows. The Company noted that the undiscounted cash flows as well as the fair value of the assets associated with our Kingfisher Facility exceeded their carrying values and the Company recognized impairment losses of $37,775, $2,845 and $410 for property, plant and equipment, ROU assets and other receivables, respectively during the three months ended March 31, 2020 and six month ended June 30, 2020. These impairments resulted from an accumulation of factors leading to the loss of significant customers, reduced operating activities and earnings, including impacts resulting from continued volatility in global oil markets and the COVID-19 pandemic. No additional facts or circumstances indicated that indicators of impairment have become present during the three months ended June 30, 2020. However, if these conditions persist for an extended period of time, additional impairment losses may be recognized in relation to our proppant management systems and inventory management software. Given the inherent uncertainty in determining the assumptions underlying both undiscounted and discounted cash flow analyses, particularly in the current volatile market, actual results may differ which could result in additional impairment charges. We estimated the fair value of the Kingfisher Facility using an income approach including a discounted cash flow analysis and the use of significant unobservable inputs representative of a Level 3 fair value measurement. Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. The Company selected assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. These estimates are based upon assumptions believed to be reasonable. The discount rates used to value this reporting unit were between 10.35% and 13.00%. Limited marketability for the assets group exist in the current volatile market and the analysis resulted in a full impairment of the long-lived assets of the reporting unit. There were no impairment indicators for the three or six months ended June 30, 2019. Accounting Standards Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires the use of a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2016-13 effective January 1, 2020, which did not have an impact on our condensed consolidated financial statements. ​ Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform, which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s financial statements.

Accounts Receivable and Allowan

Accounts Receivable and Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2020
Accounts Receivable and Allowance for Credit Losses
Accounts Receivable and Allowance for Credit Losses	3. Accounts Receivable and Allowance for Credit Losses ​ Accounts receivable consists of trade receivables recorded at the invoice amount, plus accrued revenue that is not yet billed, less an estimated allowance for credit losses (if any). Accounts receivable are generally due within 60 days or less, or in accordance with terms agreed with customers. We do not accrue interest on delinquent receivables. Total unbilled revenue included in accounts receivable as of June 30, 2020 and December 31, 2019 was $1,338 and $7,423, respectively. ​ In our determination of the allowance for credit losses, we pool receivables with similar risk characteristics and consider a number of current conditions, past events and other factors, including the length of time trade accounts receivable are past due, previous loss history, and the condition of the general economy and the industry as a whole, and apply an expected loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Accounts deemed uncollectible are applied against the allowance for credit losses. The related expense was included in Selling, general and administrative expense on the condensed consolidated statements of operations. ​ The following activity related to our allowance for credit losses on customer receivables for the six months ended June 30, 2020 reflects the estimated impact of the current economic environment on our receivable balance: ​ ​ ​ ​ ​ ​ ​ (in thousands) Balance, December 31, 2019 ​ $ 339 Credit losses ​ ​ 1,633 Less writeoffs ​ ​ (896) Balance, June 30, 2020 ​ $ 1,076 ​ No allowance for credit losses were recognized in the six months ended June 30, 2019.

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment.
Property, Plant and Equipment	4. Property, Plant and Equipment Property, plant and equipment was comprised of the following at June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2020 2019 Systems and related equipment ​ ​ 297,297 ​ $ 294,547 Systems in process ​ ​ 11,386 ​ 11,867 Transloading facility and equipment ​ ​ — ​ ​ 40,272 Computer hardware and software ​ 980 ​ 1,335 Machinery and equipment ​ 5,242 ​ 5,214 Vehicles ​ 3,736 ​ 7,633 Buildings ​ 4,342 ​ 4,339 Land ​ 612 ​ 612 Furniture and fixtures ​ ​ 238 ​ 284 Property, plant and equipment, gross ​ 323,833 ​ 366,103 Less: accumulated depreciation ​ (68,294) ​ (59,520) Property, plant and equipment, net ​ $ 255,539 ​ $ 306,583 ​ Depreciation expense for the three months ended June 30, 2020 and 2019 was $6,480 and $6,429, respectively. As described in Note 2, $37,775 of impairment losses were recognized for property, plant and equipment, associated primarily with transloading facility and equipment during the three months ended March 31, 2020. There were no impairment indicators for the three and six months ended June 30, 2019 and for the three months ended June 30, 2020.

Definite-lived Intangible Asset

Definite-lived Intangible Assets	6 Months Ended
	Jun. 30, 2020
Definite-lived Intangible Assets
Definite-lived Intangible Assets	5. Definite-lived Intangible Assets Definite-lived Intangible Assets ​ Identified intangible assets with determinable lives consist primarily of customer relationships, a non-competition agreement and software acquired in the acquisition of Railtronix, as well as patents that were filed for our systems and other intellectual property. Amortization on these assets is calculated on the straight-line method over the estimated useful lives of the assets, which is five Identified intangible assets by major classification consist of the following at June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Net Book ​ ​ Gross ​ Amortization ​ Value As of June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ $ 4,703 ​ $ (1,735) ​ $ 2,968 Software acquired in the acquisition of Railtronix ​ ​ 346 ​ ​ (128) ​ ​ 218 Non-competition agreement ​ ​ 225 ​ ​ (116) ​ ​ 109 Patents and other ​ ​ 114 ​ ​ (37) ​ ​ 77 Total identifiable intangibles ​ $ 5,388 ​ $ (2,016) ​ $ 3,372 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ $ 4,703 ​ $ (1,400) ​ $ 3,303 Software acquired in the acquisition of Railtronix ​ ​ 346 ​ ​ (103) ​ ​ 243 Non-competition agreement ​ ​ 225 ​ ​ (94) ​ ​ 131 Patents and other ​ ​ 114 ​ ​ (30) ​ ​ 84 Total identifiable intangibles ​ $ 5,388 ​ $ (1,627) ​ $ 3,761 ​ ​

