Core Insights - Select Water Solutions achieved significant milestones in sustainability and operational growth in 2024, focusing on water recycling and environmental responsibility [1][2][3] Sustainability Achievements - In 2024, Select treated or recycled 20.0 billion gallons (477 million barrels) of produced water, marking a 9% increase from 2023 [1][4] - The company increased environmentally-responsible wastewater disposal volumes by 41% compared to 2023 [1][4] - Select reduced total Scope 1 and Scope 2 emissions by 8% year-over-year, supported by investments in infrastructure and fleet upgrades [1][4] Performance Against Targets - Select exceeded its annual water recycling target by 324% and employee safety target by 49% as part of its sustainability-linked credit facility [1][4] - The company achieved a total recordable incident rate (TRIR) of 0.54 and a lost time incident rate of 0.25 in 2024 [4] Future Goals - For 2025, Select established a target to increase recycled produced water volumes by 14% at fixed facilities, with an annual increase of 17.5% until reaching a target of 403 million barrels per year by 2029 [8] - The company aims to reduce TRIR by approximately 1.5% each year, outperforming the industry average by 35% by 2029 [8] Commitment to Stakeholders - Select's 2024 Sustainability Report emphasizes its dedication to environmental stewardship and sustainable development within its operational communities [4][5] - The company plans to continue regular reporting on its ESG policies and performance through its website and annual reports [5]

Select Water Solutions, Inc. (WTTR) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers ...

Group 1 - Select Water Solutions, Inc. will release its 2025 second quarter financial results on August 5, 2025, after market close [1] - A conference call to discuss the financial results is scheduled for August 6, 2025, at 11:00 a.m. Eastern Time [1] - The conference call will be accessible via phone or live over the Internet, with a replay available until August 20, 2025 [1] Group 2 - Select Water Solutions is a leading provider of sustainable water and chemical solutions to the energy industry [2] - The company emphasizes safe and environmentally responsible management of water throughout the lifecycle of a well [2] - Select Water Solutions aims to conserve and protect the environment through responsible water resource management [2]

Group 1 - The analyst has over 14 years of experience in stock analysis and writing, with a focus on both long and short positions in an unbiased manner [1] - The primary focus of the analyst's coverage is on the energy sector, specifically the oilfield equipment services sector, for the past 7 years [1] - The analyst also covers the Industrial Supply industry and occasionally collaborates with another contributor [1] Group 2 - There is no disclosure of any stock, option, or similar derivative positions in the companies mentioned, nor any plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated beyond contributions to Seeking Alpha [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2]

Select Water Solutions, Inc. Company Overview Raymond James 46th Annual Institutional Investors Conference March 4, 2025 Disclaimer Statement Cautionary Statement Regarding Forward Looking Statements This presentation, including the oral statements made in connection herewith, contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend ...

Summary of Select Water Solutions (WTTR) FY Conference Call Company Overview - **Company Name**: Select Water Solutions - **Ticker Symbol**: WTTR - **Industry**: Water Infrastructure, Oil and Gas - **Founded**: July 2017, went public in 2017 [1][2] Core Business and Market Position - **Business Model**: Primarily a water infrastructure company focused on the oil and gas sector, with expansion into municipal water services [2][6] - **Market Leadership**: Leader in water recycling applications, particularly in the Permian Basin, with a significant market share [3][8] - **Revenue Growth**: Transitioned from an oil field service business to a water infrastructure business, with a focus on high free cash flow conversion and low capital expenditures (CapEx) [4][16] Financial Performance - **Cash Flow Conversion**: Capable of converting 70% to 80% of earnings to cash, indicating strong financial health [4][17] - **Debt Management**: Maintains a conservative debt level, with debt less than one year of EBITDA [5][34] - **Stock Buybacks**: Approximately $200 million worth of stock repurchased during the growth phase [6][37] - **Dividend Policy**: Increased dividend by 17% last year, indicating commitment to returning value to shareholders [35][36] Infrastructure and Services - **Water Recycling**: Focus on recycling produced water for fracking, reducing the need for fresh water [7][23] - **Municipal Expansion**: Recently entered the municipal water space with a significant investment in Colorado, acquiring 16,600 acre-feet of water rights [30][31] - **Long-term Contracts**: Contracts with municipalities can last 30 to 50 years, providing stable revenue streams [32][33] Strategic Initiatives - **Mergers and Acquisitions**: Actively pursuing M&A to build out water management networks, enhancing service offerings [5][28] - **Chemical Technologies**: In-house chemical manufacturing to treat water for fracking, differentiating the company from competitors [11][48] - **Environmental Focus**: Initiatives to reclaim waste water for agricultural use, promoting sustainability [7][30] Market Dynamics and Challenges - **Cyclical Nature**: Business is cyclical, heavily influenced by oil and gas completion activities [17][19] - **Regulatory Environment**: Facing increasing regulations regarding water use in oil and gas, particularly in regions with limited water resources [49][52] - **Competitive Landscape**: Limited competition in fixed recycling facilities, positioning Select Water Solutions uniquely in the market [47] Future Outlook - **Growth Opportunities**: Anticipates significant growth in the municipal and industrial water sectors, with plans to secure long-term contracts [36][45] - **Investment in Infrastructure**: Committed to building out infrastructure to support water management needs across various basins in the U.S. [13][19] - **Focus on Recycling**: Emphasizes recycling as the most economically viable solution for water management in the oil and gas industry [55] This summary encapsulates the key points discussed during the Select Water Solutions FY Conference Call, highlighting the company's strategic direction, financial health, and market positioning within the water infrastructure and oil and gas sectors.

