How are energy investors positioned?
Select Energy Services , Inc. (NYSE:WTTR) stock soared to a 52-week high, reaching $14.48 USD, marking a significant milestone for the company. This peak reflects a robust performance over the past year, with the stock witnessing an impressive 95.74% increase in value. Investors have shown growing confidence in the company's prospects, as evidenced by the stock's strong upward trajectory. The 52-week high serves as a testament to Select Energy Services' market resilience and the positive sentiment surrounding its operational and financial developments.
In other recent news, Select Water Solutions showcased robust growth in its third-quarter earnings. The water management firm reported a 20% increase in third-quarter revenues and a 33% rise in gross profit before depreciation and amortization (D&A) compared to the previous quarter. Year-over-year figures were more impressive, with revenue up by 40% and gross profit surging by 99%.
The company also secured 25,000 acres under long-term contracts in the Permian Basin and two pipeline agreements in the Bakken. A disposal acquisition in the Northern Delaware Basin added 10,000 barrels per day of capacity. Despite expected seasonal declines, Select Water Solutions anticipates strong Q4 margins between 51%-54%.
Net income for Q3 2024 stood at $19 million, with an adjusted EBITDA of $73 million, surpassing guidance. The quarterly dividend increased by 17% to $0.07 per share. Approximately $150 million is allocated for growth capital in the water infrastructure segment to enhance revenue and profitability. These are the recent developments for Select Water Solutions.
InvestingPro Insights
Select Energy Services' recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock has demonstrated remarkable strength, with InvestingPro data showing a 100.06% price total return over the past year, corroborating the article's mention of a 95.74% increase. This impressive growth is further supported by strong returns over shorter time frames, with a 29.36% return in the last month and a 31.14% return over the last three months.
InvestingPro Tips highlight that WTTR is trading near its 52-week high, which is consistent with the article's main focus. Additionally, the company has raised its dividend for three consecutive years, with a current dividend yield of 1.97%. This dividend growth, coupled with the stock's performance, may be contributing to investor confidence.
It's worth noting that WTTR operates with a moderate level of debt and has liquid assets exceeding short-term obligations, which could be factors in its strong market position. For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for WTTR, providing a deeper understanding of the company's financial health and market prospects.
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