Solaris inks seven-year transloading agreement

Solaris Oilfield Infrastructure Inc. on Wednesday announced a new seven-year transloading agreement with an exploration and production operator in the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties (STACK) oil play in Oklahoma.

Under the agreement, the operator will provide minimum quarterly proppant volumes through a new facility that Solaris is developing in Kingfisher, Oklahoma.

Construction on the facility is slated to begin this month. Located on a Union Pacific Railroad line, the plant is the first independent, unit-train-capable transload facility dedicated to the STACK and South Central Oklahoma Oil Province (SCOOP) plays, Solaris officials said in a press release.

The company didn't disclose the operator.

To support the operator's committed volumes, Solaris is building an 8,000 foot unit-train loop, 30,000 tons of silo storage and an additional 18,000 feet of sidetrack. That work marks the first phase of the facility's construction.

The operator's contracted minimum volumes will represent less than half of the new infrastructure's operational capacity.

Projects in the first phase are expected to cost $40 million.

"The new seven-year agreement is a milestone contract adding significant revenue backlog and improving the visibility of future earnings," said Solaris Chief Executive Officer Greg Lanham. "We anticipate other customers will also seek long-term agreements tied to the new facility."