Q2 2026 Solaris Energy Infrastructure Inc Earnings Call

August 6, 2026

Speaker #1: Good morning, and welcome to the Solaris second quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Good morning, and welcome to the Solaris Q2 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw your question, please press star, then two. Please note that this event is being recorded. I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President of Finance and Investor Relations. Please go ahead, ma'am.

Speaker #1: After today's remarks, there will be an opportunity to ask questions, to ask a question you may press star then one on your touchstone phone.

Speaker #1: To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Yvonne Fletcher, Senior Vice President of Finance and Investor Relations.

Speaker #1: Please go ahead, ma'am.

Speaker #2: Thank you, operator. Good morning, and welcome to the Solaris second quarter 2026 earnings conference call. Joining us today are Chairman and Co-CEO Bill Zartler, our Co-CEO and Director Amanda Brock, our President Kyle Ramachandran, and our CFO Steve Thompson.

Yvonne Fletcher: Thank you, operator. Good morning, and welcome to the Solaris Q2 2026 earnings conference call. Joining us today are Chairman and Co-CEO, William Zartler, our Co-CEO and Director, Amanda Brock, our President, Kyle Ramachandran, and our CFO, Stephan Tompsett. Before we begin, I'd like to remind you that some of the statements we will make today are forward-looking 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 like to point out that our earnings release and today's conference call will contain discussions of non-GAAP financial measures. The presentation of this additional information should not be considered in isolation or a substitute for results prepared in accordance with GAAP.

Speaker #2: Before we begin, I'd like to remind you that some of the statements we will make today are forward-looking and reflect a number of known and unknown risks.

Speaker #2: Please refer to our press release issued yesterday along with other recent public filings with the securities and exchange commission that outlined those risks. I would like to point out that our earnings release and today's conference call will contain discussion of non-gap financial measures.

Speaker #2: The presentation of this additional information should not be considered in isolation or as 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.

Yvonne Fletcher: Reconciliations to comparable GAAP measures are available in our earnings release, which is posted in the news section on our website. Additionally, we encourage you to refer to our earnings supplement slide deck, which was published last night on the investor relations section of our website under events and presentations. I'll now turn the call over to our Chairman and Co-CEO, William Zartler.

Speaker #2: Additionally, we encourage you to refer to our earnings supplement slide deck, which was published last night on the Investor Relations section of our website under Events and Presentations.

Speaker #2: I'll now turn the call over to our Chairman and Co-CEO, Bill Zartler.

Speaker #3: Thank you, Yvonne, and thank you, everyone, for joining us this morning. The second quarter was a record-setting quarter for Solaris, and the further step along the significant growth path that is ahead of us.

William Zartler: Thank you, Yvonne. Thank you everyone for joining us this morning. The Q2 was a record-setting quarter for Solaris and a further step along the significant growth path that is ahead of us. We are executing our strategy at all levels, including operationally, commercially, and strategically. We continue to provide dedicated power at scale to two data centers consistently achieving higher reliability. We are under construction at two other data center locations, one of which will energize in September. This track record of performance has resulted in the execution of long-term contracts with three leading investment-grade technology companies. Two of those contracts were executed in the last 6 months. This quarter, we've already expanded the scope of both, in addition to a third expansion of a contract with one of our large energy customers.

Bill Zartler: Thank you, Yvonne. Thank you everyone for joining us this morning. The Q2 was a record-setting quarter for Solaris and a further step along the significant growth path that is ahead of us. We are executing our strategy at all levels, including operationally, commercially, and strategically. We continue to provide dedicated power at scale to two data centers consistently achieving higher reliability. We are under construction at two other data center locations, one of which will energize in September. This track record of performance has resulted in the execution of long-term contracts with three leading investment-grade technology companies. Two of those contracts were executed in the last 6 months. This quarter, we've already expanded the scope of both, in addition to a third expansion of a contract with one of our large energy customers.

Speaker #3: We are executing our strategy at all levels, including operationally, commercially, and strategically. We continue to provide dedicated power at scale to two data centers consistently achieving high reliability, and we are under construction at two other data centers' locations, one of which will energize in September.

Speaker #3: This track record of performance has resulted in the execution of long-term contracts with three leading investment-grade technology companies. Two of those contracts were executed in the last six months, and this quarter we've already expanded the scope of both.

Speaker #3: In addition to a third expansion of a contract with one of our large energy customers, these additions and increased contract scope translate directly into improved earnings and cash flow visibility. This is why we believe there is a significant disconnect between current public market valuations and the fundamental performance and positive outlook for our company.

William Zartler: These additions and increased contract scope translate directly into improved earnings and cash flow visibility, which is why we believe there is a significant disconnect between current public market valuations and the fundamentals, performance, and positive outlook for our company. We expect the cash flow generated from our current contracts well exceeds our enterprise value today before including any additional cash flow from assets on order that are not yet contracted. We have transformed Solaris into a unique and sustainable power and infrastructure solutions company built for the long term. We are collaborating with our customers to identify and work through bottlenecks in the market. We are also pursuing M&A partnerships that strengthen our ability to deliver on these goals.

Bill Zartler: These additions and increased contract scope translate directly into improved earnings and cash flow visibility, which is why we believe there is a significant disconnect between current public market valuations and the fundamentals, performance, and positive outlook for our company. We expect the cash flow generated from our current contracts well exceeds our enterprise value today before including any additional cash flow from assets on order that are not yet contracted. We have transformed Solaris into a unique and sustainable power and infrastructure solutions company built for the long term. We are collaborating with our customers to identify and work through bottlenecks in the market. We are also pursuing M&A partnerships that strengthen our ability to deliver on these goals.

Speaker #3: We expect the cash flow generator from our current contracts well exceeds our enterprise value today, before including any additional cash flow from assets on order that are not yet contracted.

Speaker #3: We have transformed Solaris into a unique and sustainable power and infrastructure solutions company built for the long term. We are collaborating with our customers to identify and work through bottlenecks in the market.

Speaker #3: We are also pursuing M&A partnerships that strengthen our ability to deliver on these goals. Our most recent acquisition, Global Energy Services Alliance, extends our capabilities to full-cycle power services, which follows our earlier investment in a selective catalytic reduction, or SCR, manufacturer and the acquisition of the electrical distribution business that is now Solaris Power Distribution Services.

William Zartler: Our most recent acquisition, Global Energy Services Alliance, extends our capabilities to full-cycle power services, which follows our earlier investment in a selective catalytic reduction or SCR manufacturer and the acquisition of the electrical distribution business that is now Solaris Power Distribution Services. All of these acquisitions enhance our execution capabilities and also create additional earning streams on top of our existing long-term power projects. Looking into the future, we've recently made an equity investment in Deployable Energy, an early-stage nuclear small modular reactor company, or SMR. We are excited to highlight that since we've made this investment, Deployable Energy has now achieved criticality working under a program with the Department of Energy. Reaching criticality, the point at which a reactor first achieves a controlled self-sustaining fission reaction, is a foundational milestone that validates the core design and marks a step change from development toward commercial readiness.

Bill Zartler: Our most recent acquisition, Global Energy Services Alliance, extends our capabilities to full-cycle power services, which follows our earlier investment in a selective catalytic reduction or SCR manufacturer and the acquisition of the electrical distribution business that is now Solaris Power Distribution Services. All of these acquisitions enhance our execution capabilities and also create additional earning streams on top of our existing long-term power projects. Looking into the future, we've recently made an equity investment in Deployable Energy, an early-stage nuclear small modular reactor company, or SMR. We are excited to highlight that since we've made this investment, Deployable Energy has now achieved criticality working under a program with the Department of Energy. Reaching criticality, the point at which a reactor first achieves a controlled self-sustaining fission reaction, is a foundational milestone that validates the core design and marks a step change from development toward commercial readiness.

Speaker #3: All of these acquisitions enhance our execution capabilities and also create additional earnings streams on top of our existing long-term power projects. Looking into the future, we've recently made an equity investment in deployable energy, an early-stage nuclear small modular reactor company, or SMR, we are excited to highlight that since we've made this investment, deployable energy has now achieved criticality working under a program with the Department of Energy.

Speaker #3: Reaching criticality, the point at which a reactor first achieves a controlled self-sustaining fission reaction is a foundational milestone that validates the core design and marks a step change from development toward commercial readiness.

Speaker #3: It also meaningfully de-risks the technology. We will be working with deployable to help commercialize their technology which we believe can one day complement our existing power generation capabilities.

William Zartler: It also meaningfully de-risks the technology. We will be working with Deployable to help commercialize their technology, which we believe can one day complement our existing power generation capabilities. Within the power infrastructure and solutions market, the demand for islanded behind-the-meter power in conjunction with some level of grid connectivity continues to be exceptionally strong. Today, we are in active negotiations for multiple GW of additional demand with multiple hyperscalers and AI compute companies. The tailwinds we've described over the past several quarters, grid interconnection delays, the market's focus on speed to compute, and enhanced regulatory focus on protecting consumer prices all continue to reinforce the significant demand for the bring-your-own-power solutions that Solaris delivers.

Bill Zartler: It also meaningfully de-risks the technology. We will be working with Deployable to help commercialize their technology, which we believe can one day complement our existing power generation capabilities. Within the power infrastructure and solutions market, the demand for islanded behind-the-meter power in conjunction with some level of grid connectivity continues to be exceptionally strong. Today, we are in active negotiations for multiple GW of additional demand with multiple hyperscalers and AI compute companies. The tailwinds we've described over the past several quarters, grid interconnection delays, the market's focus on speed to compute, and enhanced regulatory focus on protecting consumer prices all continue to reinforce the significant demand for the bring-your-own-power solutions that Solaris delivers.

Speaker #3: Within the power infrastructure and solutions market, the demand for islanded, behind-the-meter power in conjunction with some level of grid connectivity continues to be exceptionally strong.

Speaker #3: Today, we are in active negotiations for multiple gigawatts of additional demand with multiple hyperscalers and AI compute companies. The tailwinds we've described over the past several quarters grid interconnection delays, the market's focus on speed to compute, and enhanced regulatory focus on protecting consumer prices all continue to reinforce the significant demand for the bring-your-own-power solutions that Solaris delivers.

Speaker #3: Our Solaris logistics segment also continues to perform well. Consistently producing over 20 million dollars per quarter of free cash flow that we are investing in our power and infrastructure services business at attractive rates of return.

William Zartler: Our Solaris Logistics segment also continues to perform well, consistently producing over $20 million per quarter of free cash flow that we are investing in our power and infrastructure services business at attractive rates of return. We are effectively sold out of our top-fill equipment, and we see robust fundamentals for the business. We are excited about the large and growing opportunities for Solaris. Our execution history, culture, and team, combined with the integration of additional services and capabilities, will continue to enable our success today and in the future. With our premier customer base, some of the best contracts in the industry, and a demonstrated ability to deliver, we are well-positioned to continue to execute on the growth opportunities ahead of us. With that, I'll turn it over to Amanda.

Bill Zartler: Our Solaris Logistics segment also continues to perform well, consistently producing over $20 million per quarter of free cash flow that we are investing in our power and infrastructure services business at attractive rates of return. We are effectively sold out of our top-fill equipment, and we see robust fundamentals for the business. We are excited about the large and growing opportunities for Solaris. Our execution history, culture, and team, combined with the integration of additional services and capabilities, will continue to enable our success today and in the future. With our premier customer base, some of the best contracts in the industry, and a demonstrated ability to deliver, we are well-positioned to continue to execute on the growth opportunities ahead of us. With that, I'll turn it over to Amanda.

Speaker #3: We are effectively sold out of our top-fill equipment, and we see robust fundamentals for the business. We are excited about the large and growing opportunities for Solaris.

Speaker #3: Our execution history, culture, and team, combined with the integration of additional services and capabilities, will continue to enable our success today and in the future.

Speaker #3: With our premier customer base, some of the best contracts in the industry, and a demonstrated ability to deliver, we are well positioned to continue to execute on the growth opportunities ahead of us.

Speaker #3: With that, I'll turn it over to Amanda.

Speaker #2: Thank you, Bill, and good morning, everyone. As Bill noted, the most compelling evidence of our strategy's success is that our existing customers are choosing to grow with us and expand relationships and our contracts.

Amanda Brock: Thank you, Bill, and good morning, everyone. As Bill noted, the most compelling evidence of our strategy's success is that our existing customers are choosing to grow with us and expand relationships and our contracts. In July, we finalized an amendment to our Hatchboro agreement to convert the original power capacity agreement into a comprehensive capacity and operating agreement, which includes additional balance of plant and batteries, as well as full operation and maintenance services for the turnkey 660 MW power plant. In addition, we've extended the term from up to 15 years to up to 18 years, a 10-year base term with an 8-year extension option. This extension aligns the power contract with other agreements our customer has on this site. We are making rapid progress under this contract.

Speaker #2: In July, we finalized an amendment to our Hatch Bow agreement to convert the original power capacity agreement into a comprehensive capacity and operating agreement which includes additional balance of plant, and batteries, as well as full operation and maintenance services for the turnkey 660 megawatt power plant.

Speaker #2: In addition, we've extended the term from up to 15 years to up to 18 years. A 10-year base term with an 8-year extension option.

