Financial Data and Key Metrics Changes - In Q3 2025, Select Water Solutions achieved cash flow from operating activities of $72 million, exceeding adjusted EBITDA for the second consecutive quarter [16][22] - Adjusted EBITDA for Q3 was just under $60 million, at the high end of previous guidance, with expectations for Q4 to grow to $60 million-$64 million [19][20] - SG&A expenses increased to $42 million in Q3, primarily due to severance and deal costs, but are expected to return to approximately $40 million in Q4 [19][22] Business Line Data and Key Metrics Changes - Water Infrastructure revenue decreased by 2.5% in Q3, with margins at 53%, slightly below prior quarter levels, primarily due to reduced skim oil sales and lower realized oil prices [16][17] - Water Services segment saw a revenue decrease of approximately 23% sequentially, heavily impacted by the divestment of legacy trucking operations, but gross margins before D&A improved to 19%-20% in Q4 [17][18] - Chemical Technologies achieved a sequential revenue increase of 13% in Q3, with gross margins before D&A at 19.9%, resulting in a gross profit before D&A of $15.2 million, a 29% sequential increase [18][19] Market Data and Key Metrics Changes - The Permian Basin remains the most active area in the industry, with Select Water Solutions recycling nearly 1 million barrels of water per day [7][8] - The company added nearly 800,000 acres under dedication in 2025, with expectations to continue adding dedications before year-end [9][10] - The company anticipates water infrastructure growth of 10% in Q4 and over 20% in 2026 [13][17] Company Strategy and Development Direction - The company is focused on enhancing long-term water infrastructure scale and cash flow generation, consolidating and divesting in Water Services for margin enhancement, and increasing market share in Chemical Technologies [5][6] - Select Water Solutions aims to provide comprehensive and flexible water midstream solutions, balancing produced water management with recycling and disposal capabilities [10][11] - The company is advancing mineral extraction efforts, including a lithium extraction facility in East Texas, which is expected to generate significant royalty payments [12][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver stable long-term earnings despite a lower commodity price environment, emphasizing the importance of unlocking incremental economics and efficiencies for customers [14][15] - The company expects strong growth into 2026, supported by a backlog of ongoing construction projects and new contract wins [17][24] - Management highlighted the importance of integrating water services with infrastructure to improve efficiency and margin profiles [61] Other Important Information - The company is committed to maintaining a low-leverage balance sheet while executing strategic initiatives to streamline operations and enhance shareholder value [23][24] - Select Water Solutions is actively pursuing beneficial reuse solutions and partnerships with regulators and universities to advance its mineral extraction and recycling capabilities [11][30] Q&A Session Summary Question: How does the company feel positioned regarding disposal capacity in the Permian? - The company emphasizes a recycling-first approach, with disposal capacity serving as a necessary backup to manage produced water volumes effectively [26] Question: What is the opportunity set for beneficial reuse and mineral extraction over the next five years? - The company is in the early stages of monetizing its mineral extraction capabilities and is optimistic about future revenue generation from these initiatives [30][39] Question: How does the integrated approach between infrastructure and services differentiate the company from peers? - The company highlighted its unique position as the largest water transfer provider, leveraging its infrastructure contracts to secure multi-year agreements for water transfer services [54][55]

Core Insights - Select Water Solutions, Inc. reported a revenue of $322.24 million for the quarter ended September 2025, reflecting a year-over-year decline of 13.2% and an EPS of $0.03 compared to $0.15 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $306.17 million, resulting in a surprise of +5.25%, while the EPS met the consensus estimate [1] Revenue Breakdown - Revenue from Chemical Technologies was $76.56 million, surpassing the average estimate of $64.36 million by four analysts, marking a year-over-year increase of +38.4% [4] - Revenue from Water Services was $166.88 million, slightly above the average estimate of $161.68 million, but showed a year-over-year decline of -28.7% [4] - Revenue from Water Infrastructure was $78.81 million, slightly below the estimated $79.92 million, representing a -3.9% change compared to the previous year [4] Profit Metrics - Gross Profit before D&A for Water Services was $30.08 million, compared to the average estimate of $31.44 million [4] - Gross Profit before D&A for Chemical Technologies was $15.21 million, exceeding the average estimate of $10.54 million [4] - Gross Profit before D&A for Water Infrastructure was $41.84 million, below the average estimate of $43.46 million [4] Stock Performance - Shares of Select Water Solutions, Inc. have returned +9.6% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Select Water Solutions, Inc. