Core Insights - Select Water Solutions reported consolidated revenue of $1.4 billion for the full year 2025, with a fourth quarter revenue of $347 million, reflecting a year-over-year revenue decline from $1.5 billion in 2024 [1][2] - The company achieved a net income of $21 million for 2025, down from $35.5 million in 2024, while Adjusted EBITDA increased to $260 million from $258.4 million in the previous year [2][3] - The Water Infrastructure segment generated $313 million in revenue for 2025, an 8% increase year-over-year, while the Chemical Technologies segment saw a 19% revenue growth to $308 million [1][2] Financial Performance - Full year 2025 gross profit was $202.4 million, down from $219.5 million in 2024, with a total gross margin of 14.4% compared to 15.1% in 2024 [2][3] - Fourth quarter 2025 revenue was $346.5 million, slightly lower than $349 million in Q4 2024, with a net loss of $2.1 million compared to a net income of $2.3 million in Q3 2025 [2][3] - Adjusted EBITDA for Q4 2025 was $64.2 million, up from $56.2 million in Q4 2024, indicating strong operational performance despite the net loss [2][3] Segment Performance - The Water Infrastructure segment reported revenues of $81.2 million in Q4 2025, up from $76.8 million in Q4 2024, with a gross margin before D&A of 54.1% [3][4] - The Water Services segment generated $178.3 million in Q4 2025, down from $209.3 million in Q4 2024, but showed a gross margin improvement to 19.6% [3][4] - The Chemical Technologies segment achieved record revenues of $87 million in Q4 2025, significantly higher than $62.9 million in Q4 2024, with a gross margin before D&A of 20.3% [3][4] Strategic Developments - The company announced multiple new long-term contracts for water infrastructure projects, adding significant capacity and acreage commitments, including 15 million barrels of minimum volume commitments [1][4] - Select Water Solutions is expanding its infrastructure footprint with new projects in the Northern Delaware Basin, including pipeline construction and disposal capacity enhancements [4] - The company anticipates a revenue growth of 20% to 25% in the Water Infrastructure segment for 2026, supported by ongoing construction and new project awards [2][3] Cash Flow and Capital Expenditures - Cash flow from operations for 2025 was $214.7 million, down from $234.9 million in 2024, while net capital expenditures increased to $279.3 million from $157.3 million in the previous year [3][4] - The company is targeting net capital expenditures of $175 million to $225 million for 2026, focusing on growth capital projects within the Water Infrastructure segment [2][3] Balance Sheet and Capital Structure - As of December 31, 2025, total cash and cash equivalents were $18.1 million, with total borrowings of $320 million under its sustainability-linked credit facility [3][4] - The company reported total liquidity of $163.6 million as of December 31, 2025, an increase from $134.8 million in 2024 [3][4]

Core Viewpoint - Select Water Solutions Inc. and LibertyStream Infrastructure Partners Inc. have entered into a definitive agreement to develop commercial lithium carbonate production facilities at Select's water treatment sites in Texas, aiming to leverage existing infrastructure for lithium extraction and enhance profitability [1][2][6]. Group 1: Agreement Details - The agreement includes a three-stage development program for lithium carbonate production, with the first facility (Stage 1) expected to be operational by December 2026, producing up to 1,000 tonnes of lithium carbonate annually [1][3]. - Site preparation for the Stage 1 facility will begin in March 2026, with full construction starting in the latter half of Q2 2026 [3]. - Stage 2 will see the commissioning of a second facility by June 2027, also with a capacity of 1,000 tonnes per year, while Stage 3 will involve at least two additional facilities starting in July 2027 across various counties in Texas [4]. Group 2: Strategic Importance - The project aims to unlock resource value from produced water, integrating lithium extraction into Select's existing water management platform, thereby creating additional revenue streams [2][6]. - Select's water recycling and pre-treatment capabilities will significantly reduce costs for LibertyStream's lithium extraction process, enhancing operational efficiency [5][6]. - This initiative aligns with Select's broader strategy to maximize returns from its asset base by introducing high-margin revenue streams supported by fixed pricing agreements [6][8]. Group 3: Company Background - Select Water Solutions is recognized as a leading provider of sustainable water and chemical solutions to the energy sector, emphasizing environmentally responsible water management throughout the lifecycle of oil and gas operations [9]. - LibertyStream Infrastructure Partners aims to become one of North America's first commercial producers of lithium carbonate from oilfield brine, focusing on leveraging existing infrastructure to minimize capital costs and support clean energy transitions [10].

