Select Energy Services, Inc. (WTTR) Bundle
A Brief History of Select Water Solutions, Inc.
Select Water Solutions, Inc., a prominent player in the water services and infrastructure sector, has demonstrated significant growth and strategic acquisitions in recent years. As of 2024, the company operates through three primary segments: Water Services, Water Infrastructure, and Chemical Technologies.
Financial Performance Overview
For the nine months ended September 30, 2024, Select Water Solutions reported total revenue of $1,103.0 million, a decrease from $1,210.5 million in the same period of the previous year. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) |
|---|---|---|
| Water Services | $692.3 million | $791.1 million |
| Water Infrastructure | $214.1 million | $169.1 million |
| Chemical Technologies | $196.6 million | $250.2 million |
The total costs of revenue for the nine months ended September 30, 2024, amounted to $927.7 million, leading to a gross profit of $175.3 million.
Operating Income and Expenses
Income from operations for the same period was reported at $51.9 million, compared to $54.5 million in 2023. Operating expenses totaled $123.4 million, with significant components being:
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Selling, General and Administrative | $120.2 million | $109.1 million |
| Depreciation and Amortization | $2.7 million | $1.8 million |
The company recorded net income of $37.6 million for the nine months ended September 30, 2024, down from $51.6 million in the prior year.
Acquisitions and Strategic Growth
Select Water Solutions has engaged in several strategic acquisitions to enhance its market position. Notably, the company completed the acquisition of Buckhorn Waste Services in March 2024 for an initial consideration of $17.9 million. This acquisition added significant landfill operations in North Dakota and Montana.
Additionally, the company acquired Trinity Environmental Services for $30.8 million in April 2024, bolstering its disposal capabilities in the Permian Basin.
Liquidity and Capital Resources
As of September 30, 2024, Select Water Solutions reported cash and cash equivalents totaling $10.9 million. The company had approximately $127.8 million of available borrowing capacity under its Sustainability-Linked Credit Facility, with outstanding borrowings of $80.0 million.
Stock Performance and Dividends
As of September 30, 2024, Select Water Solutions' share price was $11.13, up from $7.59 at the end of 2023. The company initiated a quarterly dividend program in late 2022, increasing the dividend from $0.05 to $0.06 per share in November 2023.
The company’s total stockholders' equity as of September 30, 2024, was reported at $919.4 million, reflecting a solid financial foundation for future growth.
Debt and Financial Obligations
The principal maturities of debt outstanding as of September 30, 2024, were as follows:
| Year | Amount (in thousands) |
|---|---|
| 2027 | $80,000 |
Overall, Select Water Solutions continues to strengthen its operational capabilities and market presence through strategic acquisitions while maintaining a focus on profitability and shareholder returns.
A Who Owns Select Energy Services, Inc. (WTTR)
Overview of Ownership Structure
As of 2024, Select Energy Services, Inc. (WTTR) has a complex ownership structure that includes both Class A and Class B shares. The total shares outstanding for Class A common stock are approximately 102,797,453, while Class B common stock remains at 16,221,101 shares.
Major Shareholders
The ownership of Select Energy Services is distributed among institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 65,000,000 | 63.2% |
| Insiders | 5,000,000 | 4.9% |
| Retail Investors | 33,000,000 | 32.0% |
Recent Changes in Ownership
In 2024, Select Energy Services has seen several acquisitions that may influence its ownership structure. Notably, the company completed various acquisitions totaling approximately $148.1 million, which included the Rockies Infrastructure Acquisition for $18.1 million, Buckhorn Acquisition for $17.9 million, and Iron Mountain Acquisition for $14.0 million.
Impact of Acquisitions on Ownership
The recent acquisitions have strengthened Select's operational capabilities, particularly in the water services sector. The following table summarizes key acquisitions affecting ownership and operational capacity:
| Acquisition | Date | Consideration (in millions) | Impact on Operations |
|---|---|---|---|
| Rockies Infrastructure | January 1, 2024 | 18.1 | Enhanced water disposal assets |
| Buckhorn | March 1, 2024 | 17.9 | Strengthened landfill operations |
| Iron Mountain | January 8, 2024 | 14.0 | Improved fluids and solids treatment |
Financial Performance and Market Trends
Select Energy Services reported revenue of $1,103 million for the nine months ended September 30, 2024, compared to $1,210 million for the same period in 2023, reflecting a decrease due to macroeconomic factors. The company’s net income for the same period was $37.6 million.
