SOI - Earnings call transcript Q3 2021 | Solaris Energy Infrastructure Inc.

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Operator

Good day, and welcome to the Solaris Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Yvonne Fletcher, would like and to to over conference the Senior Relations. turn Investor I Vice Finance President, ahead. go Please

Yvonne Fletcher

Good CEO, Bill XXXX and third our joined morning, CFO, the Zartler; by conference Kyle and Ramachandran. today and call. I'm and quarter Chairman our President to welcome earnings Solaris

financial be results The today's this in of accordance will we not our GAAP. be for as the and forward-looking the that non-GAAP site of risks. comments we discussion and isolation our performance. with comparable are on like some those press recent earnings of our of our measures Exchange future along in I'd at earnings CEO, Bill risks. public begin, call of in will and known we and number issued to other out Chairman release, which now nature today. outline posted remind evaluating that you reflect is I include solarisoilfield.com our unknown statements release our considered forward-looking GAAP that our statements or under can and conference a would contain Please refer standard presentation with information Securities Commission financial release turn in I'll News should results substitute Before measures, believe which prepared to also to additional call section. to available filings of the Reconciliations Web cautionary regarding make Such like over remarks may regarding the useful Zartler. a with point yesterday, to the

Bill Zartler

fundamentals increased sheet. continue share quarter on revenue consecutive XX% quarterly gas us range results. the during strong XXth strongly and and and today. to of no prices EBITDA $XX $XX continue the of prices Yvonne, We XX% thank cash Oil in shape for to third $XX Industry We you, as you sequentially with balance to generated over ended I'm the the the million, demand pleased our we and quarter. over up and increase climbed $X.X debt adjusted dividend. joining paid to million quarter to quarterly another million, dynamics Thank tighten. increased a to supply sequential global $X Solaris everyone

operators During the count third operators grew from a slower higher third economics, activity rate, the at the rig horizontal Many as commodity at count average, quarter, second while taken wells XX% U.S. Since advantage end X%. and rig increased the of inventories attractive quarter prices up and prices. horizontal increasing drilling reached grew commodity of the the have quarter, wellhead as lows. relevant same multi-year activity uncompleted another is rate of completions not albeit

in commodity all haven't U.S. private that this been discipline. operators in private completions are XXXX, including We they from stage increase in maintain to to we drilling years. operators spending indicating capital improvement or and combination for of activity, to from expect year growing slightly many operators in plan operators public increases Meanwhile, We active as year the and and backlog next of completions to and operators continue and Many Solaris production. discipline capital drilling activity robust modest the public in believe another public to many both XXXX. for activity low prices, set see continue stick

to large currently impact of storage industry providing these such also unloading Solaris the areas highly critical overall multiple reduce chain play as core of levels, introduced labor trucking with supply We're years continued We reduce with resulted existing by in and efficient when we costs. are reduced coming and help in automation. year. a tightness buffers increased facing built-in traditional this strength believe offerings spots market is in labor demonstrated requirements, Solaris. automation both that many technology new and AutoHopper and and reduce performance, bottlenecks ago, automation the we our We frac our improve The into recent is use. and continually and help Solaris improving further activity believe labor, in can constraints operational in the which blenders spillage will dust couple While increased well increases efficiencies, reliability system reduced in

technology advances technology traditional AutoBlend a by blender. blender new Our gains integrated with replacing automation completely all-electric streamline, those

traditional trials versus we of AutoBlend. seen performance quarters, AutoBlend now of customer Several the the customers the reliability continue to During first-hand significant third have and our with fourth blenders. in and run improvement

