HOUSTON--(BUSINESS WIRE)--Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) today announced it recently acquired the assets of Railtronix, LLC (www.railtronix.com), a leading provider of real-time inventory management solutions for proppant mining, rail shipping and transloading operations. Railtronix is based in Houston and provides mission critical data to some of the most active proppant suppliers and oilfield service companies across the U.S. Concurrent with the closing of the transaction, Railtronix’s founder and Chief Executive Officer Alfonso Olvera has joined Solaris as Senior Vice President of Technology.
Solaris’ Chief Executive Officer Greg Lanham commented, “By combining Railtronix’s inventory data upstream of the well site with Solaris’ well site logistics and inventory monitoring capabilities, we are uniquely positioned to deliver a comprehensive and dynamic picture of inventory across the supply chain to our customers. Solaris is focused on continuing to innovate and create solutions to help our customers improve well level economics – Railtronix is a natural fit with this strategy as we work to help prevent costly delays and inventory shortfalls.”
As the U.S. oil and gas industry continues to transition towards manufacturing-style development of resource plays, operators and service companies are looking for new ways to digitalize their supply chains. By integrating Railtronix and PropView™, Solaris is now uniquely positioned to provide the data to help its customers create and monitor key performance indicators to improve the reliability of proppant supply, save time and reduce the delivered cost of proppant.
Concurrent with the transaction, Solaris has created a new, wholly-owned subsidiary, Solaris Oilfield Technologies, LLC, which will integrate the two platforms, as well as continue to develop additional offerings to enhance visibility across the proppant supply chain.
“We are very pleased to have Alfonso on board,” Lanham continued. “He has built a compelling business with a strong customer base and shares our entrepreneurial and innovative culture. As we evaluated inventory monitoring and tracking options for our new Kingfisher transload facility, we determined that Railtronix offers the greatest insight into the supply chain and is a logical extension of Solaris’ strategy.”
Alfonso Olvera commented, “I am excited to be joining the Solaris team. We have both created unique offerings to improve the proppant supply chain. I believe by combining our efforts, we can accelerate the adoption of both the Railtronix offering and Solaris’ well site proppant management systems and PropView™. This combination will provide significant commercial and revenue synergies for the combined offering, as well as support further innovation.”
Solaris expects the transaction to be accretive to earnings per share in 2018. Solaris funded the acquisition with available cash and through the issuance of Class B Shares.
About Solaris Oilfield Infrastructure, Inc.
Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) manufactures and provides patented mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. These patented systems are deployed in many of the most active oil and natural gas basins in the United States, including the Permian Basin, the Eagle Ford Shale and the STACK/SCOOP. Solaris’ new high-capacity transload facility being built in Kingfisher, Oklahoma will serve customers with operations in the STACK/SCOOP. Additional information is available on Solaris’ website, www.solarisoilfield.com.
About Railtronix, LLC
Railtronix provides real-time inventory management solutions for proppant mining, rail shipping and transloading operations. By offering a real-time connection with the railroads, Railtronix allows rail shippers and transload terminals to monitor their assets and analyze key metrics to improve their overall logistics management. Transload terminals can prepare for inbound shipments, and track product live within a facility, including tracking inventory in railcars and other on-site storage. Railtronix is integrated with truck scales, handheld devices, and other instruments to ensure data accuracy, thereby allowing customers to track variances, reduce shrinkage and quickly identify potential problems.
Railtronix manages more than 20,000 railcars and over 100,000 trucks every month across the U.S., Canada and Mexico. See Railtronix website for more information at www.railtronix.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Examples of forward-looking statements include, but are not limited to, statements we make regarding the acquisition, integration and financial projections related to Railtronix, outlook for the construction and operation of our new Kingfisher Facility, current and potential future long-term contracts and our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to effectively integrating the acquisition of Railtronix’s assets and customer acceptance of our combined offerings and the factors discussed or referenced in our filings made from time to time with the SEC. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.