Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Select Energy Services Fourth Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Chris George. Chris. you, Thank

begin. You may

Chris George

John quarter operator, today joining President and and President Vice our Founder, to We Chief you, and Executive Vice the morning, our of good for Select's you Financial fourth for Officer; Chief XXXX. CEO; us are results Chairman, webcast and appreciate full conference Swyka, Officer. year Nick With Schmitz, financial me Skarke, Thank Operating operational Senior and President everyone. and and Michael call review and

the I information available have There be selectenergy.com. from Before March until this today's A to a accessible few call The at replay also was replay will turn over replay will yesterday's X, XXXX. John, also housekeeping included available call for cover. and in website I via be webcast items access earnings a to our telephonic of release. recorded

Please time-sensitive be note of the reported XX, as information time the or February XXXX, replay this may only speaks of listening information transcript on call that as of the reading. and no therefore, today, accurate longer

made the the Select of federal by the laws. States during statements call may this comments of contain the forward-looking United addition, In securities forward-looking These meaning current conference views statements reflect within management management.

yesterday non-GAAP to risks, report our our XX-Q current Also, refer or and made understand announcement uncertainties well various our by read The released those contingencies. and our as achievements quarterly reports XX-K, on these to for management. those to uncertainties on financial Form Form reports our as in Form performance of X-K please measures. reconciliations cause annual statements earnings the risks, However, is to contingencies from actual results, could expressed differ materially on listener encouraged

turn Schmitz. Now the President CEO, our and over John Chairman, call I'd to Founder, to like

John Schmitz

to morning Select, again a start discussing Thanks, like Overall, I'm time and and very exciting for to you the joining us. with achievements past of some for was thank our Select excited I'd Good over you by today. highlighting Chris. be XXXX year.

and XX% adjusted EBITDA of the of approximately with During year XXXX, billion and $XXX total million. XXX%, finishing adjusted by EBITDA by grew we revenues revenues $X.X

As record net per with earnings share. importantly, the we income finished year and

we Water and a Infrastructure us incremental during the continue bringing balance market revenues both strategic to has Water our different employee reap Services discipline acquisitions Select adding of in segments, to a meaningful and achieving contracted of dedicated number levels a a two of while per growth and organic dozen capitalize dislocated our strong a executed over closed We've basis. to our revenues, last business. portfolio technology Chemicals, the and record and production-weighted to maintaining a achieved benefits revenue on Across allowed years. stability of all-time high sizable financial projects, always been on initiatives, sheet, consolidation

example, recently For Basin. signed Delaware contracts support new projects multiple the to we long-term in new recycling

additional stability track continue number paid development, building see I these customer component and first-ever I this capital of for overall and shareholders contracts year. Having to our a to forward dividend record capital of framework. to to projects as XXXX. capital allocation initiated look give provided returning of interest around proud our during infrastructure I acquisitions, and by quarter strategy. quarterly contracting opportunities dividend additional a particularly incremental of The around week, from full four see optionality solutions am We a base amount in lifecycle allocation a new have last just growth our enhancing tremendous Accordingly, us solid initiatives, our our second-ever

the to building well business, on and advancing executing technology, remained water has strategy our efforts couple last the our partner oil Select time, water water. bolstering as and industry. sustainability be water our diversification solutions. the industry. recognized steadfast in gas chemicals Over Select core the focused vision of full of and connection technology years, to dedicated as At built and executing to new clear strategy and me one for is represented service is in a strategic And the been chemistry our well uniquely opportunity which for a as Select sorts efforts the have that the sustainable this leader to an XX off. to and trusted refined focus positioned life-cycle It a have our that management leader beginning, culmination as our these to on XXXX over reinforces of and in paying M&A. our was core, we initially company become integrated as years only last

develop and market industry These reuse chemistry the that industry. to share lead efforts in continue us towards new have our the and helped solutions. recycling have sustainable helped technologies creative We grow

from other to critical, solutions our industry, provide usage Approximately, These alone, sustainable Texas. of billion gallons months Select allowing to This prosper the continue of facilities of as this of long-term energy of XXXX city barrels million fixed or came XXX X ahead. contracts, the During will water. for equal water coming reuse two mobile for our years solutions water more from with recycled produced to operations. Austin, recycling transition more the two than than thirds of it in active part is under energy of third traditional

for too power energy essential We abundance is often responsible gas extent, the that dramatic of The of last and the an to seen believe XX ingenuity in created revitalized economical shale oil the has ingredient impact human U.S. a lesser United taken have of the production important and, production contribution This progress. and globally fueling granted. to and of energy States the the years revolution. is

seeks investments the the to all mobility other to energy stakeholders customers are to fuels for that and materials will remain our a also economy the for producing risk thoughtful and clean we and homes, new provide firmly Select global and as reduce climate needed part to affordable, poverty products innovation of transition. to and committed energy for sustainable access that people, Ultimately, power comprehensive world can technologies. energy the produce advanced through mitigate the to to refined advancing the ways responsible improve sustainable engineer As solutions needed change of develop energy energy reliable, and