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2020
Accrued Liabilities
Accrued Liabilities	6. Accrued Liabilities Accrued liabilities were comprised of the following at June 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2020 2019 Property, plant and equipment ​ $ 26 ​ $ 47 Employee related expenses ​ ​ 2,135 ​ ​ 4,129 Selling, general and administrative ​ ​ 742 ​ ​ 1,016 Cost of revenue ​ ​ 786 ​ ​ 5,062 Excise, franchise and sales taxes ​ 2,271 ​ 2,526 Ad valorem taxes ​ 304 ​ 1,598 Other ​ 69 ​ 69 Accrued liabilities ​ $ 6,333 ​ $ 14,447 ​

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases
Leases	7. Leases The Company has operating and finance leases for equipment, office space, land and facilities. The terms and conditions for these leases vary by type of underlying asset. As described in Note 2, $2,845 of impairment losses were recognized in relation to operating lease ROU assets, during the three months ended March 31, 2020. Operating leases include the guarantee of lease agreement with Solaris Energy Management, LLC, a related party of the Company, related to the rental of office space for the Company's corporate headquarters. Refer to Note 13. “Related Party Transactions” for additional information regarding related party transactions recognized. The components of lease expense were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ June 30, 2020 ​ June 30, 2019 ​ ​ June 30, 2020 ​ June 30, 2019 Operating lease cost (1) (2) ​ $ 256 ​ $ 297 ​ ​ $ 511 ​ $ 593 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ ​ 8 ​ 8 ​ ​ ​ 8 ​ 16 Interest on lease liabilities ​ ​ 1 ​ 1 ​ ​ ​ 1 ​ 2 Total finance lease cost ​ $ 9 ​ $ 9 ​ ​ $ 9 ​ $ 18 ​ (1) Includes short term leases. (2) Operating lease costs of $185, $20 and $51 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the three months ended June 30, 2020, respectively. Operating lease costs of $185, $20 and $92 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the three months ended June 30, 2019, respectively. Operating lease costs of $370, $39 and $102 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the six months ended June 30, 2020, respectively. Operating lease costs of $370, $39 and $184 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the six months ended June 30, 2019, respectively. No variable lease costs were recognized during the three and six months ended June 30, 2020 and 2019. ​ Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ Year Ending December 31, Operating Leases Finance Leases 2020 (remainder of) ​ $ 478 ​ ​ 18 2021 ​ ​ 1,060 ​ ​ 33 2022 ​ ​ 1,091 ​ ​ 33 2023 ​ ​ 1,100 ​ ​ 33 2024 ​ ​ 1,109 ​ ​ 33 Thereafter ​ ​ 8,353 ​ ​ 7 Total future minimum lease payments ​ ​ 13,191 ​ 157 Less: effects of discounting ​ ​ (5,114) ​ ​ (12) Total lease liabilities ​ $ 8,077 ​ $ 145 ​ Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ June 30, 2020 ​ June 30, 2019 ​ ​ June 30, 2020 ​ June 30, 2019 Supplemental Cash Flows Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 395 ​ $ 394 ​ ​ $ 638 ​ $ 633 Financing cash flows from finance leases ​ ​ 9 ​ 9 ​ ​ ​ 18 ​ 18 ​ ​ ​ ​ ​ Other information related to leases was as follows: June 30, ​ ​ 2020 Weighted Average Remaining Lease Term ​ ​ ​ Operating leases ​ ​ 13.8 Finance leases ​ ​ 5.1 Weighted Average Discount Rate ​ ​ ​ Operating leases ​ ​ 6.3% Finance leases ​ ​ 3.3% ​

Debt

Debt	6 Months Ended
	Jun. 30, 2020
Debt
Debt	8. Debt Senior Secured Credit Facility On April 26, 2019, Solaris LLC entered into an Amended and Restated Credit Agreement (the “2019 Credit Agreement”) by and among Solaris LLC, as borrower, each of the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent. The 2019 Credit Agreement consists of an initial $50,000 revolving loan commitment (the “Loan”) with a $25,000 uncommitted accordion option to increase the Loan availability to $75,000. The term of the 2019 Credit Agreement expires on April 26, 2022. The 2019 Credit Agreement requires that we prepay any outstanding borrowings under the Loan in the event our total leverage ratio is greater than 1.00 to 1.00 and our consolidated cash balance exceeds $20,000, taking into account certain adjustments. At June 30, 2020, we had no borrowings under the 2019 Credit Agreement outstanding and ability to draw $50,000. Although there were no borrowings outstanding under the 2019 Credit Agreement, the applicable margin ranges from 1.75% to 2.50% for Eurodollar loans and 0.75% to 1.50% for alternate base rate loans, in each case depending on our total leverage ratio. The 2019 Credit Agreement requires that we pay a quarterly commitment fee on undrawn amounts of the Loan, ranging from 0.25% to 0.375 % depending upon the total leverage ratio. We were in compliance with all covenants in accordance with the 2019 Credit Agreement as of June 30, 2020.