Speaker #2: This extension aligns the power contract with other agreements our customer has on this site. We are making rapid progress under this contract. We commenced civil construction in July, and we have more than 70% of the equipment required to service this contract already available to deploy on time.

Amanda Brock: We commenced civil construction in July, and we have more than 70% of the equipment required to service this contract already available to deploy on time. We will begin earning revenue in January 2027. Our second contract expansion with our third investment-grade global technology customer relates to the contract we executed in April of this year. We've already expanded the scope from the original 640 MW of generation to include incremental balance of plant and energy storage, as well as the procurement, delivery, and management of natural gas on a cost-plus basis with no commodity price risk. The first deployment under this contract is on time, under construction, with energization expected next month. Power shortages, grid infrastructure, and regulatory related delays continue to be widespread.

Speaker #2: We will begin earning revenue in January 2027. Our second contract expansion with our third investment-grade global technology customer relates to the contract we executed in April of this year.

Speaker #2: We've already expanded the scope from the original 640 megawatts of generation to include incremental balance of plant and energy storage, as well as the procurement, delivery, and management of natural gas on a cost-plus basis with no commodity price risk.

Speaker #2: The first deployment under this contract is on time under construction with energization expected next month. Power shortages, grid infrastructure, and regulatory-related delays continue to be widespread.

Speaker #2: In July, we expanded and extended our contract with one of our large energy customers, who has been informed that the grid interconnect time is now 7 to 8 years away.

Amanda Brock: In July, we expanded and extended our contract with one of our large energy customers who has been informed that the grid interconnect time is now 7 to 8 years away. They increased power capacity from 60 MW to approximately 80 MW and extended the term of the contract from 4 to 6 years. These delays are indicative of what medium to large load businesses are experiencing nationwide. We have a diverse and high-quality customer base. Our proven performance to date gives us confidence that these relationships will continue to strengthen and grow. Our long-term customers have come back to expand their contracts, seeking more capacity and scope and longer tenure.

Speaker #2: They increased power capacity from 60 megawatts to approximately 80 megawatts and extended the term of the contract from 4 to 6 years. These delays are indicative of what medium to large load businesses are experiencing nationwide.

Speaker #2: We have a diverse and high-quality customer base. Our proven performance to date gives us confidence that these relationships will continue to strengthen and grow.

Speaker #2: Our long-term customers have come back to expand their contracts, seeking more capacity and scope and longer tenure. While our commercial team develops deep relationships resulting in the initial execution of our contracts, it is also our operational performance engineering and service capabilities that we believe result in the expansions of our contracts as well as opportunities to evaluate new sites.

Amanda Brock: While our commercial team develops deep relationships resulting in the initial execution of our contracts, it is also our operational performance, engineering, and service capabilities that we believe result in the expansions of our contracts, as well as opportunities to evaluate new sites. Looking forward, we have approximately 800 MW of open capacity, with attractive nearer-term delivery timelines and a line of sight to additional capacity, both through the traditional OEM channels as well as the secondary market. We continue to make positive progress and are in advanced detailed discussions with numerous customers related to the deployment of this equipment under long-term contracts.

Speaker #2: Looking forward, we have approximately 800 megawatts of open capacity. With attractive near-term delivery timelines, and a line of sight to additional capacity, both through the traditional OEM channels as well as a secondary market.

Speaker #2: We continue to make positive progress, and are an advanced detailed discussions with numerous customers related to the deployment of this equipment under long-term contracts.

Speaker #2: In summary, as a result of the credibility we have earned through two years of at-scale operations, the recent additions to our team who have decades of power and infrastructure experience, and the strategic acquisitions we have made, we continue to perform as a leader in the distributed power sector.

Amanda Brock: In summary, as a result of the credibility we have earned through 2 years of at-scale operations, the recent additions to our team who have decades of power and infrastructure experience, and the strategic acquisitions we have made, we continue to perform as a leader in the distributed power sector. We are well-positioned and pleased with our performance to date, our positive momentum in the market, and our overall growth. I'll now turn it over to Kyle to discuss our M&A and vertical integration strategy.

Speaker #2: We are well-positioned and pleased with our performance to date, our positive momentum in the market, and our overall growth. I'll now turn it over to Kyle to discuss our M&A and vertical integration strategy.

Speaker #4: Thank you, Amanda, and good morning, everyone. At Solaris, we are building a diversified, integrated power and infrastructure service company organically and through our acquisitions, so that we can deliver the solutions our customers are looking for.

Kyle Ramachandran: Thank you, Amanda. Good morning, everyone. At Solaris, we are building a diversified, integrated power and infrastructure service company, organically and through acquisitions, so that we can deliver these solutions our customers are looking for. Today, we deliver infrastructure and services across the full power asset lifecycle of design, deployment, operations, and maintenance for our own generation and for generation owned by others. We're targeting growth initiatives that, one, de-risk our ability to deliver for customers, two, add recurring revenue, and three, create a competitive edge. We focus on opportunities that bring us capabilities or scarce resource that enhances our ability to execute for our customers. Skilled labor, engineering depth, access to equipment, which enhances the value proposition for our customers and widens the moat, both around the contracts we already have and the new ones we are working on.

Speaker #4: Today, we deliver infrastructure and services across the full power asset lifecycle of design, deployment, operations, and maintenance for our own generation and for generation owned by others.

Speaker #4: We are targeting growth initiatives that, one, de-risk our ability to deliver for customers; two, add recurring revenue; and three, create a competitive edge. We focus on opportunities that bring us capabilities or scarce resources that enhance our ability to execute for our customers.

Speaker #4: Skilled labor, engineering depth, access to equipment. Which enhances the value proposition for our customers and widens the moat both around the contracts we already have and the new ones we are working on.

Speaker #4: Today, every acquisition we have made has been founder-led, with entrepreneurs taking mostly stock rather than cash. This creates alignment—culturally and financially—to keep building the business after closing.

Kyle Ramachandran: To date, every acquisition we have made has been founder-led, with entrepreneurs taking mostly stock rather than cash, which creates alignment, culturally and financially, to keep building the business after closing. Global Energy Services Alliance, or GESA, is the latest and largest example. In early July, we acquired GESA, which was formed from the combination of Baseload Power, a US provider of generation aftermarket installation and commissioning services Pro-Per Energy Services, a global installation and operations and maintenance provider with project experience in more than 30 countries. GESA supports a wide range of customers, including utilities and IPPs, governments and OEMs, and services a wide range of generation technologies, including large gas turbines. GESA also brings in-house installation and commissioning, long-term operations and maintenance, repair, refurbishment, and 24/7 emergency response across aeroderivative, heavy duty industrial, hydroelectric, and steam turbine classes.

Speaker #4: Global energy services alliance, or GESA, is the latest and largest example. In early July, we acquired GESA, which was formed from the combination of baseload power and US provider of generation aftermarket installation and commissioning services and pro per energy services, a global installation and operations and maintenance provider with project experience in more than 30 countries.

Speaker #4: GESA supports a wide range of customers, including utilities and IPPs, governments, and OEMs, and services a wide range of generation technologies including large gas turbines.

Speaker #4: GESA also brings in-house installation and commissioning long-term operations and maintenance, repair, refurbishment, and 24/7 emergency response across aeroderivative, heavy-duty industrial, hydroelectric, and steam turbine classes.

Speaker #4: Following the acquisition of GESA, we now have a team of over 600 skilled and experienced colleagues installing, commissioning, operating, and maintaining power infrastructure. This workforce provides several key strategic benefits for us, including de-risking our own execution at a time when the market for experienced and skilled labor is exceptionally tight.

Kyle Ramachandran: Following the acquisition of GESA, we now have a team of over 600 skilled and experienced colleagues installing, commissioning, operating, and maintaining power infrastructure. This workforce provides several key strategic benefits for us, including de-risking our own execution at a time when the market for experienced and skilled labor is exceptionally tight. As the global install base of turbines matures, GESA is also well-positioned to benefit from significant aftermarket opportunities. Additionally, GESA provides boots on the ground to identify equipment available for refurbishment, which we can add to our own capacity or market. Finally, it strengthens how we earn new business. Providing turnkey installation, commissioning, and long-term operations under one roof enhances our execution capabilities and eliminate multi-contractor handoff risks. That gives customers greater schedule and performance certainty. We are excited about additional opportunities that we are actively evaluating that we believe will strengthen Solaris over the long run.

Speaker #4: As a global install base of turbines matures, GESA is also well positioned to benefit from significant aftermarket opportunities. Additionally, GESA provides boots on the ground to identify equipment available for refurbishment, which we can add to our own capacity or market.

Speaker #4: Finally, it strengthens how we earn new business. Providing turnkey installation, commissioning, and long-term operations under one roof enhances our execution capabilities and eliminate multi-contractor handoff risks.

Speaker #4: That gives customers greater schedule and performance certainty. We are excited about additional opportunities that we're actively evaluating, which we believe will strengthen Solaris over the long run.

Speaker #4: I'll now hand it over to Steve.

Kyle Ramachandran: I will now hand it over to Steve.

Speaker #5: Good morning, everyone. In the second quarter, we generated revenue of approximately $219 million of 12% sequentially in the first quarter, and adjusted EBITDA of approximately $108 million of 30% sequentially.

Stephan Tompsett: Good morning, everyone. In Q2, we generated revenue of approximately $219 million, up 12% sequentially from Q1, and adjusted EBITDA of approximately $108 million, up 30% sequentially. Adjusted EBITDA attributable to Solaris, excluding the effect of the non-controlling interest in our Stateline joint venture, was approximately $111 million. Net income was $25 million, and adjusted pro forma net income was $37 million, or $0.39 per fully diluted share. In power solutions, we averaged approximately 950 megawatts of capacity, earning revenue during the quarter, up 4% from approximately 910 megawatts in Q1. Segment revenue of approximately $158 million was up 23% sequentially, and segment adjusted EBITDA of approximately $96 million increased 34%, driven primarily by increased ancillary service revenue.

Steve Tompsett: Good morning, everyone. In Q2, we generated revenue of approximately $219 million, up 12% sequentially from Q1, and adjusted EBITDA of approximately $108 million, up 30% sequentially. Adjusted EBITDA attributable to Solaris, excluding the effect of the non-controlling interest in our Stateline joint venture, was approximately $111 million. Net income was $25 million, and adjusted pro forma net income was $37 million, or $0.39 per fully diluted share. In power solutions, we averaged approximately 950 megawatts of capacity, earning revenue during the quarter, up 4% from approximately 910 megawatts in Q1. Segment revenue of approximately $158 million was up 23% sequentially, and segment adjusted EBITDA of approximately $96 million increased 34%, driven primarily by increased ancillary service revenue.

Speaker #5: Adjusted EBITDA attributable to Solaris, excluding the effect of the non-controlling interest in our Stateline joint venture, was approximately $111 million. Net income was $25 million, and adjusted pro forma net income was $37 million, or $0.39 per fully diluted share.

Speaker #5: In power solutions, we averaged approximately $950 megawatts of capacity earning revenue during the quarter, up 4% from approximately $910 megawatts in the first quarter.

Speaker #5: Segment revenue of approximately $158 million was up 23% sequentially, and segment adjusted EBITDA of approximately $96 million increased 34% during primarily by increased ancillary service revenue.

Speaker #5: In logistics, segment revenue of $61 million was down 10%, a lower last mile transportation activity, while segment adjusted EBITDA of $25 million increased 7% on higher activity and a more favorable project mix.

Stephan Tompsett: In logistics, segment revenue of $61 million was down 10% on lower last-mile transportation activity, while segment adjusted EBITDA of $25 million increased 7% on higher activity and a more favorable project mix. We have increased our Q3 adjusted EBITDA guidance to $90 to $105 million, reflecting the contribution of the GESA acquisition, as well as our expectations for continued execution. We are also establishing initial Q4 adjusted EBITDA guidance of $100 to $120 million, reflecting the ramp of energization at our Stateline joint venture, as well as the first location for our third hyperscaler customer. I'd also note that our guidance excludes any potential benefits from additional ancillary services.

Steve Tompsett: In logistics, segment revenue of $61 million was down 10% on lower last-mile transportation activity, while segment adjusted EBITDA of $25 million increased 7% on higher activity and a more favorable project mix. We have increased our Q3 adjusted EBITDA guidance to $90 to $105 million, reflecting the contribution of the GESA acquisition, as well as our expectations for continued execution. We are also establishing initial Q4 adjusted EBITDA guidance of $100 to $120 million, reflecting the ramp of energization at our Stateline joint venture, as well as the first location for our third hyperscaler customer. I'd also note that our guidance excludes any potential benefits from additional ancillary services.

Speaker #5: We have increased our third quarter adjusted EBITDA guidance to $90 to $105 million reflecting the contribution to GESA acquisition, as well as our expectations for continued execution.

Speaker #5: We are also establishing initial fourth quarter adjusted EBITDA guidance of $100 to $120 million reflecting the ramp of energization at our stateline joint venture, as well as the first location for our third hyperscaler customer.

Speaker #5: I'd also note that our guidance excludes any potential benefits from additional ancillary services. These services, which include third-party engineering studies, startup, commissioning or decommissioning costs, option payments, and now with GESA, third-party equipment sales, can be both short-cycle and difficult to precisely predict but the earnings and cash impact could be meaningful.

