10:12 AM EDT, 07/10/2024 (MT Newswires) -- (Updates to include Solaris Oilfield Infrastructure ( SOI ) stock's recent movement in the headline and first paragraph.)

Solaris Oilfield Infrastructure ( SOI ) shares were up more than 26% in early Wednesday trading, following its late Tuesday announcement of an agreement to acquire Mobile Energy Rentals for $200 million in cash and stock.

The deal is expected to close in Q3, subject to a shareholder vote and regulatory approvals. Once the deal closes, Solaris Oilfield will rename itself as Solaris Energy Infrastructure and trade under the ticker symbol "SEI."

The purchase price for Mobile Energy, a provider of natural-gas-powered mobile turbines, includes $60 million of cash and 16.5 million shares of Solaris class B stock. Mobile Energy's founders and managers will join Solaris after the deal closes and own about 27% of the merged company's outstanding shares.

Solaris said the acquisition gives it access to several new markets. It adds 153 megawatts of power generation assets to its portfolio that is expected to grow to 478 megawatts by the end of Q3 2025 through the purchase of $308 million in additional infrastructure.

Solaris said it plans to use a combination of cash and debt financing it has already secured to fund the $60 million due at closing as well as the $308 million in turbines on order.

Solaris also said it estimates Q2 revenue of $70 million to $75 million. Two analysts surveyed by Capital IQ expect $62.7 million.

Price: 10.46, Change: +2.19, Percent Change: +26.42