Financial Data and Key Metrics Changes - The company achieved a net income growth of 26% compared to the second quarter of 2024, with revenues growing by 40% year-over-year and gross profit before depreciation and amortization (D&A) increasing by 99% compared to Q3 2023 [9][30][43] - Consolidated adjusted EBITDA for Q3 2024 was $73 million, exceeding guidance of $66 million to $70 million, while the fourth quarter is expected to see adjusted EBITDA between $60 million to $62 million [43][44] Business Line Data and Key Metrics Changes - Water Infrastructure segment revenues grew by 20% compared to Q2 2024, with gross profit before D&A increasing by 33% [9][30] - Water Services segment revenues increased by approximately 2% despite a modest decline in overall completions activity, while margins are expected to hold steady at 20% to 21% in Q4 [38][39] - Chemical Technologies segment experienced a revenue decline due to decreased activity with legacy pressure pumping customers, but is expected to recover in Q4 with revenue growth in the mid-single digits and margins improving to 14% to 16% [40][41] Market Data and Key Metrics Changes - The company added 25,000 acres under long-term dedication in the Permian Basin and executed two new pipeline connection agreements in the Bakken, enhancing its market footprint [11][12] - The company anticipates a seasonal activity slowdown in Q4, particularly impacting the Water Services segment, while expecting revenue and margin recovery in the Chemical Technologies segment [18][39] Company Strategy and Development Direction - The company aims to continue growing its production base and long-term contracted revenue within the Water Infrastructure segment, with a focus on operational improvements and strategic acquisitions [22][36] - The company is positioned to capitalize on industry trends towards increased recycling and complex full life cycle solutions, supporting continued growth opportunities [23][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record-setting annual adjusted EBITDA and noted that the business development backlog is increasing in size and certainty [15][14] - The company expects strong margins to continue, with a rebound in activity anticipated in Q1 2025 as new projects come online [20][37] Other Important Information - The company reduced SG&A expenses by more than 4% or $1.7 million relative to Q2 2024, maintaining a conservative balance sheet with $80 million of outstanding borrowings [42][46] - A 17% increase in the quarterly dividend payment to $0.07 per share was announced, with total capital return to shareholders expected to be about $40 million during 2024 [49][50] Q&A Session Summary Question: Future margin trajectory in Water Infrastructure - Management indicated that margins in the Water Infrastructure segment are expected to remain in the 50% to 60% range, with opportunities for further improvement through increased asset utilization and strategic contracts [58][62] Question: Impact of operational downtime on Q4 EBITDA - Management clarified that over half of the expected decline in Q4 EBITDA is attributed to planned operational downtime at specific facilities, with some seasonal impacts also expected [71][72] Question: New product wins in Chemical Technologies - Management noted that new product wins are occurring across various regions, particularly in the Permian Basin, and are expected to be repeatable going forward [74] Question: Expected outcomes for the New Mexico recycling plant transition - Management explained that the transition to an integrated system will enhance utilization across facilities, allowing for better water management and increased efficiency [78][79] Question: Long-term contracts and water balancing capability - Management confirmed that long-term contracts are being secured due to the company's water balancing capabilities, providing certainty for operators [101][102] Question: Regulatory environment impact - Management stated that the current regulatory environment is supportive of the industry, with a focus on managing produced water waste streams [110][112]

Select Water Solutions, Inc. (WTTR) reported $371.35 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 4.6%. EPS of $0.15 for the same period compares to $0.14 a year ago.The reported revenue represents a surprise of +5.97% over the Zacks Consensus Estimate of $350.43 million. With the consensus EPS estimate being $0.14, the EPS surprise was +7.14%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Select Water Solutions, Inc. (WTTR) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of 18.18%.Over the last four quarters, ...

Generated revenue of $371 million during the third quarter of 2024, an increase of 2% sequentially compared to the second quarter of 2024Produced $51.9 million of Operating Cash Flow and $20.4 million of Free Cash Flow during the third quarter of 2024 Increased Net income 26% and improved Adjusted EBITDA 4% sequentially during the third quarter of 2024 relative to the second quarter of 2024Water Infrastructure segment revenue, gross profit and gross profit before D&A increased sequentially by 20%, 42% and 3 ...