AutoBlend demonstrate continue uptime performance headcount improving sand throughput. in further solution requirements, reduce can We that our to while also

and power AutoBlend discipline will growing drive meet because demand cleaner is integrated with fleets. efficiency same of a We used that are industry capital sources the the be by all continued initiatives. operational technologies focus Additionally, improve and efficiencies electric, number believe can electric sustainability that on both can that frac it for

electric many the key support provider of and all pressure for only solutions targets. today's us the as of market operations, this address is of side to of our believe ESG low completions positions Solaris integrated customers’ strongly challenges well we the as well

looking our expect no of the quarter forward to XXXX, first two enter units of We than and next service AutoBlend system. full later to the we're commercialization

industry blenders a is times of Supply chain tighten, finalize long few area we components the of the our activity another testament in third of customers, structure continued have term When it with have the the lead to associated for receiving some chain followed management to and and secure spots to chain silo-based have on contracts discussions is the supply is [indiscernible] our lot compelling services and sand last of our of system. our and customers tightness the additional conjunction negotiations. items last Solaris’ discussions system a ordered the now. in balance customers under AutoBlend we our we with supply right logistics in Trucking manage technology direct performance The manage that and operational queue. attention mile have longer the and appear mile Much continue in in manage as our trucking well our of ability the record about on means several We commercial sheet. site. equipment lead to storage order quarter commercial for a achieve we for to

Our logistics hard last mile trucking both team has strengthen relationships deep worked in to with has sophistication and and grown our providers. size

our access allows of Our secure also carriers payment. liquidity strong as us and speed balance sheet sheet free balance helped certainty has trucking and both trucking debt

their up designs conjunction full schedules are scale Both on allow next We This lead rates procurement have optimize both silos. to site, far. of with so operators very new of preserve to hour at the and running flexibility to option trials to Today, for overall the trucks surety are our our offload trucking results two tons per trucking flexibility. and placement well unload we fill-based a systems currently availability, when time should from generation meeting pleased in belly lower allow XXX and for production also flexible maximize unloading our time to payloads pneumatic expanding tight. resources in increased work costs different are offerings with that solutions dump of top

benefits in efficiency dump could the offers loading While customers many result this for already technology new system we enhanced today, ultimately Solaris silo believe Solaris. belly

sustainability now that electric I ensure reach Our enhance over and offering will as also value. to commodity current can completed benefits more relationships possible, for is to as gas pushing fast meet and price and positioned financial wells and continue it the at that, efficiently crucial are solutions oil turn all our and believe customers these our safe Kyle be will timeline to for automated industries. to levels, people, a customers detailed technologies solutions timelines, for the We ensure entire production can while that driving review. With well

Kyle Ramachandran

and numbers. I'll some Thanks, begin by morning, good of recapping Bill, everyone. the

million. During of driven EBITDA in the increase revenue sequential generated last as sequentially, second XX% sand which averaged revenue fully both an quarter. increase we business. the system adjusted delivered from well systems, XX% utilization quarter, by utilized $X.X represents of our in million Total an We XX and an increase increased in amount mile as the $XX third of

the increase This worked of systems, quarter Over of system second from quarter, proppant the degrees which XX an deployed varying utilization. deployed course one a of total of levels. was we with

XX gap between the reflects generated backdrop completion the the both that increase our systems every a systems was of tightening against XX% was industry activity, by and positively systems Our flat and whitespace fully utilized The systems compression record quarter. of operated on The utilized impacted revenue in calculation equivalent of utilized achieved in number calendar. mile the quarter. our last deployed modest the manage tons relatively system fully delivered Solaris' count in and fully day quarter of in in reflects the the during

offering. late a customer pace availability which also an during and accelerated in customer earnings accounts collection our higher service prior we a at we to release in We that caught second three-year included benefited with for receivable our services million Consistent we flow in have disclosed for mile in from continued with previously $X.X paying was activity quarters, cash call. the from quarter. modestly with Operating as second quarter with activity agreement an a was a increase up last the approximately trucking levels signed ensure

Act also from retention the credit as $X the of part benefit employee realized CARES a million cash of We XXXX.

of the in the agreement in of under dividends, of $XX quarter, quarter in $XX repurchases. and million in our third XXXX to approximately expenditures expect credit facility Since in XXXX. in lenders at the to the in complete undrawn returned of of the expect for were those approximately for to our process approximately XXXX, free remaining the agreement our million. million positive total the returned filed benefit expiration million initiating flow with realize total $X cash cash with dividends well $XX to dividend flat negotiating quarter shareholders in We and approximately two our We currently liquidity. an have million benefit of available extension of and cash quarter of million our the current of cash a and which $XX credit an third we before After we have to of a ended We million second negotiations in form share We're in first quarters $X that prior $X quarter. related total was capital XXXX. initial shareholders in the $X.X with million