Core Viewpoint - Select Water Solutions, Inc. is set to release its 2025 fourth quarter and full year financial results on February 17, 2026, after market close, followed by a conference call on February 18, 2026 [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year of 2025 will be announced on February 17, 2026 [1]. - A conference call to discuss these results is scheduled for February 18, 2026, at 11:00 a.m. Eastern Time [2]. - The conference call will be accessible via phone or live over the Internet [2]. Group 2: Company Overview - Select Water Solutions is a leading provider of sustainable water and chemical solutions for the energy industry [3]. - The company emphasizes the importance of safe and environmentally responsible management of water throughout the lifecycle of a well [3]. - Select Water Solutions aims to conserve and protect the environment through responsible management of water resources [3].

Core Insights - Select Water Solutions is a leading provider of sustainable full life cycle water solutions to the energy industry and is emerging in the municipal and industrial markets [1] - The company has critical water infrastructure assets, including pipelines, recycling, storage, disposal, and treatment facilities, which create high barriers to entry [2] - The Water Infrastructure segment is the highest margin and fastest-growing segment, expected to contribute about 60% of gross profit in the next 12 to 24 months, up from 51% for the first 9 months of 2025 [2][3] Company Overview - Select Water Solutions operates connected networks of water services and chemical technologies segments [2] - The company’s scale and solutions provide significant free cash flow generation capacity to fund organic growth prospects backed by long-term customer contracts [2] - The Water Infrastructure segment is positioned to enhance shareholder return opportunities [2]

Core Points - Munich Re is hosting an Investor Day focused on its new Strategic and Financial Ambition for 2030 [1] - The event features presentations from key executives, including the CEO and CFO, followed by a Q&A session [2] Group 1: Strategic Overview - The event is led by Christian Becker-Hussong, who is responsible for Investor Relations and Rating Agency Relations [1] - Joachim Wenning, the CEO, will provide insights from a leadership perspective [2] Group 2: Financial Insights - Christoph Jurecka, the CFO, will present the group's financial performance [2] Group 3: Business Segments - The presentations will cover various business fields, starting with ERGO, led by CEO Markus Rieß [2] - The session will conclude with insights from Thomas Blunck, CEO of Reinsurance [2]

Core Insights - The article emphasizes the author's extensive experience in stock analysis, particularly in the energy sector, focusing on oilfield equipment services and industrial supply industries [1]. Group 1 - The author has over 14 years of experience in stock analysis, covering both long and short positions in an unbiased manner [1]. - The primary focus of the author's analysis has been on the energy sector for the past 7 years, specifically the oilfield equipment services sector [1]. - The author also covers the industrial supply industry, indicating a broad expertise in related sectors [1].