Select Water Solutions, Inc. (WTTR) is expected to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, ...

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Revenue- Chemical Technologies : $230.01 million compared to the $221.92 million average estimate based on three analysts. The reported number represents a change of -13.1% year over year. Gross Profit before D&A- Water Services Gross Profit before D&A- Water infrastructur ...

This quarterly report represents an earnings surprise of 18.18%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.04, delivering a surprise of -55.56%. Select Water Solutions, Inc., which belongs to the Zacks Waste Removal Services industry, posted revenues of $365.13 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $404.63 million. The company has not ...

| --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------|-------|------------|-------------------------------|-------------------------------------------------------|-------|------------| | Gross profit by segment | June | 30, 2024 | Three \nMarch \n(unaudited) | months ended, \n 31, 2024 \n (in thousands) | June | 30, 2023 | | Water services | $ | 30,688 | $ | 25,661 | $ | 34,881 | | Water infrastructure | | 20,354 | | 15,915 | | 11,512 | | Chemical technologies | | 9,114 ...

Core Viewpoint - Select Water Solutions, Inc. reported strong financial performance in Q2 2024, achieving significant revenue growth and improved profitability, particularly in its Water Infrastructure segment, despite challenges in the broader macro environment [1][2][4]. Financial Performance - Revenue for Q2 2024 was $365.1 million, slightly down from $366.5 million in Q1 2024 and $404.6 million in Q2 2023 [2][11]. - Net income increased to $14.9 million in Q2 2024, compared to $3.9 million in Q1 2024 and $22.6 million in Q2 2023 [2][11]. - Gross profit for Q2 2024 was $60.2 million, up from $52.7 million in Q1 2024, but slightly down from $61.2 million in Q2 2023 [2][11]. - Total gross margin improved to 16.5% in Q2 2024 from 14.4% in Q1 2024 and 15.1% in Q2 2023 [2][11]. Segment Performance - The Water Infrastructure segment generated revenues of $68.6 million in Q2 2024, up from $63.5 million in Q1 2024 and $55.3 million in Q2 2023, with gross margin before D&A reaching 51.0% [4][11]. - The Chemical Technologies segment saw revenues decline to $66.6 million in Q2 2024 from $74.7 million in Q1 2024 and $84.8 million in Q2 2023, with gross margin before D&A at 16.4% [4][11]. Cash Flow and Capital Expenditures - Operating cash flow for Q2 2024 was $83.1 million, significantly higher than $32.1 million in Q1 2024 but lower than $102.0 million in Q2 2023 [5][12]. - Free cash flow for Q2 2024 was $37.4 million, with net capital expenditures of $45.7 million [5][12]. - The company expects net capital expenditures for 2024 to be between $170 million and $190 million, reflecting increased growth capex [1][5]. Business Development - The company closed on the acquisition of disposal assets for $9 million in Q2 2024, enhancing its Northeast disposal capacity [1][8]. - Select contracted multiple new pipeline gathering, recycling, and disposal infrastructure projects in the Permian Basin, with anticipated capital deployment of $55 million to $60 million [1][7]. - The company signed long-term contracts for produced water gathering and recycling, expanding its existing infrastructure and increasing dedication to 81,000 acres [7][8]. Outlook - For Q3 2024, the company expects segment revenue to decline by mid-to-high single-digit percentages, with gross margins before D&A anticipated to hold steady at 22% to 23% [4][11]. - The Water Infrastructure segment is expected to see revenue growth driven by increased recycling business and contributions from recent acquisitions [4][11].

HOUSTON, July 25, 2024 /PRNewswire/ -- Select Water Solutions, Inc. (NYSE: WTTR) ("Select" or the "Company"), a leading provider of sustainable water and chemical solutions to the energy industry, today announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share of Class A common stock, to be paid on August 16, 2024, to holders of record as of the close of business on August 5, 2024. A comparable distribution of $0.06 per unit has also been approved to the unitholders of SES ...