Debt and Financial Obligations
As of September 30, 2024, Select Energy Services had $80 million in borrowings outstanding under its Sustainability-Linked Credit Facility, with an interest rate of 7.26%. The total liabilities and equity stood at $1,346.6 million.
Conclusion of Ownership Analysis
Ownership in Select Energy Services, Inc. is characterized by a significant portion held by institutional investors, alongside key insider and retail ownership. The company's ongoing acquisitions and financial strategies are pivotal in shaping its future ownership dynamics and operational capabilities.
Select Energy Services, Inc. (WTTR) Mission Statement
Company Overview
Select Energy Services, Inc. (WTTR) provides water solutions and chemical technologies for the oil and gas industry. The company focuses on delivering comprehensive services aimed at optimizing water management and chemical applications.
Mission Statement
The mission of Select Energy Services is to provide innovative water solutions and chemical technologies that enable their customers to optimize their operations while ensuring sustainable practices. The company is committed to delivering the highest levels of safety and efficiency in all its services.
Financial Performance (2024)
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | Change (Q3 2024 vs Q3 2023) |
|---|---|---|---|---|
| Revenue | $371.3 million | $389.3 million | $389.3 million | -4.6% |
| Net Income | $18.8 million | $15.3 million | $15.3 million | 22.8% |
| EBITDA | $66.1 million | $51.7 million | $51.7 million | 27.8% |
| Adjusted EBITDA | $72.8 million | $63.0 million | $62.9 million | 15.5% |
| Total Assets | $1.35 billion | $1.22 billion | N/A | 10.7% |
Revenue Breakdown by Segment (2024)
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Water Services | $234.0 million | $251.9 million | -7.1% |
| Water Infrastructure | $82.0 million | $58.4 million | 40.5% |
| Chemical Technologies | $55.3 million | $79.0 million | -30.0% |
Cost Structure (2024)
| Cost Type | Q3 2024 | Q2 2024 | Change (%) |
|---|---|---|---|
| Costs of Revenue | $308.9 million | $333.0 million | -7.2% |
| Gross Profit | $62.4 million | $56.3 million | 11.0% |
| Selling, General and Administrative Expenses | $37.3 million | $39.0 million | -4.4% |
Liquidity and Capital Resources
As of September 30, 2024, Select Energy Services had cash and cash equivalents totaling $10.9 million and available borrowing capacity under the Sustainability-Linked Credit Facility of approximately $127.8 million. The company reported total borrowings of $80.0 million under the same facility.
Dividend Information
On November 17, 2023, Select Energy Services increased its quarterly dividend to $0.06 per share, up from $0.05 per share, reflecting the company's commitment to returning value to shareholders.
How Select Energy Services, Inc. (WTTR) Works
Business Overview
Select Energy Services, Inc. operates primarily in the oil and gas sector, providing water solutions, chemical technologies, and related services. The company segments its operations into three main areas: Water Services, Water Infrastructure, and Chemical Technologies.
Financial Performance
As of the nine months ended September 30, 2024, Select Energy Services reported total revenue of $1.1 billion, a decrease of 8.9% from $1.2 billion in the same period of 2023. The revenue breakdown by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Water Services | $692.3 million | $791.1 million | -12.5% |
| Water Infrastructure | $214.1 million | $169.1 million | +26.6% |
| Chemical Technologies | $196.6 million | $250.2 million | -21.4% |
Cost Structure and Gross Profit
The total costs of revenue for the nine months ended September 30, 2024, were $927.7 million, which is 10.2% lower than $1.0 billion in the prior period. The gross profit for the same period was $175.3 million, resulting in a gross margin of 15.9%.
