Select Energy Services (WTTR) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 2.62%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.30
• Revenue Growth: -4.60%
• EPS Growth: -67.28%
• Country: US
• Employees: 3,700
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Water
• EPS (TTM): 0.06
• Shares Outstanding: 120,924,860
• 10 Day Avg. Volume: 1,385,851
• 30 Day Avg. Volume: 1,370,858
• 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 Cap: 0.98
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 7.39
• Enterprise Value/Ebitda: 7.99
• 1Y Price Target: $16.83
• Price Target Upside: 50.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): $1.38B

• Rating: 61 Neutral
• Price Target: $14.50 ▲(29.81% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by deteriorating TTM fundamentals (revenue/earnings pressure, higher leverage, and negative free cash flow). Offsetting that are supportive price momentum and a positive earnings-call outlook with clear growth targets and record adjusted EBITDA, while valuation remains a notable headwind due to a high P/E.

Positive Factors

High‑margin Water Infrastructure

Water Infrastructure's 54% gross margin and 20%–25% growth target indicate a durable, high‑return business line. Scalable recycling infrastructure supports strong EBITDA conversion and helps insulate consolidated profitability from upstream cyclical swings as volumes and fee-based contracts expand.

Long-term contracts and commercial backlog

Nearly 1M dedicated acres and ~11‑year average contract tenor create predictable, recurring cash flows that underwrite capital deployment. Multi‑year MVCs reduce exposure to short‑term drilling cycles, improve utilization of built infrastructure, and support steady revenue capture over multiple years.

Technology diversification and royalty potential

Lithium and other mineral extraction partnerships leverage existing water assets to create low‑capex, high‑margin royalty streams. Successful commercialization would diversify revenue away from pure oilfield activity and add durable, margin‑rich cash flow with limited incremental capital intensity.

Negative Factors

Rising leverage

Debt rising to roughly $353M and a higher debt/equity ratio (~0.44) reduces financial flexibility and increases fixed interest obligations. If earnings remain pressured, leverage constrains ability to fund growth internally, raises refinancing risk, and limits buffer against upstream cyclicality.

High near-term capital intensity

Consecutive years of large net CapEx consume cash and delay free cash flow normalization. Hundreds of millions in infrastructure spending require achieving utilization and contracted volumes to generate returns, exposing liquidity and earnings until assets ramp and start producing stable cash flows.

Regulatory and disposal constraints

Tighter regulation and reduced disposal availability in a core basin increase operational complexity and potential costs. These constraints can limit throughput, force accelerated recycling investments, and raise unit economics, making regional growth and margin sustainability more uncertain over the medium term.

Select Energy Services Business Overview & Revenue Model

Company Description

Select Energy Services (WTTR) is a leading provider of water solutions for the oil and gas industry, specializing in water sourcing, transportation, treatment, and disposal. The company operates primarily in the upstream sector and offers a comprehensive suite of services that support exploration and production activities. Select Energy Services is committed to providing environmentally responsible water management solutions that enhance operational efficiency while minimizing environmental impact.

How the Company Makes Money

Select Energy Services generates revenue through multiple key streams, primarily by offering water management services to oil and gas exploration and production companies. Their revenue model includes charging fees for water sourcing, transportation, and disposal services. Additionally, the company earns income from water treatment services, which involve the purification and recycling of produced water. Significant partnerships with major oil and gas operators enhance their service capabilities and market reach, contributing substantially to their earnings. The cyclical nature of the oil and gas industry also influences their financial performance, with revenues typically increasing in periods of high drilling activity and decreasing during downturns.

Select Energy Services Financial Statement Overview

Summary

Mixed fundamentals: the company rebounded from 2020–2021 losses to solid profitability in 2022–2024, but the latest TTM weakened sharply with ~18% revenue decline, near-breakeven net income, higher leverage (debt-to-equity ~0.44), and free cash flow turning negative despite positive operating cash flow.

Income Statement

Results show a strong recovery from deep losses in 2020–2021 to solid profitability in 2022–2024, with healthy gross and EBITDA margins. However, the latest TTM (Trailing-Twelve-Months) period deteriorated sharply: revenue fell about 18% year over year and net income is nearly breakeven, indicating meaningful margin pressure and weaker operating leverage versus prior years.

Balance Sheet

The balance sheet is supported by a sizable equity base and, historically, modest leverage (low debt-to-equity in 2021–2024). That said, leverage stepped up materially in TTM (Trailing-Twelve-Months) with total debt rising to roughly $353M and debt-to-equity increasing to ~0.44, while returns on equity also softened—raising financial risk if earnings remain pressured.