Turning to quarter our outlook. fourth

count their operators During will be XXXX X puts flat play likely exhaustion. programs and December. that October, our or late utilized budget the and with shutdown of level These can remainder in the offset fourth for a by certain including holiday number are some getting system out average. of key of a balanced was takes started fully There quarter,

overall as activity compensation. the This quarter manage during XXXX the that record third result the positive subject potentially activity where business levels the activity season. mile service be third this our for outlook level likely in fourth to volumes $X a are of shutdowns related approximately for throughput-based We is be we should will Solaris lower in levels. additional from off in tightness will challenged points expect million, holiday quarter, should SG&A for to were but last during slightly during be experienced trucking inclusive which flat expenses holiday of down come and will with a stock-based that to XXXX quarter up non-cash the

with stock we of expect the total quarter roughly be quarter non-cash of SG&A in fourth levels, the compensation. expensing inclusive line of quarterly XXXX, to normal For third

of spending XXXX range to Our million for be to $XX in $XX previous expectation CapEx the was million. year full

commercialization strong AutoBlend our units the beyond technologies, our interest by our the to we receive items long begun for the end to full lead of and of customers two Given in for anticipation the have year. new from expect additional we initial

spending As we our to $XX for anticipate approximately a year be result, CapEx million. the

working to maintenance in for past growth XXXX are In progress belly new million for couple in be on coming our as see our and expect we been for industry technology primary summary, years. the $XX fundamentals the flat we are excited and related excited AutoBlend to how are the the year range commercializing XXXX shape dump XXXX. driver to We capital solutions and of on with the CapEx CapEx taking expenditures about the of we've

competencies facing constraints take the core our with industry. and We value new also an focus our for many currently technology offers of to help alleviate exciting customers believe technology our of drive industry on service differentiation The the upcycle supply and discipline timing your we'd introductions maintaining help With can capital drive that, liquidity prospects that to for new happy Solaris. for on incremental We to and committed technology returns remain questions. shareholders, be now by our free our maintaining position. balance dividend focusing debt sheet can strong and

Operator

begin question-and-answer We will the now [Operator Instructions]. session.

question Gengaro first Stifel. Our from with Stephen comes today

Stephen Gengaro

Good everybody. morning, Thanks.

Bill Zartler

Stephen. morning, Good

Stephen Gengaro

me. things Two from

you to about expectation how capital thinking just growth an When your potential seem plus growth? of spend completion the that be give people talked assumption an think growth. Let's the kind of technologies we should up and XX% growth environment? spending mean, versus But upstream XX% make I first, say, your or XXXX, that take, about. some calibrate setting around we how of should about that think activity The underlying you if we in is about

Bill Zartler

Yes.

I think market technologies, the new we we share. as ways as grow those evaluate see to

But we provides of market think an is in grow do So growth activity. essentially it does beyond terms opportunity incremental what it require capital. our to say

higher that a potentially as level technology market. I us think the specific blender points perform industry in pinch than to technology top well fill at the allow address both the as

Kyle Ramachandran

really and not before. the be through add Yes, blender silos customers pull that that might there potentially does the new I’d with

nature there So not allowed pull-through the products may additional complementary the that of business today. be

Stephen Gengaro

there is next about a component should be pricing year And we is tell? too to thinking soon that or

Bill Zartler

today. We're in those discussions

I year. considerations of And systems those technologies having. considerations, the there firm talk our that next constructive to manner. you've that certainly very around continue early with inflation heard conversations in enhancing of pricing us customers are we're come to a other we with new numbers, certainly a kind allow those from lot about public discussions to for but think companies any Too investment have up in are

Stephen Gengaro

the to was and about -- ask then Liberty. And with obviously deal your solution containerized other you want the versus realizing but its topic was I PropX you. interesting systems, Thank

of curious, directly marriages direction? And pressure impacts type think Just a, the b, what think how you as of that an landscape? with those you sort pumpers of industry

Bill Zartler

large a and pressure site of really they mile PropX We think bit customer is pumping. storage up. well independent Liberty helped the start from the business a last business and business was that

We supply sand around side and all very or of the was made equipment a blended ultimately call the upside the consolidated. two It's they're what the logistics strong So low business. focused them. though, From chain we business, when between it We an sense differently. treat the of to chemicals relationship gets very organization it's the differently. our pressure a side Maybe there parties. our manage perspective for it from managing to just independent It pumps.

think and with there's fashion, probably our focus And business continue value in pressure pump that single to have so in is diversity. do there form we every we and some or think and that we

Stephen Gengaro

for you Okay, Thank great. gentlemen. color, the

Bill Zartler

Thanks, Stephen.

