The following is a summary of the Select Water Solutions, Inc. (WTTR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 delivered 40% growth in revenue and 99% growth in gross profit before D&A compared to Q3 of 2023.
Net income growth was 26% this quarter over the previous quarter.
SG&A expenses decreased, contributing to bottom-line improvements.For Q4, water infrastructure revenue is expected to decline 10% to 15% sequentially, attributing mostly to planned operational downtime.
Despite expected revenue decline in Q4, gross margins are anticipated to stay strong at 51% to 54%.
Business Progress:
Enhanced water infrastructure in Northern Delaware and executed new long-term contracts, adding extensive acreages under management in key basins.
Focused on growing the water infrastructure segment, ensuring continued delivery of improved margins.
Ongoing development of large-scale organic projects, including recycling facilities expected to be operational in H1 2025.
Completed a strategic disposal site acquisition in Northern Delaware, adding significant disposal capacity and interconnectivity.
Opportunities:
Continuous investment in water infrastructure to meet expanding market demand and strategic acquisitions that strengthen overall positioning and capabilities.
Secured new pipeline connection agreements and disposal capacity, boosting the command in produced water recycling and infrastructure breadth.
Risks:
Anticipated seasonal activity slowdown in Q4 affecting the Water Service segment and operational downtime in Water Infrastructure due to project transitions.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