Financial Performance - Total revenue for Q1 2025 was $374,384,000, an increase of 2.3% compared to $366,548,000 in Q1 2024[19] - Net income attributable to Select Water Solutions, Inc. for Q1 2025 was $8,239,000, representing a 127.5% increase from $3,625,000 in Q1 2024[19] - Gross profit for Q1 2025 was $55,770,000, up from $52,677,000 in Q1 2024, reflecting a gross margin improvement[19] - The company reported a comprehensive income of $9,560,000 for Q1 2025, compared to $3,875,000 in Q1 2024, reflecting strong operational performance[21] - Net income for the three months ended March 31, 2025, was $9,560,000, a significant increase from $3,875,000 in the same period of 2024, representing a growth of 146%[26] - Total revenue for the three months ended March 31, 2025, was $374.384 million, a 2.3% increase from $366.548 million in the same period of 2024[70] - Net income surged by 146.7% to $9.6 million, compared to $3.9 million in the prior quarter[204] Assets and Liabilities - Total current assets increased to $457,850,000 as of March 31, 2025, compared to $385,498,000 as of December 31, 2024, marking a 18.7% growth[16] - Long-term debt increased significantly to $245,888,000 as of March 31, 2025, from $85,000,000 as of December 31, 2024[16] - Total assets reached $1,545,211,000 as of March 31, 2025, up from $1,366,282,000 at the end of 2024, indicating a 13.1% increase[16] - Cash and cash equivalents increased to $27,892,000 as of March 31, 2025, from $19,978,000 as of December 31, 2024, a growth of 39.4%[16] - The allowance for credit losses decreased from $4,543,000 as of December 31, 2024, to $4,387,000 as of March 31, 2025, reflecting a charge-off of $936,000 and an increase based on revenue of $754,000[51] - The Company's asset retirement obligations (ARO) increased from $63,230,000 as of December 31, 2024, to $64,075,000 as of March 31, 2025, with accretion expense of $1,009,000 and settlements of $1,390,000[51] Expenses and Cash Flow - Selling, general and administrative expenses decreased to $37,432,000 in Q1 2025 from $43,980,000 in Q1 2024, a reduction of 15%[19] - Cash flows from operating activities showed a net cash used of $(5,061,000) in Q1 2025, compared to a net cash provided of $32,129,000 in Q1 2024, indicating a decline in operational cash flow[26] - The company paid $7 million in dividends during the current quarter, with future payments subject to board approval[41] - The company incurred $1.9 million in match expense for its defined contribution 401(k) Profit Sharing Plan in the Current Quarter, compared to $1.7 million in the Prior Quarter[54] Segment Performance - The company has three reportable segments: Water Infrastructure, Water Services, and Chemical Technologies, which are evaluated for resource allocation and performance assessment[42] - Revenue from accommodations and rentals was approximately $20.9 million in the Current Quarter, compared to $20.3 million in the Prior Quarter, recognized under ASC 842 lease guidance[67] - Water Infrastructure segment revenue rose by 14.0% to $72.4 million, while Water Services segment revenue decreased by 1.2% to $225.6 million[204] - Revenue for the Chemical Technologies segment was $76.686 million for the three months ended March 31, 2025, compared to $75.073 million in the prior quarter, reflecting a growth of 2.14%[158][160] Investments and Acquisitions - The company made capital contributions of $72 million to AV Farms on February 28, 2025, with plans to increase this investment by approximately $74 million over the next three years[38] - Total investment in unconsolidated entities as of March 31, 2025, was $83,501,000, up from $11,347,000 in the previous year, reflecting a substantial increase in strategic investments[40] - The Company completed acquisitions totaling $175,784,000 in 2024, with significant transactions including Tri-State Water Logistics for $58,330,000 and Iron Mountain Energy for $14,000,000[58] - The company executed three asset acquisitions totaling $13.1 million in the first three months of 2025, enhancing water infrastructure capabilities[171] Debt and Financing - The borrowing base for the Revolving Credit Facility under the Sustainability-Linked Credit Facility was $252.2 million as of March 31, 2025[80] - The company had $250.0 million in borrowings outstanding under the Sustainability-Linked Credit Facility as of March 31, 2025, with an interest rate of 7.68%[101] - The company incurred $7.4 million of debt issuance costs during the current quarter related to the Sustainability-Linked Credit Facility[105] - The company was in compliance with all debt covenants as of March 31, 2025[106] Stock and Equity - The Company adopted the Select Water Solutions, Inc. 2024 Equity Incentive Plan, reserving 8,487,004 shares of Class A common stock for issuance[110] - As of March 31, 2025, there were 999,050 stock options outstanding with a weighted-average exercise price of $20.20 and an aggregate intrinsic value of $504,000[112] - The Company recognized compensation expense of $3.0 million related to restricted stock awards for the Current Quarter, with $20.3 million of unrecognized compensation expense remaining[114] - The Company repurchased 544,287 shares of Class A common stock during the Current Quarter, accounting for a decrease of $6.4 million to paid-in-capital[127] Market Conditions - The average price of West Texas Intermediate (WTI) crude oil decreased to $71.78 in the current quarter from $77.50 in the prior quarter, a decline of 7.1%[175] - The average Henry Hub natural gas spot price increased to $4.14 in the current quarter from $2.15 in the prior quarter, a significant rise of 92.1%[175] - OPEC+ production cuts currently total 5.86 million barrels/day, with further cuts announced in March 2025, impacting crude oil price volatility[175]

