Select Energy Services, Inc. (WTTR) Tops Q3 EPS by 2c, Revenues Miss

Select Energy Services, Inc. (NYSE: WTTR) reported Q3 EPS of $0.29, $0.02 better than the analyst estimate of $0.27. Revenue for the quarter came in at $397 million versus the consensus estimate of $407.76 million.

Holli Ladhani, President and CEO, stated, "I am pleased with the execution of the Select team in driving our best-ever financial performance on virtually all of our key metrics. In particular, net income grew 25% sequentially and operating cash flow was in excess of $60 million, which more than doubled our second quarter total. We increased revenue, despite industry-specific challenges that emerged in the latter half of the quarter, and improved margins across all three segments of the Company. Operationally, we drove record volumes through our GRR infrastructure system in the Northern Delaware area of the Permian Basin and saw positive customer reception to our recently introduced proprietary high-viscosity friction reducer line produced in-basin at our expanded Midland facility.

"There has been considerable discussion in the market regarding the transient challenges related to Permian takeaway constraints and the degree to which operator budgets were expended over the first three quarters of 2018. However, as 2019 budgets are put into effect, we expect our customer base will return to investing in U.S. unconventional well completions in 2019, as they continued building the backlog of drilled but uncompleted wells with a steady rig count through the third quarter up to today. Additionally, we believe the unique dynamics of the water sector provide a greater degree of pricing stability relative to certain other completions-oriented services. While a temporary decline in completions activity will affect our revenues, we believe we are well positioned to support the progress we\'ve made in improving our margins over the course of the year. Given the growth we expect to see in U.S. onshore completions activity in 2019 and beyond, we will continue to allocate capital judiciously to create value for our shareholders," concluded Ladhani

For earnings history and earnings-related data on Select Energy Services, Inc. (WTTR) click here.

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