Diamondback and Five Point solidify Deep Blue’s leadership as the Midland Basin’s largest independent water infrastructure platform Acquisition doubles Deep Blue’s scale, unlocks compelling operational and commercial synergies across integrated platform MIDLAND, Texas, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Deep Blue Midland Basin LLC (“Deep Blue”), Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and Five Point Infrastructure LLC (“Five Point”) today announced an agreement for Deep Blue to acquire Envir ...

GAINESVILLE, Texas, Aug. 14, 2025 /PRNewswire/ -- Select Water Solutions (NYSE: WTTR), a leading provider of sustainable water management and chemical solutions, proudly announces the dual listing of its common stock on NYSE Texas, the newly launched fully electronic equities exchange headquartered in Dallas, Texas. John Schmitz, Chairman of the Board, President and CEO, stated, "We are pleased to join NYSE Texas as a Founding Member. Select is proud of our longstanding track record and operations in Texas, ...

Core Insights - The company reported a net income increase of 22.1% and an adjusted EBITDA improvement of 13.4% in Q2 2025 compared to Q1 2025, despite a slight decline in consolidated revenue [3][14] - The Water Infrastructure segment saw revenue and gross profit growth of 12% and 17%, respectively, in Q2 2025 compared to Q1 2025, with gross margins before depreciation and amortization reaching 55% [4][18] - An asset swap transaction with OMNI Environmental Solutions was completed, enhancing the company's Water Infrastructure assets while divesting certain trucking operations [6][27] Financial Performance - Operating cash flow for Q2 2025 was $82.6 million, a significant increase from cash flow used in operations of $5.1 million in Q1 2025 [21] - Total revenue for Q2 2025 was $364.2 million, down from $374.4 million in Q1 2025 but slightly up from $365.1 million in Q2 2024 [14] - Free cash flow for Q2 2025 was $10.8 million, recovering from a negative $51.5 million in Q1 2025 [22] Business Segment Performance - The Water Infrastructure segment generated revenues of $80.9 million in Q2 2025, up from $72.4 million in Q1 2025, with a gross margin before D&A of 55.2% [18] - The Water Services segment reported revenues of $215.7 million in Q2 2025, down from $225.6 million in Q1 2025, with a gross margin before D&A of 19.6% [19] - The Chemical Technologies segment's revenue decreased to $67.7 million in Q2 2025 from $76.3 million in Q1 2025, but gross margin before D&A improved to 17.5% [20] Strategic Developments - The company announced multiple new long-term contracted Water Infrastructure projects in the Permian Basin, backed by nearly 60,000 newly dedicated leasehold acres [2] - The company is evaluating strategic alternatives for Peak Rentals, aiming to enhance growth and access to capital [7][8] - A significant 12-year contract was signed for water recycling and disposal infrastructure in the Northern Delaware Basin, expected to enhance the company's operational capabilities [9][34] Cash Flow and Capital Expenditures - Net capital expenditures for Q2 2025 were $71.7 million, with a focus on supporting ongoing water infrastructure projects [22][11] - The company maintains a 2025 net capital expenditures guidance of $225 million to $250 million, with a bias towards the higher end due to recent project awards [11] Balance Sheet and Liquidity - Total cash and cash equivalents increased to $51.2 million as of June 30, 2025, compared to $27.9 million as of March 31, 2025 [24] - Total liquidity was reported at $279.3 million as of June 30, 2025, up from $260.2 million as of March 31, 2025 [26]