Equity

Equity	6 Months Ended
	Jun. 30, 2020
Equity
Equity	9. Equity Dividends Solaris LLC paid distributions totaling $4,755 and $4,758 to all Solaris LLC unitholders in the three months ended June 30, 2020 and 2019, respectively, of which $3,087 and $3,164 was paid to Solaris Inc. Solaris LLC paid distributions totaling $9,507 and $9,515 to all Solaris LLC unitholders in the six months ended June 30, 2020 and 2019, respectively, of which $6,176 and $6,280 was paid to Solaris Inc. Solaris Inc. used the proceeds from the distributions to pay quarterly cash dividends to all holders of shares of Class A common stock. Share Repurchase Program During the three months ended March 31, 2020, Solaris Inc. purchased and retired 2,374,092 shares of the Company’s Class A common stock for $26,746, or $11.27 average price per share, and, in connection therewith, Solaris LLC purchased and retired 2,374,092 Solaris LLC Units from the Company for the same amount. During the full share repurchase plan, Solaris Inc. purchased and retired 2,626,022 shares of the Company’s Class A common stock for $30,000, or $11.41 average price per share, and, in connection therewith, Solaris LLC purchased and retired 2,626,022 Solaris LLC Units from the Company for the same amount. As of March 31, 2020, the share repurchase plan was completed. Treasury Stock Retirement During the six months ended June 30, 2020, the Company cancelled and retired, 207,382 shares of treasury stock. No shares were retired during the three and six months ended June 30, 2019. Stock-based compensation The Company’s long-term incentive plan for employees, directors and consultants (the “LTIP”) provides for the grant of all or any of the following types of equity-based awards: (1) incentive stock options qualified as such under United States federal income tax laws; (2) stock options that do not qualify as incentive stock options; (3) stock appreciation rights; (4) restricted stock awards; (5) restricted stock units; (6) bonus stock; (7) performance awards; (8) dividend equivalents; (9) other stock-based awards; (10) cash awards; and (11) substitute awards. Subject to adjustment in accordance with the terms of the LTIP, 5,118,080 shares of Solaris Inc.’s Class A common stock have been reserved for issuance pursuant to awards under the LTIP. As of June 30, 2020, 3,538,005 stock awards were available for grant. The following table summarizes activity related to restricted stock for the three and six months ended June 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ Restricted Stock Awards ​ ​ 2020 ​ 2019 Unvested at January 1, 627,251 ​ 411,497 Awarded 386,146 ​ 375,068 Vested (141,700) ​ (706) Forfeited (32,845) ​ (405) Unvested at March 31, ​ 838,852 ​ 785,454 Awarded ​ 10,194 ​ 29,847 Vested ​ (80,203) ​ (67,674) Forfeited ​ (37,164) ​ (7,896) Unvested at June 30, ​ 731,679 ​ 739,731 ​ Of the unvested 731,679 shares restricted stock, it is expected that 102,164 shares, 264,046 shares, 249,839 shares, and 115,630 shares will vest in 2020, 2021, 2022 and 2023, respectively, in each case, subject to the applicable vesting terms governing such shares of restricted stock. There was approximately $6,918 of unrecognized compensation expense related to unvested restricted stock as of June 30, 2020. The unrecognized compensation expense will be recognized over the weighted average remaining vesting period of 2.6 years . Earnings Per Share Basic earnings per share of Class A common stock is computed by dividing net income attributable to Solaris Inc. by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share is computed giving effect to all potentially dilutive shares. The following table sets forth the calculation of earnings per share, or EPS, for the three months ended June 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, Basic net income per share: ​ 2020 ​ 2019 ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Solaris ​ $ (5,540) ​ $ 13,275 ​ $ (24,623) ​ $ 25,592 Loss (income) attributable to participating securities (1) ​ ​ — ​ ​ (322) ​ ​ — ​ ​ (575) Net income (loss) attributable to common stockholders ​ $ (5,540) ​ $ 12,953 ​ $ (24,623) ​ $ 25,017 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of unrestricted outstanding common shares used to calculate basic net income per share ​ ​ 28,638 ​ ​ 30,609 ​ ​ 28,975 ​ ​ 29,326 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ ​ — ​ ​ 35 ​ ​ — ​ ​ 61 Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted net income per share ​ ​ 28,638 ​ ​ 30,644 ​ ​ 28,975 ​ ​ 29,387 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share of Class A common stock - basic ​ $ (0.20) ​ $ 0.42 ​ $ (0.85) ​ $ 0.85 Earnings per share of Class A common stock - diluted ​ $ (0.20) ​ $ 0.42 ​ $ (0.85) ​ $ 0.85 ​ (1) The Company’s restricted shares of common stock are participating securities. ​ The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such potentially dilutive shares would have been antidilutive upon conversion: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 ​ 2019 ​ 2020 2019 Class B common stock ​ ​ 15,856 ​ ​ 16,202 ​ ​ 15,889 ​ ​ 17,450 Restricted stock awards ​ ​ 761 ​ ​ 231 ​ ​ 726 ​ ​ 71 Stock Options ​ ​ 13 ​ ​ — ​ ​ 17 ​ ​ — Total ​ ​ 16,630 ​ ​ 16,433 ​ ​ 16,632 ​ ​ 17,521 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Taxes
Income Taxes	10. Income Taxes Income Taxes Based on our cumulative earnings history and forecasted future sources of taxable income, we believe that we will be able to realize our deferred tax assets in the future. As the Company reassesses this position in the future, changes in cumulative earnings history, excluding non-recurring charges, or changes to forecasted taxable income may alter this expectation and may result in an increase in the valuation allowance and an increase in the effective tax rate. ​ Payables Related to the Tax Receivable Agreement been recorded as a current liability, respectively. The increase in payables related to the Tax Receivable Agreement is a result of Solaris Inc.’s acquisition (or deemed acquisition for United States federal income tax purposes) of Solaris LLC Units from TRA Holders during the three months ended June 30, 2020.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2020
Concentrations
Concentrations	11. Concentrations For the three months ended June 30, 2020, two customers accounted for 11% and 10% of the Company’s revenues. For the three months ended June 30, 2019, three customers accounted for 13%, 12%, and 11% of the Company’s revenues. For the six months ended June 30, 2020, no customer accounted for more than 10% of the Company’s revenues. For the six months ended June 30, 2019, four customers accounted for 14%, 12%, 11% and 11% of the Company’s revenues. As of June 30, 2020, two customers accounted 17% and 10% of the Company’s accounts receivable. As of December 31, 2019, one customer accounted for 15% of the Company’s accounts receivable. For the three months ended June 30, 2020, one supplier accounted for 40% of the Company’s total purchases. For the three months ended June 30, 2019, one supplier accounted for 12% of the Company’s total purchases. For the six months ended June 30, 2020, one supplier accounted for 36 % of the Company’s total purchases. For the six months ended June 30, 2019, no supplier accounted for more than 10% or more of the Company’s total purchases. As of June 30, 2020, three suppliers accounted for 19%, 18% and 15% of the Company’s accounts payable. As of December 31, 2019, one supplier accounted for 44% of the Company’s accounts payable.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	12. Commitments and Contingencies In the normal course of business, the Company is subjected to various claims, legal actions, contract negotiations and disputes. The Company provides for losses, if any, in the year in which they can be reasonably estimated. In management’s opinion, there are currently no such matters outstanding that would have a material effect on the accompanying condensed consolidated financial statements. Commitment fees on our Revolving Loan are $229 which were calculated based on the unused portion of lender commitments, at the applicable commitment fee rate of 0.25%. See Note 8. “Debt,” for interest requirements per the 2019 Credit Agreement. Purchase commitments of $460 primarily relate to agreements with our suppliers for material and part purchases to be used in manufacturing or maintenance activities. The purchase commitments represent open purchase orders to our suppliers. ​

