NYSE$WTTR

Select Water Solutions Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Select Energy Services' financial performance was challenged due to rapid declines in market activity, but cost savings measures were implemented to protect the balance sheet.

Select Energy Services reported a revenue of $92.2 million for Q2 2020, a significant decrease compared to previous periods. The company experienced a net loss of $53.0 million, and a gross loss of $23.7 million. However, cash flow from operations was $56 million, and the company maintained a strong cash position with $166 million in cash and no debt outstanding.

  • Revenue for the second quarter of 2020 was $92.2 million, a decrease from both the previous quarter and the same quarter in 2019.
  • Net loss for the second quarter of 2020 was $53.0 million, compared to a net loss of $291.2 million in the first quarter of 2020 and net income of $8.1 million in the second quarter of 2019.
  • Cash flow from operations for the second quarter of 2020 was $56.0 million.
  • The company had a total available liquidity of $262 million, including $166 million of cash, with no debt outstanding at the end of the second quarter of 2020.

Headline financials

Total Revenue

$92.2M

Previous: $324M-71.5%
EPS (adj)

-$0.52

Previous: $0.08-750.0%
Capital Expenditures

-$16.5M

Previous: -$57.5M+71.4%
Free Cash Flow

-$60.8M

Previous: -$51.3M-18.4%
Net Income

-$44.3M

Previous: $6.2M-814.5%
Operating Income

-$47.8M

Previous: $11.2M-527.6%
Gross Profit

-$23.7M

Previous: $39.9M-159.4%
Cash & Equivalents

$166M

Previous: $23.8M+598.7%
Total Assets

$911M

Previous: $1.38B-33.8%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$92.2M

Q2 2020-71.5%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Select Water Solutions · $71.1M total across 2 segments · Q2 2020

  • Water Services
    $55.8M-72.4%
  • Water Infrastructure
    $15.3M-70.4%

Forward guidance

Select Energy Services expects challenges in the industry for the coming quarters but anticipates being able to capitalize on opportunities created by the current market dislocation.

Tailwinds

  • Cost savings measures are expected to allow the company to operate in a manner that protects the balance sheet and cash flows.
  • The company expects savings of 40-45% relative to Q4 2019 run-rate to be fully realized in Q3 2020.
  • Company expects to continue providing superior service quality that customers expect.
  • Company expects to deliver innovative solutions to meet customers' needs.
  • Company expects to generate long-term returns for investors.

Headwinds

  • There will certainly be challenges in the industry for quarters to come.
  • The COVID-19 pandemic and related economic repercussions are negatively impacting the business.
  • The current significant surplus in the supply of oil is negatively impacting the business.
  • The level of capital spending and access to capital markets by oil and gas companies is decreasing.
  • Trends and volatility in oil and gas prices are creating uncertainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.5%

Avg return

Earnings day

+2.1%

Avg return

5 days after

-0.0%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+32.2%

Q3 2024

Best reaction

-13.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+2.1%+4.4%
Q4 2025+9.1%-3.5%+8.7%
Q3 2025-1.3%-5.8%-4.1%
Q2 2025-5.4%-9.8%-8.2%
Q1 2025-11.8%+4.5%+7.4%
Q4 2024-5.4%-9.0%-24.0%
Q3 2024+32.2%+32.0%+38.1%
Q2 2024+2.7%-3.0%-0.4%
Q1 2024-4.1%-3.7%+12.2%
Q4 2023+16.0%+12.4%+18.6%
Q3 2023+2.2%+3.6%+0.5%
Q2 2023+0.1%-3.3%-2.3%
Q1 2023-2.6%+0.5%-0.8%
Q4 2022-13.0%-9.9%-23.4%
Q3 2022-6.2%+1.1%-11.2%
Q2 2022-1.3%-2.9%-3.2%
Q1 2022+9.9%+10.6%+11.8%
Q4 2021+14.0%+9.8%+18.6%
Q3 2021+4.2%+15.5%-5.6%
Q2 2021-5.6%-5.8%-2.6%
Q1 2021+15.2%+30.1%+26.3%
Q4 2020+3.3%-1.1%-16.7%
Q3 2020-5.2%+0.9%+38.3%
Q2 2020+8.7%+8.7%-1.3%
Q1 2020+4.2%+22.6%+31.2%
Q4 2019-1.1%-10.5%-58.1%
Q3 2019-1.1%-0.2%+0.0%
Q2 2019-4.1%-3.2%-3.4%
Q1 2019-3.8%-0.9%-3.9%
Q4 2018+4.9%+4.9%+23.4%
Q3 2018+11.8%+4.9%-10.7%
Q2 2018-5.0%-14.9%-23.5%
Q1 2018+6.9%+11.6%-9.6%
Q4 2017-6.0%-6.0%-17.2%
Q3 2017-4.0%-5.3%-3.9%
Q2 2017-0.7%-1.3%-5.5%
Q1 2017-1.6%
Q3 2016
Q2 2016
Q1 2016
Q4 2015

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro