Solaris Energy Infrastructure, Inc. · NYSE:SEI
Solaris Energy Infrastructure — Investor Presentation (November 2024)
24 slides from Solaris Energy Infrastructure's investor presentation, Nov 11, 2024
Slide 1: Solaris Energy Infrastructure, Inc. Investor Presentation
Solaris Energy Infrastructure, Inc. Investor Presentation November 11, 2024
Slide 2: Solaris Energy Infrastructure, Inc.
Solaris Energy Infrastructure Solaris Energy Infrastructure, Inc. NYSE: SEI; ~$1 Billion Market Capitalization Provides power-as-a-service to multiple end markets with scalable equipment-based solutions for behind-the-meter generation; also provides raw material handling services for the energy indu
Slide 3: Investment Highlights and Strategy
Solaris Energy Infrastructure Investment Transaction Highlights Highlights and and Strategy Strategy • Recently contracted >80% of exit 2025 fleet with data center and energy (upstream, midstream, Demonstrated Growth and downstream) customers at tenors ranging from 2-4 years Across Key End Markets •
Slide 4: Earnings Profile Undergoing a Significant Transformation
Solaris Energy Infrastructure Solaris Earnings Profile Undergoing a Significant Transformation Driven by recent “behind-the-meter” power solutions acquisition and associated growth capital plans Illustrative EBITDA Contribution by Business Segment Pre-Transaction Pro Forma at Closing Pro Forma Exit
Slide 5: Power Earnings Supported by Contracts that Serve Rapidly Growing Markets
Solaris Energy Infrastructure Solaris Power Earnings Supported by Contracts that Serve Rapidly Growing Markets Customer End Market Exposure of Exit 2025 Fleet (535 MW) Data Center and Permian Electricity Demand Projected to Significantly Outpace Overall U.S. Demand 3.2 SPS Exit 2025 Fleet as a % of
Slide 6: Becoming a Premier Behind-the-Meter Power Solutions Company
Solaris Energy Infrastructure Becoming a Premier “Behind-the-Meter” Power Solutions Company Early Mover Advantage in Addressing Nascent and Rapidly Growing Market Opportunity July 2024 Fleet 2025 Pro Forma Fleet 2025+ Solaris announced acquisition of Mobile Energy Announced >80% of exit 2025 capacit
Slide 7: Recent Fleet Contracts Drive Higher Potential 2025 Exit Rate
Solaris Energy Infrastructure Recent Fleet Contracts Drive Higher Potential 2025 Exit Rate Illustrative Range of Exit 2025 Run Rate Adjusted EBITDA Outcomes at 535 MW ($ millions) ~$240 – $250 SPS Future Growth Power Solutions (prior range: $220 – $240) Considerations Logistics Solutions ~$220 $20-3
Slide 8: Current Growth Capital Plans
Solaris Energy Infrastructure Current Growth Capital Plans Growth Capital Strategy Elements Total Company Capex Driven by Existing Power Solutions Order Book ($ millions) Significant early-mover Power Growth Remaining capex on order advantage expected to be funded using Power Maintenance term loan p
Slide 9: Growing Our Power-as-a-Service Business Model
Solaris Energy Infrastructure Growing Our Power-as-a-Service Business Model Building a Moat Through Service, Scale, and Customization The Solaris Difference Immediate Behind the Meter Power High Power, Reduced Footprint Turbine power capability available in Fully-scalable solutions that maximize R
Slide 10: Team Track Record: Leading Market Position in Logistics Solutions
Solaris Energy Infrastructure Team Track Record: Built and Sustained a Leading Market Position in Logistics Solutions Cost Effective and Reliable Services Drive Sustained Market Position Thru-Cycle Leading Market Position 50% Early Stage/ New SEI <1% Rapid Maturation + Product Adoption New Product/A
Slide 11: Logistics Solutions: Continued to Innovate and Drive Earnings Power
Solaris Energy Infrastructure Logistics Solutions: Continued to Innovate and Drive Earnings Power Evolution of Solaris Logistics Product and Service Offering Impact of Adding New Product Adjacencies 100% $1.9 $2.0 Top Fill System More than doubled earnings (added in 2022) 90% power per location serv
Slide 12: Generate Sustainable Double-Digit Returns on Capital
Solaris Energy Infrastructure Solaris' Framework for Generating Sustainable Returns Identify the Challenge Invest in the Right Equipment Generate Sustainable Double-Digit Returns on Capital Iterate to Enhance and Find New Solutions Build the Right Team and Culture solaris-energy.com 12
Slide 13: Solaris' 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 14: New Combined Company Presents a Unique Way to Invest in Electrification
Solaris Energy Infrastructure New Combined Company Presents a Unique Way to Invest in Electrification Selected Publicly-Traded Comparables: EV / 2026 Consensus Adjusted EBITDA Multiple and Current Dividend Yield (As of November 8, 2024) EV / 2026 EBITDA Dividend Yield 25x 5% 21.8x 20x 19.2x 4% EV /
Slide 15: 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 16: Key Takeaways
Solaris Energy Infrastructure Key Takeaways Provides Critical, Behind-the- Contract Coverage >80% at Aligned, Founder-Led Meter Power Infrastructure Longer-term Tenors Management Team with Which Remains in Short Supply Significantly Derisks Cash Flows Material Ownership of and is Deployed With and S
Slide 17: Appendix
Solaris Energy Infrastructure Appendix solaris-energy.com 17
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: Pro Forma Fleet Consists of Units That Can Provide Quick Deployment
Solaris Energy Infrastructure Pro Forma Fleet Consists of Units That Can Provide Quick Deployment and Are Configurable Configurable units allow for greater variety of applications Illustrative Scale of Power End Markets City of Houston 30,000 MW Data Center 100-300 MW Large Oilfield Microgrid 70 MW
Slide 20: Optimizing Power Density Footprint
Solaris Energy Infrastructure Optimizing Power Density Footprint Illustrative Benefit of Having a Range of Larger Unit Sizes solaris-energy.com 20
Slide 21: 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 22: Solaris' All-Electric, Integrated Offering Drives Efficiency
Solaris Energy Infrastructure Solaris’ All-Electric, Integrated Offering Drives Efficiency in the Low-Pressure Completions Value Chain solaris-energy.com 22
Slide 23: 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 24: Solaris Energy Infrastructure
Solaris Energy Infrastructure Solaris Energy Infrastructure 9651 Katy Freeway, Suite 300 Follow us on LinkedIn Houston, Texas 77024 solaris-energy.com 24
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