Solaris Energy Infrastructure, Inc. · NYSE:SEI
Solaris Energy Infrastructure — Investor Presentation (September 2024)
21 slides from Solaris Energy Infrastructure's investor presentation, Sep 16, 2024
Slide 1: Solaris Energy Infrastructure, Inc. Investor Presentation
Solaris Energy Infrastructure, Inc. Investor Presentation September 16, 2024
Slide 2: Solaris Energy Infrastructure
Solaris Energy Infrastructure Solaris Energy Infrastructure, Inc. NYSE: SEI Provides mobile and scalable equipment-based solutions for use in distributed power generation as well as in the management of raw materials used in the completion of oil and natural gas wells. Business Segments Primary End
Slide 3: Earnings Profile Undergoing a Significant Transformation
Solaris Energy Infrastructure Solaris Earnings Profile Undergoing a Significant Transformation Driven by recent MER acquisition and associated growth capital plans Illustrative EBITDA Contribution by Business Segment Pre-Transaction Pro Forma at Closing Pro Forma Exit 2025 Power Solutions Power Solu
Slide 4: Mobile Energy Rentals ("MER") Acquisition Overview
Solaris Energy Infrastructure Mobile Energy Rentals ("MER") Acquisition Overview • Premier provider of distributed power solutions serving the energy and commercial & industrial end markets • Current fleet of mission-critical distributed power equipment is fully-utilized • Fleet scaling from 153 MW
Slide 5: Transaction Highlights and Strategy
Solaris Energy Infrastructure Transaction Transaction Highlights Highlights and and Strategy Strategy • Leverage to high-growth end markets, including data centers, other commercial & industrial Scale, End Market Diversity applications and energy (upstream, midstream and downstream) and Contractual
Slide 6: Getting Ready for Growth by Securing Additional Megawatts
Solaris Energy Infrastructure Getting Ready for Growth by Securing Additional Megawatts Larger units enable greater variety of applications; most OEMs have limited availability through end of 2025+ Power Solutions Fleet Evolution (MW) Illustrative Scale of Power End Markets 525 City of 30,000 MW 5.7
Slide 7: Growth Capital Plans
Solaris Energy Infrastructure Growth Capital Plans Power Solutions Growth Capital Strategy Power Solutions Growth Capex Order Book Evolution ($mm) Elements Remaining capex on Significant early-mover order expected to be funded with TLB advantage proceeds, cash flow generation from the Orders predomi
Slide 8: Expecting Earnings to More than Double, Led by Power Solutions
Solaris Energy Infrastructure Expecting Earnings to More than Double, Led by Power Solutions Illustrative Range of Pro Forma 2025 Exit Run Rate Adjusted EBITDA Outcomes ($ millions) Growth Range ~$220 – $240 Power Solutions Oilfield Equipment & Logistics (+) Potential for longer- $85 – $105 term con
Slide 9: Track Record: Leading Market Position in Oilfield Equipment
Solaris Energy Infrastructure Track Record: Solaris Built and Sustained a Leading Market Position in Oilfield Equipment… Cost Effective and Reliable Services Drive Sustained Market Position Thru-Cycle Leading Market Position 50% Early Stage/ New SOI <1% Rapid Maturation + Product Adoption New Produc
Slide 10: Then Continued to Innovate and Drive Earnings Power
Solaris Energy Infrastructure …Then Continued to Innovate and Drive Earnings Power Evolution of Solaris Oilfield Equipment & Logistics Product Impact of Adding New Product Adjacencies and Service Offering 100% $2.0 Top Fill System More than doubled earnings $1.8 (added in 2022) 90% power per locatio
Slide 11: Generate Sustainable Double-Digit Returns on Capital
Solaris Energy Infrastructure Solaris' Framework for Generating Sustainable Returns Identify the Challenge Invest in the Right Equipment Identifying early-stage growth opportunity Make investments in fleet and technology to be ready allows investment of primary capital for activity demand Sand
Slide 12: Strategy Has Led to Competitive Returns on Capital
Solaris Energy Infrastructure Solaris’ Strategy Has Led to Competitive Returns on Capital Bloomberg 7-Year Average Operating Return on Total Invested Capital (%, Unadjusted 2017-2023) 18% 14% 12% 12% 9% 6% 0% 0% Modular Distributed Electric Equipment Power Utility Natural Gas Residential Industry Re
Slide 13: Unique and Attractive Way to Invest in Electrification
Solaris Energy Infrastructure New Combined Company Presents a Unique and Attractive Way to Invest in Electrification Selected Publicly-Traded Comparables: EV / 2026 Consensus Adjusted EBITDA Multiple and Current Dividend Yield (As of September 13, 2024) EV / 2026 EBITDA Dividend Yield 16x 5% 13.7x 1
Slide 14: Founder Led and Owned With Strong Balance Sheet and Capital Priorities
Solaris Energy Infrastructure Founder Led and Owned With Strong Balance Sheet and Capital Priorities Selected Balance Sheet / Capitalization Highlights ~50% $0.48 $325mm $75mm <2x Leverage Insider Ownership Annualized Dividend Term Loan B (Fully- ABL Commitment Q4 2025 Run-Rate per share Funded at C
Slide 15: Key Takeaways
Solaris Energy Infrastructure Key Takeaways Acquisition of Mission-Critical Materially Diversifies and Aligned, Founder-Led Distributed Power Scales Solaris By Adding a New Management Teams with Infrastructure which Remains in Product Line and Multiple New Material Ownership of Short Supply End Mark
Slide 16: Appendix
Solaris Energy Infrastructure Appendix solaris-energy.com
Slide 17: "Electrification of Everything" is Creating an Early-Stage Growth Opportunity
Solaris Energy Infrastructure “Electrification of Everything” is Creating an Early-Stage Growth Opportunity Permian Power Demand to Grow ~5 GW Over Next Decade(1) U.S. Power Consumption Demand by Data Centers(2) (GW) (GW) 35 30 25 28 20 21 15 25 14 10 17 7 5 - 0 2024 2036 2022 2023 2024 2025 2026 20
Slide 18: Rapid Electric Demand Growth Creating Delivery Bottlenecks
Solaris Energy Infrastructure Rapid Electric Demand Growth Creating Delivery Bottlenecks Grid constraints lead to multiple points of opportunity along the value chain Onsite Distributed Power – Fast, Reliable, Reliance on Grid Alone can be Challenging; High Disruption/Delay Risk and Efficient Primar
Slide 19: All-Electric, Integrated Offering Drives Efficiency in Low-Pressure Completions
Solaris Energy Infrastructure Solaris’ All-Electric, Integrated Offering Drives Efficiency in the Low-Pressure Completions Value Chain solaris-energy.com 21
Slide 20: Disclaimer
Solaris Energy Infrastructure Disclaimer Forward-Looking Statements The information in this presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of fo
Slide 21: Solaris Energy Infrastructure
Solaris Energy Infrastructure Solaris Energy Infrastructure 9651 Katy Freeway, Suite 300 Follow us on LinkedIn Houston, Texas 77024 solaris-energy.com 23
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