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Dec 31, 2019
Select Water Solutions Q4 2019 Earnings Report
Select Energy Services reported results for the fourth quarter and fiscal year ended December 31, 2019.
Key Takeaways
Select Energy Services reported a Q4 2019 revenue of $276.1 million, a net loss of $12.5 million, and operating cash flow of $61.7 million. The company advanced its strategy by divesting non-core businesses, paying down debt, completing a New Mexico pipeline, expanding chemicals manufacturing, and acquiring a water treatment business.
Generated operating cash flow of $61.7 million in Q4 2019.
Began operations of new Northern Delaware pipeline system in New Mexico late in Q4 2019.
Repurchased 0.66 million shares of Class A common stock for $4.9 million in Q4 2019.
Finished 2019 with a strong free cash flow quarter.
Revenue by Segment
Forward Guidance
While the company expects full year activity to decline year-over-year, they have already seen activity pick up in the early part of 2020 and expect improvements across all three segments in the first quarter. A capital expenditure range of $55 million to $70 million is expected in 2020.
Positive Outlook
- Expect improvements across all three segments in the first quarter.
- Activity pick up in the early part of 2020.
- Debt-free balance sheet.
- Well positioned to capitalize on opportunities.
- Will continue to target a balanced capital allocation strategy.
Challenges Ahead
- Expect full year activity to decline year-over-year.
- Potentially volatile market ahead.
- Meaningful seasonal activity declines in the quarter driven by weather and holidays.
- Customers having exhausted their capital budgets throughout the quarter.
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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