Operator

Hunter Our from next Cowen. comes question Jon with

Jon Hunter

Good Hi. everyone. morning,

Bill Zartler

Jon. morning, Good

Jon Hunter

new for So my wins? agreements expanded I'm XQ your And you kind quarter say first are guidance point high in original these is that fair question it third a is outperformed just bit. was existing where on the rate customer they with curious, the quite to customers? quarter? Are exit the of activity the

Bill Zartler

mentioned and contract that our with new growth we additional customer second the with We customers. quarter, in think I that mix a well guidance. always as drove customers, in a signed of Yes, maybe growth wasn't additional it's a prior current three-year

always it's kind a mix So of there.

just -- as can far second Jon, the the sorry, As second restate around point question? you

Jon Hunter

so I win the and touched Yes, on guess customer we agreements? new

Kyle Ramachandran

third keep is We not We remarks try the mention average as into puts quarter, the I'm working risk the They month-over-month October January. yes, some ignore crews prices the completion. and quarter I'm of showing are up takes, of we get certainly Yes. going much where there's But the to about for want look that close budget potential and say, finalizing commodity exhaustion. to talked going. too prepared are some well to operators pretty lose did going don't today, that in numbers. to in fourth in operators those well, the really potentially in also are there to that coming But starting that to we for variant. still up

Obviously, of I to and And holiday shutdowns there's that, So puts speaking those our sort on I'm based is takes. as well. seasonality guidance throw flattish specifically. when

location. we Thanksgiving a where over business will over is delivered be time delivered. a ton no doubt And Christmas, to tons mile and business last Our is aren't every get days throughput where paid there

is on for where that all our in in the we impact have well in of so very of will up whitespace in continue spending the XXXX, that And fill did an shaping improvement But quarter. third opinion to up we that an quarter. and fourth see whitespace sort the activities see utilization

Jon Hunter

Kyle. for Thanks that,

ahead. go Sorry,

Bill Zartler

you quarter. $XX third is think at things and time, north when oil the Jon, that, we I’d if we of north One weren't I the of looked add of to on on $X playback gas

muted expect has but have would that there play. been price these frankly It So levels, to one relative does what at increases.

Jon Hunter

large And questioning, about your the a utilization systems? of sustainability along That of that opportunistic I against see. nice with in your maybe talk players partnering that are improved how that prices? on Bill. maybe that smaller weigh to same function customer predictable? more you of some reacting mix higher the deployed guess the do Thanks, commodity to are you And Can utilization this that sequentially. with and being line improvement was of E&Ps your Is mainly

Bill Zartler

is small being clearly, and think a big Yes. versus phenomenon. Well, I steady don't reliable necessarily

I keep the maybe that to going and that reliable program. are operators very think are there program adding that smaller

be random fill all ramping that up, and that systems higher utilized it's were ramping I just more more, dynamic of back to actually really think fully see higher and you've a we'll as this actually whitespace and now ratio customers that various year, up deployed. that will things through begins of seen

the add may drawdown a or either wells gap drilled. in continue programs fully rig programs their additional folks and develop close been have to the that as match DUC should in that fill to and their completions So the budgets capital

Kyle Ramachandran

side pressure certainly popping that been a schedule are more don't operators on because seeing haven't a pumping where and and consistent the having Yes. while And to really up folks program around for are more wells. necessarily that have completing ahead you're

we pumping equipment not higher are we’re higher So is seeing by on the that driven Part by utilization, utilization. seeing but but fleet, also only people. think I of also

it's running all So utilization industry aren't of crews lots time. for be of higher obviously the than that necessarily and at working more lots the fewer crews people to efficient