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2020
Related Party Transactions
Related Party Transactions	13. Related Party Transactions The Company recognizes certain costs incurred in relation to transactions primarily incurred in connection with the amended and restated administrative services agreement, dated May 17, 2017, between Solaris LLC and Solaris Energy Management, LLC, a company partially owned by William A. Zartler, the Chief Executive Officer and Chairman of the Board. These services include rent paid for office space, travel services, personnel, consulting and administrative costs. For the three months ended June 30, 2020 and 2019, Solaris LLC paid $191 and $341, respectively, for these services. For the six months ended June 30, 2020 and 2019, Solaris LLC paid $405 and $619, respectively, for these services. As of June 30, 2020 and December 31, 2019, the Company included $231 and $233, respectively, in prepaid expenses and other current assets on the condensed consolidated balance sheets. As of June 30, 2020 and December 31, 2019, the Company included $58 and $74, respectively, of accruals to related parties in accrued liabilities on the condensed consolidated balance sheets. The Company has executed a guarantee of lease agreement with Solaris Energy Management, LLC, a related party of the Company, related to the rental of office space for the Company’s corporate headquarters. The total future guaranty under the guarantee of lease agreement with Solaris Energy Management, LLC is $4,540 as of June 30, 2020. Refer to Note 7. “Leases” for operating lease discussion.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying interim unaudited condensed consolidated financial statements of Solaris Oilfield Infrastructure, Inc. (either individually or together with its subsidiaries, as the context requires, “Solaris Inc.” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These financial statements reflect all normal recurring adjustments that are necessary for fair presentation. Operating results for the three and six months ended June 30, 2020 and 2019 are not necessarily indicative of the results that may be expected for the full year or for any interim period. The unaudited interim condensed consolidated financial statements do not include all information or notes required by GAAP for annual financial statements and should be read together with Solaris Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 and notes thereto. Solaris Inc. is the managing member of Solaris Oilfield Infrastructure, LLC (“Solaris LLC”) and is responsible for all operational, management and administrative decisions relating to Solaris LLC's business. Solaris Inc. consolidates the financial results of Solaris LLC and its subsidiaries and reports non-controlling interest related to the portion of the units in Solaris LLC (the “Solaris LLC Units”) not owned by Solaris Inc., which will reduce net income attributable to the holders of Solaris Inc.’s Class A common stock All material intercompany transactions and balances have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these condensed consolidated financial statements include, but are not limited to, collectability of accounts receivable, stock-based compensation, depreciation associated with property, plant and equipment and related impairment considerations of those assets, impairment considerations of goodwill, determination of fair value of intangible assets acquired in business combinations, income taxes, determination of the present value of lease payments and right-of-use assets, inventory valuation and certain other assets and liabilities. Actual results could differ from management’s best estimates as additional information or actual results become available in the future, and those differences could be material.
Inventories	Inventories consist of materials used in the manufacturing of the Company’s systems, which include raw materials and purchased parts and is stated at the lower of cost or net realizable value. Net realizable value is determined, giving consideration to quality, excessive levels, obsolescence and other factors. Adjustments that reduce stated amounts will be recognized as impairments in the condensed consolidated statements of operations. The Company recognized a write down of the carrying value of inventory of $2.6 million to its net realizable value during the six months ended June 30, 2020. There were no impairments recorded for the three months ended June 30, 2020 and 2019 or for the six months ended June 30, 2019.
Goodwill	Goodwill Due to the impact of the outbreak of COVID-19 and recent oil market developments on our business, we updated our goodwill impairment assessment as of March 31, 2020. ​ We estimated the fair value for each reporting unit using an income approach including a discounted cash flow analysis and the use of significant unobservable inputs representative of a Level 3 fair value measurement. Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. The Company selected assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions, near term declines and estimated growth rates. These estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, particularly in the current volatile market, actual results may differ from those used in the Company’s valuations which could result in additional impairment charges in the future. The discount rates used to value the Company’s reporting units were between 10.35% and 13.00%. As a result of the March 31, 2020 evaluation of goodwill, $4,231 of goodwill associated with the 2017 purchase of the assets of Railtronix was impaired during the three months ended March 31. 2020. The goodwill associated with the Loadcraft Industries Ltd. purchase was not impaired. An impairment charge would have resulted if our estimate of fair value was approximately 40% less than the amount determined. No additional facts or circumstances warranted an impairment assessment as of June 30, 2020 and no impairment charges were recognized for the three month period then ended.
Impairment of Long-Lived Assets, Definite-lived Intangible Assets and ROU Assets	As a result of recent volatility in global oil markets driven by significant reductions in demand for oil due to COVID-19 and certain actions by oil producers globally and the expected impact on our businesses, operations and earnings, the Company concluded that such circumstances warranted an evaluation of whether indicators of impairment are present for its asset groups as of March 31, 2020. Based on this evaluation, the Company performed tests for recoverability of the carrying value of these assets using forecasted undiscounted cash flows. The Company noted that the undiscounted cash flows as well as the fair value of the assets associated with our Kingfisher Facility exceeded their carrying values and the Company recognized impairment losses of $37,775, $2,845 and $410 for property, plant and equipment, ROU assets and other receivables, respectively during the three months ended March 31, 2020 and six month ended June 30, 2020. These impairments resulted from an accumulation of factors leading to the loss of significant customers, reduced operating activities and earnings, including impacts resulting from continued volatility in global oil markets and the COVID-19 pandemic. No additional facts or circumstances indicated that indicators of impairment have become present during the three months ended June 30, 2020. However, if these conditions persist for an extended period of time, additional impairment losses may be recognized in relation to our proppant management systems and inventory management software. Given the inherent uncertainty in determining the assumptions underlying both undiscounted and discounted cash flow analyses, particularly in the current volatile market, actual results may differ which could result in additional impairment charges. We estimated the fair value of the Kingfisher Facility using an income approach including a discounted cash flow analysis and the use of significant unobservable inputs representative of a Level 3 fair value measurement. Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. The Company selected assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. These estimates are based upon assumptions believed to be reasonable. The discount rates used to value this reporting unit were between 10.35% and 13.00%. Limited marketability for the assets group exist in the current volatile market and the analysis resulted in a full impairment of the long-lived assets of the reporting unit. There were no impairment indicators for the three or six months ended June 30, 2019.
Recent Accounting Standards	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires the use of a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2016-13 effective January 1, 2020, which did not have an impact on our condensed consolidated financial statements. ​ Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform, which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s financial statements.