However, assets and and resource of a management solutions, shale broadly creative our using were advancing we to our not change, sectors, that solutions years, Whether believe dozen realignment. divesting that for expertise a full is a of uniquely niche traditional energy Select our technologies pace production. other vision. development the on range opportunities diverse chemical positioned operations is are within and strategic capitalize diverse recent and beyond unconventional to has capabilities into transition application industrial building that waste me Select in sustainable water have water new strategic and our closed With is that our is to clear we more to on while expertise. also lifecycle ready noncore In through growth existing it developing support upon and acquisitions,

I announce Accordingly, our excited am to initiative. corporate rebranding

the intends Select name Solutions, first Water During change Select XXXX, Inc. to of half to its

We WTTR, York as under Stock on the New will company. ticker, remain traded Exchange embracing water-first heritage the a our stock

structures segment and corporate are financial changing. our not reporting now, For

external recognition with XX our for of This the and technologies rebranding this unique our will and our operating communications we customers employees change are capabilities across our field our significantly ensure However, nationwide. simplify and and brands entire more currently operations. than maximum consolidating operations, brand platform that also DBAs will align receiving

our integrated corporate deploying embody launched around connections. look good for a also And about for partnerships people, I networks communities, or To and brand bold are pipelines whether future teams our a water have new customers, water. integrating new into marketplace surrounding our business is our months I and logo. Whether connected creating by sustainable emblem large it's identity, stewards molecules it's making to with water. of all forward believe the new we in connected we our uniting about by Select, a ahead. or chemistry, vivid infrastructure it's all being the future brand or our

initiative this ahead years Select the prepares Importantly, also us. of for

chemical net other meaningful I Supported XXXX. growth our strategic infrastructure growth EBITDA and in technologies, opportunities by advanced acquisitions, our income and investments, organic see revenue, recent

I the opportunities, organically also and sure what to fits additional holds for and executing shareholders’ XXXX. the Select on am growth, new M&A, through future seek improving execution evaluating excited and our to forward earnings continue further through this hold what vision long look business term. constantly We about during to returns exciting through base very strategy will making ourselves and accountable both while and strategic

turn the other over I’d fourth XXXX to like initiatives. it on Nick Now Nick? quarter and details outlook to performance, provide financial our ongoing more our to

Nick Swyka

acquisitions Thank you, regular increased our corporate We our and transformational everyone. dividends infrastructure and initiated that net $XXX John, XXXX vast year a by first-ever numerous for asset was million, annual potential. Select. development offer income completed good and morning,

borrowing safety facility, and employee translates sustainability-linked annual rate. which in a We to targets also our our exceeded lower water-recycling credit embedded

we on consolidate to even brands Water while accomplishments, ahead. greater plan our impact. expect efficiency our Solutions, things greater for various Infrastructure these expanding and greater Building we for operations Select At Water

after first Cost the our to margins. During for seek, our inflation in and we foremost, boost years growth, coupled eased XXXX, dozen of acquisitions, will rapid with a two various operating organic meaningfully has inputs

a us And opportunity business. to bottom to through efficiency of with the efforts, with an larger provides the internal dollar carry revenue combined this, line. part

achieving forward represents to rate incremental approach year, performance with across a tremendous opportunity run during revenue expected business. endeavor further This levels and will approaching relentless increase high all-time the With to the already efficiencies we a

for flow us to pull and through cash the into profitability additional business.

