On December 31, 2024, Crestview Partners II GP, L.P. (Trades, Portfolio) executed a significant transaction by acquiring an additional 16,221,101 shares of Select Water Solutions Inc (WTTR, Financial). This acquisition increased the firm's position in the company by 22.66%, bringing its total holdings to 20,120,296 shares. The transaction was completed at a price of $13.24 per share, slightly above the current stock price of $13.14, indicating a minor decline of 0.76% since the transaction. This strategic move highlights Crestview Partners' confidence in Select Water Solutions Inc's potential within the energy sector.
About Crestview Partners II GP, L.P. (Trades, Portfolio)
Crestview Partners II GP, L.P. (Trades, Portfolio) is a well-established investment firm headquartered in New York, focusing primarily on the financial services and consumer cyclical sectors. The firm manages an equity portfolio valued at $733 million, with significant investments in companies such as Camping World Holdings Inc (CWH, Financial), Select Water Solutions Inc (WTTR, Financial), and Victory Capital Holdings Inc (VCTR, Financial). Crestview Partners is known for its strategic investments and long-term growth focus, making it a prominent player in the investment landscape.
Overview of Select Water Solutions Inc
Select Water Solutions Inc, trading under the symbol WTTR, is a U.S.-based company that provides sustainable water and chemical solutions to the energy industry. The company operates through segments such as Water Services, Water Infrastructure, and Chemical Technologies, with a market capitalization of $1.35 billion. Select Water Solutions Inc is committed to supporting the energy sector with critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities. Despite its promising business model, the stock is considered modestly overvalued with a GF Value of $10.28 and a Price to GF Value ratio of 1.28.
Financial Metrics and Valuation
The recent transaction by Crestview Partners was executed at $13.24 per share, while the current stock price stands at $13.14. This slight decline of 0.76% since the transaction suggests a modest overvaluation, as indicated by the GF Value of $10.28. The stock's Price to GF Value ratio is 1.28, reflecting its current market valuation relative to its intrinsic value. Select Water Solutions Inc has a GF Score of 62/100, suggesting poor future performance potential, despite a 30.50% revenue growth over the past three years.
Industry and Competitive Landscape
Operating within the Oil & Gas industry, Select Water Solutions Inc faces competition from other firms offering similar services. The company's balance sheet and interest coverage ranks are moderate, indicating a stable financial position. With a Financial Strength rank of 7/10 and an Altman Z score of 2.89, the company maintains a solid foundation in a competitive market.
Other Notable Investors
Hotchkis & Wiley Capital Management LLC holds the largest share percentage of Select Water Solutions Inc, showcasing the stock's appeal among various investment firms. Other investors, such as Keeley-Teton Advisors, LLC (Trades, Portfolio), also hold significant positions, indicating a broad interest in the company's potential within the energy sector.
Transaction Analysis
The acquisition of additional shares by Crestview Partners II GP, L.P. (Trades, Portfolio) underscores the firm's confidence in Select Water Solutions Inc's growth prospects. This transaction has increased the firm's position in the company to 28.1% of its portfolio, reflecting a strategic focus on the energy sector. Despite the stock's modest overvaluation, Crestview Partners' investment suggests a belief in the company's long-term potential and resilience in a competitive industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