Core Viewpoint - California Water Service Group (CWT) significantly outperformed analyst expectations in Q2 2025, with GAAP earnings per share of $0.71 compared to a consensus of $0.56, and revenue of $264.95 million, exceeding estimates by over $21 million and reflecting an 8% year-over-year increase [1][2]. Financial Performance - GAAP EPS for Q2 2025 was $0.73, surpassing the estimate of $0.56 and showing a year-over-year increase of 2.8% [2]. - Revenue reached $264.95 million, up 8.4% from $244.30 million in Q2 2024, driven by rate increases and higher customer usage [2][5]. - Net income was $42.17 million, a 3.9% increase from $40.6 million in Q2 2024 [2]. - Operating expenses rose to $213.15 million, an 8.7% increase from $196.13 million in the prior year, with key contributors being higher water production costs and labor expenses [2][6]. Business Overview and Strategic Focus - California Water Service Group operates as a regulated utility providing water and wastewater services to over two million people across California and select states [3]. - The company focuses on earning fair returns through regulatory approval, investing in modern water systems, and maintaining compliance with environmental standards [4]. Infrastructure and Capital Investment - Capital expenditures totaled $119.4 million in Q2 2025, with a year-to-date investment of $229.5 million, reflecting a 7% increase over the same period in 2024 [7]. - A significant development includes the agreement to operate the Silverwood wastewater and recycled water systems, which will serve over 15,000 customer connections [7][11]. Environmental Compliance and Sustainability - The company received a $10.6 million settlement from 3M related to PFAS contamination, which will fund capital investments for new federal drinking water standards requiring over $226 million in upgrades [8]. - A 23.5% reduction in greenhouse gas emissions from the 2021 baseline was reported, alongside a 100% compliance rate in water quality testing [9]. Dividend and Shareholder Returns - The board declared its 322nd consecutive quarterly dividend of $0.30 per share, continuing a trend of dividend increases for 58 consecutive years, with a five-year compound annual growth rate of 7.7% [10]. Future Outlook - The company's financial trajectory will be influenced by the outcomes of the California General Rate Case and ongoing infrastructure investments [12]. - Key watchpoints include expense growth and the need for substantial funding for long-term projects, which may require new borrowings or equity issuance [13].

Core Insights - Select Water Solutions achieved significant milestones in sustainability and operational growth in 2024, focusing on water recycling and environmental responsibility [1][2][3] Sustainability Achievements - In 2024, Select treated or recycled 20.0 billion gallons (477 million barrels) of produced water, marking a 9% increase from 2023 [1][4] - The company increased environmentally-responsible wastewater disposal volumes by 41% compared to 2023 [1][4] - Select reduced total Scope 1 and Scope 2 emissions by 8% year-over-year, supported by investments in infrastructure and fleet upgrades [1][4] Performance Against Targets - Select exceeded its annual water recycling target by 324% and employee safety target by 49% as part of its sustainability-linked credit facility [1][4] - The company achieved a total recordable incident rate (TRIR) of 0.54 and a lost time incident rate of 0.25 in 2024 [4] Future Goals - For 2025, Select established a target to increase recycled produced water volumes by 14% at fixed facilities, with an annual increase of 17.5% until reaching a target of 403 million barrels per year by 2029 [8] - The company aims to reduce TRIR by approximately 1.5% each year, outperforming the industry average by 35% by 2029 [8] Commitment to Stakeholders - Select's 2024 Sustainability Report emphasizes its dedication to environmental stewardship and sustainable development within its operational communities [4][5] - The company plans to continue regular reporting on its ESG policies and performance through its website and annual reports [5]

Q2 2025 Performance - Sales increased by 2% year-over-year, reaching $1,123 million[18, 27] - Adjusted Operating Income increased by 9% year-over-year, reaching $297 million[18, 30] - Adjusted EPS increased by 14% year-over-year[18, 31] - ROS expanded by 170 bps year-over-year to 264%[18, 30] Segment Performance - Flow sales remained flat year-over-year at $397 million, with segment income up 10% and ROS at 234%, a 210 bps increase[31, 33, 37] - Water Solutions sales decreased by 4% year-over-year to $298 million, with segment income down 4% and ROS flat at 235%[31, 41, 45] - Pool sales increased by 9% year-over-year to $427 million, with segment income up 14% and ROS at 357%, a 160 bps increase[31, 48, 52] Financial Position and Outlook - Free Cash Flow reached a new quarterly record of $596 million[20, 57] - The company repurchased $75 million of shares[20, 58] - Full year 2025 sales are expected to increase by approximately 1% to 2%, reaching $4,125 million to $4,165 million[61] - Full year 2025 Adjusted EPS is projected to be between $475 and $485, an increase of approximately 10% to 12%[61]

Group 1 - Select Water Solutions, Inc. will release its 2025 second quarter financial results on August 5, 2025, after market close [1] - A conference call to discuss the financial results is scheduled for August 6, 2025, at 11:00 a.m. Eastern Time [1] - The conference call will be accessible via phone or live over the Internet, with a replay available until August 20, 2025 [1] Group 2 - Select Water Solutions is a leading provider of sustainable water and chemical solutions to the energy industry [2] - The company emphasizes safe and environmentally responsible management of water throughout the lifecycle of a well [2] - Select Water Solutions aims to conserve and protect the environment through responsible water resource management [2]