Business Context and Reporting Period
Company: Solaris Oilfield Infrastructure, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: July 27, 2017 (Event Date)
Reporting Period: Single event disclosure regarding a material definitive agreement.
Key Financial Metrics
This filing is a current report regarding a contractual agreement and does not contain audited financial statements, revenue figures, profit margins, cash flow data, debt levels, or liquidity metrics. The filing text does not provide a clear value for these financial indicators.
Material Changes and Agreements
The Company entered into a Sand Storage and Transload Agreement with a third-party customer on July 27, 2017. Key terms include:
- Service Scope: Rail-to-truck and high-efficiency sand silo transload and storage services for proppant volumes.
- Location: A facility to be constructed and operated by the Company in Kingfisher, Oklahoma.
- Term: Seven-year term with an expected effective date of January 1, 2018, including renewal options for additional six-month terms.
- Revenue Structure: Customer pays a base fee per ton transloaded.
- Volume Commitments: Customer has committed minimum quarterly service and storage volume obligations.
- Penalties: Customer is subject to a shortfall fee in the event of any quarterly volume shortfall.
Guidance, Outlook, and Risks
Management Commentary: The Company issued a press release on August 2, 2017, announcing the agreement. The full text of the agreement is to be filed as an exhibit to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.
Risks and Contingencies: The filing notes that the facility must be constructed and operated by the Company. Revenue realization is contingent upon the effective date of January 1, 2018, and the customer meeting volume commitments.
Investor Verification Checklist
- Verify the construction timeline and capital expenditure requirements for the Kingfisher, Oklahoma facility.
- Confirm the specific base fee per ton and the magnitude of the minimum quarterly volume commitments in the full agreement text.
- Review the upcoming Form 10-Q (due for the quarter ended September 30, 2017) for the complete agreement exhibit.
- Assess the creditworthiness of the unnamed third-party customer.