Select Water Solutions (NYSE: WTTR) FY Conference Summary Company Overview - **Company**: Select Water Solutions - **Ticker**: WTTR - **Industry**: Water solutions for oil and gas, primarily focused on the Permian Basin - **Founded**: 2007 - **Segments**: - Water Infrastructure (largest segment) - Water Services (temporary solutions) - Chemical Technologies (smallest segment) Core Points and Arguments - **Water's Importance**: Water management in oil and gas is critical, especially in the Permian Basin, which is a growing concern for the industry [2][4] - **Business Transition**: The company has shifted from a service-based model (80% income from water services in 2018) to a focus on water infrastructure, aiming for 60% of income from infrastructure in the future [4][5] - **Growth Rates**: Water recycling and produced water disposal have seen compound annual growth rates of 75-80% since 2020 [5] - **Recycling Focus**: Select Water Solutions is the leading recycling provider in New Mexico, currently recycling about 50% of completion water, with a goal to increase this to 85-90% [9][11] - **Economic Advantage of Recycling**: Recycling costs approximately $0.50 per barrel compared to $1 for local disposal and $1.25 for distant disposal, making it the most cost-effective solution [11][12] - **Long-term Contracts**: The company has secured nearly 1 million acres of dedicated and right of first refusal acres in New Mexico, with an average contract duration of 11 years, providing stability and cash flow [15][16] Industry Dynamics - **Regulatory Challenges**: New Mexico is not permitting significant disposal capacity, necessitating new solutions for distant disposal [9][10] - **Competitors**: Major competitors include WaterBridge, WBI, and Aeris, which are primarily disposal-focused, while Select Water Solutions emphasizes recycling [34][35] - **Future Opportunities**: The company is exploring municipal, agricultural, and industrial markets, with plans to secure long-term contracts for water rights [25][40] Financial Insights - **CapEx Expectations**: Expected net CapEx for the current year is $250 million-$275 million, with a decrease anticipated next year [37] - **Debt Management**: The company maintains a conservative debt-to-EBITDA ratio of around 1 to 1.25 times, funding infrastructure build-out primarily through free cash flow [29][30] - **Shareholder Returns**: The company has instituted a dividend and has increased it twice since 2022, indicating a commitment to shareholder returns as infrastructure spending stabilizes [30][31] Additional Considerations - **Infrastructure Build-out**: The company is focused on building a robust pipeline network in Lea County, New Mexico, to enhance water management efficiency [18][19] - **Beneficial Reuse Initiatives**: Select Water Solutions is conducting trials for using distilled produced water for crop irrigation, aiming to educate regulators on beneficial reuse [14][39] - **Market Positioning**: The company positions itself as a leader in water solutions, with a strong emphasis on recycling and long-term contracts to mitigate cyclicality in the oil and gas sector [24][28] This summary encapsulates the key points discussed during the conference, highlighting the company's strategic focus, market dynamics, and financial outlook.

Company Overview - Select Water Solutions is a leading provider of sustainable full-life cycle water solutions to the energy industry and is expanding into municipal and industrial markets[11] - The company's market capitalization is $1400 million and enterprise value is $1687 million[14] - Select Water is transforming into an infrastructure-led company, expecting infrastructure to represent over 60% of company gross profits over time[23] Financial Performance & Growth - Water Infrastructure's Gross Profit before D&A grew at a 72% CAGR from 2021 to 2025E[9] - Production and full-lifecycle water solutions activities have grown from less than 10% to 33% contribution since 2020[21] - The company anticipates over 30% additional growth in gross profit before D&A for Water Infrastructure by the end of 2026[26] - Select expects a 10%+ gross profit increase for Water Infrastructure in Q4 2025[18] Water Infrastructure & Contracts - The company has a large contract portfolio comprising more than 25 million acres under long-term acreage and ROFR dedication, primarily in the Permian basin[9,48] - Recently executed contracts include production and full lifecycle water dedications with high margins[47] - Weighted average contract length of 112 years for deals closed during 2024 and the first 9 months of 2025[48] Strategic Initiatives - Select is investing in AV Farms, LP ("AVF") to expand into the under-supplied Colorado Municipal and Industrial Water Market, with 16300-acre feet of owned, senior annual water rights[77,81] - Select Water and Mariana Minerals are partnering to build Texas's First Produced Water Lithium Facility, expected to generate up to $5 million in annual cash flow for Select through royalty payments[82,83]

Core Insights - Select Water Solutions, Inc. (NYSE:WTTR) experienced an 11.97% decline in share price from November 11 to November 18, 2025, ranking among the energy stocks that lost the most during that week [1] Financial Performance - For Q3, Select Water Solutions reported an adjusted EPS of $0.04, which was $0.01 below estimates, while revenue reached $322.2 million, exceeding expectations by over $16 million despite a year-over-year decline of over 13% [3] - The Chemical Technologies segment showed strong performance, with revenue and gross profit increasing by 13% and 34% year-over-year, attributed to new product launches and increased market share [3] Analyst Ratings - Northland downgraded Select Water Solutions from 'Outperform' to 'Market Perform' on November 13, setting a price target of $12, citing that the current valuation is reasonable but requires larger growth in adjusted EBITDA for FY 2026 to become more positive on the shares [4] - The firm also expressed interest in seeing more bolt-on projects, such as the recently announced lithium extraction, or improved activity in the American onshore market [4]

