NYSE$WTTR

Select Water Solutions Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Select Energy Services reported results for the fourth quarter and fiscal year ended December 31, 2019.

Select Energy Services reported a Q4 2019 revenue of $276.1 million, a net loss of $12.5 million, and operating cash flow of $61.7 million. The company advanced its strategy by divesting non-core businesses, paying down debt, completing a New Mexico pipeline, expanding chemicals manufacturing, and acquiring a water treatment business.

  • Generated operating cash flow of $61.7 million in Q4 2019.
  • Began operations of new Northern Delaware pipeline system in New Mexico late in Q4 2019.
  • Repurchased 0.66 million shares of Class A common stock for $4.9 million in Q4 2019.
  • Finished 2019 with a strong free cash flow quarter.

Headline financials

Total Revenue

$276M

Previous: $362M-23.8%
EPS (adj)

-$0.12

Previous: $0.14-185.7%
Adjusted EBITDA

$28.8M

No prior period
Free Cash Flow

$41.2M

No prior period
Net Income

-$12.5M

No prior period
Operating Income

-$7.21M

No prior period
Gross Profit

$21.8M

No prior period
Cash & Equivalents

$79.3M

No prior period
Total Assets

$1.35B

No prior period

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$276M

Q4 2019-23.8%vs Q4 2018
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Select Water Solutions · $205M total across 2 segments · Q4 2019

  • Water Services
    $153M-27.6%
  • Water Infrastructure
    $52.3M-3.9%

Forward guidance

While the company expects full year activity to decline year-over-year, they have already seen activity pick up in the early part of 2020 and expect improvements across all three segments in the first quarter. A capital expenditure range of $55 million to $70 million is expected in 2020.

Tailwinds

  • Expect improvements across all three segments in the first quarter.
  • Activity pick up in the early part of 2020.
  • Debt-free balance sheet.
  • Well positioned to capitalize on opportunities.
  • Will continue to target a balanced capital allocation strategy.

Headwinds

  • Expect full year activity to decline year-over-year.
  • Potentially volatile market ahead.
  • Meaningful seasonal activity declines in the quarter driven by weather and holidays.
  • Customers having exhausted their capital budgets throughout the quarter.
  • Lower completions activity and pricing from customers in 2019 relative to 2018.

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 Q4 2019

Historical avgQ4 2019

+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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