Stephan Tompsett: These services, which include third-party engineering studies, startup, commissioning or decommissioning costs, option payments, and now with GESA, third-party equipment sales, can be both short cycle and difficult to precisely predict, but the earnings and cash impact could be meaningful. During the Q2, we transformed our capital structure by successfully issuing $1.3 billion of senior unsecured notes and securing a new $650 million five-year revolving credit facility. In connection with these financings, we were assigned corporate credit ratings of double B minus from S&P, Ba3 from Moody's, and double B from Fitch. We ended the quarter with over $800 million in cash and a fully undrawn revolver. This approximately $1.4 billion of liquidity, combined with our operating cash flow, supports our current projected growth.

Steve Tompsett: These services, which include third-party engineering studies, startup, commissioning or decommissioning costs, option payments, and now with GESA, third-party equipment sales, can be both short cycle and difficult to precisely predict, but the earnings and cash impact could be meaningful. During the Q2, we transformed our capital structure by successfully issuing $1.3 billion of senior unsecured notes and securing a new $650 million five-year revolving credit facility. In connection with these financings, we were assigned corporate credit ratings of double B minus from S&P, Ba3 from Moody's, and double B from Fitch. We ended the quarter with over $800 million in cash and a fully undrawn revolver. This approximately $1.4 billion of liquidity, combined with our operating cash flow, supports our current projected growth.

Speaker #5: During the second quarter, we transformed our capital structure by successfully issuing $1.3 billion of senior unsecured notes and securing a new $650 million, five-year revolving credit facility.

Speaker #5: In connection with these financings, we were assigned corporate credit ratings of BB minus from S&P, BA3 from Moody's, and BB from Fitch. We ended the quarter with over $800 million in cash and a fully ongoing revolver.

Speaker #5: This approximately $1.4 billion of liquidity combined with our operating cash flow supports our current projected growth. We also remain committed to our dividend program, and on August 4th, our board approved a third quarter dividend of $0.12 per share which once paid will represent our 32nd consecutive dividend.

Stephan Tompsett: We also remain committed to our dividend program. On 04 August, our board approved a Q3 dividend of $0.12 per share, which once paid, will represent our 32nd consecutive dividend. In summary, the Solaris team delivered another great quarter. Following a successful financing, our balance sheet is in great shape and our growth plan is on track. With that, we'd be happy to take your questions.

Steve Tompsett: We also remain committed to our dividend program. On 04 August, our board approved a Q3 dividend of $0.12 per share, which once paid, will represent our 32nd consecutive dividend. In summary, the Solaris team delivered another great quarter. Following a successful financing, our balance sheet is in great shape and our growth plan is on track. With that, we'd be happy to take your questions.

Speaker #5: In summary, the Solaris team delivered another great quarter, and following a successful financing, our balance sheet is in great shape and our growth plan is on track.

Speaker #5: With that, we'd be happy to take your questions.

Speaker #1: Thank you. And we will now begin the question and answer session. To ask a question, you may press the star then one-year touchdown phone.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily for the first question. Our first question today will come from David Arcaro with Morgan Stanley. Please go ahead.

Speaker #1: If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. And at this time, we'll pause momentarily for the first question.

Speaker #1: And our first question today will come from David Acaro with Morgan Stanley. Please go ahead.

Speaker #6: Hi, thanks so much. Good morning.

David Arcaro: Hi, thanks so much. Good morning.

Speaker #5: Good morning, Doug.

William Zartler: Morning, Dave.

Bill Zartler: Morning, Dave.

Speaker #6: You know, you've added a lot of new capabilities recently. I'm looking at slide four, which now has quite a long list, I guess, of upside strategies here.

David Arcaro: You've added a lot of new capabilities recently. I'm looking at slide four, which now has quite a long list, I guess, of upside strategies here. I was wondering if you could maybe help just elaborate or frame the magnitude of the upside potential as you look at your deployed and contracted fleet over time, and what that upside could look like on that run rate EBITDA.

Speaker #6: I was wondering if you could maybe help just elaborate or frame the magnitude of the upside potential as you look at your deployed and contracted fleet over time, and what that upside could look like on the on that run rate EBITDA.

Speaker #5: Well, I think that what we've laid out here is a view of this on a conservative basis. I think what's embedded in this is not a lot of option value to the growth of the GESA platform as well.

Stephan Tompsett: Well, I think that what we've laid out here is a view of this on a conservative basis. I think what's embedded in this is not a lot of option value to the growth of the GESA platform as well. I think there's significant upside to that. This does include some level of, probably less than we're actually seeing, a balance of plant associated with the additional capacity, but there's more to come.

Bill Zartler: Well, I think that what we've laid out here is a view of this on a conservative basis. I think what's embedded in this is not a lot of option value to the growth of the GESA platform as well. I think there's significant upside to that. This does include some level of, probably less than we're actually seeing, a balance of plant associated with the additional capacity, but there's more to come on that and on top of GESA. GESA's footprint is global and massive, and we see lots of opportunities out there with that business.

Speaker #5: So I think there's significant upside to that. This does include some level of probably less than we're actually seeing of balance of plan associated with the additional capacity, but there's more to come on that and on top of GESA.

William Zartler: On that and on top of GESA. GESA's footprint is global and massive, and we see lots of opportunities out there with that business. They're seeing equipment that has uses both in the US and outside the US with the ability to refurbish and do some work there. We're seeing a little bit of an aftermarket activity there where we actually can see significant opportunities to generate additional cash in that business as we grow it over the next year or two.

Speaker #5: So GESA's footprint is global and massive, and we see lots of opportunities out there with that business. They're in the seeing equipment that has uses both in the US and outside the US with the ability to refurbish and do some work there.

Bill Zartler: They're seeing equipment that has uses both in the US and outside the US with the ability to refurbish and do some work there. We're seeing a little bit of an aftermarket activity there where we actually can see significant opportunities to generate additional cash in that business as we grow it over the next year or two.

Speaker #5: So we're seeing a little bit of an aftermarket activity there where we actually can see significant opportunities to generate additional cash out of that business as we grow it over the next year or two.

Speaker #6: Okay, great. Thanks. And I was wondering, if we could also get your latest thoughts on other technologies outside of the turbines that you've been securing.

David Arcaro: Okay, great. Thanks. Was wondering if we could also get your latest thoughts on other technologies outside of the turbines that you've been securing. Does the GESA acquisition make you look maybe more seriously at things like combined cycle plants or larger frame turbines in the market? Just any evolution in your thinking around that or like reciprocating engines, et cetera.

Speaker #6: Does the GESA acquisition make you look maybe more seriously at things like combined cycle plants or larger frame turbines in the market, and just any evolution in your thinking around that, or like reciprocating engines, etc.?

Speaker #5: Yeah, I mean, we're as we said all along agnostic to the source of power. We do understand the limitations and the strengths of the turbines that we're selecting.

William Zartler: Yeah, we are, as we said all along, agnostic to the source of power. We do understand the limitations and the strengths of the turbines that we're selecting. We are evaluating some technologies on some smaller scale steam generation that could go along with the waste heat that they produce, and the capabilities there with the steam generation history that GESA has on top of the ability to look at frames. I think as we see this market evolve, I think the NIMBYism is clearly real. Everyone reads about it every day. What it will dictate is once there's more than likely a friendly local environment where the local citizens realize the benefits of these manufacturing facilities, if you will, in their towns, and that the benefits maybe been overblown. I mean, the negatives have been overblown. There'll be opportunities to continue to grow those facilities.

Bill Zartler: Yeah, we are, as we said all along, agnostic to the source of power. We do understand the limitations and the strengths of the turbines that we're selecting. We are evaluating some technologies on some smaller scale steam generation that could go along with the waste heat that they produce, and the capabilities there with the steam generation history that GESA has on top of the ability to look at frames. I think as we see this market evolve, I think the NIMBYism is clearly real. Everyone reads about it every day. What it will dictate is once there's more than likely a friendly local environment where the local citizens realize the benefits of these manufacturing facilities, if you will, in their towns, and that the benefits maybe been overblown. I mean, the negatives have been overblown. There'll be opportunities to continue to grow those facilities.

Speaker #5: We are evaluating some technologies on some smaller scale steam generation that could go along with the waste heat that they produce. And the capabilities there with the steam generation history that GESA has on top of the ability to look at frames.

Speaker #5: And I think as we see this market evolve, I think that the NIMBYism is clearly real. Everyone reads about it every day. What it will dictate is once there's more than likely a friendly local environment where the local citizens realize the benefits of these manufacturing facilities, if you will, in their towns, and that the benefits may be been overblown.

Speaker #5: I mean, the negatives have been overblown. There'll be opportunities to continue to grow those facilities. And so, where we see opportunities is evolving these 500- to 1,000-megawatt power plants using small- and medium-scale turbines, and enhancing that with larger equipment and larger units.

William Zartler: Where we see opportunities is evolving these 500 to 1 gigawatt power plants using small, medium scale turbines and enhancing that with larger equipment and larger units. We're actively in the design phase and in the discussions on how you design those facilities to see the continued growth, in specific locations. Because I think that it will be easier to grow locations that have been accepted and it will be kind of starting new ones.

Bill Zartler: Where we see opportunities is evolving these 500 to 1 gigawatt power plants using small, medium scale turbines and enhancing that with larger equipment and larger units. We're actively in the design phase and in the discussions on how you design those facilities to see the continued growth, in specific locations. Because I think that it will be easier to grow locations that have been accepted and it will be kind of starting new ones.

Speaker #5: And so we're actively in the design phase and in the discussions on how you design those facilities to see the continued growth in specific locations because I think that it will be easier to grow locations that have been accepted and it will be kind of starting new ones.

Speaker #6: Okay, got it. Thank you. I appreciate it.

David Arcaro: Okay, got it. Thank you. Appreciate it.

Speaker #1: And our next question will come from Michael Sullivan with Wolfe Research. Please go ahead.

Operator: Our next question will come from Michael Sullivan with Wolfe Research. Please go ahead.

Speaker #7: Hey, good morning. I wanted to just ask on thoughts around financing, potential future growth. We've obviously seen what Williams has done recently with a partner in Blackstone and just your appetite for something like that and what could potentially potentially catalyze it.

Michael Sullivan: Hey, good morning.

William Zartler: Good morning.

Bill Zartler: Good morning.

Michael Sullivan: Wanted to just ask on thoughts around financing potential future growth. We've obviously seen what Williams Companies has done recently with a partner in Blackstone and just your appetite for something like that and what could potentially catalyze it.

Speaker #5: Yeah, great question. I'll let it see you and address that. Yeah, as we said in the prepared remarks, we're sitting on significant liquidity today for the projects that we have in front of us.

William Zartler: Yeah, great question. I'll let Stephan address that.

Bill Zartler: Yeah, great question. I'll let Stephan address that.

Stephan Tompsett: Yeah. As we said in the prepared remarks, we're sitting on significant liquidity today for the projects that we have in front of us, and we actually think there's probably some incremental debt capacity for small additions to our portfolio of projects. As you may have gathered from our comments, there's quite a few commercial opportunities we're looking at, and some of those may lend themselves to more of a project finance or a structure in which we bring in a partner. We're in discussions with a wide variety of market participants. We feel there's quite a few attractive options out there if some of these projects come to fruition. We're going to be flexible around those structures, taking into account, of course cost of capital and flexibility provides business.

Steve Tompsett: Yeah. As we said in the prepared remarks, we're sitting on significant liquidity today for the projects that we have in front of us, and we actually think there's probably some incremental debt capacity for small additions to our portfolio of projects. As you may have gathered from our comments, there's quite a few commercial opportunities we're looking at, and some of those may lend themselves to more of a project finance or a structure in which we bring in a partner. We're in discussions with a wide variety of market participants. We feel there's quite a few attractive options out there if some of these projects come to fruition. We're going to be flexible around those structures, taking into account, of course cost of capital and flexibility provides business.

Speaker #5: And we actually think there's probably some incremental debt capacity for small additions to our portfolio of projects. But as you may have gathered from our comments, there are quite a few commercial opportunities we're looking at.

Speaker #5: Some of those may lend themselves to more of a project finance or a structure in which we bring in a partner. So we're in discussions with a wide variety of market participants.

Speaker #5: We feel there's quite a few attractive options out there. If some of these projects come to fruition, we're going to be flexible around those structures taking into account, of course, cost of capital and flexibility provides business.

Speaker #7: Okay, great. Very helpful. Thanks. And then just in terms of maybe you could just give us a little color on what you're seeing in the secondary market for turbines that could maybe hit in the next year or two.

Michael Sullivan: Okay, great. Very helpful. Thanks. Just in terms of, maybe you could just give us a little color on what you're seeing in the secondary market for turbines that could maybe hit in the next year or two.

Speaker #5: Yeah, there is active market for the OEMs continue to make it. There's things around the world. Obviously, the US is still US and Canada are still sitting on very favorable natural gas prices.

William Zartler: There is active market. The OEMs continue to make it. There are things around the world. Obviously, the US and Canada are still sitting on very favorable natural gas prices. The rest of the world is not today. The cost of the use of some incremental generation around the world may not be as attractive for the gas-fired equipment as it would be moving it here. The GESA guys with their footprint and activity are on top of all that, and I think that we will see some ability to free up. We have been active in picking up additional equipment and when folks have walked or the OEMs produced one or two more than they thought they had, and we have been able to get kind of a first call on that or at least a second call.

