Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) Q1 2023 Results Conference Call May 2, 2023 9:00 AM ET

Company Participants

Emily Boltryk - Director, Finance and Investor Relations

Bill Zartler - Chairman & CEO

Kyle Ramachandran - CFO & President

Yvonne Fletcher - SVP, Finance & IR

Conference Call Participants

Luke Lemoine - Piper Sandler

Stephen Gengaro - Stifel

John Daniel - Daniel Energy Partners

Operator

Good day, and welcome to the Solaris First Quarter 2023 Earnings Teleconference and Webcast. All participants will be in a listen-only mode. [Operator Instructions]

I would now like to turn the conference over to Ms. Emily Boltryk. Please go ahead, ma'am.

Emily Boltryk

Good morning, and welcome to the Solaris first quarter 2023 earnings conference call. I am joined today by 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 our 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 on our website at solarisoilfield.com, under the News section.

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

Bill Zartler

Thank you, Emily, and thank you, everyone, for joining us this morning. The Solaris team delivered a strong start to the year. In the first quarter of 2023, we grew quarterly adjusted EBITDA by nearly 10% sequentially and over 60% from the first quarter of 2022 to over $25 million. We also returned nearly $20 million to shareholders through dividends and share repurchases under our newly enhanced shareholder return framework.

Our profitability growth was driven by continued deployments of both our top fill and AutoBlend systems and slightly higher pricing that went into the effect at the start of the year. The continued deployment of top fill and AutoBlend units helped us maintain flat sand system activity sequentially as gas basin weakness drove frac fleet reallocations and increased white space and frac calendars.