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Jun 30, 2021
Select Water Solutions Q2 2021 Earnings Report
Revenue increased due to overall industry improvements, while strategic acquisitions expanded the company's sustainable solution offerings.
Key Takeaways
Select Energy Services reported a revenue of $161.1 million for Q2 2021, a 12% increase sequentially. The company's net loss was $19.6 million, an improvement from the previous quarter's $27.4 million loss. Strategic acquisitions like Complete Energy Services and UltRecovery, along with an exclusive agreement with Emission Rx, enhanced the company's portfolio and are expected to contribute to future growth.
Revenue increased by 12% sequentially, reaching $161.1 million.
Net loss improved to $19.6 million compared to $27.4 million in the previous quarter.
Closed acquisition of Complete Energy Services, Inc. to expand water solutions.
Enhanced sustainability-focused technologies with UltRecovery acquisition and Emission Rx agreement.
Revenue by Segment
Forward Guidance
Select Energy Services anticipates continued revenue and margin growth in Q3, driven by increasing completions activity, pricing improvements, contributions from recycling projects, and the recent Complete acquisition. SG&A is expected to increase by $2.0 - 2.5 million due to the Complete acquisition.
Positive Outlook
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by increasing completions activity.
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by pricing improvements
- Expect to see further meaningful revenue and margin growth in the base business during the third quarter supported by incremental contributions from our recently announced organic recycling projects.
- Expect to see significant revenue growth and margin improvement resulting from our recent acquisitions, most notably Complete.
- Anticipate segment revenues increasing by more than 30% during the third quarter and low double-digit to mid-teen gross margins before D&A, driven by increasing completions activity, meaningful pricing improvements and most notably, the sizable contribution from the recently acquired operations of Complete.
Challenges Ahead
Historical Earnings Impact
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Avg. Return Before/After Earnings
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