GAINESVILLE, Texas - Select Water Solutions, Inc. (NYSE:WTTR), a provider of water and chemical solutions for the energy sector, has announced a 17% increase in its quarterly cash dividend. The new dividend of $0.07 per share for Class A common stock is payable on November 15, 2024, to shareholders on record as of November 5, 2024. Similarly, unitholders of SES Holdings, LLC will receive a comparable distribution, subject to the same dates.
John Schmitz, the company's Chairman, President, and CEO, commented on the dividend increase as a reflection of the Board's confidence in Select's operational strength and ability to generate cash flow. Schmitz highlighted that the company's capital-efficient business model and growing contracted infrastructure contribute to its ability to enhance shareholder returns while maintaining a disciplined capital structure.
Select Water Solutions is recognized for its sustainable water and chemical solutions, supported by its critical water infrastructure assets and recycling capabilities. The company emphasizes the importance of environmentally responsible water management throughout the lifecycle of a well. This commitment to responsible water management is seen as integral to the company's ongoing success.
The announcement of the dividend increase is based on a press release statement from Select Water Solutions, Inc. The company's approach to shareholder returns and business growth strategies are outlined by the CEO, emphasizing a balance between capital return programs and expansion initiatives. This news may interest shareholders and investors who track the financial stewardship and performance of companies within the energy industry.
In other recent news, Select Water Solutions has seen some significant developments. The company's recent financial outcomes reveal a net income increase to $15 million. This growth is accompanied by an adjusted EBITDA climb to $69.5 million. Record revenue and gross profit were reported in the Water Infrastructure segment, with margins before depreciation and amortization reaching 51%. Despite decreased activity in the Chemical Technology segment, Select Water Solutions anticipates steady growth and margin improvement in the Water Infrastructure segment.
Furthermore, Northland recently upgraded Select Water Solutions' stock from Market Perform to Outperform, setting a price target of $14.50. This upgrade reflects Northland's increased confidence in the company's growth strategy within the Water Infrastructure sector. The firm also expressed heightened confidence in Select Water Solutions' advantageous position in the emerging opportunity with beneficial reuse.
These recent developments underscore Select Water Solutions' strategic initiatives and its positioning to capitalize on emerging opportunities within its industry. The company's transition from a business heavily reliant on completions to one more weighted towards production has been viewed positively for the company's future growth and financial stability.
InvestingPro Insights
Select Water Solutions' recent dividend increase aligns well with its financial health and market position. According to InvestingPro data, the company's dividend yield stands at 2.24%, with a notable dividend growth of 20% over the last twelve months. This increase in shareholder returns is supported by the company's solid financial footing.
InvestingPro Tips reveal that Select Water Solutions operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This financial stability allows the company to pursue its dividend strategy while maintaining operational flexibility. Additionally, the company has been profitable over the last twelve months, with a P/E ratio of 16.52, suggesting a reasonable valuation relative to its earnings.
The company's revenue for the last twelve months as of Q2 2023 was $1.49 billion, with a gross profit margin of 24.65%. While there has been a slight revenue decline of 5.21% over the same period, the company's ability to maintain profitability and increase dividends speaks to its resilient business model and efficient operations.
Investors interested in a more comprehensive analysis can access additional InvestingPro Tips, with 13 more tips available for Select Water Solutions on the InvestingPro platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.