Select Energy Services, Inc. (NYSE: WTTR) reported Q3 EPS of ($0.36), $0.09 worse than the analyst estimate of ($0.27). Revenue for the quarter came in at $101.24 million versus the consensus estimate of $103.34 million.

Holli Ladhani, President and CEO, stated, "While the third quarter was not without its challenges, based on recent discussions with our customers, I believe we've already seen the market bottom of the current downturn. We continue to closely monitor the global crude oil demand outlook, and though current market conditions remain challenging, we are experiencing significant ongoing positive trends, with activity levels having increased steadily over the course of the third quarter. We generally expect these positive trends to continue, and anticipate further activity improvements in 2021.

"Our revenue growth during the third quarter was driven by strong recoveries in our Oilfield Chemicals segment and our Bakken infrastructure, two businesses with high operating leverage, resulting in strong incremental gross margins quarter over quarter. And while we were unable to get back to breakeven EBITDA for the third quarter, we remain on an encouraging trajectory, reaching positive Adjusted EBITDA levels in September on a normalized basis. We remain optimistic about the future and are moving into the fourth quarter with steady momentum.

"We delivered our eleventh consecutive quarter of positive free cash flow, with meaningful contribution from working capital in addition to the team's disciplined restraint around capital expenditures. This resulted in cash flow from operations less capital expenditures, net of asset sales, of $19 million during the third quarter, for a total of $117 million through the first nine months of 2020. With $185 million of cash and cash equivalents at quarter end and no bank debt, we remain very well-positioned to navigate this downturn, and to capitalize on opportunities created by the current market dislocation and future recovery.

"Looking ahead, we are confident that we will identify opportunities to deliver clear shareholder value and enhance our market position, while protecting our strong balance sheet. At the same time, we are prepared to remain disciplined and patient to ensure we deliver value," concluded Ladhani.

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