Accounts Receivable and Allow_2

Accounts Receivable and Allowance for Credit Losses (Tables)	6 Months Ended
	Jun. 30, 2020
Accounts Receivable and Allowance for Credit Losses
Schedule of allowance for credit losses	​ ​ ​ ​ ​ ​ ​ (in thousands) Balance, December 31, 2019 ​ $ 339 Credit losses ​ ​ 1,633 Less writeoffs ​ ​ (896) Balance, June 30, 2020 ​ $ 1,076

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment.
Schedule of property plant and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2020 2019 Systems and related equipment ​ ​ 297,297 ​ $ 294,547 Systems in process ​ ​ 11,386 ​ 11,867 Transloading facility and equipment ​ ​ — ​ ​ 40,272 Computer hardware and software ​ 980 ​ 1,335 Machinery and equipment ​ 5,242 ​ 5,214 Vehicles ​ 3,736 ​ 7,633 Buildings ​ 4,342 ​ 4,339 Land ​ 612 ​ 612 Furniture and fixtures ​ ​ 238 ​ 284 Property, plant and equipment, gross ​ 323,833 ​ 366,103 Less: accumulated depreciation ​ (68,294) ​ (59,520) Property, plant and equipment, net ​ $ 255,539 ​ $ 306,583

Definite-lived Intangible Ass_2

Definite-lived Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
Definite-lived Intangible Assets
Schedule of intangible assets by major classification	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ Net Book ​ ​ Gross ​ Amortization ​ Value As of June 30, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ $ 4,703 ​ $ (1,735) ​ $ 2,968 Software acquired in the acquisition of Railtronix ​ ​ 346 ​ ​ (128) ​ ​ 218 Non-competition agreement ​ ​ 225 ​ ​ (116) ​ ​ 109 Patents and other ​ ​ 114 ​ ​ (37) ​ ​ 77 Total identifiable intangibles ​ $ 5,388 ​ $ (2,016) ​ $ 3,372 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer relationships ​ $ 4,703 ​ $ (1,400) ​ $ 3,303 Software acquired in the acquisition of Railtronix ​ ​ 346 ​ ​ (103) ​ ​ 243 Non-competition agreement ​ ​ 225 ​ ​ (94) ​ ​ 131 Patents and other ​ ​ 114 ​ ​ (30) ​ ​ 84 Total identifiable intangibles ​ $ 5,388 ​ $ (1,627) ​ $ 3,761

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Accrued Liabilities
Schedule of accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2020 2019 Property, plant and equipment ​ $ 26 ​ $ 47 Employee related expenses ​ ​ 2,135 ​ ​ 4,129 Selling, general and administrative ​ ​ 742 ​ ​ 1,016 Cost of revenue ​ ​ 786 ​ ​ 5,062 Excise, franchise and sales taxes ​ 2,271 ​ 2,526 Ad valorem taxes ​ 304 ​ 1,598 Other ​ 69 ​ 69 Accrued liabilities ​ $ 6,333 ​ $ 14,447