Jon Hunter

your you fourth me sense. in down, makes was you then is flat. one call guess third the that just with maybe that that the flat there margin I assume would just assume fourth last quarter, results quarter? it's kind Would for know be let's quarter, your Yes, on of activity the XQ where away flat it or weighed in it's if that goes And to is but it I flat is said anything in in

Bill Zartler

a consistent. we're it's think of are a The we're cylinders have all bit there's pumping day, probably of days. mix where a on There jobs have that certain tons issues and to business down of jobs couple really I lot a tends last for firing wireline then and every they're impact. mile and

of business a our quarter may mile that's sort we're the to and continues in profitability quarter. portion some of volatility the from that last be of as so quarter-over-quarter negative mix may positive be And one seeing another a grow. in And

Jon Hunter

that. I'll I turn back. appreciate Thanks. it

Bill Zartler

Jon. Thanks,

Operator

Instructions]. [Operator

Piper Ian next with Sandler. question Our comes from Macpherson

Ian Macpherson

Good and morning, Bill, Kyle Yvonne.

Bill Zartler

morning. Good

Yvonne Fletcher

morning. Good

Ian Macpherson

Solaris short-term getting we're faster, a secular do XXXX lot of or et gains for also help you been companies we’re But your way of it's just you a best you can be that but teed of an running efficiency on gains, obviously stay track, headed overall cheaper? to chain cetera. supply of reversal that snags, as efficiency E&P? think up but and hitting completions, efficiencies, is year industry not better, next purview, just for of speaking trend crews, think enabler think year the like with the just out do do that to Which a equipment And

Bill Zartler

an at certain certainly, day per from are bit. room just incredible the all slowing pounds change changes efficiency the up. that standpoint a There's or that it does rate are from trailing have to of pumped you basins a going Well, actual are up. pumped to sort basin, of if hours appear per basin day the catch look be by But measures

fracs, make the we When a One say here. of challenge it -- silo elsewhere. you efficiency great creates and some a point multiwall find high

amount so on And getting sand of in trucking we're deliver logistics, challenges needs that capacity to the enough location. seeing industry the peer

we somewhere sites heard to So And We've our upstream efficiencies. are get either there. blenders there's where point of high that point lots and happen on to be of interest of problems to well continues these trials blender more with And really NPT. about. or is, some that the product. that always anecdotes of industry a a of that helping there continues we're downstream the lot purview, bottleneck on contention is But talk focused efficient gets again, is on the be from lots the a of point an created incredibly on traditional driving

Kyle Ramachandran

we're trying a is Completions Yes. because to constraint activity really manufacture, today, management goal.

And hit goal so one to optimizing frac, seek a as at bottleneck efficient you look you time. around

chemicals; So water, automate it because this and blenders the to beginning people it then just becomes simple was of it challenge making becomes then labor a sand things, and and sand mistakes. removal logistics storage, and becomes

site things addition actual of what the the pressure And other is unreliable blender completions, one pieces low of we're so we and is focused silos which our of what to the think of most in on.

I continue a think always and continue So keep any slow is they changes don't goal to down, reverses. it goal to The of to ramp make to our step on our are efficient. that. bit this big but is of a

amount the think continue moderate, somewhat certain but time. in the a complete I of industry's So well to of trend ability may does a in terms

Ian Macpherson

view you opportunity. Thank wallet PropX neutral as helpful. both. it market on sounds to Bill, That's earlier in really your to response the of question sort that deal, Stephen’s like you,

necessarily positive on that a up or that result Is transaction. market the negative edges share as So nibbling or down you're any reading not of from correct? around specific takeaways

Bill Zartler

that place site. great completions amount the business the And some And site I and a think lot I a silos storage of on We the on great have place look Liberty. we a site, it. small do a more well continue capital boxes I than to And they'll having and plenty much a to and good it boxes done And think of well for a solution will site. are efficiency over boxes established. of be with a as with They've job have a in well more good do we groundwork around think efficient at And time edges. on room both of needed the load is job the it. there's with swing around the us. well

Ian Macpherson

Got much. it. very Thanks

Operator

next Our comes with from Hoh question Samantha ISI. Evercore

Samantha Hoh

Hi. water/chem think I were you us combination could the wondering there update not initiatives if Good results? water XXXX and with initiatives. contribute and if just And us believe using the about chem help of trials can to whether on or blenders was you wondering morning, was guys. the those I I your both systems. could blender some a

Bill Zartler

Yes.

