Select Water Solutions(WTTR) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 consolidated revenue was $374.4 million, a sequential increase of$25 million or 7% compared to Q4 2024[1] - Net income for Q1 2025 increased by $11.7 million, with adjusted EBITDA rising 14$374.4 million, up from $366.5 million in the same period of 2024, representing a year-over-year increase of 2.3$8.2 million, compared to a net loss of $1.6 million in the previous quarter[37] - Net income for the three months ended March 31, 2025, was$9,560 thousand, a significant recovery from a net loss of $2,134 thousand in the previous quarter[41] - Adjusted EBITDA increased to$64,031 thousand for the three months ended March 31, 2025, up from $56,240 thousand in the previous quarter and$59,758 thousand a year ago[46] - Gross profit before depreciation and amortization (D&A) was $94,445 thousand for the three months ended March 31, 2025, compared to$84,484 thousand for December 31, 2024, and 89,569 thousand for March 31, 2024[46] - The total gross margin before D&A for the three months ended March 31, 2025, was 25.2%, compared to 24.2% for December 31, 2024, and 24.4% for March 31, 2024[47] Segment Performance - Water Infrastructure segment revenues were 72.4 million, a decrease of 5.8% sequentially, while gross margin before D&A remained strong at 53.7%[16] - Water Services segment revenues increased by 7.8% sequentially to 225.6 million, with gross margin before D&A at 19.5%[17] - Chemical Technologies segment revenues were 76.3 million, up from 62.9 million in Q4 2024, with gross margin before D&A at 15.2%[18] - Water Infrastructure segment gross profit was 19,101 thousand for the three months ended March 31, 2025, down from $23,009 thousand in the previous quarter but up from$15,915 thousand a year ago[46] - The Water Services segment reported gross profit of $26,765 thousand for the three months ended March 31, 2025, compared to$14,831 thousand for December 31, 2024, and $25,661 thousand for March 31, 2024[46] - The Chemical Technologies segment gross profit increased to$9,904 thousand for the three months ended March 31, 2025, from $6,344 thousand in the previous quarter but decreased from$11,101 thousand a year ago[46] Cash Flow and Capital Expenditures - Cash flow used in operations for Q1 2025 was $5.1 million, impacted by a$61.8 million increase in net working capital[19] - Net capital expenditures for Q1 2025 were $46.5 million, with$48.4 million in capital expenditures partially offset by $1.9 million from asset sales[20] - The company reported a net cash used in operating activities of$(5,061) thousand for the three months ended March 31, 2025, compared to $67,767 thousand provided in the previous quarter[41] - Cash flows from investing activities totaled$(132,522) thousand, significantly higher than $(54,380) thousand in the previous quarter, indicating increased investment activity[41] - Free cash flow for the same period was$(51,544) thousand, a significant decrease from $16,228 thousand in the previous quarter and$3,532 thousand a year ago[46] Liquidity and Debt - Total cash and cash equivalents were $27.9 million as of March 31, 2025, compared to$12.8 million as of March 31, 2024[24] - Total liquidity increased to $260.2 million as of March 31, 2025, compared to$168.6 million as of March 31, 2024, reflecting a growth of approximately 54.3%[26] - Long-term debt increased to $245,888 thousand, up from$85,000 thousand at December 31, 2024, indicating a substantial rise in financing[39] Acquisitions and Investments - The company executed multiple long-term contracts and acquisitions in the Permian Basin, with expected capital expenditures of $100 million to$125 million for new projects and acquisitions[27] - Select signed an 11-year agreement to expand recycling and pipeline infrastructure in the Northern Delaware Basin, adding up to 240,000 barrels per day of throughput capacity[28] - The company acquired two active disposal wells in the Midland Basin, adding 35,000 barrels per day of disposal capacity to support infrastructure development[30] - Select entered into a partnership for water rights investment in Colorado, with an initial investment of $62 million and an additional$10 million to enhance the water rights portfolio[32] - The company plans to construct 14 miles of large-diameter pipelines as part of two new 11-year contracts in the Northern Delaware Basin, expected to be operational by Q4 2025[29] - The Central Basin Platform recycling facility includes 120,000 barrels per day of recycling capacity and is expected to be operational by the end of Q3 2025[31] Assets and Liabilities - Total assets increased to $1,545,211 thousand as of March 31, 2025, up from$1,366,282 thousand at December 31, 2024, representing a growth of 13.1%[39] - Total liabilities increased to $628,262 thousand, up from$450,748 thousand at December 31, 2024, reflecting a rise of 39.4%[39] - The company’s total stockholders' equity remained relatively stable at $793,078 thousand as of March 31, 2025, compared to$793,520 thousand at the end of the previous quarter[39] - The company’s accumulated deficit decreased to $(197,908) thousand from$(206,147) thousand, reflecting improved profitability[39]