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Dec 31, 2021
Select Water Solutions Q4 2021 Earnings Report
Select Energy Services reported a revenue increase and a return to profitability in Q4 2021, driven by acquisitions and organic growth.
Key Takeaways
Select Energy Services reported a strong fourth quarter with a 25% sequential increase in revenue to $255.1 million and a net income of $11.2 million. The company benefited from recent acquisitions and organic growth, leading to improved margins and positive net income.
Revenue increased 25% sequentially to $255.1 million.
Net income was $11.2 million, a significant improvement from the previous quarter's net loss.
Adjusted EBITDA rose to $26.4 million, up 74% sequentially.
Recent acquisitions, including Complete Energy Services, Agua Libre, and HB Rentals, contributed meaningfully to revenue growth.
Revenue by Segment
Forward Guidance
The Company expects to see 5% – 10% revenue growth with modest improvements to gross margins before D&A for Water Services. For the Water Infrastructure segment, the Company anticipates the combination of the contributions from the recent acquisitions, including the pending Nuverra acquisition, and the recently completed recycling projects will result in 10% – 15% revenue growth, with gross margins before D&A in mid- to high-20 percent range. Supported by the recent strong revenue growth in the fourth quarter of 2021, the Company anticipates relatively stable revenues in Oilfield Chemicals segment during the first quarter of 2022 with modest improvements to gross margins before D&A.
Positive Outlook
- Continued pricing improvements.
- Market activity.
- Incremental contributions from the pending acquisition of Nuverra.
- Recently completed recycling projects.
- Strong revenue growth in the fourth quarter of 2021.
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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