Select Energy Services (WTTR)
NYSE:WTTR
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Select Energy Services
(NYSE:WTTR)
Select Model
Select Model
Rating:67Neutral
Price Target:
$21.00
▲(41.22% Upside)
Action:Reiterated
Date:05/09/26
WTTR scores as moderately attractive. The biggest supports are improving operational momentum and raised guidance from the earnings call, alongside a generally conservative balance sheet. Offsetting that, fundamentals show recent pressure in profitability, revenue trajectory, and free-cash-flow (negative in 2025/TTM), and valuation is demanding with a high P/E and only a modest dividend yield. Technicals are a secondary positive given the strong uptrend and healthy momentum.
Positive Factors
Essential water & chemical services for upstream oil and gas
The company's core business supplies indispensable water sourcing, transport, treatment, recycling and chemical services for hydraulic fracturing and completions. These fee-based, logistics-heavy services create recurring demand tied to basin activity and make revenue less discretionary, supporting durable cash generation and customer stickiness over multiple cycles.
Negative Factors
Weak revenue momentum and recent declines
Sustained top-line contraction undermines operating leverage in a business reliant on volume throughput. Declining revenue reduces capacity utilization for infrastructure assets, lengthens payback on recent capex, and limits the firm's ability to absorb fixed costs, making margin recovery and cash generation harder without renewed demand or contract wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential water & chemical services for upstream oil and gas
The company's core business supplies indispensable water sourcing, transport, treatment, recycling and chemical services for hydraulic fracturing and completions. These fee-based, logistics-heavy services create recurring demand tied to basin activity and make revenue less discretionary, supporting durable cash generation and customer stickiness over multiple cycles.
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
$2.80B
Dividend Yield2.62%
Average Volume (3M)2.06M
Price to Earnings (P/E)49.0
Beta (1Y)1.07
Revenue Growth-4.18%
EPS Growth-41.43%
CountryUS
Employees3,700
SectorEnergy
Sector Strength52
IndustryRegulated Water
Share Statistics
EPS (TTM)0.20
Shares Outstanding124,353,950
10 Day Avg. Volume2,149,300
30 Day Avg. Volume2,056,877
Financial Highlights & Ratios
PEG Ratio-1.57
Price to Book (P/B)1.33
Price to Sales (P/S)0.76
P/FCF Ratio-13.41
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit8.31
Enterprise Value/Ebitda8.71
Forecast
1Y Price Target
$22.50Price Target Upside51.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.52
Revenue Forecast (FY)$1.46B
Select Energy Services Business Overview & Revenue Model
Company Description
Select Water Solutions, Inc. engages in the provision of water management and chemical solutions. It operates through the following business segments: Water Infrastructure, Water Services, and Chemical Technologies. The Water Infrastructure segmen...
How the Company Makes Money
Select Energy Services generates revenue primarily by providing fee-based services and selling related products to oil and gas producers and E&P service operators. Key revenue streams generally include: (1) Water sourcing and transfer: charging cu...
Select Energy Services Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record Water Infrastructure revenue and margins, significant sequential and year-over-year growth, raised guidance for the infrastructure segment, improved liquidity after an equity raise, and commercialization wins and acquisitions that expand the network. Near-term challenges include a temporary operating cash flow drag from higher receivables, increased 2026 CapEx, a modest expected Q2 revenue dip in Water Services (driven by nonrecurring spot sales), and macro/geopolitical uncertainty that could affect demand or costs. On balance, the positives—record margins, raised guidance, strong adjusted EBITDA, and strategic contract and asset additions—substantially outweigh the near-term headwinds.Positive Updates
Record Water Infrastructure Performance
Water Infrastructure delivered record quarterly revenue of approximately $97M, managed ~1.4 million barrels/day, posted 56% gross margins before D&A, grew revenue 19% sequentially vs Q4'25 and more than 33% year-over-year vs Q1'25.
Negative Updates
Short-Term Operating Cash Flow Drag
Operating cash flow experienced a meaningful short-term drag driven by increased accounts receivable in Q1; management expects these receivables to largely cycle through and convert back to cash during the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Water Infrastructure Performance
Water Infrastructure delivered record quarterly revenue of approximately $97M, managed ~1.4 million barrels/day, posted 56% gross margins before D&A, grew revenue 19% sequentially vs Q4'25 and more than 33% year-over-year vs Q1'25.
