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Select Energy Services
(NYSE:WTTR)
Select Model
Select Model
Rating:62Neutral
Price Target:
$19.50
â–²(1.40% Upside)
Action:Reiterated
Date:08/06/26
WTTR scores 62 mainly because improved profitability and a low-leverage balance sheet are offset by weak free-cash-flow generation (negative in 2025 and TTM). The latest earnings call was a notable positive (record results and solid Q3 EBITDA guidance), but near-term cash flow remains pressured by elevated capex. Technicals are cautious short-term and valuation is demanding due to a very high P/E, limiting upside if execution or margins soften.
Positive Factors
Low leverage / strong balance sheet
A low debt-to-equity (~0.09) provides durable financial flexibility to fund infrastructure builds, absorb commodity-driven cash swings, and pursue bolt-on acquisitions without risking solvency. This reduces refinancing risk and supports multi-year growth investments.
Negative Factors
Negative free cash flow
Despite improved operating cash, free cash flow weakness in 2025 and TTM reflects heavy reinvestment and working‑capital absorption. Persistently negative FCF limits discretionary capital (debt paydown, dividends, buybacks) and increases reliance on execution to extract returns from new assets.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A low debt-to-equity (~0.09) provides durable financial flexibility to fund infrastructure builds, absorb commodity-driven cash swings, and pursue bolt-on acquisitions without risking solvency. This reduces refinancing risk and supports multi-year growth investments.
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
$2.59B
Dividend Yield1.35%
Average Volume (3M)1.60M
Price to Earnings (P/E)76.8
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. Volume1,296,021
30 Day Avg. Volume1,600,301
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.33Price Target Upside31.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.67
Revenue Forecast (FY)$1.55B
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 water management and logistics services to oil and gas producers, earning fees tied to volumes handled (e.g., barrels of water sourced, transferred, treated, recycled, or disposed) and to the ...
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 | 217.54M | 211.02M | 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 Peers Comparison
UnderperformOutperform
Sector (65)
WTTR
Select Energy Services
20.80
12.55
152.21%
HTO
H2O America
64.81
16.65
34.58%
ARIS
Aris Mining
19.98
10.60
113.01%
Select Energy Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Select Energy realigns leadership, elevates commercial focus
Positive
Jun 1, 2026
Effective June 1, 2026, Select Water Solutions, Inc. shifted Executive Vice President and Chief Operating Officer Michael C. Skarke into the role of Executive Vice President and Chief Commercial Officer, where he will remain an executive officer r...
Executive/Board ChangesShareholder Meetings
Shareholders Back Directors, Auditor and Executive Pay Plans
Positive
May 8, 2026
Select Water Solutions, Inc. held its 2026 Annual Meeting of Stockholders on May 7, 2026, with approximately 87% of outstanding shares represented, underscoring strong shareholder engagement in corporate governance. Stockholders elected all nomina...
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.