Bill Zartler: There is active market. The OEMs continue to make it. There are things around the world. Obviously, the US and Canada are still sitting on very favorable natural gas prices. The rest of the world is not today. The cost of the use of some incremental generation around the world may not be as attractive for the gas-fired equipment as it would be moving it here. The GESA guys with their footprint and activity are on top of all that, and I think that we will see some ability to free up. We have been active in picking up additional equipment and when folks have walked or the OEMs produced one or two more than they thought they had, and we have been able to get kind of a first call on that or at least a second call.

Speaker #5: The rest of the world is not today. And so the cost of the use of some incremental generation around the world may not be as attractive for the gas-fired equipment as it would be moving in here.

Speaker #5: So the GESA guys with their footprint and activity are on top of all that. And I think that we will see some ability to free up.

Speaker #5: We've been active in picking up additional equipment and when folks have walked to the OEMs produced one or two more than they thought they had, and we've been able to get kind of a first call on that or at least a second call.

Speaker #5: But the market is active, and I think the GESA and the ability to repair, maintain, move, deliver, do all the stuff that is the hard part there that really gives us advantage on finding the equipment and getting it in the shape it needs to be in the US market.

William Zartler: The market is active, and I think GESA and the ability to repair, maintain, move, deliver, and do all the stuff that is the hard part there that really gives us advantage on finding the equipment and getting it in the shape it needs to be, in the US market, or in the opportunistic place where we may find it internationally and keep it international and just sell it to somebody else. I think that it opens a lot of doors for us in the power generation market.

Bill Zartler: The market is active, and I think GESA and the ability to repair, maintain, move, deliver, and do all the stuff that is the hard part there that really gives us advantage on finding the equipment and getting it in the shape it needs to be, in the US market, or in the opportunistic place where we may find it internationally and keep it international and just sell it to somebody else. I think that it opens a lot of doors for us in the power generation market.

Speaker #5: Or in the opportunistic place where we may find it internationally and keep it international and just sell it to somebody else. So I think that it opens a lot of doors for us in the power generation market.

Speaker #7: Appreciate all the color. Thank you very much.

Michael Sullivan: Appreciate all the color. Thank you very much.

Speaker #1: And our next question will come from David Anderson with Barclays. Please go ahead.

Operator: Our next question will come from David Anderson with Barclays. Please go ahead.

Speaker #8: Thank you. Good morning. So balance of plan is really starting to show up in the numbers as clearly a big part of your execution platform.

David Anderson: Thank you. Good morning. Balance of plant is really starting to show up in the numbers, and it is clearly a big part of your execution platform. Can you talk a bit about how much of your deployed capacity by the end of 2027 will have a contracted balance of plant element? Maybe kind of longer term, kind of like what % are you sort of thinking in terms of that part of your business?

Speaker #8: Can you talk a bit about how much of your deployed capacity by the end of '27 will have a contracted balance of plant element?

Speaker #8: Maybe kind of longer term, kind of what percentage are you sort of thinking in terms of that part of your business?

Speaker #5: Well, obviously, the more the better. If we get the right returns on it. So I think it's really addressing the specific customer situation and how we're fitting into their behind-the-meter power solution.

William Zartler: Well, obviously the more, the better, if we get the right returns on it. I think it is really addressing the specific customer situation and how we are fitting into their behind the meter power solution. We have kind of flashed numbers out there, kind of arranging the cost and the return to an incremental dollar per megawatt basis, and it ranges clearly as we add balance of plant to that. I think one of the evolutions of the company is as we grow this, as we grow the other platforms, it is this X number of megawatts times Y number equals this, it equals to our stock price. I think that math is going to be less and less meaningful as we continue to grow the business in the ancillary parts of it as well. Not a hard and fast rule.

Bill Zartler: Well, obviously the more, the better, if we get the right returns on it. I think it is really addressing the specific customer situation and how we are fitting into their behind the meter power solution. We have kind of flashed numbers out there, kind of arranging the cost and the return to an incremental dollar per megawatt basis, and it ranges clearly as we add balance of plant to that. I think one of the evolutions of the company is as we grow this, as we grow the other platforms, it is this X number of megawatts times Y number equals this, it equals to our stock price. I think that math is going to be less and less meaningful as we continue to grow the business in the ancillary parts of it as well. Not a hard and fast rule.

Speaker #5: But if you we've kind of flashed numbers out there kind of arranging the cost and the return to an incremental dollar per megawatt basis.

Speaker #5: And it ranges clearly as we add balance of plan to that. So I think one of the evolutions of the company is as we grow this, as we grow the other platforms, it is this X number of megawatts times Y number equals this equals our stock price.

Speaker #5: I think that math is going to be less and less meaningful as we continue to grow the business in the ancillary parts of it as well.

Speaker #5: So not a hard and fast rule. Obviously, we believe that running the entire plant as the operator and owner of it is better to control all that equipment and operate it as one specific unit.

William Zartler: Obviously, we believe that running the entire plant, as the operator and owner of it is better to control all that equipment, and operate it as one specific unit. I think our goal is to continue to do more of that as we grow and put the fleet to work.

Bill Zartler: Obviously, we believe that running the entire plant, as the operator and owner of it is better to control all that equipment, and operate it as one specific unit. I think our goal is to continue to do more of that as we grow and put the fleet to work.

Speaker #5: So I think our goal is to continue to do more of that as we grow and put the fleet to work.

Speaker #2: I think the other thing that is happening, it's not only that we believe it is more efficient and cost-effective, but our existing customers and the customers that we are talking to believe that sort of one-stop turnkey where we deliver all of the generation gas access and also the distribution side, that turnkey approach is something that they want.

Amanda Brock: I think the other thing that is happening, it is not only that we believe it is more efficient and cost-effective, but our existing customers and the customers that we are talking to believe that sort of one-stop turnkey, where we deliver all of the generation, gas access, and also the distribution side. That turnkey approach is something that they want.

Speaker #8: That makes a lot of sense and certainly to my next question is more of a kind of broader strategic question. So you're obviously moving away from just deploying megawatts.

David Anderson: That makes a lot of sense and sort of leads to my next question. It's more of a kind of broader strategic question. You're obviously moving away from just deploying megawatts. You're talking about balance of plant. There's an SMR, you're talking about the GESA acquisition. Can you talk a little bit about how your strategy has evolved to date, and any insight into how you see the strategy extending further over the next few years? Clearly, you're looking in many different areas. Just any insight on that would be great. Thank you.

Speaker #8: You're talking about balance of plant. There's an SMR you're talking about, the GESA acquisition. Can you talk a little bit about how

Speaker #1: How your strategy has evolved to date and any insight into how you see this expanding further over the next few years . Clearly , you look in many different areas .

Speaker #1: It's insight on that would be great . Thank you .

Speaker #2: Yeah , I think the strategy is not the strategy is it's showing up now more than more than changing . I think we've we've always believed and understood that that adding the balance of plant scope was something that we were looking at .

William Zartler: Yeah, I think the strategy is showing up now more than changing. I think we've always believed and understood that adding the balance of plant scope was something that we were looking at. The acquisition strategy to broaden our capabilities is really our view of the market needs and how do we provide those turnkey solutions to the customers, and how are we able to grow. A couple of the critical paths here are both having equipment and then having the team and the skill set to put it all together and run it, and the ability to maintain it over the life cycle of the equipment. I think the strategy hasn't necessarily changed. What's happening now is it's actually showing up.

Bill Zartler: Yeah, I think the strategy is showing up now more than changing. I think we've always believed and understood that adding the balance of plant scope was something that we were looking at. The acquisition strategy to broaden our capabilities is really our view of the market needs and how do we provide those turnkey solutions to the customers, and how are we able to grow. A couple of the critical paths here are both having equipment and then having the team and the skill set to put it all together and run it, and the ability to maintain it over the life cycle of the equipment. I think the strategy hasn't necessarily changed. What's happening now is it's actually showing up.

Speaker #2: , the acquisition strategy to broaden our capabilities is really our view of the market needs and how do we provide those turnkey solutions to the customers and how are we able to grow , you know , as the couple of the critical paths here are , are both having equipment and then having the team and the skill set to put it all together and run it .

Speaker #2: , and the ability to maintain it over the life cycle of the equipment . So I think it's , it is , you know , the strategy isn't necessarily changed .

Speaker #2: What's happening now is it's actually showing up .

David Anderson: Great. Thank you very much.

Speaker #1: Thank you very much

Speaker #3: And our next question will come from Derrick Whitfield with Texas Capital . Please go ahead

Operator: Our next question will come from Derrick Whitfield with Texas Capital. Please go ahead.

Speaker #4: Thanks . Good morning and congrats on your quarter and update I wanted to start on your project pipeline . , what impact , if any , have data center moratoriums had on your project pipeline ?

Derrick Whitfield: Thanks. Good morning, and congrats on your quarter and update.

William Zartler: Sure.

Bill Zartler: Sure.

Derrick Whitfield: Wanted to start on your project pipeline. What impact, if any, have data center moratoriums had on your project pipeline? It would seem to me that your offering would inherently be more valuable given the tightness in compute and power.

Speaker #4: It would seem to me that you're offering would inherently be more valuable given the tightness and computing power .

Speaker #5: Yeah , maybe I'll just jump in . I mean , I think clearly what we're seeing is the demand for compute is outpacing the incremental supply of compute , getting put online broadly , and to the point on moratoriums in different jurisdictions .

Kyle Ramachandran: Yeah, maybe I'll just jump in. I think clearly what we're seeing is the demand for compute is outpacing the incremental supply of compute getting put online broadly. To the point on moratoriums in different jurisdictions, I think where we fit really neatly into that story is the flexibility of our solution. If you've got access to gas, we can really kind of go anywhere. I think rather than having a certain location where we put in a bunch of infrastructure that's kind of stuck there, I think what really helps us be nimble is the flexibility around the solution that we have, the team that we have that can go out and build projects kind of anywhere. I think it's kind of all playing into our hand. Bill alluded to it. There's significant job creation here.

Speaker #5: I think where we fit really neatly into that story is the flexibility of our solution . If you've got access to gas , we can really kind of go anywhere .

Speaker #5: And so I think rather than , you know , having a , a certain location where we put in a bunch of infrastructure that's kind of stuck there .

Speaker #5: I think what really helps us be nimble is the flexibility around the solution that we have, and the team that we have that can go out and build projects kind of anywhere.

Speaker #5: So I think I think it's kind of all playing into our hand . , you know , Bill alluded to it , we there's significant job creation here .

Speaker #5: There's significant stimulus that comes from these localities . And we are seeing areas where there's . Local , , local influence that is meaningfully pushing towards development .

Kyle Ramachandran: There's significant stimulus that comes from these localities, and we are seeing areas where there's local influence that is meaningfully pushing towards development. There are significant pockets available, but certainly, where we sit relative to a fixed geographic position is a really advantageous position in the portfolio.

Speaker #5: So there are significant pockets available , but certainly , you know , where we sit relative to a fixed , , geographic position is a really advantageous position in the portfolio

Speaker #4: Great . And then maybe with respect to , to Jessa , , while the impact it will have on your offering is clear , how are you thinking about its impact on the industries you can serve from a distributed power perspective and your ability to grow third party business within their existing offering .

Derrick Whitfield: Great. With respect to GESA, while the impact it will have on your offering is clear, how are you thinking about its impact on the industries you can serve from a distributed power perspective and your ability to grow third-party business within their existing offering?

Speaker #2: Well , I think that's we see that as a clear , , you know , the data center market is a giant and massively growing market , but there still utilities , there's still growth in the sector , there's still electrification of lots of things in this country .

William Zartler: Well, I think we see that as clear. The data center market is a giant and massively growing market, there's still utilities, there's still growth in the sector, there's still electrification of lots of things in this country. There's still reshoring of manufacturing. The ability for us to provide those solutions and the GESA platform really helping us get there, is significant. They're providing utility power internationally in several countries today, running those assets. We could see that continue and grow, and we could see playing a role in partial ownership of assets. We have the joint venture today where we own it with our customer, but we operate it. That can be a model as things evolve as well.

Bill Zartler: Well, I think we see that as clear. The data center market is a giant and massively growing market, there's still utilities, there's still growth in the sector, there's still electrification of lots of things in this country. There's still reshoring of manufacturing. The ability for us to provide those solutions and the GESA platform really helping us get there, is significant. They're providing utility power internationally in several countries today, running those assets. We could see that continue and grow, and we could see playing a role in partial ownership of assets. We have the joint venture today where we own it with our customer, but we operate it. That can be a model as things evolve as well.

Speaker #2: There's still reshoring of manufacturing . So the ability for us to provide those solutions and the platform really helping us get there , , is significant .

Speaker #2: They're providing utility power . , internationally in several countries today , running those assets . And so we could see that continue and grow .

Speaker #2: And we can see , you know , you know , playing a role in partial ownership of assets . We have the joint venture today where , you know , we share , we own it with our customer .

Speaker #2: , but we operate it in so that , that , that can be a model as , as things evolve as well .