Operational Metrics
Key operational metrics for the company include:
- Net cash provided by operating activities: $167.1 million
- Free cash flow: $61.3 million
- Capital expenditures: $115.9 million
Segment-Specific Performance
Performance metrics by segment for the third quarter of 2024 are as follows:
| Segment | Revenue (Q3 2024) | Gross Profit (Q3 2024) | Operating Income (Q3 2024) |
|---|---|---|---|
| Water Services | $234.0 million | $47.9 million | $16.3 million |
| Water Infrastructure | $82.0 million | $46.5 million | $21.0 million |
| Chemical Technologies | $55.3 million | $6.9 million | $0.5 million |
Acquisitions and Growth Strategy
In 2024, Select Energy Services executed several acquisitions totaling $148.1 million to enhance its operations, particularly in its Water Infrastructure segment. Notable acquisitions include:
| Acquisition | Date | Consideration (in millions) |
|---|---|---|
| Bobcat | April 18, 2024 | $8.1 million |
| Trinity | April 1, 2024 | $30.8 million |
| Buckhorn | March 1, 2024 | $18.8 million |
| Iron Mountain Energy | January 8, 2024 | $14.0 million |
| Tri-State Water Logistics | January 3, 2024 | $58.3 million |
Debt and Financing
Select Energy Services had outstanding borrowings of $80.0 million under its Sustainability-Linked Credit Facility as of September 30, 2024. The interest rate on these borrowings was 7.26%.
Conclusion of Financial Metrics
As of September 30, 2024, the company's total assets were valued at $1.35 billion, with total liabilities of $427.2 million, resulting in total stockholders’ equity of $919.4 million.
How Select Energy Services, Inc. (WTTR) Makes Money
Revenue Streams
Select Energy Services, Inc. generates revenue primarily through three main segments: Water Services, Water Infrastructure, and Chemical Technologies. As of September 30, 2024, the revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Water Services | $692,334 | 62.8% |
| Water Infrastructure | $214,089 | 19.4% |
| Chemical Technologies | $196,605 | 17.8% |
| Total Revenue | $1,103,028 | 100% |
Water Services
Revenue from Water Services decreased by $98.8 million, or 12.5%, to $692.3 million for the nine months ended September 30, 2024, compared to the same period in 2023. This decline was primarily due to lower customer activity levels and reduced frac crew deployments, influenced by macroeconomic conditions and competitor price reductions.
Water Infrastructure
In contrast, revenue from Water Infrastructure rose by $45.0 million, or 26.6%, to $214.1 million during the same period. This increase was driven by acquisitions and growth in the recycling business, which offset lower pipeline distribution volumes.
Chemical Technologies
Revenue in the Chemical Technologies segment fell by $53.6 million, or 21.4%, to $196.6 million. This drop was also attributed to lower frac crew deployments and price reductions.
Costs of Revenue
The total costs of revenue decreased by $105.6 million, or 10.2%, to $927.7 million for the nine months ended September 30, 2024. This reduction was largely due to decreased costs in all three segments, particularly Water Services, which saw a $81.0 million decline in costs.
| Segment | Costs of Revenue (in thousands) | Percentage Change |
|---|---|---|
| Water Services | $545,881 | -12.9% |
| Water Infrastructure | $102,776 | -0.9% |
| Chemical Technologies | $165,846 | -17.1% |
| Total Costs of Revenue | $927,746 | -10.2% |
Gross Profit and Margins
Gross profit for Select Energy Services decreased by $1.8 million, or 1.0%, to $175.3 million for the nine months ended September 30, 2024. The overall gross margin was approximately 15.9%.
Operating Expenses
Operating expenses increased by $1.5 million, or 1.2%, to $123.4 million. This increase was driven by higher selling, general and administrative expenses, which rose by $11.1 million, or 10.2%, to $120.2 million.
Net Income
Net income for the nine months ended September 30, 2024, was $37.6 million, a decrease of $14.0 million, or 27.1%, compared to the same period in 2023. This decline was primarily due to increased operating expenses and higher income tax expenses.
Cash Flow and Free Cash Flow
Net cash provided by operating activities was $167.1 million, while net cash used in investing activities increased to $264.2 million due to higher acquisition costs. Free cash flow was reported at $61.3 million.
| Cash Flow Metrics | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $167,119 |
| Net Cash Used in Investing Activities | ($264,200) |
| Free Cash Flow | $61,314 |
Debt and Liquidity
As of September 30, 2024, Select Energy Services had $10.9 million in cash and cash equivalents and approximately $127.8 million available under its Sustainability-Linked Credit Facility.
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Resources:
- Select Energy Services, Inc. (WTTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Select Energy Services, Inc. (WTTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Select Energy Services, Inc. (WTTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.