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases
Schedule of components of lease expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ June 30, 2020 ​ June 30, 2019 ​ ​ June 30, 2020 ​ June 30, 2019 Operating lease cost (1) (2) ​ $ 256 ​ $ 297 ​ ​ $ 511 ​ $ 593 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of ROU assets ​ ​ 8 ​ 8 ​ ​ ​ 8 ​ 16 Interest on lease liabilities ​ ​ 1 ​ 1 ​ ​ ​ 1 ​ 2 Total finance lease cost ​ $ 9 ​ $ 9 ​ ​ $ 9 ​ $ 18 ​ (1) Includes short term leases. (2) Operating lease costs of $185, $20 and $51 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the three months ended June 30, 2020, respectively. Operating lease costs of $185, $20 and $92 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the three months ended June 30, 2019, respectively. Operating lease costs of $370, $39 and $102 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the six months ended June 30, 2020, respectively. Operating lease costs of $370, $39 and $184 were reported in Selling, general and administrative, Cost of system services and Cost of transloading services for the six months ended June 30, 2019, respectively. No variable lease costs were recognized during the three and six months ended June 30, 2020 and 2019.
Schedule of future minimum operating lease payments	​ Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ Year Ending December 31, Operating Leases Finance Leases 2020 (remainder of) ​ $ 478 ​ ​ 18 2021 ​ ​ 1,060 ​ ​ 33 2022 ​ ​ 1,091 ​ ​ 33 2023 ​ ​ 1,100 ​ ​ 33 2024 ​ ​ 1,109 ​ ​ 33 Thereafter ​ ​ 8,353 ​ ​ 7 Total future minimum lease payments ​ ​ 13,191 ​ 157 Less: effects of discounting ​ ​ (5,114) ​ ​ (12) Total lease liabilities ​ $ 8,077 ​ $ 145
Schedule of future minimum finance lease payments	Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ Year Ending December 31, Operating Leases Finance Leases 2020 (remainder of) ​ $ 478 ​ ​ 18 2021 ​ ​ 1,060 ​ ​ 33 2022 ​ ​ 1,091 ​ ​ 33 2023 ​ ​ 1,100 ​ ​ 33 2024 ​ ​ 1,109 ​ ​ 33 Thereafter ​ ​ 8,353 ​ ​ 7 Total future minimum lease payments ​ ​ 13,191 ​ 157 Less: effects of discounting ​ ​ (5,114) ​ ​ (12) Total lease liabilities ​ $ 8,077 ​ $ 145
Schedule of other information	Supplemental cash flow information related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Three Months Ended Six Months Ended Six Months Ended ​ ​ June 30, 2020 ​ June 30, 2019 ​ ​ June 30, 2020 ​ June 30, 2019 Supplemental Cash Flows Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 395 ​ $ 394 ​ ​ $ 638 ​ $ 633 Financing cash flows from finance leases ​ ​ 9 ​ 9 ​ ​ ​ 18 ​ 18 ​ ​ ​ ​ ​ Other information related to leases was as follows: June 30, ​ ​ 2020 Weighted Average Remaining Lease Term ​ ​ ​ Operating leases ​ ​ 13.8 Finance leases ​ ​ 5.1 Weighted Average Discount Rate ​ ​ ​ Operating leases ​ ​ 6.3% Finance leases ​ ​ 3.3%

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Equity
Summary of activity related to restricted stock	​ ​ ​ ​ ​ ​ ​ ​ Restricted Stock Awards ​ ​ 2020 ​ 2019 Unvested at January 1, 627,251 ​ 411,497 Awarded 386,146 ​ 375,068 Vested (141,700) ​ (706) Forfeited (32,845) ​ (405) Unvested at March 31, ​ 838,852 ​ 785,454 Awarded ​ 10,194 ​ 29,847 Vested ​ (80,203) ​ (67,674) Forfeited ​ (37,164) ​ (7,896) Unvested at June 30, ​ 731,679 ​ 739,731
Schedule of earnings per share calculation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, Basic net income per share: ​ 2020 ​ 2019 ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Solaris ​ $ (5,540) ​ $ 13,275 ​ $ (24,623) ​ $ 25,592 Loss (income) attributable to participating securities (1) ​ ​ — ​ ​ (322) ​ ​ — ​ ​ (575) Net income (loss) attributable to common stockholders ​ $ (5,540) ​ $ 12,953 ​ $ (24,623) ​ $ 25,017 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of unrestricted outstanding common shares used to calculate basic net income per share ​ ​ 28,638 ​ ​ 30,609 ​ ​ 28,975 ​ ​ 29,326 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options ​ ​ — ​ ​ 35 ​ ​ — ​ ​ 61 Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted net income per share ​ ​ 28,638 ​ ​ 30,644 ​ ​ 28,975 ​ ​ 29,387 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share of Class A common stock - basic ​ $ (0.20) ​ $ 0.42 ​ $ (0.85) ​ $ 0.85 Earnings per share of Class A common stock - diluted ​ $ (0.20) ​ $ 0.42 ​ $ (0.85) ​ $ 0.85 ​ (1) The Company’s restricted shares of common stock are participating securities.
Schedule of antidilutive shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ 2020 ​ 2019 ​ 2020 2019 Class B common stock ​ ​ 15,856 ​ ​ 16,202 ​ ​ 15,889 ​ ​ 17,450 Restricted stock awards ​ ​ 761 ​ ​ 231 ​ ​ 726 ​ ​ 71 Stock Options ​ ​ 13 ​ ​ — ​ ​ 17 ​ ​ — Total ​ ​ 16,630 ​ ​ 16,433 ​ ​ 16,632 ​ ​ 17,521

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Impairments (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2020USD ($)item	Mar. 31, 2020USD ($)item	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)
Intangible assets by major classification
Inventory write-down	$ 0		$ 0	$ 2,600	$ 0
Goodwill impairment	$ 0
Impairment of long-lived assets			0		0
Measurement Input, Discount Rate | Minimum
Intangible assets by major classification
Asset measurement input | item	10.35	10.35		10.35
Measurement Input, Discount Rate | Maximum
Intangible assets by major classification
Asset measurement input | item	13	13		13
Property, Plant and Equipment
Intangible assets by major classification
Impairment of long-lived assets	$ 0	$ 37,775	$ 0		$ 0
ROU asset
Intangible assets by major classification
Impairment of long-lived assets		2,845
Accounts receivable
Intangible assets by major classification
Impairment of long-lived assets		410
Railtronix LLC
Intangible assets by major classification
Goodwill impairment		$ 4,231
Loadcraft Industries Ltd
Intangible assets by major classification
Estimate change needed (as a percent)		40.00%

Accounts Receivable and Allow_3

Accounts Receivable and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Accounts Receivable and Allowance for Credit Losses
Accounts receivable due maximum period	60 days
Unbilled revenue	$ 1,338		$ 7,423
Allowance for credit losses, beginning	339
Credit losses	1,633	$ 0
Less writeoffs	(896)
Allowance for credit losses, ending	$ 1,076

