SEI - Solaris Energy Infrastructure,

Solaris Energy Infrastructure deploys mobile natural gas power generation units — trailer-mounted turbine and engine-based generators — to oil and gas operators and industrial customers who need temporary or distributed power at remote sites. The business model is B2B equipment rental and services, with recurring revenue tied to utilization of its deployed power fleet. Revenue is approximately $200–400M annually, concentrated in U.S. onshore energy basins (Permian, Eagle Ford, Haynesville). The company rebranded from Solaris Oilfield Infrastructure around 2024 as it pivoted its focus from proppant logistics toward power infrastructure, increasingly targeting data center and energy transition customers alongside its core oilfield base.

Past Year Trends

• Full-year 2025 revenue grew 98.7% year-over-year to $622 million from $313 million in FY2024, with Adjusted EBITDA reaching $244 million, as hyperscaler AI data center customers drove surging demand for SEI's on-site natural gas power generation services. (Bullish)
• SEI signed its first three long-term power supply agreements with global technology companies, securing over 2 gigawatts of contracted capacity on 10- to 15-year terms by April 2026, representing a strategic pivot from short-cycle oilfield power rental to multi-decade AI infrastructure contracts. (Bullish)
• SEI's stock price surged approximately 260% over the trailing twelve months ending May 2026, reflecting a market re-rating from oilfield services company to critical AI power infrastructure provider following the hyperscaler contract announcements. (Bullish)

Next Year Trends

• The 600+ MW power contract with an investment-grade global technology company is scheduled to begin energizing in late 2026, representing the largest single contract in SEI's history and expected to drive a step-change increase in revenue and Adjusted EBITDA in the second half of 2026. (Bullish)
• SEI completed a $2 billion financing package in May 2026—comprising $1.3 billion in 6.375% senior unsecured notes and a new $650 million credit facility—which adds approximately $800 million in net balance sheet proceeds to fund turbine acquisitions but introduces roughly $83 million in annual incremental interest expense, compressing net income margins. (Bearish)
• Successful delivery and commissioning of approximately 900 MW of new natural gas turbine capacity acquired via Genco Power Solutions and 30 turbine delivery slots is required to meet contracted obligations between 2026 and 2029; any turbine supply chain delays or permitting failures would trigger breach-of-contract risk with investment-grade hyperscaler customers. (Bearish)

Red Flags

[Short Seller Report] Short seller report by Morpheus Research (founded by ex-Hindenburg Research members), March 17, 2025: alleged Solaris inflated profitability via improper depreciation accounting on gas turbines and issued overly optimistic EBITDA projections following the MER acquisition. — Morpheus Research short report, March 17, 2025

[Securities Fraud / Investigation] Securities fraud class action filed by multiple law firms (Levi & Korsinsky, Rosen Law Firm, Schall Law Firm, Gross Law Firm), April 4, 2025, on behalf of investors in the July 9, 2024–March 17, 2025 class period, alleging defendants made materially false and misleading statements about MER's limited corporate history, lack of diversified earnings, and concealment of MER co-owner Tuma's status as a convicted felon with fraud allegations related to turbines. — Multiple law firm press releases and BusinessWire/PRNewswire filings, April 2025