All of them. the blenders will have water systems connected to

an at maybe well. roughly So various a points And systems with basis. time running dozen that's then to think don't the as couple system, eight I even We've maybe chem on running a I we've got, a had water that know, part of half independent any customers, kit. on

growth So think it this but same and well water does not blenders we tie side. the chem in systems into on a on the the do point, at ton of

Samantha Hoh

systems you last to have just do sort want about And in bind the how that's point a in maintain of might there incremental kind calendar. first of the in much is work add demand Okay, you of from your like wondering, think next whitespace whitespace your system, then minute seeing you to into wondering a case year? are half deploy customers, need if anyone really great. like like you that extra for where to I'm rental I’m just you just

Bill Zartler

let's look at, still quarter we quite to significant. third XX If just call it, having round think about the it’s figures unutilized in our capacity, and run Yes. we systems if use

plenty got whatever we've capture to out share of So there. room is

we plenty that optimizing you reserves this always want sure at got side silo to all an whitespace, make have the capacity be you're from But market on available. revenue the to share point, streams of [ph]. capturing some things to So capture may sand

Kyle Ramachandran

And maybe then away. may of is going want that locations may down be right. are a week to some driven, take one level same it’s to logistics another intentional, whitespace they and the a for in further that that We that service. but there's moving system customer, down system because put We have

keep because work, wrapping So to usual plenty of itself the higher of little extra is to But the dynamic additional a of does than in of some more whitespace. back It's there's some advantage capacity actually that create spot industry we up. sort mob/demob as which take reasons have do of whitespace.

Samantha Hoh

like update where to where just systems used days? maybe a You out give guys give of us these geographically. concentrated breakout you're like all loose your you Can spread were a most of

Bill Zartler

all that probably bit just continues I activity. wouldn't closely count. it's Permian rig Quite to different, Permian relative rig our bit be The overall to a little South the count and higher relative focus. maybe biggest frankly, rig count and say in Texas higher little it's to pretty aligned in to completion a the

Samantha Hoh

these any any large -- in be more if run another? and curious versus just maybe are of Kind large Okay. systems like the could between certain trends everyone operator E&Ps in basins And longer. can to you sort of operators might one efficient preference But and of like you how like kind say terms you of notable kind sort the of operating seeing E&Ps expects privates? characterize of like work

Bill Zartler

some and guys that in are what extremely No, they unique they small do they guys certainly have some efficient do. There's there's are that characteristics. all with what big efficient their

I it's the So think a same. mixed bag love we all them and

Kyle Ramachandran

love technology. the new privates we've very got focused driving technology, They’re In efficiencies. new that on

that on that publics. focused and less are the privates versa have We vice on

Samantha Hoh

you terms -- quarter? the much how of were can your XX%? Are like usage share they of XX%, your And system a this past privates mix in

Bill Zartler

rig to And will not. count know there close plus XX% on it's get if moved the overall a I there of quite privates from but to rig standpoint, count. up it think I completions, Well, have don't if it's

the like share, market. as our given So market overall size again, far we look to as tend

being So of work do private directly operators. lot up we a pressure the ends company for

Samantha Hoh

Okay, interesting.

much. Thank rest so great the of Have year. Okay. you a

Bill Zartler

Samantha. Thanks,

Operator

Partners. comes with question Sean from next Our Energy Daniel Mitchell

Sean Mitchell

Good morning, guys. Thanks for taking the question.

that a obviously my think you services of that one do in agreement So continue big that is expect in current the thing Do a that today or win. you'll you more caught an you do environment? oilfield three-year attention, anomaly -- see expect is

Bill Zartler

but the is it it's think for think for We and I strategic unusual, us. very counterparty

that I generally somebody's longer pressure contracts the that notion term adding that work. in is do of to toward spot than is. it kit as blender I think the pumping think into vital tends lead