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment
Property, plant and equipment, gross	$ 323,833	$ 366,103
Less: accumulated depreciation	(68,294)	(59,520)
Property, plant and equipment, net	255,539	306,583
Systems and related equipment
Property, Plant and Equipment
Property, plant and equipment, gross	297,297	294,547
Systems in process
Property, Plant and Equipment
Property, plant and equipment, gross	11,386	11,867
Transloading facility and equipment
Property, Plant and Equipment
Property, plant and equipment, gross		40,272
Computer hardware and software
Property, Plant and Equipment
Property, plant and equipment, gross	980	1,335
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	5,242	5,214
Vehicles
Property, Plant and Equipment
Property, plant and equipment, gross	3,736	7,633
Buildings
Property, Plant and Equipment
Property, plant and equipment, gross	4,342	4,339
Land
Property, Plant and Equipment
Property, plant and equipment, gross	612	612
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	$ 238	$ 284

Property, Plant and Equipment -

Property, Plant and Equipment - Depreciation (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment
Depreciation expense	$ 6,480		$ 6,429
Capitalized depreciation in property, plant and equipment				$ 316	$ 372
Impairment of long-lived assets			0		0
Property, Plant and Equipment
Property, Plant and Equipment
Impairment of long-lived assets	$ 0	$ 37,775	$ 0		$ 0

Definite-lived Intangible Ass_3

Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Intangible assets by major classification
Intangible amortization expense	$ 191	$ 194	$ 389	$ 389
Gross	5,388		5,388		$ 5,388
Accumulated Amortization	(2,016)		(2,016)		(1,627)
Net Book Value	3,372		$ 3,372		3,761
Minimum
Intangible assets by major classification
Definite-lived intangible assets useful life			5 years
Maximum
Intangible assets by major classification
Definite-lived intangible assets useful life			15 years
Customer relationships
Intangible assets by major classification
Gross	4,703		$ 4,703		4,703
Accumulated Amortization	(1,735)		(1,735)		(1,400)
Net Book Value	2,968		2,968		3,303
Software acquired in the acquisition of Railtronix
Intangible assets by major classification
Gross	346		346		346
Accumulated Amortization	(128)		(128)		(103)
Net Book Value	218		218		243
Non-competition agreement
Intangible assets by major classification
Gross	225		225		225
Accumulated Amortization	(116)		(116)		(94)
Net Book Value	109		109		131
Patents and other
Intangible assets by major classification
Gross	114		114		114
Accumulated Amortization	(37)		(37)		(30)
Net Book Value	$ 77		$ 77		$ 84

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities
Property, plant and equipment	$ 26	$ 47
Employee related expenses	2,135	4,129
Selling, general and administrative	742	1,016
Cost of revenue	786	5,062
Excise, franchise and sales taxes	2,271	2,526
Ad valorem taxes	304	1,598
Other	69	69
Accrued liabilities	$ 6,333	$ 14,447

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2019
Leases
Impairment of long-lived assets		$ 0	$ 0
ROU asset
Leases
Impairment of long-lived assets	$ 2,845

Leases - Lease cost (Details)

Leases - Lease cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases
Operating lease cost	$ 256	$ 297	$ 511	$ 593
Amortization of ROU assets	8	8	8	16
Interest on lease liabilities	1	1	1	2
Total finance lease cost	9	9	9	18
Variable lease costs	0	0	0	0
Selling, general and administrative expenses
Leases
Operating lease cost	185	185	370	370
Cost of sales | System rental
Leases
Operating lease cost	20	20	39	39
Cost of sales | Transloading services
Leases
Operating lease cost	$ 51	$ 92	$ 102	$ 184

Leases - Maturities (Details)

Leases - Maturities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Operating lease obligations
2019 (remainder of)	$ 478
2021	1,060
2022	1,091
2023	1,100
2024	1,109
Thereafter	8,353
Total future minimum lease payments	13,191
Less: effects of discounting	(5,114)
Total lease liabilities	8,077
Finance lease obligations
2019 (remainder of)	18
2021	33
2022	33
2023	33
2024	33
Thereafter	7
Total future minimum lease payments	157
Less: effects of discounting	(12)
Total lease liabilities	$ 145

Leases - Other (Details)

Leases - Other (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases
Operating cash flows from operating leases	$ 395	$ 394	$ 638	$ 633
Financing cash flows from finance leases	$ 9	$ 9	$ 18	$ 18
Weighted Average Remaining Lease Term - Operating leases	13 years 9 months 18 days		13 years 9 months 18 days
Weighted Average Remaining Lease Term - Finance leases	5 years 1 month 6 days		5 years 1 month 6 days
Weighted Average Discount Rate - Operating leases	6.30%		6.30%
Weighted Average Discount Rate - Finance leases	3.30%		3.30%

Debt (Details)

Debt (Details) - 2019 Credit Agreement $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Apr. 26, 2019USD ($)
Debt
Maximum borrowing			$ 50,000
Potential additional borrowing available			25,000
Maximum borrowing capacity with accordion option			$ 75,000
Leverage ratio for threshold			1
Cash threshold triggering repayment			$ 20,000
Outstanding credit facility	$ 0	$ 0
Remaining borrowing capacity	$ 50,000
Commitment fee (as a percent)	0.25%
Minimum
Debt
Commitment fee (as a percent)	0.25%
Maximum
Debt
Commitment fee (as a percent)	0.375%
Eurodollar | Minimum
Debt
Applicable margin rate	1.75%
Eurodollar | Maximum
Debt
Applicable margin rate	2.50%
Alternate base rate | Minimum
Debt
Applicable margin rate	0.75%
Alternate base rate | Maximum
Debt
Applicable margin rate	1.50%

Equity - Dividends (Details)

Equity - Dividends (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Equity
Distributions paid to unit holders			$ 9,507	$ 9,515
Distribution received	$ 3,087	$ 3,164	6,176	6,280
Solaris LLC
Equity
Distributions paid to unit holders	$ 4,755	$ 4,758	$ 9,507	$ 9,515

Equity - Share Repurchase (Deta

Equity - Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		15 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020
Equity
Repurchased and retired (in shares)	2,374,092				2,626,022
Repurchased and retired	$ 26,746				$ 30,000
Average price (in dollars per share)	$ 11.27				$ 11.41
Treasury stock retirements (in shares)		0	207,382	0
Solaris LLC
Equity
Repurchased and retired (in shares)	2,374,092				2,626,022