Speaker #6: Giza's largest customer segment at this point is delivering services and both refurb O&M to utilities . So that is just one example of where we are opening up .

Amanda Brock: GESA's largest customer segment to this point is delivering services, both refurb O&M to utilities. That is just one example of where we are opening up additional business, and the third-party opportunities are significant. We're very excited about what GESA brings to the table.

Speaker #6: , additional business . And the third party opportunities are significant . We're very excited about what Giza brings to the table

Speaker #4: Thanks . Great update

Derrick Whitfield: Thanks. Great update.

Speaker #3: And our next question will come from Scott Gruber with Citigroup . Please go ahead

Operator: Our next question will come from Scott Gruber with Citigroup. Please go ahead.

Speaker #1: Yes . Good morning . , I guess just to stay on Giza , bill , you mentioned the upside in the next year or two .

Scott Gruber: Yes, good morning. I guess just to stay in on GESA, Bill, you mentioned that the upside in the next year or two, it sounds like a kind of bullish kind of outlook for commercial synergies. Any targets that you could provide for us? As you think about it, is it kind of ramping within the kind of core utility market, or is it really ramping with the behind-the-meter solutions and helping with the install and commissioning, and that side of things?

Speaker #1: It sounds like a kind of bullish kind of outlook for commercial synergies . , you know any targets that that you could provide for us and , and as you think about it , is it kind of ramping with within , you know , the kind of core utility market or is it really ramping with the behind the meter solutions and , and helping with the install and commissioning , you know , on that side of things .

Speaker #2: I'll give you the perfect answer . The answer is yes . So I mean , I , you know , the markets , the markets are big .

William Zartler: I'll give you the perfect answer. The answer is yes. The markets are big, they're broad. The traditional utility market has been at the pace that it's grown. You haven't seen a lot of growth in the US in that last few years. Internationally, power demands are growing. The world is getting more electrified, and the needs for that are continuous and steady. The fuel choice is different around the world, so you kind of have a different use case there. The target markets and the opportunities we see both with GESA at its core and its ability to find, locate, refurbish used equipment that we can either put internationally or back domestically, I think is going to be a mix on whether it's going to be a fit for short-term US needs or whether these are long-term assets that stay outside the US. It's big and broad.

Bill Zartler: I'll give you the perfect answer. The answer is yes. The markets are big, they're broad. The traditional utility market has been at the pace that it's grown. You haven't seen a lot of growth in the US in that last few years. Internationally, power demands are growing. The world is getting more electrified, and the needs for that are continuous and steady. The fuel choice is different around the world, so you kind of have a different use case there. The target markets and the opportunities we see both with GESA at its core and its ability to find, locate, refurbish used equipment that we can either put internationally or back domestically, I think is going to be a mix on whether it's going to be a fit for short-term US needs or whether these are long-term assets that stay outside the US. It's big and broad.

Speaker #2: They're broad . , you know , the traditional utility market is , you know , been at the pace that it's grown . You haven't seen a lot of growth in the US in that last few years .

Speaker #2: Internationally , power demands are growing . The world is getting more electrified . And the needs for that , you know , are continuous and steady .

Speaker #2: The fuel choices is different around the world . So you kind of have a different use case there . But the target markets and the opportunities we see , both with Giza and its core and its ability to find , locate , refurbish , use equipment that we can either put internationally or back domestically , I think is going to be a mixed on whether it's going to be a fit for , , for short term US needs or whether these are long term assets that stay outside the US .

Speaker #2: But it's big and broad and we don't have any specific targets necessarily other than , I .

William Zartler: We don't have any specific targets necessarily other than.

Bill Zartler: We don't have any specific targets necessarily other than.

Kyle Ramachandran: I think importantly, we're in the middle of the flywheel here, and it's continuing to accelerate. We're two-plus years into this journey, and the opportunity set, I think, is continuing to grow. We have found ourselves in a position where all the M&A we've done to date has really been proprietarily sourced. We've brought in tremendous entrepreneurs. GESA is the latest example of that, where people see the value of the track record that we've established in actually powering the fastest-growing piece of the power segment. Jumping onto the platform, which is not necessarily a word we love to use, is providing an expansion of opportunities not only for us but for the businesses that we're bringing in as well.

Speaker #5: Think importantly , we're we're in the middle of the flywheel here . And it's and it's continuing to accelerate . You know , we're two plus years into this journey and the opportunity set , I think , is continuing to grow .

Speaker #5: We have found ourselves in a position where all the M&A we've done to date has really been proprietarily sourced. We've brought in tremendous entrepreneurs.

Speaker #5: Is the latest example of that , where people see the value of the track record that we've established in actually powering , you know , the fastest growing piece of the power segment .

Speaker #5: And jumping onto the platform , which is not necessarily a word we love to use is providing an expansion of opportunities not only for us , but for the businesses that we're bringing in as well .

Speaker #5: And so tremendous synergies commercially that we are just at the tip of the spear here on this , this evolution happening around the world .

Kyle Ramachandran: Tremendous synergies commercially that we are just at the tip of the spear here on this evolution happening around the world, and we'll just continue to find ways to add more to the flywheel.

Speaker #5: And we'll just continue to find ways to add more to the flywheel .

Speaker #6: And at a time that you see labor and skilled labor , a shortage , and in many cases , potentially a bottleneck , we've just added 600 people who have deep domain knowledge .

Amanda Brock: At a time that you see labor and skilled labor a shortage, and in many cases, potentially a bottleneck, we've just added 600 people who have deep domain knowledge, and that just gives us a lot of opportunity looking forward.

Speaker #6: And that just gives us a lot of opportunity . Looking forward . .

Speaker #2: Yeah . And developing the training programs , you know , gives us it gives us the critical mass to do a lot of those important things .

William Zartler: Yeah. In developing the training programs, it gives us the critical mass to do a lot of those important things. We've got an internal training program that we've combined up with GESA's talent. They've got a relationship with the Maine Maritime Academy on their engine training programs, where they bring interns into the facility and work on generators. I think the real notion is how do we see the next five and 10 years falling out, and what kind of skills and assets do we want to have ready to take advantage of the market need?

Bill Zartler: Yeah. In developing the training programs, it gives us the critical mass to do a lot of those important things. We've got an internal training program that we've combined up with GESA's talent. They've got a relationship with the Maine Maritime Academy on their engine training programs, where they bring interns into the facility and work on generators. I think the real notion is how do we see the next five and 10 years falling out, and what kind of skills and assets do we want to have ready to take advantage of the market need?

Speaker #2: We've got an internal training program that we've combined up with talent . They've they've got a relationship with the Maine Maritime Academy , , on their engine , , training programs where they bring interns into the facility and work on generators .

Speaker #2: So I think the real notion here is how do we see the next five and ten years rolling out and what kind of skills and assets do we want to have ready to take advantage of , of the market ?

Speaker #2: Need

Speaker #1: Yeah , it's a good segue into my my follow up , which is on the the cost synergies side , because it seems like there could be some ability to , , you know , help , , on the cost of installation , cost of commissioning and , and obviously the maintenance of your turbines , you know , over over their life .

Scott Gruber: Yeah. It's a good segue into my follow-up, which is on the cost synergy side, because it seems like there could be some ability to help on the cost of installation, cost of commissioning, and obviously the maintenance of your turbines over their life. Any color that you could provide on how GESA can help on the cost side of things, and is there a cost angle here too that could aid your margins?

Speaker #1: So any color that you can provide on how Giza can help on the cost side of things and is there a , you know , a cost angle here too , that could aid your margins ?

Speaker #2: There's cost angle , there's spare parts angle , and there's , there's time to do turnarounds and time to do things that are all , as we have it in-house as we , we have control of it .

William Zartler: There's a cost angle, there's a spare parts angle, and there's time to do turnarounds and time to do things that are all as we have it in-house, as Scott alluded to, we have control of it. We're doing it for a third party. The bigger you are, the quicker you can do all the work you need to do in an emergency response or in a planned maintenance cycle. We look at both parts of that, and you recognize that these are a lot of equipment here, whether it's our turbines out on a site or third-party turbines or even a third party's recepts out there with generators that have maintenance needs. It's just a tremendous and big opportunity that we see ahead.

Bill Zartler: There's a cost angle, there's a spare parts angle, and there's time to do turnarounds and time to do things that are all as we have it in-house, as Scott alluded to, we have control of it. We're doing it for a third party. The bigger you are, the quicker you can do all the work you need to do in an emergency response or in a planned maintenance cycle. We look at both parts of that, and you recognize that these are a lot of equipment here, whether it's our turbines out on a site or third-party turbines or even a third party's recepts out there with generators that have maintenance needs. It's just a tremendous and big opportunity that we see ahead.

Speaker #2: , we're doing it for third parties . So the bigger you are , the quicker you can do all the work you need to do in an emergency response or in a planned maintenance cycle .

Speaker #2: So , you know , you got to look at both parts of that and you recognize that these are a lot of equipment here , whether it's our , you know , our turbines out on a site or third party's turbines or even a third parties , you know , out there with with generators that have maintenance needs .

Speaker #2: So it is a , , it's a , it's a , just a tremendous and big opportunity that we see ahead .

Speaker #5: And when we look at our own projects , I mean , certainly when we think about the capitalization of some of these , these , , long term projects , we see some synergy there on bringing costs down by having it in-house .

Kyle Ramachandran: When we look at our own projects, certainly when we think about the capitalization of some of these long-term projects, we see some synergy there on bringing costs down by having it in-house. Most critical is the theme of time to complete and hitting timelines and having the in-house execution capabilities where, as we alluded to in the call, the prepared remarks, we provide that level of certainty now to customers saying, We aren't going out and putting together 20 different vendors to make this project happen. We are continuing to build the in-house capabilities to provide certainty to quality as well as execution timeline.

Speaker #5: But most critical is the theme of time to compute and hitting timelines and having the in-house execution capabilities , where , as we alluded to in the , the prepared remarks , we provide that level of certainty now to customers saying we aren't going out and , and putting together 20 different vendors to make this project happen .

Speaker #5: We are continuing to build the in-house capabilities to provide certainty to , to quality as well as execution timeline .

Speaker #1: I appreciate the color. Thank you.

Scott Gruber: All right. Appreciate the color. Thank you.

Speaker #3: And our next question will come from Sean Milligan with Needham. Please, go ahead.

Operator: Our next question will come from Sean Milligan with Needham. Please go ahead.

Speaker #7: Good morning . Thanks for taking the question . On the July slide deck , you had 100 million plus in EBITDA potential on scope from customer B and C .

Sean Milligan: Good morning. Thanks for taking the question. On the July slide deck, you had $100 million plus in EBITDA potential on scope from customer BNC. First, I just want to make sure I'm thinking about it correctly, that that's all been signed up. I guess the updated slide deck is showing scope on open capacity. Is that the correct way to think about that first?

Speaker #7: First , I just want to make sure I'm thinking about it correctly , that that's all been signed up . And you know , now I guess the updated slide deck is showing scope on open capacity .

Speaker #7: Is that the correct way to think about that ? First ?

Speaker #8: Yeah , I'd say on the first on the additional EBITDA . Yeah . That is for the balance of plant in the incremental CapEx , which is in line with what we've been communicating the last several quarters .

Stephan Tompsett: Yeah, I'd say first on the additional EBITDA, yeah, that is for the balance of plant and the incremental CapEx, which is in line with what we've been communicating the last several quarters. Then there is still significant upside for the uncontracted capacity that we've already committed to. All that stays intact relative to what we communicated before.

Steve Tompsett: Yeah, I'd say first on the additional EBITDA, yeah, that is for the balance of plant and the incremental CapEx, which is in line with what we've been communicating the last several quarters. Then there is still significant upside for the uncontracted capacity that we've already committed to. All that stays intact relative to what we communicated before.

Speaker #8: , and there is still significant upside for the uncontracted capacity that we've already committed to . So all of that stays intact relative to what we communicated before

Speaker #7: Okay . And then some customers are , are dual sourcing equipment or is there a potential for you to bring that equipment under your managed services , like via some type of agreement ?

Sean Milligan: Okay. Then some customers are dual-sourcing equipment, or is there a potential for you to bring that equipment under your managed services, like via some type of agreement? Is that contemplated at all in that slide four guidance?

Speaker #7: And is that contemplated at all ? You know , in that slide for guidance ?

Speaker #2: No , that's not contemplated in the forward numbers . That is a possibility , though .

William Zartler: No, that's not contemplated in the forward numbers. That is a possibility, though.

Bill Zartler: No, that's not contemplated in the forward numbers. That is a possibility, though.

Speaker #5: And as Bill alluded to, the JV.

Kyle Ramachandran: It's Bill's to the JV.

Speaker #2: Yeah , I mean , we are doing that today in a smaller way . But yes , it can it can grow . It can grow , especially with the added capabilities we bring house .

William Zartler: Yeah. We are doing that today in a smaller way. Yes, it can grow, especially with the added capabilities we bring in-house. Part of this is us maintaining that We've had our labor force and not struggling, but just really trying to maintain our capital deployment and our people there. It's been a big task hiring. This accelerates that and really does, to some extent, pull that off of our critical path, when we're making decisions on how to continue to grow.

