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Dec 31, 2020
Select Water Solutions Q4 2020 Earnings Report
Select Water Solutions' fourth quarter earnings increased with revenue growth and a return to positive Adjusted EBITDA.
Key Takeaways
Select Energy Services reported a 32% sequential increase in revenue, reaching $133.3 million for the fourth quarter of 2020. The company returned to positive Adjusted EBITDA territory and maintains a strong financial position with $250 million in available liquidity and no debt outstanding.
Q4 2020 revenue reached $133.3 million, a 32% sequential increase.
The company achieved a return to positive Adjusted EBITDA territory.
Available liquidity totaled $250 million, including $169 million in cash and cash equivalents.
The company has no outstanding debt at the end of Q4 2020.
Revenue by Segment
Forward Guidance
Select Energy Services anticipates revenue to increase between 5% and 10% in the first quarter of 2021, although margins could see a modest compression due to recent severe weather conditions. The company expects positive activity trends to continue throughout the rest of 2021.
Positive Outlook
- Revenue is expected to increase between 5% and 10% in Q1 2021.
- Positive activity trends are expected to continue throughout the rest of 2021.
- The company has significant operating leverage.
- The company has a strong position in the marketplace with no debt, strong cash flow and a substantial cash balance.
- The company has the ability to leverage its competitive strengths as the oil and gas industry's leading sustainable water and chemical solutions provider to expand into new areas or other industries to take advantage of the energy transition.
Challenges Ahead
- Recent severe weather conditions will cause some temporary, but significant disruptions across the business during the first quarter.
- Margins could see a modest compression in Q1 2021 due to weather conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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