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, but down from $0.15 per share a year ago [1] - The company generated revenues of $322.24 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 5.25%, but down from $371.35 million year-over-year [2] - The stock has underperformed, losing approximately 10.2% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is $0.05, with projected revenues of $308.61 million, and for the current fiscal year, the estimate is $0.30 on $1.35 billion in revenues [7] Market Outlook - The estimate revisions trend for Select Water Solutions, Inc. was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Waste Removal Services industry, to which the company belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Core Insights - Select Water Solutions reported a revenue of $322 million for Q3 2025, a decrease from $364.2 million in Q2 2025 and $371.3 million in Q3 2024 [9] - The company achieved a cash flow from operating activities of $72 million during the same quarter [1] - The Chemical Technologies segment saw a revenue increase of 13% and gross profit growth of 34% compared to Q2 2025 [1][16] - New long-term contracts in Water Infrastructure were announced, covering approximately 65,000 acres, enhancing the company's service capabilities in the Permian Basin [1][25] Financial Performance - Revenue for Q3 2025 was $322.2 million, down from $364.2 million in Q2 2025 and $371.3 million in Q3 2024 [9] - Net income for Q3 2025 was $2.3 million, compared to $11.7 million in Q2 2025 and $18.8 million in Q3 2024 [9] - Gross profit was $43.6 million in Q3 2025, down from $57.8 million in Q2 2025 and $62.4 million in Q3 2024, with a gross margin of 13.5% [10] - Adjusted EBITDA for Q3 2025 was $59.5 million, a decrease from $72.6 million in Q2 2025 and $72.8 million in Q3 2024 [12] Segment Performance - The Water Infrastructure segment generated revenues of $78.8 million in Q3 2025, down from $80.9 million in Q2 2025 and $82.0 million in Q3 2024, with a gross margin before D&A of 53.1% [14] - The Water Services segment reported revenues of $166.9 million in Q3 2025, a significant decrease from $215.7 million in Q2 2025 and $234.0 million in Q3 2024, with a gross margin before D&A of 18.0% [15] - The Chemical Technologies segment achieved revenues of $76.6 million in Q3 2025, up from $67.7 million in Q2 2025 and $55.3 million in Q3 2024, with a gross margin before D&A of 19.9% [16] Strategic Developments - The company signed multiple long-term contracts for water gathering, recycling, and disposal in the Permian Basin, with a total capital expenditure of approximately $25 million expected for these projects [25] - A 12-year agreement was executed for water recycling and disposal in the Northern Delaware Basin, adding approximately 60,000 acres under dedication [4][27] - Select Water Solutions is expanding its infrastructure in the Midland Basin, integrating new contracts into existing facilities to enhance service capabilities [5][26] Cash Flow and Capital Expenditures - Cash flow from operations for Q3 2025 was $71.7 million, compared to $82.6 million in Q2 2025 and $51.9 million in Q3 2024 [17] - Net capital expenditures for Q3 2025 were $91.1 million, with free cash flow reported at ($19.4) million [18] - The company is increasing its 2025 net capital expenditures guidance to a range of $250 million to $275 million [7] Balance Sheet and Liquidity - Total cash and cash equivalents decreased to $17.8 million as of September 30, 2025, down from $51.2 million as of June 30, 2025 [21] - Total liquidity was reported at $175.5 million as of September 30, 2025, compared to $279.3 million as of June 30, 2025 [24] - The company had $250 million in borrowings outstanding under its sustainability-linked credit facility as of September 30, 2025 [22]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Select Water Solutions and Mariana Minerals have announced the groundbreaking of a lithium extraction facility in Joaquin, Texas, which will convert produced water into lithium salts, supporting domestic energy and critical minerals supply chains [1][2][3] Company Overview - Select Water Solutions is a leading provider of sustainable water and chemical solutions to the energy industry, emphasizing safe and environmentally responsible water management [5] - Mariana Minerals focuses on supplying critical minerals for modern energy and technology, utilizing advanced AI and machine learning to enhance mineral project development [6] Project Details - The lithium facility is designed to produce up to 3,000 metric tons per year of high-purity lithium salts by utilizing oil and gas waste streams [2] - The facility will leverage Select's existing water treatment infrastructure, which has been operational for over a decade, allowing for efficient sourcing and management of produced water [2][3] - Site preparation began in July 2025, with construction expected to continue through December 2026, and commercial production targeted for the first half of 2027 [3] Financial Implications - The project is anticipated to generate up to $5 million in annual cash flow for Select Water Solutions, enhancing the value of its existing infrastructure [3] - The collaboration aims to maximize returns from Select's infrastructure by adding high-margin revenue streams [4]

Core Viewpoint - Select Water Solutions, Inc. (NYSE:WTTR) has gained significant investor attention following a 'Buy' rating and a price target of $18 initiated by Texas Capital, despite a decline of over 21% in share price since the beginning of 2025 [2][4]. Company Overview - Select Water Solutions, Inc. is a leader in water management and chemical technology, primarily serving the oil and gas industry as well as other industrial applications [2]. - The company is undergoing a transformation to an infrastructure-led business model, which aims to replace volatile, activity-based revenue with more stable and predictable cash flows from long-term contracts [3]. Market Performance - The share price of Select Water Solutions surged by 10.27% between October 10 and October 17, 2025, making it one of the top-performing energy stocks for that week [1]. - Despite the recent increase, the company's share price has experienced a significant decline of over 21% since the start of 2025 [4]. Investment Potential - The research firm views Select Water Solutions as an attractive investment opportunity due to its position as a market leader in complete lifecycle water solutions and its relative valuation [3].