Financial Data and Key Metrics Changes - In Q1 2025, the company increased revenue by 7%, adjusted EBITDA by 14%, and improved consolidated gross margins by one percentage point [7][19] - Net income grew by $12 million, while consolidated SG&A expenses decreased by 6% [7][19] - The company achieved strong revenue growth of 21% in Chemical Technologies and 8% in Water Services [7] Business Line Data and Key Metrics Changes - Water Infrastructure maintained a strong gross margin of 54%, despite a sequential revenue decline driven by reduced revenues from legacy freshwater pipeline assets [7][16] - Water Services saw an 8% sequential revenue increase, primarily due to improved activity levels [17] - Chemical Technology experienced a strong sequential revenue growth of 21%, exceeding expectations [18] Market Data and Key Metrics Changes - The Northern Delaware Basin now represents 54% of the company's total fixed recycling capacity, reflecting significant growth in contracted acreage [11] - The company has developed a leading water infrastructure network in the Northern Delaware Basin, with over 1 million acres under dedication or right of first refusal agreements [8][11] Company Strategy and Development Direction - The company is focused on expanding its water infrastructure and has secured several large contracts that enhance its long-term revenue potential [8][10] - The strategic location of new projects and partnerships with industry-leading E&P partners are expected to contribute significantly to future earnings [8][10] - The company is also pursuing growth opportunities in agricultural, industrial, and municipal water sectors [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite macroeconomic pressures and potential activity dislocations due to tariffs and trade uncertainties [9][14] - The company anticipates continued growth in consolidated adjusted EBITDA of 6% to 12% during Q2 2025, despite potential declines in activity levels later in the year [13][19] - Management highlighted the importance of maintaining a disciplined approach to leverage and capital allocation to support growth initiatives [15][21] Other Important Information - The company successfully implemented a new ERP system across all operations, which is expected to yield efficiencies over time [23] - The company has adjusted its free cash flow expectations for the year to a conversion rate of 5% to 15% relative to adjusted EBITDA [21] Q&A Session Summary Question: Activity pullback in growth areas - Management confirmed that there has not been a pullback in activity in the Permian Basin, indicating confidence in their asset positioning [26][27] Question: Upcoming catalysts for AV Farms project - Management is engaging stakeholders and has letters of intent with potential customers, indicating strong demand and optimism for future revenue generation [28][30] Question: Role of CNA companies in AB Farms project - Management stated that Select will eventually take over operational roles while collaborating with CNA for commercialization [39][41] Question: Impact of tariffs on water infrastructure contracts - Management indicated that tariffs are not expected to materially impact water infrastructure projects due to domestic supply chains [43] Question: Supply chain resilience in Chemical Technologies - Management highlighted efforts to localize the supply chain, reducing reliance on international sourcing, particularly from China [44][45] Question: Future growth in water infrastructure - Management expects to maintain a growth trajectory of around 15% into 2026, supported by new projects and existing contracts [52][53] Question: M&A opportunities in the current environment - Management noted that the current environment presents opportunities for strategic asset purchases, particularly in a down cycle [75][78]

