Select Energy Services, Inc. (NYSE: WTTR) reported Q4 EPS of ($0.21), in-line with the analyst estimate of ($0.21). Revenue for the quarter came in at $133 million versus the consensus estimate of $117.87 million.

John Schmitz, Chairman and CEO, stated, "During the fourth quarter, we continued to see improvement across all of our business segments with 32% revenue growth and a return to solidly positive Adjusted EBITDA territory, led by significant throughput restoration in our Water Infrastructure segment. Clearly, 2020 was a tough year, but both industry activity and our operations are steadily improving and the business is in a very good place today.

"We have a market-leading position in both water and chemicals, and we continue to find synergies between the two businesses to generate incremental revenue. To that end, as previously disclosed, we recently partnered with two blue-chip operators in the core of the Permian on two water recycling facilities supported by long-term contracts. This infrastructure will streamline their water logistics, reduce costs and help our customers achieve their ESG targets by reducing their environmental impact. Water recycling and reuse is a core focus of our long-term strategy and an important way for us to help the industry achieve its sustainability targets.

"We continue to stay disciplined with our capital and demonstrate the cash generation potential of our asset-light business model. We even surpassed our initial pre-pandemic 2020 cash flow targets, supported by $106 million of operating cash flow generated during 2020. We plan to continue to demonstrate this discipline in 2021 and expect to be free cash flow positive this year, despite anticipated working capital headwinds during the first half of year.

"We've rightsized the cost structure of the Company and continue to look for more ways to improve, as we enter 2021 with significant operating leverage. This operating leverage was on full display in the fourth quarter with incremental margins of about 40% across the board. While recent severe weather conditions will cause some temporary, but significant disruptions across the business during the first quarter, we believe revenues will be up somewhere between 5%––10%, though margins could see a modest compression. Looking further, we expect to see positive activity trends throughout the rest of 2021.

"My primary objective will remain driving value in this company, whether that's through advancing and growing the base business in an improving activity environment, through deploying our expertise in water and chemicals across the value chain or through evaluating strategic M&A. There's a lot of opportunity out there, and I'm confident we can execute our strategy.

"Select sits in a very strong position in the marketplace with no debt, strong cash flow and a substantial cash balance. In addition to this financial strength, we have the ability to leverage our competitive strengths as the oil and gas industry's leading sustainable water and chemical solutions provider to expand into new areas or other industries to take advantage of the energy transition," concluded Schmitz.

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