Read all positive updates
Company Guidance
Management raised Water Infrastructure full‑year growth guidance to 25%–30% y/y (up from 20%–25%) after a strong Q1 that produced record Water Infrastructure revenue of ~$97M (up 19% sequentially and >33% y/y), 56% gross margin before D&A, and ~1.4M bbl/d of produced water managed; consolidated Q1 results included adjusted EBITDA of $77.6M, consolidated gross margin before D&A above 30% (a company high), SG&A down >6% to $40.6M (~11% of revenue), and net income up (Q1 vs Q4) by $11.5M. For Q2 management guided consolidated adjusted EBITDA of $77M–$80M; Water Services is expected to see a low single‑digit % revenue decline but margins of about 20%–22% (Q1 services revenue was +7% sequentially and Q1 services margin was 21.8%); Chemical Technologies expects Q2 revenue to rise 10%–15% with margins moving into ~20%–21% (Q1 chemical revenue/margin cited at ~$78M/19%). Balance‑sheet and cash‑flow guidance included Q2 D&A of ~$47M–$50M (ticking into low $50s later in year), interest of ~$4M–$6M per quarter, net debt of $196M with >$300M available liquidity, Q1 CapEx of $78M and updated 2026 net CapEx of $200M–$250M (up from $175M–$225M) with $50M–$60M for maintenance, and ~$29M of subsequent acquisitions; management reiterated the expectation of strong back‑half growth and improving free cash flow into 2027.Select Energy Services Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.40B | 1.41B | 1.45B | 1.59B | 1.39B | 764.62M |
| Gross Profit | 253.20M | 197.08M | 219.47M | 231.66M | 160.75M | 20.86M |
| EBITDA | 241.57M | 210.26M | 211.02M | 165.29M | 174.03M | 44.30M |
| Net Income | 21.59M | 21.22M | 30.64M | 74.40M | 48.28M | -42.23M |
Balance Sheet | ||||||
| Total Assets | 1.71B | 1.60B | 1.37B | 1.22B | 1.22B | 950.19M |
| Cash, Cash Equivalents and Short-Term Investments | 55.97M | 18.08M | 19.98M | 57.08M | 7.32M | 85.80M |
| Total Debt | 85.60M | 374.26M | 132.74M | 53.55M | 80.16M | 67.31M |
| Total Liabilities | 587.24M | 668.54M | 450.75M | 326.02M | 339.13M | 255.02M |
| Stockholders Equity | 991.48M | 805.62M | 793.52M | 772.49M | 765.98M | 592.10M |
Cash Flow | ||||||
| Free Cash Flow | -94.54M | -79.89M | 61.73M | 149.49M | -38.65M | -56.24M |
| Operating Cash Flow | 229.98M | 214.67M | 234.89M | 285.36M | 33.23M | -16.25M |
| Investing Cash Flow | -349.97M | -402.09M | -318.62M | -137.17M | -53.25M | -64.46M |
| Financing Cash Flow | 148.07M | 185.51M | 46.64M | -98.42M | -58.45M | -2.54M |
Select Energy Services Technical Analysis
Positive
14.87
Price Trends
15.97
Positive
14.14
Positive
12.03
Positive
Market Momentum
1.10
Negative
78.15
Negative
92.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTTR, the sentiment is Positive. The current price of 14.87 is below the 20-day moving average (MA) of 17.62, below the 50-day MA of 15.97, and above the 200-day MA of 12.03, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 78.15 is Negative, neither overbought nor oversold. The STOCH value of 92.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTTR.
Select Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
WTTR
Select Energy Services
19.90
12.01
152.25%
HTO
H2O America
56.91
5.97
11.73%
ARIS
Aris Mining
17.51
11.23
178.82%
Select Energy Services Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Select Water Solutions Completes Upsized Equity Offering
Positive
Feb 25, 2026
Select Water Solutions, Inc. completed an underwritten public offering of its Class A common stock, initially agreeing on February 19, 2026 to sell $175 million of shares through a syndicate led by J.P. Morgan Securities LLC and BofA Securities, I...
Business Operations and StrategyPrivate Placements and Financing
Select Energy Services Announces $175 Million Equity Offering
Positive
Feb 23, 2026
On February 19, 2026, Select Water Solutions announced it had priced an underwritten public offering of 13,725,491 shares of its Class A common stock at $12.75 per share, for gross proceeds of about $175 million and expected net proceeds of approx...
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.