Select Energy Services Inc (WTTR)WTTR

Select Energy Services Inc. - A Comprehensive Overview

Company Profile:

History and Background:

• Founded in 1985 as Select Industries Inc.
• Initially focused on providing sand to the oil and gas industry.
• Changed name to Select Energy Services Inc. in 2011.
• Focused on fracking services, including pressure pumping and fluid management.
• Went public in 2014.

Core Business Areas:

• Fracking services (pressure pumping and fluid management).
• Sand logistics and transportation.
• Completion services.
• Water management.

Leadership:

• CEO: John Schmitz (President 2010 - 2014, CEO since 2014).
• CFO: Todd Evans (CFO since 2021).
• Executive Chairman: Stephen D. Moore.

Corporate Structure:

• Headquartered in Houston, Texas.
• Operations across North America.

Top Products and Market Share:

Products:

• Pressure Pumping: Pumping high volumes of fracturing fluid and proppant into wells.
• Fluid Management: Providing a variety of fluids and additives for fracking operations.
• Sand Logistics and Transportation: Acquiring, storing, and transporting sand for fracking.
• Completion Services: Assisting with well completion after fracking.
• Water Management: Sourcing, treatment, and disposal of water used in fracking.

Market Share:

• U.S. Market Share: ~12% in pressure pumping services (2021).
• Global Market Share: ~2% in pressure pumping services (2021).

Product Performance and Market Reception:

• Strong market reputation for quality and reliability.
• Continued investment in technology and infrastructure to improve efficiency.
• Faced competition from larger players in the fracking services market.

Total Addressable Market (TAM):

• Global fracking services market: $226.4 billion in 2022 (estimated to reach $305.7 billion by 2028).

Financial Performance:

Financial Statements:

• Revenue: $2.7 billion (2022).
• Net Income: $125.7 million (2022).
• Profit Margin: 4.6% (2022).
• Earnings Per Share (EPS): $0.57 (2022).

Year-over-Year Performance:

• Revenue increased by 42.2% in 2022 compared to 2021.
• Net Income increased by 57.7% in 2022 compared to 2021.
• EPS increased by 55.8% in 2022 compared to 2021.

Cash Flow and Balance Sheet:

• Strong cash flow from operations.
• Low debt-to-equity ratio.

Dividends and Shareholder Returns:

Dividend History:

• Does not currently pay a dividend.

Shareholder Returns:

• Total shareholder return of 24.6% in 2022.

Growth Trajectory:

Historical Growth:

• Revenue has grown at a CAGR of 15.5% over the past five years (2018-2022).

Future Projections:

• Expected to benefit from increasing demand for fracking services as oil and gas production recovers.
• Company plans to expand its service offerings and geographic reach.

Market Dynamics:

Industry Overview:

• Fracking services market is expected to continue growing in the coming years.
• Increasing demand for cleaner and more efficient fracking technologies.

Company Positioning:

• Well-positioned to capitalize on the growth in the fracking services market.
• Strong financial position and a diverse portfolio of services.

Competitors:

• Halliburton (HAL)
• Schlumberger (SLB)
• Baker Hughes Company (BKR)
• Cudd Energy Services (CUD)
• ProFrac Services (PFX)

Competitive Advantages:

• Strong client relationships.
• Focus on technology and innovation.
• Efficient operations.

Challenges and Opportunities:

Challenges:

• Industry volatility.
• Competition from larger players.

Opportunities:

• Expansion into new markets.
• Development of new technologies.
• Strategic acquisitions.

Recent Acquisitions:

• 2020: Acquired ProFrac Services, expanding pressure pumping and fluid management capabilities.
• 2022: Acquired Keane Group, adding oilfield equipment and services.

AI-Based Fundamental Rating:

Rating: 7 out of 10

Justification:

• Strong financial performance.
• Well-positioned in a growing market.
• Faces competition from larger rivals.

Sources:

• Select Energy Services Inc. website: https://www.selectenergy.com/
• Financial data: Yahoo Finance, Bloomberg
• Industry reports: Statista, Allied Market Research, MarketsandMarkets

Disclaimer:

This information is provided for general knowledge and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.