Select Water Solutions reports Q3 EPS 14c, consensus 23c

Reports Q3 revenue $389M, consensus $402.59M. John Schmitz, Chairman of the Board, President and CEO, stated, “During the Q3, we delivered strong operating cash flows, ending the quarter with a debt-free balance sheet once again. With a $75M reduction in accounts receivable during the third quarter, we’ve now reduced our accounts receivable by more than $137M since the end of the Q1, materially outpacing our target of a $100M reduction by year-end. Our Water Infrastructure business achieved solid sequential revenue growth and margin improvement, as we continue to bring new contracted infrastructure projects online and add additional opportunities to the backlog. While we did see some impact to consolidated revenues from a more than 10% decline in U.S. onshore completions activity according to industry data, our Water Services and Chemical Technologies segments both outperformed the activity levels overall. Based on our continued confidence in Select’s operating capabilities, cash flow generation, infrastructure growth opportunities, and the strength of our balance sheet, we’ve been able to further enhance our capital return program, implementing a 20% increase to our upcoming quarterly dividend payment as compared to the prior quarter. We increased shareholder returns while maintaining a disciplined capital structure to support the growth of our business, particularly the continued expansion of our water recycling and distribution networks and other infrastructure initiatives.