Bill Zartler: Yeah. We are doing that today in a smaller way. Yes, it can grow, especially with the added capabilities we bring in-house. Part of this is us maintaining that We've had our labor force and not struggling, but just really trying to maintain our capital deployment and our people there. It's been a big task hiring. This accelerates that and really does, to some extent, pull that off of our critical path, when we're making decisions on how to continue to grow.

Speaker #2: I mean , part of part of this is us maintaining that we keep we've had our labor force , you know , and struggling , not struggling , but just really to trying to maintain our capital deployment and our people there .

Speaker #2: And it's been a big task hiring this accelerates that and really does to some extent , pull that off of our critical path when we're making decisions on , on , on how to continue to grow .

Speaker #5: And our ability to service the power market is not limited to our balance sheet . To that point , we're working for groups with obviously very large balance sheets .

Kyle Ramachandran: Our ability to service the power market is not limited to our balance sheet to that point. We're working for groups with obviously very large balance sheets, and to the extent they've taken a position in some equipment and they want to partner with us in some mix of their own equipment, our equipment, and having us in the position of making it all happen is somewhere where we can play.

Speaker #5: And to the extent they've taken a position in some equipment and they want to partner with us in some mix of their own equipment or equipment , and having us in the position of making it all happen is somewhere where we can play

Speaker #3: In our next question will come from Derrick Podhorzer with Piper Sandler . Please go ahead .

Operator: Our next question will come from Derek Podhaizer with Piper Sandler. Please go ahead.

Speaker #1: Hey .

Derek Podhaizer: Hey. Good morning, everyone. Wanted to go back to the GESA conversations. What else should we be thinking about as you look to continue to deepen your moat as a turnkey buy-the-meter power supplier? What else from an integrated services perspective, ancillary services? Obviously, there was a big impact on your financials this quarter, and as you integrate GESA, look forward to seeing that go back to HVMVLV. What else is out there? How can you educate us as far as the different areas that you could pursue to really deepen the moat around the turnkey power supplier you're building out here?

Speaker #9: Good morning everyone . I wanted to go back to the to the just the conversations . , what else should we be thinking about as you look to continue to deepen your moat as a turnkey behind the meter power supplier , what else from an integrated services perspective , ancillary services .

Speaker #9: Obviously , there was a big impact on your financials this quarter . And as you integrate . Jeff . So look forward to seeing that .

Speaker #9: Go back to HBM , Vlv . You know , what else is out there ? How can you educate us as far as the different areas that you could pursue to really deepen the moat around the turnkey power supply ?

Speaker #9: You're building out here ?

Speaker #2: That's a great question . As Carl alluded to , all of these , all these opportunities , we've we've internally sourced , through our networks and through working with several of them on different sites .

William Zartler: Yeah, that's a great question. As Kyle alluded to, all of these opportunities we've internally sourced through our networks and through working with several of them on different sites. The last thing I want to do is tell an investment bank on where we're going to go find opportunities to go buy. I think there are lots of them out there that are entrepreneur-owned. The folks that we're tucking in underneath this see the opportunity. Frankly, they see taking our stock as it being undervalued in the whole package. That's part of the point, is they're coming in as our partners and helping us to grow this business. I think there are more of those out there, and we're going to continue to try to deliver them at the right relative valuation with the right skill sets and focus.

Bill Zartler: Yeah, that's a great question. As Kyle alluded to, all of these opportunities we've internally sourced through our networks and through working with several of them on different sites. The last thing I want to do is tell an investment bank on where we're going to go find opportunities to go buy. I think there are lots of them out there that are entrepreneur-owned. The folks that we're tucking in underneath this see the opportunity. Frankly, they see taking our stock as it being undervalued in the whole package. That's part of the point, is they're coming in as our partners and helping us to grow this business. I think there are more of those out there, and we're going to continue to try to deliver them at the right relative valuation with the right skill sets and focus.

Speaker #2: So the last thing I want to do is tell an investment bank on where we're going to go find opportunities to go buy , , but , you know , I think there are lots of them out there that are , you know , entrepreneur owned .

Speaker #2: I mean , the folks that we're tucking in underneath who see the opportunity , they see , frankly , they see taking our stock as it being undervalued in the whole package .

Speaker #2: So that's part of the part of the point is they're , they're coming in as our partners and helping us to grow this business .

Speaker #2: And I think we will . There are more of those out there , and we're going to continue to try to deliver , them at the right .

Speaker #2: Right relative valuation with the right skill sets and focus .

Derek Podhaizer: Yeah, no, that all makes sense. The announcement on the equity investment in the SMR nuclear company was clearly interesting. Maybe just kind of your high-level thoughts, Bill, as far as how you see the future energy mix for your solution and how you see this advancing over time as that looks to scale up and kind of be part of maybe a future solution of yours.

Speaker #9: That all makes sense . , so the announcement on the equity investment in the SMR nuclear company , , was clearly interesting . So maybe just kind of your high level thoughts , bill , as far as how you see the future energy mix your solution and how you see this advancing , you know , over time , , as that looks to scale up and kind of be part of maybe a future future solution of yours .

Speaker #2: Well , I think the nuclear industry is going through a bit of a renaissance here as they , as we retrace from the big plants in the , in the engineering battles and the regulatory and permitting battles to the to the SMR market , where you've got a few select companies that are really making progress on reactor small designs that actually work .

William Zartler: Well, I think the nuclear industry is going through a bit of a renaissance here as we retrace from the big plants and the engineering battles and the regulatory and permitting battles to the SMR market, where you've got a few select companies that are really making progress on reactor small designs that actually work and are safe. I think us picking Deployable Energy and understanding where they were in the process for getting critical is really important. The technologies are going to work. It's a matter of how do we piece them together and how do we get the demonstration of that power up and running as part of this tool?

Bill Zartler: Well, I think the nuclear industry is going through a bit of a renaissance here as we retrace from the big plants and the engineering battles and the regulatory and permitting battles to the SMR market, where you've got a few select companies that are really making progress on reactor small designs that actually work and are safe. I think us picking Deployable Energy and understanding where they were in the process for getting critical is really important. The technologies are going to work. It's a matter of how do we piece them together and how do we get the demonstration of that power up and running as part of this tool?

Speaker #2: , and are safe . And so I think us , you know , picking deployable and understanding where they were in the process , for getting critical , , is really important .

Speaker #2: The technologies are , , you know , they're going to work . It's a matter of how do we piece them together and how do we get the , the demonstration of that power up and running as part of this tool ?

Speaker #2: , you know , the economics are still to be determined . So , you know , it does save a lot of gas and it's environmentally friendly to , to the most extent .

William Zartler: The economics are still to be determined, it does save a lot of gas and it's environmentally friendly to the most extent, it's how is this going to fit into the mix of power generation in this country? We think it will. We think it will have a role, it's a matter of how quick. I think the timelines of some of these, especially with support of the federal government, can be quicker than expected, I think that's what's exciting to us here.

Bill Zartler: The economics are still to be determined, it does save a lot of gas and it's environmentally friendly to the most extent, it's how is this going to fit into the mix of power generation in this country? We think it will. We think it will have a role, it's a matter of how quick. I think the timelines of some of these, especially with support of the federal government, can be quicker than expected, I think that's what's exciting to us here.

Speaker #2: , but how is this going to fit into , into the mix of power generation in this country ? And we think it will , we think it will have a role and it's a matter of how quick I think the timelines , of some of these , , especially with support of , of , of the federal government can be quicker than expected .

Speaker #2: And I think that's what's exciting to us here .

Speaker #9: Great . I appreciate all the color . I'll turn it back

Derek Podhaizer: Great. Well, appreciate all the color. I'll turn it back.

Speaker #3: And our next question will come from Steven Gongora with Stifel. Please go ahead.

Operator: Our next question will come from Stephen Gengaro with Stifel. Please go ahead.

Speaker #10: , thanks . Good morning everybody . , two two from me . The first is and maybe this acquisition you announced today helps , but we've heard more and more about sort of the wear and tear on , on turbines in the field , working for data centers .

Stephen Gengaro: Thanks. Good morning, everybody. Two from me. The first is, maybe this acquisition you announced today helps, we've heard more and more about sort of the wear and tear on turbines in the field working for data centers. I'm just curious kind of your take on that and what you've seen.

Speaker #10: I'm just curious , kind of your take on that and what you've seen .

Speaker #2: Yeah , I read the Bloomberg article this morning , and there's a lot of experts in this world . You know , we've been doing this , , all of our turbines work .

William Zartler: Yeah, I read the Bloomberg article this morning, there's a lot of experts in this world. We've been doing this. All of our turbines work. We have turbines that, as we've said, that have been temporary, that are moving off to another site, we have checked them all over and re-looked at them, they're all in great shape. There is a lot of noise around it. They are difficult loads. Pairing it up with some sort of buffer solution, be it a battery or a fuel cell, is a good way of managing that, we've seen the dynamics. I think we've got designs and experience on how to manage that without ruining equipment, so to speak, or accelerating the life cycle. The benefits of some of the equipment we use is this can run on multi-fuels, it has run on multi-fuels.

Bill Zartler: Yeah, I read the Bloomberg article this morning, there's a lot of experts in this world. We've been doing this. All of our turbines work. We have turbines that, as we've said, that have been temporary, that are moving off to another site, we have checked them all over and re-looked at them, they're all in great shape. There is a lot of noise around it. They are difficult loads. Pairing it up with some sort of buffer solution, be it a battery or a fuel cell, is a good way of managing that, we've seen the dynamics. I think we've got designs and experience on how to manage that without ruining equipment, so to speak, or accelerating the life cycle. The benefits of some of the equipment we use is this can run on multi-fuels, it has run on multi-fuels.

Speaker #2: We have turbines that , you , as we've said , are going to be that have been temporary , that are moving off to another site .

Speaker #2: And we have checked them all over and looked at them and they're all in great shape . So , you know , there is a lot of noise around it .

Speaker #2: They are difficult loads , you know , pairing it up with with some sort of buffer solution , be it a battery or a fuel cell .

Speaker #2: , it is a good way of managing that . , and we , we see the dynamics . I think we've got designs and experience on how to , how to manage that without ruining equipment , so to speak , or accelerating the life cycle .

Speaker #2: I mean, the benefit of some of the equipment we use is that it can run on multiple fuels, and it has run on multiple fuels, including clean natural gas.

William Zartler: Running clean natural gas from a utility through them is far less impactful than trying to run diesel fuel through them or somewhere else, some other fuel around the world. From our perspective, we see the dynamic. We think we've engineered and designed in a way that actually eliminates that risk on the equipment.

Bill Zartler: Running clean natural gas from a utility through them is far less impactful than trying to run diesel fuel through them or somewhere else, some other fuel around the world. From our perspective, we see the dynamic. We think we've engineered and designed in a way that actually eliminates that risk on the equipment.

Speaker #2: from a utility through them is far , far less impactful than trying to run , you know , diesel fuel through them or somewhere else , some other fuel around the world .

Speaker #2: So from our perspective , I mean , we , we , we see the dynamic , we think we've engineered and designed in a way that actually , , eliminates that risk on the equipment .

Speaker #10: Great . Thank you . And my second question is , and , you know , you always lay things out really well in the , in the deck .

Stephen Gengaro: Great. Thank you. My second question is, you always lay things out really well in the deck, thanks. I think when we think about Solaris in 2030, do you think it'll be materially different? Do you think there'll be M&A in the business on the power gen side? How do you think the company evolves from here? Obviously, there's more contracts to sign, et cetera, do you think the world changes much, do you think we kind of have more of the same?

Speaker #10: So , so thanks . And I think when we think about , your Solaris in 2030 , right . Do you think it'll be materially different ?

Speaker #10: Do you think there'll be M&A in the in the in the business on the power side ? Like how do you think the company evolves from here ?

Speaker #10: I mean , obviously there's more contracts to sign , etc. , but do you think the world changes much or do you think we kind of have , you know , more of the same ?

Speaker #2: , I think it's going to look dramatically different . I mean , I think , you know , we , we have a stair step through here as in terms of what we can see today and what we can talk about .

William Zartler: I think it's going to look dramatically different. I think we have a stair step through here in terms of what we can see today and what we can talk about. I think if we look at what opportunity set lies out there and what we think is happening, I think that the company will be materially different than it is today. Our goals are far beyond what we have in this deck in terms of the growth of this company. A capital-intensive industry, getting ourselves to the size at which we're investment-grade is a big step, and I think that We will see things heading that direction by 2030.

Bill Zartler: I think it's going to look dramatically different. I think we have a stair step through here in terms of what we can see today and what we can talk about. I think if we look at what opportunity set lies out there and what we think is happening, I think that the company will be materially different than it is today. Our goals are far beyond what we have in this deck in terms of the growth of this company. A capital-intensive industry, getting ourselves to the size at which we're investment-grade is a big step, and I think that We will see things heading that direction by 2030.

Speaker #2: But I think if we look at what opportunity set lies out there , what we think is happening , I think that the the company will be materially different than it is today .

Speaker #2: You know , our goals are far beyond what we have in this deck in terms of the growth of this company . And , a capital intensive industry , getting ourselves to the size at which we're investment grade is a is a big step .

Speaker #2: And I think that we will we will see things heading that direction by 2030 . You know , we'll look back if you go back to 2020 , the first quarter of 2024 .

