Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) Q3 2023 Earnings Conference Call October 27, 2023 9:00 AM ET

Company Participants

Emily Boltryk - Director of Finance and Investor Relations

William Zartler - Founder, Chairman and Chief Executive Officer

Yvonne Fletcher - Senior Vice President, Finance and Investor Relations

Kyle Ramachandran - President and Chief Financial Officer

Conference Call Participants

Luke Lemoine - Piper Sandler

Stephen Gengaro - Stifel

John Daniel - Daniel Energy Partners

Donald Crist - Johnson Rice

Operator

Good morning and welcome to the Solaris Oilfield Infrastructure Third Quarter 2023 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] Please note this event is being recorded.

I would now like to turn the conference over to Emily Boltryk, Director of Finance and Investor Relations. Please go ahead.

Emily Boltryk

Good morning and welcome to the Solaris Third Quarter 2023 Earnings Conference Call. Joining us today are our Chairman and CEO, Bill Zartler; our President and CFO, Kyle Ramachandran; and our Senior Vice President of Finance and Investor Relations, Yvonne Fletcher.

Before we begin, I'd like to remind you of our standard cautionary remarks regarding the forward-looking nature of some of the statements that we will make today. Such forward-looking statements may include comments regarding future financial results and reflect a number of known and unknown risks. Please refer to our press release issued yesterday, along with other recent public filings with the Securities and Exchange Commission that outline those risks.

I would also like to point out that our earnings release and today's conference call will contain discussion of non-GAAP financial measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in our earnings release, which is posted in the news section on our website.

I'll now turn the call over to our Chairman and CEO, Bill Zartler.

William Zartler

Thank you, Emily, and thank you, everyone, for joining us this morning. The Solaris team executed strongly and safely during the third quarter with total Solaris system count flat sequentially despite a bottoming of market activity. We generated over $23 million in adjusted EBITDA in the third quarter, and our capital spending rate declined 20% sequentially to $17 million, resulting in another quarter of positive free cash flow.