Core Points - Select Water Solutions, Inc. will release its 2025 third quarter financial results on November 4, 2025, after market close [1] - A conference call is scheduled for November 5, 2025, at 11:00 a.m. Eastern Time, which will be available via phone and online [1] - The company emphasizes its commitment to sustainable water and chemical solutions for the energy industry, focusing on environmentally responsible management of water resources [2] Financial Results Announcement - The financial results for the third quarter of 2025 will be released on November 4, 2025 [1] - A live conference call will take place on November 5, 2025, at 11:00 a.m. Eastern Time [1] - Replay of the call will be available until November 19, 2025 [1] Company Overview - Select Water Solutions is a leading provider of sustainable water and chemical solutions to the energy industry [2] - The company prioritizes safe and environmentally responsible management of water throughout the lifecycle of a well [2] - Select Water Solutions believes in the importance of conserving and protecting the environment through responsible water resource management [2]

Summary of Select Water Solutions (WTTR) FY Conference Call Company Overview - Select Water Solutions is a publicly traded company on the New York Stock Exchange, founded in 2007 and went public in April 2017 [1] - The company operates in the oil and gas water space, focusing on infrastructure for water recycling and disposal [2] Industry and Market Position - The company claims to be the fastest-growing infrastructure platform in the oil and gas water sector [2] - It has established long-term contracts that provide economic value through full life cycle water management [3] - The company has a low capital maintenance business model, with a focus on free cash flow conversion [4] Financial Performance - The company has a conservative balance sheet with debt less than one year of EBITDA [7] - It has a regular dividend and has engaged in share buybacks over the past five years [7] - The gross margin for the infrastructure segment was reported at 55.6% in the last quarter [26] Business Segments - The company operates in three segments: water infrastructure, water services, and chemical technology [9] - The water infrastructure segment is less cyclical and has high gross margins, while the water services segment has lower margins (22%-25%) [10] - The chemical technology segment has the lowest margins, primarily serving upstream oil and gas companies [10][41] Growth and Expansion - The company has expanded its recycling capacity to 3 million barrels per day and has over 100 disposal wells [14] - It has dedicated acreage of over 2.5 million acres, with a right of first refusal (ROFR) on additional acreage [16] - The company is transitioning into municipal and industrial markets, focusing on long-term water leasing agreements [6][31] Strategic Initiatives - The company is investing in beneficial reuse of water, treating it to an environmentally acceptable quality for agricultural use [33] - It is also exploring opportunities in direct air carbon capture and other industrial applications [32] - The company has a significant backlog of contracts and is focused on converting conversations into contracts before investing capital [28] Risks and Considerations - The company acknowledges potential impacts from a slowdown in completion activity, which could affect water volumes needed for fracking [40] - Regulatory changes and seismic activity in the Permian Basin could also impact operations [43][44] Conclusion - Select Water Solutions is positioned as a leader in the oilfield water infrastructure sector, with a strong focus on growth, shareholder returns, and sustainable practices [35] - The company believes its infrastructure model will provide better free cash flow compared to previous service models, with significant opportunities in both the oil and gas sector and municipal markets [36][37]