GAINESVILLE, Texas - Select Water Solutions, Inc. (NYSE: WTTR), a company specializing in water and chemical solutions for the energy sector, has declared a quarterly cash dividend. On Thursday, the company’s Board of Directors announced a dividend of $0.07 per share for Class A common stock, payable on February 14, 2025, to shareholders on record by February 4, 2025. The dividend represents a yield of 2.04%, with InvestingPro data showing the company has consistently raised its dividend for three consecutive years.
In a parallel move, SES Holdings, LLC, a unit of Select, will distribute an equivalent $0.07 per unit to its unitholders, adhering to the same schedule. Select has indicated that future dividends will be contingent upon quarterly assessments and approval from the Board. According to InvestingPro analysis, the company maintains a strong financial position with liquid assets exceeding short-term obligations and operates with a moderate debt level, supporting its dividend program.
Select Water Solutions is recognized for its sustainable practices in managing water resources for the energy industry. The company emphasizes the safe and environmentally sound handling of water during the entire lifecycle of a well. Its operations span critical water infrastructure, chemical manufacturing, and water treatment and recycling. The company underscores the importance of responsible water management to its ongoing success.
The announcement of the dividend is part of Select’s commitment to providing value to its shareholders and unitholders alike. The decision to issue this dividend reflects the company’s financial health and its ability to generate cash flow while maintaining its operations and growth strategies. With a market capitalization of $1.65 billion and an impressive 94% return over the past year, Select Water Solutions has demonstrated strong performance. InvestingPro subscribers have access to 8 additional key insights about WTTR’s financial health and growth prospects, along with comprehensive analysis in the Pro Research Report.
This dividend payment is based on a press release statement issued by Select Water Solutions, Inc. The company’s dedication to environmental stewardship and the sustainable management of water resources is integral to its business model and corporate ethos. For further details, investors and interested parties can refer to the company’s website or contact their investor relations representatives.
In other recent news, Select Water Solutions reported robust growth in its third-quarter earnings call, with a 20% increase in revenues and a 33% rise in gross profit before depreciation and amortization (D&A) compared to the previous quarter. The year-over-year figures were even more impressive, with revenue up by 40% and gross profit surging by 99% compared to the same quarter in 2023. The Water Infrastructure segment reported record revenues of $82 million with a 57% gross margin.
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. Select Water Solutions expects Q4 margins to remain strong at 51%-54% despite an anticipated 10%-15% revenue decline in the Water Infrastructure segment.
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 some of the recent developments for Select Water Solutions.
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