Financial Data and Key Metrics Changes - Revenue increased by 7% in Q1 2025, with adjusted EBITDA rising by 14% and consolidated gross margins improving by one percentage point [7][15] - Net income grew by $12 million, while consolidated SG&A expenses decreased by 6% [7][19] - The company expects consolidated adjusted EBITDA to rise to between $68 million and $72 million in Q2 2025 [19] Business Line Data and Key Metrics Changes - Chemical Technologies saw a strong revenue growth of 21%, while Water Services experienced an 8% increase [7][18] - Water Infrastructure maintained a robust gross margin of 54%, despite a sequential revenue decline driven by legacy freshwater pipeline assets [7][16] - The Water Services segment's gross margins improved to 19.45% in Q1 2025, up from 16.4% in the previous quarter [18] Market Data and Key Metrics Changes - The Northern Delaware Basin now has over 1,000,000 acres under dedication or right of first refusal agreements, indicating a strong market position [9] - New Mexico represents 54% of the company's total fixed recycling capacity, showcasing significant growth in this area [12] - The company anticipates continued growth in the Permian Basin and other natural gas basins, despite potential macroeconomic pressures [10][66] Company Strategy and Development Direction - The company is focused on expanding its water infrastructure and enhancing its recycling capabilities, with several large contracts recently secured [8][25] - A strategic partnership for ultra-long-term municipal, industrial, and agricultural water supply in Colorado has been initiated [15] - The company aims to maintain a disciplined approach to leverage while funding capital projects and enhancing liquidity [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic pressures and potential activity dislocations [10][14] - The company expects continued growth in consolidated adjusted EBITDA of 6% to 12% during Q2 2025, with a focus on water infrastructure [13][19] - Management highlighted the importance of long-term contracts and full life cycle revenues for stability and growth [25] Other Important Information - The company implemented a new ERP system across all operations, which is expected to yield efficiencies over time [24] - Capital expenditures for 2025 are now expected to be between $225 million and $250 million, up from previous estimates [22] - The company is actively pursuing acquisition opportunities to enhance its asset base and operational capabilities [67] Q&A Session Summary Question: Activity levels in the Permian Basin - Management confirmed no pullback in activity levels in the Permian Basin to date, indicating confidence in their asset positioning [28][29] Question: Upcoming catalysts for AV Farms project - Management is engaging stakeholders and has letters of intent with potential customers, indicating strong demand and optimism for future revenue generation [30][32] Question: Role of CNA companies in AB Farms project - Management stated that Select will eventually take over operational roles while collaborating with CNA for commercialization [39][41] Question: Impact of tariffs on water infrastructure contracts - Management indicated that tariffs are not expected to materially impact water infrastructure projects due to domestic supply chains [45] Question: Supply chain resilience in Chemical Technologies - Management highlighted efforts to localize the supply chain, reducing reliance on international sourcing, particularly from China [46] Question: Future growth in water infrastructure - Management expects to maintain a double-digit growth trajectory in water infrastructure, supported by ongoing projects and contracts [52][56]

Core Insights - Select Water Solutions, Inc. reported revenue of $374.38 million for Q1 2025, marking a year-over-year increase of 2.1% and exceeding the Zacks Consensus Estimate by 3.67% [1] - The company achieved an EPS of $0.08, up from $0.04 a year ago, representing a surprise of 14.29% over the consensus estimate of $0.07 [1] Revenue Breakdown - Chemical Technologies revenue was $76.35 million, surpassing the average estimate of $71.09 million, reflecting a year-over-year increase of 2.2% [4] - Water Services revenue reached $225.65 million, slightly below the average estimate of $215.31 million, with a year-over-year decrease of 1.2% [4] - Water Infrastructure revenue was $72.39 million, underperforming the estimated $75.09 million, but showing a significant year-over-year increase of 14% [4] Profitability Metrics - Gross Profit before D&A for Water Services was $43.93 million, below the average estimate of $46.32 million [4] - Gross Profit before D&A for Chemical Technologies was $11.62 million, exceeding the estimated $10.34 million [4] - Gross Profit before D&A for Water Infrastructure was $38.90 million, slightly below the average estimate of $39.25 million [4] Stock Performance - Over the past month, Select Water Solutions, Inc. shares returned -0.2%, contrasting with the Zacks S&P 500 composite's increase of 11.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]