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Sep 30, 2021
Select Water Solutions Q3 2021 Earnings Report
Select Energy Services experienced revenue growth and strategic M&A execution
Key Takeaways
Select Energy Services reported revenue of $204.6 million for Q3 2021, a 27% increase sequentially, and a net loss of $14.2 million, an improvement from the previous quarter. The company focused on improving its base business, advancing technology and ESG efforts, and executing strategic M&A, with Adjusted EBITDA doubling quarter over quarter to $15.1 million.
Generated 27% consolidated sequential revenue growth in Q3 2021.
Adjusted EBITDA doubled quarter over quarter to $15.1 million.
Legacy Select base business revenue grew sequentially by 9%.
Completed the expansion of the largest recycling facility in Martin County, Texas, and constructed three new Permian Basin recycling facilities.
Revenue by Segment
Forward Guidance
The Company anticipates low- to mid-teen percentage sequential revenue growth in the Oilfield Chemicals segment during the fourth quarter. The Company expects to see low double-digit to mid-teen percentage revenue growth with modest improvements to gross margins before D&A in Water Services. For the Water Infrastructure segment, the Company anticipates the combination of contributions from Agua Libre and the recently completed recycling projects will result in high single-digit to low double-digit percentage revenue growth, with gross margins before D&A in the low- to mid-20 percent range.
Positive Outlook
- Continued pricing improvements.
- Incremental contributions from production services operations recently acquired from Basic.
- Combination of contributions from Agua Libre.
- Recently completed recycling projects.
- Supply chain disruptions beginning to normalize and the Tyler facility back up and running.
Challenges Ahead
- Raw materials pricing challenges.
- Costs associated with the reactivation of the Tyler facility.
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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