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Mar 31, 2023
Select Water Solutions Q1 2023 Earnings Report
Achieved sequential earnings and revenue growth, driven by Water Infrastructure segment and margin expansion across all business segments.
Key Takeaways
Select Energy Services reported a strong first quarter with revenue of $416.6 million, a 9% increase sequentially. Net income nearly doubled to $13.7 million, and Adjusted EBITDA increased by 29% sequentially to $67.2 million. The Water Infrastructure segment saw significant growth, and the company reinitiated its share repurchase program.
Generated revenue of $417 million, up 9% sequentially from Q4 2022.
Water Infrastructure segment revenue increased 32% sequentially to $102 million.
Net income increased 81% sequentially to $13.7 million.
Adjusted EBITDA improved 29% sequentially to $67.2 million.
Revenue by Segment
Forward Guidance
The Company anticipates relatively steady revenues in Water Infrastructure during the second quarter of 2023 with gross margins before D&A improving 200-300 basis points supported by the accretive margin contributions of our recent organic projects. For the second quarter of 2023, the Company anticipates mid-single digit percentage revenue improvements and steady margins for the Oilfield Chemicals segment as the segment continues to advance from its all-time high-water mark levels.
Positive Outlook
- Relatively stable revenue is expected for Water Services
- Gross margins before D&A improving by 100–200 basis points for Water Services
- Relatively steady revenues in Water Infrastructure
- Gross margins before D&A improving 200-300 basis points for Water Infrastructure
- Mid-single digit percentage revenue improvements for Oilfield Chemicals
Historical Earnings Impact
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Avg. Return Before/After Earnings
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