Equity - SBC (Details)

Equity - SBC (Details)	Jun. 30, 2020shares
Stock-based compensation
Available for grant (in shares)	3,538,005
Class A Common Stock
Stock-based compensation
Reserved for issuance (in shares)	5,118,080

Equity - Restricted stock (Deta

Equity - Restricted stock (Details) - Restricted stock - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020
Number of Shares
Unvested, beginning (in shares)	838,852	627,251	785,454	411,497	627,251
Awarded (in shares)	10,194	386,146	29,847	375,068
Vested (in shares)	(80,203)	(141,700)	(67,674)	(706)
Forfeited (in shares)	(37,164)	(32,845)	(7,896)	(405)
Unvested, end (in shares)	731,679	838,852	739,731	785,454	731,679
Other non-option information
Unrecognized compensation costs	$ 6,918				$ 6,918
Expected period for recognizing compensation expense					2 years 7 months 6 days
First vesting period
Number of Shares
Unvested, end (in shares)	102,164				102,164
Second vesting period
Number of Shares
Unvested, end (in shares)	264,046				264,046
Third vesting period
Number of Shares
Unvested, end (in shares)	249,839				249,839
Fourth vesting period
Number of Shares
Unvested, end (in shares)	115,630				115,630

Equity - EPS (Details)

Equity - EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator
Net income (loss) attributable to Solaris	$ (5,540)	$ 13,275	$ (24,623)	$ 25,592
Less income attributable to participating securities		(322)		(575)
Net income attributable to common stockholders	$ (5,540)	$ 12,953	$ (24,623)	$ 25,017
Class A Common Stock
Denominator
Weighted average number of unrestricted outstanding common shares used to calculate basic net income per share (in shares)	28,638	30,609	28,975	29,326
Effect of dilutive securities:
Stock options (in shares)		35		61
Diluted weighted-average shares of Class A common stock outstanding used to calculate diluted net income per share (in shares)	28,638	30,644	28,975	29,387
Earnings per share of Class A common stock - basic (in dollars per share)	$ (0.20)	$ 0.42	$ (0.85)	$ 0.85
Earnings per share of Class A common stock - diluted (in dollars per share)	$ (0.20)	$ 0.42	$ (0.85)	$ 0.85

Equity - Antidilutive (Details)

Equity - Antidilutive (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Potentially dilutive shares
Excluded from EPS calculation (in shares)	16,630	16,433	16,632	17,521
Class B Common Stock
Potentially dilutive shares
Excluded from EPS calculation (in shares)	15,856	16,202	15,889	17,450
Restricted stock
Potentially dilutive shares
Excluded from EPS calculation (in shares)	761	231	726	71
Stock options
Potentially dilutive shares
Excluded from EPS calculation (in shares)	13		17

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	May 17, 2017	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Tax (benefits) and expenses		$ (1,272)	$ 4,158	$ (7,350)	$ 8,339
Effective tax rate		11.70%	15.40%	14.70%	15.30%
Unrecognized tax benefits				$ 816		$ 816
Current portion of payables related to Tax Receivable Agreement						1,416
Texas
Tax (benefits) and expenses		$ 322	$ 270	$ 19	$ 459
Franchise tax rate (as a percent)		0.80%		0.80%
Maximum taxable margin (as a percent)		70.00%		70.00%
Tax Receivable Agreement
Payments of net cash saving (as a percent)	85.00%
Benefit of remaining cash savings (as a percent)	15.00%
Payables related to Tax Receivable Agreement		$ 68,132		$ 68,132		67,998
Current portion of payables related to Tax Receivable Agreement		$ 0		$ 0		$ 1,416

Concentrations (Details)

Concentrations (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020itemcustomer	Jun. 30, 2019customeritem	Jun. 30, 2020customeritem	Jun. 30, 2019customeritem	Dec. 31, 2019itemcustomer
Customer | Revenue
Concentrations
Number of customers | customer	2	3	0	4
Customer | Revenue | Customer One
Concentrations
Concentration risk (as a percent)	11.00%	13.00%		14.00%
Customer | Revenue | Customer Two
Concentrations
Concentration risk (as a percent)	10.00%	12.00%		12.00%
Customer | Revenue | Customer Three
Concentrations
Concentration risk (as a percent)		11.00%		11.00%
Customer | Revenue | Customer Four
Concentrations
Concentration risk (as a percent)				11.00%
Customer | Accounts receivable
Concentrations
Number of customers | customer			2		1
Concentration risk (as a percent)					15.00%
Customer | Accounts receivable | Customer One
Concentrations
Concentration risk (as a percent)			17.00%
Customer | Accounts receivable | Customer Two
Concentrations
Concentration risk (as a percent)			10.00%
Supplier | Purchases
Concentrations
Number of suppliers | item	1	1	1	0
Concentration risk (as a percent)	40.00%	12.00%	36.00%
Supplier | Accounts payables
Concentrations
Number of suppliers | item			3		1
Concentration risk (as a percent)					44.00%
Supplier | Accounts payables | Supplier One
Concentrations
Concentration risk (as a percent)			19.00%
Supplier | Accounts payables | Supplier Two
Concentrations
Concentration risk (as a percent)			18.00%
Supplier | Accounts payables | Supplier Three
Concentrations
Concentration risk (as a percent)			15.00%

Commitments and Contingencies -

Commitments and Contingencies - Interim (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Purchase commitments	$ 460
2019 Credit Agreement
Commitment fee amount	$ 229
Commitment fee (as a percent)	0.25%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Related Party Transactions
Due from related party	$ 231		$ 231		$ 233
Due to related party	58		58		$ 74
William A. Zartler
Related Party Transactions
Payment made to related party	191	$ 341	405	$ 619
Solaris Energy Management, LLC
Related Party Transactions
Other commitments	$ 4,540		$ 4,540