William Zartler: We'll look back, if you go back to Q1 2024, looking at where we were, looking at where we are today, I think that the step change will be about as radical as the last 2 years have been.

Bill Zartler: We'll look back, if you go back to Q1 2024, looking at where we were, looking at where we are today, I think that the step change will be about as radical as the last 2 years have been.

Speaker #2: Looking at where we were and where we are today, I think that the step change will be about as radical as the last two years have been.

Speaker #10: Great . Thank you

Stephen Gengaro: Great. Thank you.

Speaker #3: And our next question comes from Bobby Brooks with Northland Capital Markets . Please go ahead .

Operator: Our next question comes from Bobby Brooks with Northland Capital Markets. Please go ahead.

Speaker #11: Hey , good morning guys . Something that really stuck out to me in the prepared remarks was the line of sight commentary on additional capital capacity .

Bobby Brooks: Hey, good morning, guys. Something that really stuck out to me in the prepared remarks was the line of sight commentary on additional capacity. I'm less interested in trying to size that or time that, because I think you've constantly shown the market you can and will execute on that. What I do want to ask is, with the GESA acquisition and the expertise they've brought in-house across a broader range of turbine OEMs, makes, models, did that directly tie to that improved line of sight on capacity positions? Maybe just expand on that.

Speaker #11: And I'm less interested in trying to size that or time that, because I think you've consistently shown the market you can and will execute on that.

Speaker #11: But what I do want to ask is with the just the acquisition and the expertise they brought in house across a broader array of turbine OEMs , makes models , is does that inherent did that directly tied to that improved line of sight on capacity positions and maybe just expand on that ?

William Zartler: I think you hit the nail on the head. We have established very good relations with the OEMs and been able to pick up a little bit of used equipment and slots from the OEMs that may have come up. Slots they may have been conservative in their rollout and had a few extra turbines that we've been able to buy up. GESA changes that dramatically from out there, the used or lightly used or highly used equipment, where we can actually in-house determine and do the diligence quickly on what might need to be done to that equipment and get it moved. The level of involvement, knowledge that's applied to that, scanning the world, if you will, looking for opportunistic power generation, I think is giant with their addition. We had hired them before to do diligence for us on a set of assets.

Bill Zartler: I think you hit the nail on the head. We have established very good relations with the OEMs and been able to pick up a little bit of used equipment and slots from the OEMs that may have come up. Slots they may have been conservative in their rollout and had a few extra turbines that we've been able to buy up. GESA changes that dramatically from out there, the used or lightly used or highly used equipment, where we can actually in-house determine and do the diligence quickly on what might need to be done to that equipment and get it moved.

Speaker #2: , I think you hit the nail on the head . I mean , we have we have established very good relations with the OEMs and been able to pick up a little bit of kind of used equipment and slots from the OEMs that may have come up or slots they they may have been conservative in their rollout and had a few extra turbines that we've been able to buy up .

Speaker #2: But Giza changes that dramatically from , , out there . The , the use or lightly used or highly used equipment where we can actually , , in house determine and do the diligence quickly on what might need to be done to that equipment and get it moved .

Speaker #2: And so the level of involvement , knowledge and that's applied to that , , scanning the world , if you will , looking for opportunity , opportunistic power generation , I think is , is giant , , with their addition .

Bill Zartler: The level of involvement, knowledge that's applied to that, scanning the world, if you will, looking for opportunistic power generation, I think is giant with their addition. We had hired them before to do diligence for us on a set of assets. We knew their capabilities, and are really excited to have them as part of the team.

Speaker #2: , and we had hired them before to do diligence for us on a set of assets . So we knew their capabilities , , and are really excited to have them as part of the team .

William Zartler: We knew their capabilities, and are really excited to have them as part of the team.

Speaker #6: Pieces footprint is in over . They've operated in over 30 countries . So they have a lot of , , visibility into what is happening in these countries where the power plants are .

Amanda Brock: GESA's footprint is in over They've operated in over 30 countries. They have a lot of visibility into what is happening in these countries, where the power plants are that might be decommissioned, and where there is good equipment.

Speaker #6: That might be decommissioned and where there is good equipment

Speaker #2: And it's determined . A lot of equipment that isn't going to be suitable . So I think very quickly , you know , understanding what's a wild goose chase and what's a real a real effort , we apply , you know , time and energy to is an important thing that they bring to the table

William Zartler: It's determined there's a lot of equipment that isn't going to be suitable. I think very quickly, understanding what's a wild goose chase and what's a real effort we apply time and energy to is an important thing that they bring to the table.

Bill Zartler: It's determined there's a lot of equipment that isn't going to be suitable. I think very quickly, understanding what's a wild goose chase and what's a real effort we apply time and energy to is an important thing that they bring to the table.

Speaker #11: Very helpful . And it seems . And also , I'm just , it seems like this gives you a notable second and second and separate shot on net with the entire power build out because of their aftermarket service and maintenance across various different turbines .

Bobby Brooks: Very helpful. Also on GESA, it seems like this gives you a notable second and separate shot on that with the entire PowerGen build-out because of their aftermarket service and maintenance across various different turbines. I just wanted to ask, one, do you plan, and I think kind of answered this earlier, but just to confirm, it seems like you do plan on having GESA continue to pursue an expanding set of maintenance and servicing jobs where it might not necessarily be your assets on site. Secondly, on your own projects or future ones, does adding the GESA team further expand potential scope?

Speaker #11: So I just wanted to ask one , do you plan to kind of answer this earlier ? But just to confirm , it seems like you do plan on having a continue to pursue an expanding set of maintenance and servicing jobs where it might not necessarily be your assets on site .

Speaker #11: And then secondly , on your own projects or future ones , does adding the team further expand potential scope

Speaker #2: Yes and yes . So I think we we do anticipate , you know , and want them to continue to grow their third party work , , from , from an O&M perspective and from a generator maintenance perspective and rewinding and all the , all the really important stuff that they can do for third parties as well as us .

William Zartler: Yes and yes. I think we do anticipate and want them to continue to grow their third-party work from an O&M perspective and from a generator maintenance perspective and rewinding and all the really important stuff that they can do for third parties as well as us and continue to grow their shop. On top of that, they do give us a greater level of expertise on certain elements of what we do, especially as we're developing our preventative maintenance programs and we're developing all of the protocols around that, and we're applying some really cool AI tools to manage and anticipate issues to get ahead of any maintenance to make sure that it's planned versus unplanned. I think the team there and integration into what we're developing is very important to how we run our business and how we are as reliable as possible for our customers.

Bill Zartler: Yes and yes. I think we do anticipate and want them to continue to grow their third-party work from an O&M perspective and from a generator maintenance perspective and rewinding and all the really important stuff that they can do for third parties as well as us and continue to grow their shop. On top of that, they do give us a greater level of expertise on certain elements of what we do, especially as we're developing our preventative maintenance programs and we're developing all of the protocols around that, and we're applying some really cool AI tools to manage and anticipate issues to get ahead of any maintenance to make sure that it's planned versus unplanned. I think the team there and integration into what we're developing is very important to how we run our business and how we are as reliable as possible for our customers.

Speaker #2: And continue to grow their shop . On top of that , they do give us a greater level of expertise on certain elements of what we do , especially as we're developing our preventative maintenance programs , and we're we're developing all of the protocols around that , and we're applying some really cool AI tools to manage , , and anticipate issues to get ahead of any , any maintenance to make sure that it's planned versus unplanned .

Speaker #2: So I think the , the team , they're in into what we're developing is , is , is very important to how we run our business and how we are as reliable as possible for our customers

Speaker #11: Thank you very much .

Bobby Brooks: Thank you, Matt, very much.

Speaker #3: And our next question will come from Michael Dudas with Vertical Research Partners . Please go ahead

Operator: Our next question will come from Michael Dudas with Vertical Research Partners. Please go ahead.

Speaker #12: Good morning everyone

Michael Dudas: Good morning, everyone.

Speaker #2: Good morning

William Zartler: Good morning.

Bill Zartler: Good morning.

Speaker #12: Oh yeah . Thanks . , Bill ? Bill . . , maybe , , very supportive commentary this morning . What are some of the things we should look for that maybe there's some , any headwinds on timing ?

Michael Dudas: Oh, yeah. Thanks, Matt. Bill, maybe a very supportive commentary this morning. What are some of the things we should look for that maybe there's any headwinds on timing, customer commitment, supply chain, integration, anything that we should be thinking about? Not that there's any need slow in the marketplace, but to gain continued confidence in the execution moving forward next few quarters.

Speaker #12: Customer commitment ? Supply chain integration , anything that we should be thinking about . , not that there's any news flow in the marketplace , but to gain continued confidence in , in the execution moving forward , the next few quarters .

Speaker #2: Well , the good news about this market today , it's pretty good at pointing out what it thinks it's going to go wrong .

William Zartler: Well, the good news about this market today, it's pretty good at pointing out when it thinks it's going to go wrong. These are complicated businesses and us putting the team forward, understanding execution, understanding build-out risk, understanding permitting challenges, understanding all the aspects to make all this happen, I think is really a key driver and a key risk mitigation strategy that we think about every project, every location we're building. Every subset of what's happening, maintaining that we've got the team, we've got the ability to put what we need. We've got friendly local relationships with the community where we operate and understanding how to think about that and how to manage that is all part of ensuring that we can execute equipment over the short term.

Bill Zartler: Well, the good news about this market today, it's pretty good at pointing out when it thinks it's going to go wrong. These are complicated businesses and us putting the team forward, understanding execution, understanding build-out risk, understanding permitting challenges, understanding all the aspects to make all this happen, I think is really a key driver and a key risk mitigation strategy that we think about every project, every location we're building. Every subset of what's happening, maintaining that we've got the team, we've got the ability to put what we need. We've got friendly local relationships with the community where we operate and understanding how to think about that and how to manage that is all part of ensuring that we can execute equipment over the short term.

Speaker #2: , you know , the , the , you know , these are complicated businesses . And for us , you know , putting , you know , putting the team forward , understanding execution , understanding , build out , , risk understanding , permitting challenges , understanding all the , all the aspects to make all this happen .

Speaker #2: You know , I think is really a key driver and a key risk mitigation strategy that we think about every project , every location , we're , we're building , , every subset of what's happening , maintaining that we've got the team , we've got the , , the ability to put what we need .

Speaker #2: We've got friendly , you know , local , , you know , local relationships with the community where we operate and understanding how to , how to , how to think about that and how to manage that is all part of ensuring that we , that we can execute , you know , equipment over the short term as there is more demand for compute than there is compute and power to compute right now , from what we see .

William Zartler: There is more demand for compute than there is compute and power to compute right now from what we see. I think getting things up and running at the speed at which the industry wants is important. We're going to do what we can do. We're going to do it safely, we're going to do it as fast as possible.

Bill Zartler: There is more demand for compute than there is compute and power to compute right now from what we see. I think getting things up and running at the speed at which the industry wants is important. We're going to do what we can do. We're going to do it safely, we're going to do it as fast as possible.

Speaker #2: So , , I think things up and running at the speed at which the industry wants is , is important . And , you know , we're going to do what we can do .

Speaker #2: We're going to do it safely . , but we're going to do it as fast as possible

Speaker #6: They are also going to be very focused on signing the right contracts at the right time with the right people.

Amanda Brock: We also are going to be very focused on signing the right contracts at the right time with the right people.

Speaker #12: Yeah . Duly noted . Thank you . Thank you Bill . Thank you . Amanda

Michael Dudas: Yeah, duly noted. Thank you. Thank you, Bill. Thank you, Amanda.

Speaker #3: And our next question will come from Jerry Revich with Wells Fargo. Please go ahead.

Operator: Our next question will come from Jerry Revich with Wells Fargo. Please go ahead.

Speaker #13: Morning . , this is Kevin on for Jerry . Congrats on the on the quarter . , could you help us walk through the economics of the expanded scope ?

[Analyst] (Wells Fargo): Morning. This is Kevin on for Jerry. Congrats on the quarter. Could you help us walk through the economics of the expanded scope? Where is the incremental $100 million-plus of annual EBITDA coming from, balance of plant, infrastructure support, et cetera? Where are you getting the most interest in terms of scope from existing or prospective clients, and how are the returns trending on that scope compared to the rest of the business? Thanks.

Speaker #13: Where is the incremental 100 million plus of annual EBITDA coming from balance of plan infrastructure support , etc. ? Where are you getting the most interest in terms of scope from existing or prospective clients , and how are the returns trending on that scope compared to the rest of the business ?

Speaker #13: Thanks .

Speaker #8: Yeah . Good morning . I'll take a piece of that . , you know , as we talked about consistently , when we look at these projects , the generation as well as the balance of plant , we look at it on a return of capital basis when we price the contract .

William Zartler: Yeah. Good morning. I'll take a piece of that. As we've talked about consistently, when we look at these projects, the generation as well as the balance of plant, we look at it on a return of capital basis when we price the contract. We look for similar rates of return. The incremental capital is going to be earning rates of return very similar to what we've already deployed for the turbines. It's all consistent from a pricing strategy standpoint.

Bill Zartler: Yeah. Good morning. I'll take a piece of that. As we've talked about consistently, when we look at these projects, the generation as well as the balance of plant, we look at it on a return of capital basis when we price the contract. We look for similar rates of return. The incremental capital is going to be earning rates of return very similar to what we've already deployed for the turbines. It's all consistent from a pricing strategy standpoint.

