NYSE$WTTR

Select Water Solutions Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Select Energy Services experienced revenue growth and strategic M&A execution

Select Energy Services reported revenue of $204.6 million for Q3 2021, a 27% increase sequentially, and a net loss of $14.2 million, an improvement from the previous quarter. The company focused on improving its base business, advancing technology and ESG efforts, and executing strategic M&A, with Adjusted EBITDA doubling quarter over quarter to $15.1 million.

  • Generated 27% consolidated sequential revenue growth in Q3 2021.
  • Adjusted EBITDA doubled quarter over quarter to $15.1 million.
  • Legacy Select base business revenue grew sequentially by 9%.
  • Completed the expansion of the largest recycling facility in Martin County, Texas, and constructed three new Permian Basin recycling facilities.

Headline financials

Total Revenue

$205M

Previous: $101M+102.1%
EPS (adj)

-$0.14

Previous: -$0.36+61.1%
Capital Expenditures

-$29.9M

Previous: -$19.1M-56.7%
Free Cash Flow

-$42M

Previous: -$49.6M+15.5%
Net Income

-$12M

Previous: -$30.5M+60.6%
Operating Income

-$13.8M

Previous: -$34.2M+59.7%
Gross Profit

$8.99M

Previous: -$16.9M+153.2%
Cash & Equivalents

$107M

Previous: $185M-42.1%
Total Assets

$868M

Previous: $881M-1.4%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$205M

Q3 2021+102.1%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Select Water Solutions · $149M total across 2 segments · Q3 2021

  • Water Services
    $112M+106.3%
  • Water Infrastructure
    $36.8M+127.6%

Forward guidance

The Company anticipates low- to mid-teen percentage sequential revenue growth in the Oilfield Chemicals segment during the fourth quarter. The Company expects to see low double-digit to mid-teen percentage revenue growth with modest improvements to gross margins before D&A in Water Services. For the Water Infrastructure segment, the Company anticipates the combination of contributions from Agua Libre and the recently completed recycling projects will result in high single-digit to low double-digit percentage revenue growth, with gross margins before D&A in the low- to mid-20 percent range.

Tailwinds

  • Continued pricing improvements.
  • Incremental contributions from production services operations recently acquired from Basic.
  • Combination of contributions from Agua Libre.
  • Recently completed recycling projects.
  • Supply chain disruptions beginning to normalize and the Tyler facility back up and running.

Headwinds

  • Raw materials pricing challenges.
  • Costs associated with the reactivation of the Tyler facility.
  • Previously anticipated recovery in Bakken pipeline activity has largely pushed into early 2022 with modifications to customer schedules.
  • Continued pricing challenges.
  • Costs associated with the reactivation of facilities.

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 Q3 2021

Historical avgQ3 2021

+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

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