Cash Flow

Operating cash generation has generally been positive and sizable in 2023–TTM (Trailing-Twelve-Months), providing some buffer. The key weakness is volatility in free cash flow: it swung from strong positive in 2023 and 2024 to negative in TTM (Trailing-Twelve-Months), suggesting heavier reinvestment and/or working-capital drag, and reducing near-term financial flexibility despite solid operating cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	1.45B	1.59B	1.39B	764.62M
Gross Profit	197.08M	219.47M	231.66M	160.75M	20.86M
EBITDA	210.26M	211.02M	165.29M	174.03M	44.30M
Net Income	21.22M	30.64M	74.40M	48.28M	-42.23M
Balance Sheet
Total Assets	1.60B	1.37B	1.22B	1.22B	950.19M
Cash, Cash Equivalents and Short-Term Investments	18.08M	19.98M	57.08M	7.32M	85.80M
Total Debt	374.26M	132.74M	53.55M	80.16M	67.31M
Total Liabilities	668.54M	450.75M	326.02M	339.13M	255.02M
Stockholders Equity	805.62M	793.52M	772.49M	765.98M	592.10M
Cash Flow
Free Cash Flow	-79.89M	61.73M	149.49M	-38.65M	-56.24M
Operating Cash Flow	214.67M	234.89M	285.36M	33.23M	-16.25M
Investing Cash Flow	-402.09M	-318.62M	-137.17M	-53.25M	-64.46M
Financing Cash Flow	185.51M	46.64M	-98.42M	-58.45M	-2.54M

Select Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.17 is below the 20-day moving average (MA) of 13.21, below the 50-day MA of 12.08, and above the 200-day MA of 10.17, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTTR.

Select Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTO	67 Neutral	$2.05B	17.14	7.06%	3.40%	11.39%	13.86%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WTTR	61 Neutral	$1.85B	50.49	2.48%	2.62%	-4.60%	-67.28%

Select Energy Services Corporate Events

Select Water Solutions Completes Upsized Equity Offering

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, Inc. The underwriters exercised in full a 30-day option on February 23, 2026 to purchase an additional $26.25 million of shares at $12.75 per share, with that issuance closing on February 25, 2026, bringing total gross proceeds of the equity raise to approximately $201.25 million and further bolstering the company’s capital position.

The completed stock sale expands Select Water Solutions’ financial flexibility, potentially enabling increased investment in its water infrastructure and service offerings within the energy sector. The successful full take-up of the underwriters’ option also signals solid demand from capital markets for the company’s equity, which may strengthen its standing with investors and support future strategic or operational initiatives.

The most recent analyst rating on (WTTR) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Select Energy Services stock, see the WTTR Stock Forecast page.

Select Energy Services Announces $175 Million Equity Offering

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 approximately $166.6 million. The company also granted underwriters a 30-day option to buy up to 2,058,824 additional shares, and plans to use the proceeds to purchase SES Holdings LLC units and fund general corporate purposes, including water infrastructure growth projects, potential acquisitions, and debt repayment under its sustainability-linked credit facility, in a move that strengthens its balance sheet and supports expansion of its energy-water infrastructure platform.

The offering, led by J.P. Morgan Securities and BofA Securities with a syndicate of additional banks, is expected to close on February 23, 2026, subject to customary conditions. The transaction underscores Select’s push to scale its sustainable water and chemical solutions footprint in the energy sector, potentially enhancing its competitive position while modestly diluting existing shareholders through the new equity issuance.

The most recent analyst rating on (WTTR) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Select Energy Services stock, see the WTTR Stock Forecast page.

Select Energy Services Announces $175 Million Equity Offering

On February 19, 2026, Select Water Solutions, Inc. announced it has launched an underwritten public offering of $175 million of its Class A common stock, under an effective shelf registration statement. The company also expects to grant underwriters a 30-day option to purchase up to an additional $26.25 million of shares, with J.P. Morgan Securities LLC and BofA Securities acting as lead bookrunners.

Select plans to use the net proceeds for general corporate purposes, including funding water infrastructure growth projects, potential acquisitions and possible repayment of borrowings under its sustainability-linked credit facility. The equity raise, which remains subject to market conditions and final terms, is aimed at strengthening the company’s balance sheet and supporting expansion in its core water and chemical solutions platform.

The most recent analyst rating on (WTTR) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Select Energy Services stock, see the WTTR Stock Forecast page.