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Select Energy Services
(NYSE:WTTR)
Select Model
Select Model
Rating:62Neutral
Price Target:
$20.00
▲(4.00% Upside)
Action:Reiterated
Date:10/22/26
WTTR scores as a moderate setup: improved profitability and a relatively strong balance sheet are offset by weak recent technicals and a demanding valuation. The latest earnings call supports the outlook with strong segment momentum and guidance, but heavy near-term capex (and associated free-cash-flow pressure) plus acquisition financing risk keep the overall score in the middle range.
Positive Factors
Water Infrastructure Growth
Water Infrastructure is showing strong, measurable expansion with high gross margins and continued volume growth. Management’s 25%–30% full-year target and expected double-digit growth into 2027 suggest a durable platform opportunity, supported by increasing customer demand for managed water systems.
Negative Factors
Heavy Capital Requirements
The elevated investment program is strategically aimed at future infrastructure growth, but it absorbs substantial cash in the near term. Negative free cash flow reduces funding flexibility and means the expected benefits of new assets must materialize before cash generation improves materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Water Infrastructure Growth
Water Infrastructure is showing strong, measurable expansion with high gross margins and continued volume growth. Management’s 25%–30% full-year target and expected double-digit growth into 2027 suggest a durable platform opportunity, supported by increasing customer demand for managed water systems.
Read all positive factors
Select Energy Services Key Performance Indicators (KPIs)
Any
EBITDA by Segment
Breaks down operating profitability and margin contribution by business line, showing which segments generate the cash to cover corporate costs and debt and which have thinner or volatile margins—important for assessing resilience to downturns in oilfield activity and the company’s ability to fund growth.
Breaks down operating profitability and margin contribution by business line, showing which segments generate the cash to cover corporate costs and debt and which have thinner or volatile margins—important for assessing resilience to downturns in oilfield activity and the company’s ability to fund growth.
Data provided by:
The Fly
The FlySelect Energy Services (WTTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.34B
Dividend Yield1.54%
Average Volume (3M)1.76M
Price to Earnings (P/E)67.0
Beta (1Y)1.07
Revenue Growth-1.95%
EPS Growth-17.11%
CountryUS
Employees3,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.27
Shares Outstanding128,942,890
10 Day Avg. Volume1,285,559
30 Day Avg. Volume1,762,843
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)1.33
Price to Sales (P/S)0.76
P/FCF Ratio-13.41
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit10.48
Enterprise Value/Ebitda12.04
Forecast
1Y Price Target
$26.75Price Target Upside39.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.61
Revenue Forecast (FY)$1.54B
Select Energy Services Business Overview & Revenue Model
Company Description
Select Water Solutions, Inc. provides water management solutions to the energy industry in the United States. It operates in three segments: Water Infrastructure, Water Services, and Chemical Technologies. Its Water Infrastructure segment engages ...
How the Company Makes Money
Select Energy Services generates revenue by delivering fee-based field services and selling integrated water-management solutions to oil and gas producers and other E&P operators. Key revenue streams generally include: (1) Water sourcing and logis...
Select Energy Services Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was overwhelmingly positive: management reported record revenue and adjusted EBITDA, strong segment performance (notably Water Infrastructure and Chemical Technologies), meaningful operating cash flow improvement, and secured a large MVC plus strategic asset conveyances and acquisitions that expand commercial optionality. Near‑term headwinds include elevated 2026 capital spending that will constrain free cash flow this year, some seasonal and commodity price sensitivity (skim oil volatility), and expected modest near‑term revenue variability in Chemical Technologies and Water Services. Management expects continued double‑digit Infrastructure growth into 2027 and eventual free cash flow improvement as infrastructure build matures.Positive Updates
Consolidated Financial Performance
Consolidated revenue of $396 million (Q2 2026); revenue increased 8% sequentially vs Q1 2026; adjusted EBITDA of $93 million (record), up 19% vs Q1 2026; net income of $23 million, more than doubled vs Q1 2026.
Negative Updates
Increased Capital Expenditure Guidance and Near‑Term Free Cash Flow Impact
Investing heavily in infrastructure: deployed $112 million in the quarter ($70M net CapEx + $42M acquisitions) and raised 2026 net capex expectation to $250M–$290M (up from prior $250M high end). Management notes the ongoing build phase will limit free cash flow in 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Financial Performance
Consolidated revenue of $396 million (Q2 2026); revenue increased 8% sequentially vs Q1 2026; adjusted EBITDA of $93 million (record), up 19% vs Q1 2026; net income of $23 million, more than doubled vs Q1 2026.
