Q4 2024 Select Water Solutions Inc Earnings Call Transcript
Key Points
- Select Water Solutions Inc (WTTR) achieved a record-setting year in 2024 with 26% annual revenue growth and a 62% increase in annual gross profit from the Water Infrastructure segment.
- The company executed nearly a dozen small bolt-on infrastructure acquisitions and increased its base dividend by 17% during the year.
- Select Water Solutions Inc (WTTR) signed eight major new organic infrastructure projects under long-term contracts, encompassing about $150 million of growth capital.
- The company has a strong backlog of additional greenfield, brownfield, and bolt-on infrastructure projects, positioning it as one of the fastest-growing infrastructure franchises in the industry.
- Select Water Solutions Inc (WTTR) announced a $62 million investment in Colorado's municipal, industrial, and agricultural water markets, expanding its operations beyond the traditional energy sector.
- The Water Services segment saw a revenue decline of about 10% in the fourth quarter, driven primarily by seasonal activity declines.
- Gross margins in the Water Services segment decreased to 16.4% in the fourth quarter, which was below expectations.
- The company anticipates a low single-digit percentage revenue decline in the first quarter of 2025 due to deferred water infrastructure revenues.
- Select Water Solutions Inc (WTTR) expects a modestly declining macro activity outlook, which could impact water services revenue.
- The initial investment in Colorado's water markets is expected to have longer paybacks compared to current water infrastructure investments.
Ladies and gentlemen, good morning and welcome to the Select Water Solutions Inc Fourth quarter and year-end 2024 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Garrett Williams, Vice President, corporate finance and investor relations at Select Water Solutions. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you joining us for Select Water Solutions conference call and webcast to review our financial and operational results for the fourth quarter and full year of 2024. With me today are John Schmitz, our Founder, Chairman, President and Chief Executive Officer
Chris George, Executive Vice President and Chief Financial Officer Michael Skarky, Executive Vice President and Chief Operating Officer and Mike Lyons, Executive Vice President and Chief Strategy and Technology Officer.
Before I turn the
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