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Mar 31, 2022
Select Water Solutions Q1 2022 Earnings Report
Revenue increased sequentially, net income was positive, and strategic acquisitions contributed to growth.
Key Takeaways
Select Energy Services reported strong first quarter results with revenue increasing 16% sequentially to $294.8 million and net income of $8.0 million. The company benefitted from strong commodity prices and industry activity, with contributions from recent acquisitions like Nuverra Environmental Solutions. They continued to focus on sustainability, shareholder returns, and strategic infrastructure development.
Revenue of $294.8 million, up 16% sequentially from Q4 2021.
Net income of $8.0 million and Adjusted EBITDA of $32.2 million.
Repurchased 2.3 million shares of Class A common stock for $16.4 million.
Closed on the acquisition of Nuverra Environmental Solutions, Inc.
Revenue by Segment
Forward Guidance
The company anticipates continued growth and margin improvements in the second quarter of 2022, driven by pricing improvements, market activity, and incremental contributions from the Nuverra acquisition. Stable revenues are expected in the Oilfield Chemicals segment with consistent gross margins.
Positive Outlook
- Water Services segment expects 8% – 12% revenue growth
- Water Services segment expects modest gross margin improvements
- Water Infrastructure anticipates revenue growth of 5% – 10%
- Water Infrastructure expects gross margins before D&A in mid- to high-20 percent range
- Oilfield Chemicals anticipates relatively stable revenues
Challenges Ahead
- Oilfield Chemicals anticipates continued supply chain challenges
- Water Infrastructure gross margins impacted by increased integration costs
- Water Infrastructure gross margins impacted by operational downtime related to the maintenance and upgrades of recently acquired assets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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