Select Water Solutions Announces Quarterly Dividend of $0.07
Select Water Solutions, Inc. (NYSE: WTTR), a leader in water and chemical solutions for the energy sector, recently declared a quarterly cash dividend of $0.07 per share for its Class A common stock. This announcement reflects the company's ongoing commitment to adding value for its shareholders. The dividend will be payable on a designated future date to shareholders on record, and shows a yield of 2.04%. Over the past three years, Select Water Solutions has consistently increased its dividend, highlighting its financial stability.
Strong Financial Position Underpins Dividend Decision
In conjunction with this announcement, SES Holdings, LLC, an important unit of Select Water Solutions, will also distribute an equivalent dividend of $0.07 per unit to its unitholders. The Board of Directors has indicated that future dividends will be determined based on quarterly evaluations of the company’s financial health and their approval. The company's analysis underlines a robust financial position, characterized by liquid assets that exceed short-term liabilities and a manageable debt level, thereby ensuring the sustainability of its dividend program.
Commitment to Sustainable Water Management
Select Water Solutions is well-known for its sustainable approach to managing water resources within the energy sector. The company focuses on the safe and environmentally responsible management of water throughout the entire lifecycle of a well. Their operations are comprehensive, encompassing essential water infrastructure, chemical production, and water treatment and recycling services. This emphasis on responsible water management is crucial to Select's long-term success.
Recent Financial Performance Highlights Growth
Recently, the company shared significant growth metrics in its third-quarter earnings discourse, reporting a remarkable 20% increase in revenues and a 33% rise in gross profit before depreciation and amortization (D&A) compared to the preceding quarter. The year-over-year growth figures were even more striking, with revenue soaring by 40% and gross profit nearly doubling at 99% over the same period in the previous year. The Water Infrastructure division notably recorded revenues of $82 million, achieving a gross margin of 57%.
Expanding Operations and Contracts
In addition to these promising financial figures, Select Water Solutions has secured extensive contracts covering 25,000 acres in the Permian Basin, enhancing its operational capacity and footprint. Furthermore, two significant pipeline agreements in the Bakken region complement their portfolio. A recent acquisition in the Northern Delaware Basin boosted their disposal capacity by an additional 10,000 barrels per day. Looking ahead, the company projects that Q4 margins will remain solid, despite an expected revenue decline in the Water Infrastructure segment.
Investment in Growth and Profitability
The company reported a net income of $19 million for the third quarter of 2024, coupled with an adjusted EBITDA of $73 million, which exceeded initial guidance. The new quarterly dividend represents a 17% increase to $0.07 per share. Select Water Solutions has allocated approximately $150 million towards growth capital within the water infrastructure segment to further enhance revenue streams and profitability. These developments reflect the company's strategic focus on growth and consistent shareholder value.
Frequently Asked Questions
What is the declared dividend amount for Select Water Solutions?
Select Water Solutions has declared a quarterly dividend of $0.07 per share.
How long has Select Water Solutions been increasing its dividend?
The company has consistently raised its dividend for the past three years.
What is the financial position of Select Water Solutions?
The company has a strong financial position, with liquid assets exceeding short-term obligations and moderate debt levels.
What segments contributed to Select Water Solutions' recent revenue growth?
The Water Infrastructure segment significantly contributed to revenue growth, reporting record revenues and strong gross margins.
How much capital is being allocated for growth in water infrastructure?
The company has allocated approximately $150 million for growth capital in the water infrastructure segment.
