NYSE$WTTR

Select Water Solutions Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Select Energy Services reported Q4 2022 earnings, announced corporate rebranding initiative and multiple new acquisitions.

Select Energy Services, Inc. reported revenue of $381.7 million for the fourth quarter of 2022, a 2% increase sequentially from the third quarter of 2022. Net income for the fourth quarter of 2022 was $7.6 million. The company announced its intent to rebrand as Select Water Solutions, Inc.

  • Generated revenue of $382 million during the fourth quarter of 2022, up 2% sequentially from the third quarter of 2022.
  • Acquired strategic portfolio of Permian Basin water infrastructure, including water gathering, disposal, sourcing, storage and distribution assets from multiple parties
  • Acquired joint venture interests in certain strategic recycling facilities in the Permian Basin from minority partners
  • Announced significant new Delaware Basin recycling infrastructure project supported by multiple long-term contracts

Headline financials

Total Revenue

$382M

Previous: $255M+49.6%
EPS (adj)

$0.07

Previous: -$0.07+200.0%
Net Income

$7.6M

Previous: $11.2M-31.9%
Operating Income

$6.74M

Previous: -$8.35M+180.8%
Cash & Equivalents

$7.32M

Previous: $85.8M-91.5%
Total Assets

$1.22B

Previous: $950M+28.7%

Revenue & EPS history

Select Water Solutions · Revenue · Quarterly

$382M

Q4 2022+49.6%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Select Water Solutions · $296M total across 2 segments · Q4 2022

  • Water Services
    $219M+55.3%
  • Water Infrastructure
    $77.2M+64.7%

Forward guidance

The Company expects to see meaningful revenue, EBITDA and net income growth in 2023. Subject to market conditions and the realization of certain projects, the Company expects to deploy between $90 and $130 million of net capex during 2023, with an objective of converting two-thirds of the Company's EBITDA into free cash flow, supported by substantial working capital improvements.

Tailwinds

  • Expects to see meaningful revenue growth in 2023
  • Expects to see meaningful EBITDA growth in 2023
  • Expects to see meaningful net income growth in 2023
  • Objective of converting two-thirds of EBITDA into free cash flow
  • Supported by substantial working capital improvements

Headwinds

  • Subject to market conditions
  • Subject to the realization of certain projects
  • Expects to deploy between $90 and $130 million of net capex during 2023
  • Integration and weather challenges impacted Q4
  • Gross profit for the fourth quarter of 2022 was impacted by approximately $8 million of non-ordinary expenses

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 2022

Historical avgQ4 2022

+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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