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Sep 30, 2022
Select Water Solutions Q3 2022 Earnings Report
Revenue increased sequentially, and the acquisitions of Breakwater Energy Partners and water gathering pipeline and disposal assets from Cypress Environmental Services were announced.
Key Takeaways
Select Energy Services reported strong third-quarter results with sequential revenue growth and increased profitability. Net income and Adjusted EBITDA grew significantly, and the company completed strategic acquisitions to enhance its water infrastructure and service offerings.
Revenue of $375 million generated during the third quarter of 2022, up 12% sequentially from the second quarter of 2022
Net income of $24.7 million and Adjusted EBITDA of $62.8 million during the third quarter of 2022, representing sequential increases of 70% and 32%, respectively
Acquired Breakwater Energy Partners, LLC, a leading provider of contracted water recycling and infrastructure solutions focused in the Permian Basin on November 1, 2022
Acquired Bakken Shale water gathering pipeline and disposal assets from Cypress Environmental Services, LLC on November 1, 2022
Revenue by Segment
Forward Guidance
Looking at the fourth quarter of 2022, the Company expects to see relatively steady revenue and gross margins before D&A, as partial quarter contributions from Breakwater partially offset normal seasonal impacts to the base business.
Positive Outlook
- The Company anticipates low double digit percentage revenue growth for the Water Infrastructure segment.
- The Company anticipates gross margins before D&A in the high-20 percent range for the Water Infrastructure segment.
- The Company anticipates mid-single digit percentage revenue growth for the Oilfield Chemicals segment.
- The Company anticipates relatively stable margins for the Oilfield Chemicals segment.
- The Company expects to see relatively steady revenue and gross margins before D&A.
Challenges Ahead
- Normal seasonal impacts to the base business.
- Partial quarter contributions from Breakwater.
- Logistical challenges relating to the COVID-19 pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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