Speaker #8: So we look for similar rates of return . So the incremental capital is going to be earning rates of return very similar to what we've already deployed for the turbines .

Speaker #8: So, it's all consistent from a pricing strategy standpoint.

Speaker #5: And from a an offering standpoint . Bill used the word evolution earlier today . And that's a word we've been using . , quite frequently recently .

Kyle Ramachandran: Yeah. From an offering standpoint, Bill used the word evolution earlier today, and that's a word we've been using quite frequently recently. If we look at just the evolution of the offering and the scope that we've put in place here across the three major data center contracts that we have, the scope continues to expand at each contract. I think to Amanda's point, people are looking for a turnkey trusted provider, and we're doing it organically and inorganically in terms of being able to articulate that value proposition. We think the earnings potential here is very compelling as we sort of land and expand here.

Speaker #5: And if we look at just the evolution of the offering and the scope that we've , , we've put in place here across the , the three major data center contracts that we have the scope continues to expand at each contract .

Speaker #5: And so I think to Amanda's point , people are looking for a turnkey trusted provider . And we're doing it organically and inorganically in terms of being able to articulate that value proposition .

Speaker #5: So we think the earnings potential here , , is very compelling as we sort of land and expand here

Speaker #6: Every time we've signed a contract , we have expanded the scope under that contract

Amanda Brock: Every time we've signed a contract, we have expanded the scope under that contract.

Speaker #13: Got it. Thank you. I'll pass it along.

[Analyst] (Wells Fargo): Got it. Thank you. I'll pass it along.

Speaker #3: And our next question will come from Blake McLean with Daniel Energy. Please go ahead.

Operator: Our next question will come from Blake McLean with Daniel Energy. Please go ahead.

Speaker #8: Hey .

Blake McLean: Hey, thanks for taking the time this morning. A lot of great insights already. Maybe I've got just one broader question here. I'm curious to get your take on insights from customers and potential customers from a mindset evolution perspective. You guys had a great interconnection delay data point in your materials. How are those types of anecdotes and other grid headwinds that we keep hearing about changing commercial conversations? Like clearly it's broadening interest levels, but how is it shaping, like when they want to engage with you all, how they think about site selection, size of capacity commitments, that sort of stuff?

Speaker #14: Thanks for thanks for taking , , taking the time this morning . A lot of great insights already . So maybe I've got just one broader question here .

Speaker #14: I'm curious to get your take on insights from customers and potential customers from a mindset evolution perspective. You guys had a great interconnection delay data point in your materials.

Speaker #14: How are those types of anecdotes and other grid headwinds that we keep hearing about changing commercial conversations ? So like , clearly it's broadening interest levels , but how is it shaping like when they want to engage with you all , how they think about site selection , size of capacity , commitments , that sort of stuff .

William Zartler: Well, I think I alluded to a little bit earlier. I think the momentum toward expanding sites that are already there, if you have got strong local relationships, continues to be a little bit easier than a greenfield project. That said, there are still many large greenfield projects with eyes to larger sized campuses, and it is really about the evolution of, if I want to build a 4 or 5, 10GW campus, the sky's the limit. How do I start that? What does that look like starting that and rolling up the power supply into a facility like that over the next two to five years as they build it out? I think that is the ongoing conversation is, what does the design look like for that? How does it all fit together? How does it look?

Bill Zartler: Well, I think I alluded to a little bit earlier. I think the momentum toward expanding sites that are already there, if you have got strong local relationships, continues to be a little bit easier than a greenfield project. That said, there are still many large greenfield projects with eyes to larger sized campuses, and it is really about the evolution of, if I want to build a 4 or 5, 10GW campus, the sky's the limit. How do I start that? What does that look like starting that and rolling up the power supply into a facility like that over the next two to five years as they build it out? I think that is the ongoing conversation is, what does the design look like for that? How does it all fit together? How does it look?

Speaker #2: I think I alluded to a little bit earlier , it does , I think the momentum toward expanding sites that are already there .

Speaker #2: If you've got strong local relationships , continues to be a little bit easier than a greenfield project . , that said , there are still many large greenfield projects with eyes to larger sized campuses , and it's really about the evolution of if I want to build a four or 5 or 10 gigawatt campus , the sky's the limit .

Speaker #2: How do I start that? And so, what does that look like—starting that and rolling up the power supply into a facility like that—over the next two to five years as they build it out?

Speaker #2: And so I think that's the , the ongoing conversation is , is what is the design ? Look like for that ? How does it all fit together ?

Speaker #2: How does it look ? You know , what is the generation stack look like for five gigawatt ? You know , island and power project three years from now or five years from now .

William Zartler: What does the generation stack look like for a 5GW islanded power project three years from now or five years from now? I think all of those conversations are very ongoing. I think that our dialogues are consultative with our customers and trying to figure out how do we fit a solution into there and how you partner up with others to execute on the scale which is needed to execute on.

Bill Zartler: What does the generation stack look like for a 5GW islanded power project three years from now or five years from now? I think all of those conversations are very ongoing. I think that our dialogues are consultative with our customers and trying to figure out how do we fit a solution into there and how you partner up with others to execute on the scale which is needed to execute on.

Speaker #2: So I think all of those conversations are very ongoing . I think that there are dialogues . Are , you know , consultative with our customers and , and trying to figure out what , how , how do we fit a solution into there ?

Speaker #2: And , and how you partner up with others to , to execute on the scale at which is needed to execute on

Speaker #6: Moratoriums . The issues associated with the interconnection and the queues . And look at the , you know , Abbott letter that there's been a lot of , , you know , conversations about , I mean , these are all tailwinds .

Amanda Brock: Moratoriums, the issues associated with the interconnection and the queues. Look at the Greg letter that there has been a lot of conversations about. I mean, these are all tailwinds. One of the primary solutions to meaningfully alleviate the strain on public infrastructure and eliminate or at least mitigate the potential of increased costs on the ratepayer really pushes you back to behind the meter. These are tailwinds, and as Bill said, we are in discussions as to how to make it happen and how to make it happen and where to make it happen. The conversations are very consultative.

Speaker #6: One of the primary solutions to meaningfully alleviate the strain on public infrastructure and eliminate, or at least mitigate, the potential of increased costs on the ratepayer.

Speaker #6: Really pushes you back to behind the meter . And so these are tailwinds . And as Bill said , you know , we are in discussions as to how to make it happen .

Speaker #6: , and how to make it happen and where to make it happen . So the conversations are very consultive .

Speaker #2: Yeah . And I think they're , their view of the time value of , of compute time between now and the energizing , you know , in early 27 versus 29 or 30 is significant value to , to the customer .

William Zartler: Yeah. I think their view of the time value of compute time between now and the energizing in early 2027 versus 2029 or 2030 is significant value to the customer. They see that and they recognize the need to get this going quickly, have a long-term plan about what it looks like. I think there has always been a bit of a perception that some more efficient large combined cycle unit is going to be a much more lower cost solution. In today's environment, with the cost of the EPC contracts, the location, the siting of all that, the needs for high voltage transformers and the needs for high voltage transmission and on-site backup power, the costs are beginning to converge in a way that we think is really much pushing the behind the meter solution to really become the next generation of power.

Bill Zartler: Yeah. I think their view of the time value of compute time between now and the energizing in early 2027 versus 2029 or 2030 is significant value to the customer. They see that and they recognize the need to get this going quickly, have a long-term plan about what it looks like. I think there has always been a bit of a perception that some more efficient large combined cycle unit is going to be a much more lower cost solution. In today's environment, with the cost of the EPC contracts, the location, the siting of all that, the needs for high voltage transformers and the needs for high voltage transmission and on-site backup power, the costs are beginning to converge in a way that we think is really much pushing the behind the meter solution to really become the next generation of power.

Speaker #2: So they see that and they , they recognize the need to , to get this going quickly , but then have a long term plan about what it looks like .

Speaker #2: I think there's always been a bit of a perception that some more efficient , large combined cycle unit is going to be , is going to be a much more , you know , lower cost solution .

Speaker #2: But , but , you know , in today's environment , with the cost of the EPC contracts , the location , siting of all that , the needs for high voltage transformers and the need for high voltage transmission and on site backup power , the costs are beginning to converge in a way that we think is is really much pushing the behind the meter solution to really become , you know , the next generation of power .

Speaker #2: And that at some point it can turn around and supply pack into the grid as resiliency , as needed . And I'm sure you have one more question , Blake , about the logistics segment

William Zartler: That at some point it can turn around and supply back into the grid as resiliency as needed. I'm sure you have one more question, Blake, about the logistics segment.

Bill Zartler: That at some point it can turn around and supply back into the grid as resiliency as needed. I'm sure you have one more question, Blake, about the logistics segment.

Speaker #14: , yeah . Anything you want to share on that ? We'd love to hear it .

Blake McLean: Anything you want to share on that, we'd love to hear it. Thanks guys very much for the color.

Speaker #2: Thank you guys .

Speaker #14: Very much for the color .

Speaker #2: Yeah . Thank you . Blake . The , , the , that business continues to perform extremely well . , we do see , you know , customers focused on it that , that the trucking , you know , bottlenecks with the , the , the data center market has taken a lot of the , , pneumatic trucks and use them for cement service .

William Zartler: Yeah. Thank you, Blake. That business continues to perform extremely well. We do see customers focused on it that the trucking bottlenecks with the data center market has taken a lot of the pneumatic truck in using for cement service. The evolution of what's happening there with the growth of the need, and I think John's letter of Sunday night highlighted that you're going to need more frac spreads next year to complete the wells that are being drilled as the rig count grows a little bit. All of that points to continued growth in that business for us. We've got strong reliability. We've really spent a lot of effort in that business, continue to focus on equipment reliability, and getting it working. I think that we're hitting on all cylinders in that business as well.

Bill Zartler: Yeah. Thank you, Blake. That business continues to perform extremely well. We do see customers focused on it that the trucking bottlenecks with the data center market has taken a lot of the pneumatic truck in using for cement service. The evolution of what's happening there with the growth of the need, and I think John's letter of Sunday night highlighted that you're going to need more frac spreads next year to complete the wells that are being drilled as the rig count grows a little bit. All of that points to continued growth in that business for us. We've got strong reliability. We've really spent a lot of effort in that business, continue to focus on equipment reliability, and getting it working. I think that we're hitting on all cylinders in that business as well.

Speaker #2: So the , the evolution of kind of what's happening there with the , you know , the growth of the need . And I think John's letter of Sunday night highlighted that , that , that you're going to need more frac spreads next year to complete the wells that are being drilled as , as the rig count grows a little bit .

Speaker #2: So all of that points to continued . , growth in that business for us . , and we've got strong reliability . We've , we've really spent a lot of effort in that business continue to focus on equipment reliability .

Speaker #2: , and getting it working . And I think that we're hitting on all cylinders in that business as well

Speaker #14: Good stuff. Thanks, y'all.

Blake McLean: Good stuff. Thanks, y'all.

Speaker #8: Great .

William Zartler: Right.

Bill Zartler: Right.

Speaker #3: And this will conclude our question and answer session . I'd like to turn the conference back over to Bill Zartler for any closing remarks .

Operator: This will conclude our question and answer session. I'd like to turn the conference back over to William Zartler for any closing remarks.

Speaker #2: Thanks , Cole . Thank you all for joining us today . This quarter's progress showed once again that our strategy is working . Our team is executing , and the company is growing quickly .

William Zartler: Thanks, Cole. Thank you all for joining us today. This quarter's progress showed once again that our strategy is working. Our team is executing, and the company is growing quickly. Our customers keep choosing to grow with us. We keep integrating more of the power value chain, and all that combination is producing durable results. About our 2.3 gigawatts that are currently under long-term contract and have a clear path to significant free cash flow from those contracts and other parts of our business over the next decade. A sincere thank you to our employees, customers, and partners. Your dedication and trust are the foundation of everything we are building, and they are why we are more excited about the future than at any point in our history. We look forward to sharing our continued progress, and thanks again. Have a great day.

Bill Zartler: Thanks, Cole. Thank you all for joining us today. This quarter's progress showed once again that our strategy is working. Our team is executing, and the company is growing quickly. Our customers keep choosing to grow with us. We keep integrating more of the power value chain, and all that combination is producing durable results. About our 2.3 gigawatts that are currently under long-term contract and have a clear path to significant free cash flow from those contracts and other parts of our business over the next decade. A sincere thank you to our employees, customers, and partners. Your dedication and trust are the foundation of everything we are building, and they are why we are more excited about the future than at any point in our history. We look forward to sharing our continued progress, and thanks again. Have a great day.

Speaker #2: Our customers keep choosing to grow with us . We keep integrating more of the power value chain and all that combination is producing durable results .

Speaker #2: About our 2.3 GW that are currently under long-term contract and have a clear path to significant free cash flow from those contracts and other parts of our business over the next decade.

Speaker #2: A sincere thank you to our employees , customers and partners . Your dedication and trust are the foundation of everything we are building , and they're why we are more excited about the future than at any point in our history .

Speaker #2: We look forward to sharing our continued progress , and thanks again . Have a great day

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

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