Read all positive updates
Company Guidance
Select provided detailed near‑term and full‑year guidance: after Q2 results of $396M consolidated revenue, $23M net income, $93M adjusted EBITDA, and $87M operating cash flow (including Water Infrastructure Q2 revenue of $102M with 58% gross margin before D&A, 1.5M bbls/day handled, +26% y/y revenue and +27% gross profit y/y), management expects Q3 consolidated adjusted EBITDA of $90M–$94M; Water Infrastructure Q3 revenue growth of 5%–10% with gross margins of 56%–58% and full‑year segment growth targeted at 25%–30% (on track to hit the high end); Chemical Technologies Q3 revenue of $85M–$90M with margins of ~20%–21% (Q2 was $96M, +23% q/q, 20% margin, $19.4M gross profit); Water Services Q3 revenue roughly steady with margins of 20%–22% (Q2 margins 23%); D&A expected $48M–$52M in Q3; net interest ~$4M–$6M/quarter; Q2 investing was $112M (net CapEx ~$70M + $42M acquisitions), and 2026 net CapEx is now expected to be $250M–$290M (maintenance ~ $60M), which will constrain 2026 free cash flow but position the company for improved discretionary cash flow in 2027+.Select Energy Services Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.41B | 1.45B | 1.59B | 1.39B | 764.62M |
| Gross Profit | 272.29M | 197.08M | 219.47M | 231.66M | 160.75M | 20.86M |
| EBITDA | 236.89M | 222.86M | 213.28M | 165.29M | 174.03M | 44.30M |
| Net Income | 31.98M | 21.22M | 30.64M | 74.40M | 48.28M | -42.23M |
Balance Sheet | ||||||
| Total Assets | 1.79B | 1.60B | 1.37B | 1.22B | 1.22B | 950.19M |
| Cash, Cash Equivalents and Short-Term Investments | 33.40M | 18.08M | 19.98M | 57.08M | 7.32M | 85.80M |
| Total Debt | 291.31M | 374.26M | 132.74M | 53.55M | 80.16M | 67.31M |
| Total Liabilities | 650.22M | 668.54M | 450.75M | 326.02M | 339.13M | 255.02M |
| Stockholders Equity | 1.05B | 805.62M | 793.52M | 772.49M | 765.98M | 592.10M |
Cash Flow | ||||||
| Free Cash Flow | -82.00M | -79.89M | 61.73M | 149.49M | -38.65M | -56.24M |
| Operating Cash Flow | 234.13M | 214.67M | 234.89M | 285.36M | 33.23M | -16.25M |
| Investing Cash Flow | -387.21M | -402.09M | -318.62M | -137.17M | -53.25M | -64.46M |
| Financing Cash Flow | 135.30M | 185.51M | 46.64M | -98.42M | -58.45M | -2.54M |
Select Energy Services Technical Analysis
Negative
19.23
Price Trends
19.74
Negative
19.49
Negative
17.11
Positive
Market Momentum
-0.48
Positive
39.91
Neutral
33.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTTR, the sentiment is Negative. The current price of 19.23 is above the 20-day moving average (MA) of 19.20, below the 50-day MA of 19.74, and above the 200-day MA of 17.11, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 33.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTTR.
Select Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $2.34B | 66.96 | 3.50% | 1.54% | -1.95% | -17.11% | |
55 Neutral | $1.39B | 62.81 | 2.07% | 2.56% | 25.36% | -59.73% | |
52 Neutral | $895.39M | -64.51 | -1.49% | ― | -15.14% | 92.26% | |
52 Neutral | $2.54B | 63.76 | 2.04% | 2.31% | 13.65% | -78.31% | |
49 Neutral | $116.24M | -0.35 | 73.91% | ― | -4.78% | 22.13% | |
48 Neutral | $741.24M | -1.66 | -56.47% | ― | -16.18% | -32.58% |
* Energy Sector Average
WTTR
Select Energy Services
18.14
6.84
60.57%
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PUMP
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7.29
0.10
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LBRT
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15.59
-1.03
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KLXE
KLX Energy Services Holdings
1.10
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ACDC
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4.07
-0.24
-5.57%
Select Energy Services Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Select Energy issues high-yield notes for acquisition financing
Positive
Oct 21, 2026
On October 21, 2026, Select Water Holdings LLC issued $900 million of 7.625% senior unsecured notes due November 1, 2034, fully and unconditionally guaranteed by certain of its existing subsidiaries that back its revolving credit facility. The not...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Select Energy upsizes notes offering to fund acquisition
Positive
Oct 16, 2026
On October 14, 2026, Select Water Solutions announced that subsidiary Select Water Holdings LLC priced an upsized private offering of $900 million in 7.625% senior notes due November 1, 2034, increased from $800 million. The notes, issued at par a...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Select Energy Services Announces Major New Financing Package
Positive
Oct 13, 2026
On October 13, 2026, Select’s subsidiary Select Water Holdings LLC entered into a new $500 million senior secured revolving credit facility, contingent on closing the planned acquisition of Pilot Water Solutions LLC, and negotiated lender co...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Select Energy to Acquire Pilot Water Solutions Platform
Positive
Sep 24, 2026
On Sept. 24, 2026, Select Water Solutions announced a definitive agreement for a $700 million cash‑and‑stock acquisition of Pilot Water Solutions, plus up to $15 million in contingent consideration, expected to close in the fourth quar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.