Financial Performance - Revenue for Q3 2025 was $322 million, down from $364.2 million in Q2 2025 and $371.3 million in Q3 2024[10] - Net income for Q3 2025 was $2.3 million, compared to $11.7 million in Q2 2025 and $18.8 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $59.5 million, down from $72.6 million in Q2 2025[13] - Total revenue for Q3 2025 was $322.2 million, a decrease from $371.3 million in Q3 2024, with Water Services revenue at $166.9 million[36] - Gross profit for Q3 2025 was $43.6 million, down from $62.4 million in Q3 2024, reflecting a gross margin decline[36] - Net income attributable to Select Water Solutions, Inc. for Q3 2025 was $2.7 million, compared to $15.8 million in Q3 2024[36] - Net income per share attributable to common stockholders for Q3 2025 was $0.03, down from $0.16 in Q3 2024[36] - Net income for the three months ended September 30, 2025, was $2,294 thousand, a decrease of 87.8% compared to $18,810 thousand for the same period in 2024[40] - EBITDA for the same period was $53.579 million, down from $64.809 million quarter-over-quarter and $66.135 million year-over-year[45] - Adjusted EBITDA for the three months ended September 30, 2025, was $59.481 million, compared to $72.614 million in the previous quarter and $72.750 million in the same quarter last year[45] - Free cash flow for the three months ended September 30, 2025, was $(19.380) million, a significant decline from $10.839 million in the previous year[45] Segment Performance - Chemical Technologies revenue increased by 13% and gross profit by 34% in Q3 2025 compared to Q2 2025[1] - Water Infrastructure segment generated revenues of $78.8 million in Q3 2025, a 2.5% sequential decline from Q2 2025[14] - Water Services segment revenues decreased by 22.6% sequentially to $166.9 million in Q3 2025, impacted by divested trucking operations[15] - The water infrastructure segment reported gross profit of $16.775 million, down from $22.392 million in the previous quarter and $28.957 million in the same quarter last year[45] - The water services segment gross profit decreased to $13.245 million from $25.259 million quarter-over-quarter and $28.482 million year-over-year[45] - The chemical technologies segment gross profit increased to $13.533 million from $10.102 million in the previous quarter and $5.010 million in the same quarter last year[45] Cash Flow and Liquidity - Cash flow from operations was $71.7 million in Q3 2025, benefiting from a $26 million decrease in net working capital[17] - Total liquidity was $175.5 million as of September 30, 2025, down from $279.3 million as of June 30, 2025[23] - Cash and cash equivalents decreased to $17,828 thousand at the end of the period from $51,186 thousand at the end of the previous quarter, reflecting a decline of 65.2%[40] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $149,221 thousand, down from $167,119 thousand for the same period in 2024[40] - The company incurred $126,212 thousand in net cash used in investing activities for the three months ended September 30, 2025, compared to $74,972 thousand in the previous quarter[40] - The company reported a cash flow from financing activities of $21,162 thousand for the three months ended September 30, 2025, compared to a cash outflow of $17,232 thousand for the same period in 2024[40] Assets and Liabilities - Total assets increased to $1,588,151 thousand as of March 31, 2025, up from $1,366,282 thousand a year earlier, representing a growth of approximately 16.2%[38] - Total liabilities rose to $656,496 thousand, an increase of 45.6% from $450,748 thousand a year ago[38] - Long-term debt increased to $285,440 thousand as of March 31, 2025, up from $85,000 thousand a year earlier, indicating a significant rise in leverage[38] - Total stockholders' equity increased to $931,655 thousand as of March 31, 2025, compared to $915,534 thousand a year earlier, reflecting a growth of 1.3%[38] Strategic Agreements and Acquisitions - In Q3 2025, Select signed a 7-year acreage dedication agreement for produced water services in the Midland Basin, supported by approximately 5,400 acres dedicated for gathering, recycling, and disposal[25] - A 12-year acreage dedication agreement was signed in the Northern Delaware Basin, integrating into Select's New Mexico system, with approximately 3,000 acres dedicated for produced water services[26] - Select signed a 12-year contract for operational expansion in Winkler County, Texas, supported by approximately 16,500 dedicated acres and over 40,000 acres under right-of-first-refusal for future development[27] - A long-term water transfer agreement was established for a key customer's operations in the Delaware Basin, covering approximately 309,000 acres of combined leasehold and right-of-first-refusal[28] - Select closed multiple strategic infrastructure acquisitions, adding 78,000 barrels per day of incremental permitted disposal capacity across various regions, including the Permian and Northeast[29] - The company executed a strategic asset swap with Omni Environmental Services, acquiring landfill, treatment, and disposal assets in the Bakken region[30]