Select Water Solutions Reports Q4 and Annual 2024 Results

Financial Overview of Select Water Solutions

Select Water Solutions, Inc. (NYSE: WTTR) has reported impressive consolidated revenues for the full year 2024, amounting to $1.5 billion, with the fourth quarter contributing $349 million. This growth demonstrates strong demand and operational efficiency across their offerings.

Revenue Growth in Water Infrastructure

The Water Infrastructure segment showed remarkable performance with full-year revenues reaching $291 million, marking a 26% increase year-over-year. This growth was further highlighted by a gross profit increase of 62%, showcasing the segment's effectiveness in meeting market demands.

Operating Cash Flow Performance

In terms of cash flow, Select Water Solutions delivered operating cash flows of $235 million for the full year and $68 million for the fourth quarter. This steady stream of cash flow reflects the company's ability to convert earnings into liquid assets efficiently.

New Projects and Strategic Initiatives

During the year, the Company announced several long-term contracted Water Infrastructure projects in the Permian Basin, supported by a significant 150,000-acre dedication. The anticipated capital deployment for these projects was estimated at $39 – $41 million.

Investment in Water Rights and Storage Partnership

Further expanding its operations, the company formed a new partnership in Colorado focused on water rights and storage with an initial investment of $62 million. This strategic move aims to secure high-margin contracts across municipal, industrial, and agricultural sectors.

Future Growth and Outlook

Looking ahead to 2025, the macro environment is expected to show modest year-over-year activity levels in the U.S. Lower 48 states. Despite this, Select maintains a strong belief in the growth potential of its Water Infrastructure segment, driven by attractive oil and natural gas prices for its clients. The company is also focusing on enhancing margins in its Chemical Technologies segment.

Cash Flow and Capital Expenditures

In 2025, Select aims for capital expenditures between $170 – $190 million. This includes maintenance costs of approximately $50 – $60 million, while also prioritizing investments in growth-oriented capital projects within the Water Infrastructure segment.

Operational Achievements in 2024

Throughout 2024, Select facilitated the movement of over 1.5 billion barrels of water in support of its clients’ traditional oil and gas initiatives. This substantial volume cements the Company's leading position in the water solutions sector, further supporting its expansion into new markets.

Community Support and Resource Management

The expansion into Colorado's water rights reflects Select’s commitment to addressing local water needs while contributing to economic growth through job creation. The company's expertise in water resource management serves as a foundation for its ambitious infrastructure growth strategy.

Conclusion on 2024 Performance

John Schmitz, Chairman and CEO, remarked on the record-setting year for Select Water Solutions. He expressed confidence in the company's strategy and the progressive value it creates for customers and shareholders alike. This confidence is reflected in the strong financial returns achieved during the period and the strategic enhancements for future growth.

Frequently Asked Questions

What were the total revenues for Select Water Solutions in 2024?

The consolidated revenues for Select Water Solutions for 2024 amounted to $1.5 billion.

How did the Water Infrastructure segment perform in 2024?

The Water Infrastructure segment achieved revenues of $291 million, representing a 26% growth year-over-year, with gross profit up by 62%.

What are the projected capital expenditures for Select Water Solutions in 2025?

Select Water Solutions is targeting capital expenditures between $170 million to $190 million for 2025.

How does Select Water Solutions plan to enhance its operations?

The Company is focusing on enhancing margins in the Chemical Technologies segment while executing on Water Infrastructure growth strategies.

What new partnership has Select Water Solutions formed recently?

Select Water Solutions entered into a partnership in Colorado focused on water rights and storage, with an initial investment of $62 million.

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