I will as trend, that it because equipment a customers. So new for longer us do seeing start integrated that new of our contracts good general both how term technologies and think we becomes, are and the and

Sean Mitchell

industry and talk today, And simul-fracs? you then it and much to to in talk just a you I more down of you when lot do like you think is just trends, the is do both operators can to more simul-frac that's we lot on are a that and seems water folks about benefit maybe the or your that on gets a the the seeing the about operators issue wells, to biggest private We seeing you moves where as think how the public do it as you're And talked sand. side. simul-frac business think sit

Bill Zartler

We nature we of the think on can can buffer a of put that do. add lot pack, can storage, pack, we particular nine a that we another logistics location. six sand, We we depending can add

to closer sand up and are places others. to than pick Some clearly mines

from point the at well is how drives on. the other very it's much anything. And as pumps the want relying as from high there. site, we're challenge the reliable And well. so you on equipment that And of connectivity store to We're our that not to kinds good at once pressure for

as think it's that So do earlier, about management. I constraint I mentioned all

places people contract deal sort on to of shut I sand have or to capital think put hire begin mines to impacted the And that term has in the some the or to needing back to restarted. some and want back get the of by sort and some back more coming do year tightness as industry there's been sand down I some are think last driven trucking. mines

bottlenecks location think through the system a specific. and one there's in being they're So time at very I hit

Kyle Ramachandran

constraints XX-hour to heard anecdotally down sand side. on shutting We've to operations the due jobs trucking

jobs X the on the agreed stages with the number doing count, out enough capacity to meet One there's customer. problem that and day for planned mile last not is stage of they're of our we trucking but to had X.Xx per demand. Turns

you there's an doubling charges, an about the return location, insurance, will, inventory, doubt additional pack NPT bonus quite we at inventory XX hours and no on incremental a of So be put you say XX compelling. the it. if When providing hour $X,XXX may is X pack that on of in say

spread it yet calories, per providing numbers we in think will, the an So we that seen haven't to you if opportunity by capture more level really materially, insurance. but do there's of added

Sean Mitchell

the you just 'XX. I talked out one then you. in -- potentially about blenders maybe And two Thank prepared as think more you in comments going more

terms than that you of Just maybe level blender. line the expected higher technology? people how or or in worse question adopting on a adoption greater the in are Is rate

Bill Zartler

The high interest we about as is as level expected.

quite now. with a on a in which We've process And have bit and maybe work working of right be we'll the the been careful putting through of it little interest in we're negotiating. waiting contracts, prepared. capital and we're some We to

As in like of in but But yet And we on it go long bunch. said a numerous feel on in the spending little some a bit are fairly we lead solves industry. bottlenecks mentioned, hopeful it. we're fully problems that, anticipation does it items about haven't

Kyle Ramachandran

as interest was those of they're lots have over really blenders time, it with to the well. and is to issues work when talked and any years out interesting we watch blenders, been initially have two I of And worn evolution it, about they've all facing new brand don't Yes. The they people ago, challenges.

locations a And drive time sort more is equipment for piece focused those here. on of so and on to people more this efficiencies. efficiencies, And ally to particular be of get continues particularly our eye as bull's traditional trying

Bill Zartler

sources with in the power electric it power. the or it's integrates be electric And gas Right. for all generation truck right or line it and turbine fleets,

Sean Mitchell

guys. Yes, that's great. Thanks,

Bill Zartler

Sean. Thanks,

Kyle Ramachandran

Thanks.

Operator

our to back Mr. the remarks. question-and-answer to session. some turn concludes for call like Bill This I'd closing over Zartler

Bill Zartler

customers forward want very gone strong another thank our stakeholders Thanks, that Thank our in a employees, of participating Have efforts positive Riley, enhancement for continued core all providing the quarter. beginning new of look great further the into updates and the have all proud on XXXX. call. offerings thank you to and you to our activities. product and of We're for We the development We all. day.

Operator

The conference has today's presentation. now concluded. Thank you for attending

disconnect. now may You

Solaris Energy Infrastructure (SEI) 2 Nov 212021 Q3 Earnings call transcript