Next, through asset investments capacity. our pipelines around organic we recycling, build footprint seek to will system infrastructure upon and

$XX to and $XX coming guidance our CapEx million capital-light $XX million just of business model into our original below Our year, year. of last last million guidance last million previous to coming $XX net million well consumed below from of $XX in quarter

cash from developing apply footprint enhancing infrastructure research With duplicative manufacturing. the we’ve Midland fourth Basin into lab During our XXXX, most Delaware recycling disposal advanced core around recycling Bakken assets generated added recent and our able our acquisitions investments, targeted new additional pipeline sale quarter, were and systems chemistry the distribution or strategic pipeline our in networks assets complement to in-basin like and our through we Northern unneeded and from facilities to there. water of or

Quality them strategically growing higher our customers. minimal to within portfolio needs our leverage value than and with tie suited fund our development importantly, assets network on basis, water like balanced given infrastructure these further different across ability many to have potential a a into to ability do a stand-alone they

customers, advance for an leverage our XXXX to million $XX bring basins. sales. $XX by net to $XXX multiple the long-term Depending network million, investments to and on with years market we come. grow ultimate giving of conditions cash projects will in will roughly CapEx various Select realization between of under after supported be acceleration come investments discussions of effect and expect flow expected discussion across These million will position to asset infrastructure as our XXXX we that leading customer contracts

adjusted importantly, most and bring flow. to streamlining Finally, free comfortably integration expect fund deliver operations, only and thirds single our to of flow large the a This we our we roughly additional around a uplift also capital free other expect capital systems two ERP working and not into rebranding in initiatives, shareholder offer XXXX optionality while of EBITDA. flexibility cash returns commitment and of Through but would to cash our program,

rebuilding net position. cash a strong

We see through second of the further in benefits quarter. quarter as the accelerate integration first these we acquisition expect efforts in to the work

Cash bank million million that million flow, very net in we quarter. the debt the in Breakwater cash $X of of in plus a flow position of $X This was the operations $XX payments, meaningful $XX to resulted from net finished We million the our $X.X sustainability-linked flow with to million flow operations $XXX subject quarter still of $XX million drawn along and the debt in which, million and conjunction applied and fourth. total third net $XX million. of acquisition, on elimination acquisition-related of of consideration improvement liquidity. increased in CapEx a of facility total cash the closing CapEx from $XX dividend in towards with cash modest with credit free from the million less $XX.X costs, quarter cash fourth of On million realized

million quarter. million of $X.X was or the quarter customer weather by for $XXX grew income expenses quarter reserve EBITDA activities November million winter net which from $XX.X The revenue and certain million. totaling total onward in $XX.X million, contributed million from with delaying sequentially. adjustments non-ordinary by when million about and decreased Fourth regions, million Acquisitions X% impacted most all $XX from of $X.X insurance to $XX.X $X.X adjusted revenue to combined

January, Looking as segment forward, and gross we percentage first D&A, and but Breakwater revenue basins. we work points Water challenges revenue through expansion in with three margins the to Services by outlook The two experienced we weather-related percentage in improving uneven expect points margin integration before in quarter. some gassier increased anticipate the an across business modestly

in been high making to expect will XX% benefit of full Infrastructure XXs biggest we take our the with the with We quarter combined a investments D&A from we’ve [ph] acquisitions QX, margins range. infrastructure-related Water to the step growth, gross forward XX% revenue in deliver XX% to recent before as

was I’m strong organic new project additional to announced organic bring The latter excited recycling the the affected John directly activity, the it revenue part and not acquisition by Chemicals and of the will year about in see segment, which this returns latest beyond. continues expansion.

record-high We this anticipate water-related fourth led solutions number applications quarter chemistry and margins. expanded have with with continuing customers. stable certain relatively relationships quarter revenue across advanced share gain near key first gross to Our continue multiple to

quarter performance, I flow earnings our and of forward expect the see generation the our demonstrate over improvement solid While a to as in financial first well. in free remainder fully further should step revenue, cash XXXX

of of transaction quarter. million in SG&A $X.X million was the costs $XX.X by impacted fourth

the as as course first as costs we well those costs down transaction While percent of also revenue the SG&A aim as half have a the back of over costs, decrease some initiative X% year. through to the will quarter to work we of first rebranding

flow cash and core $XX minimal to improved is as per million ahead for a And free robust see us I in very and remain priority. we management profile a depreciation of amortization to expect We capital XXXX. working flow the expense tax earlier, Generating full expense positive quarter cash range through low mentioned the be through year.

hand John? back I’ll final that, for remarks. it With to John some

John Schmitz

Thanks, Nick.

us I’d question a into elsewhere. X,XXX answers, to moment joining jump like and Cypress employees, from team thank take members newest over Breakwater, we our Before including our to and now

team the best and experts Select. of the think the chemical together I we into and from have consolidation water continue this benefit brought will in industry to one

to asset the special. heights new technical relationships have banner I something reaching Solutions. forward the customer under build base, into of alongside to Select and XXXX jump balance Water excited to very sheet, We really and expertise them, look I’m

open up to with Operator? Thank that, it you. And we’ll questions.

Operator

from Thank you. One Luke your [Operator of Instructions] line comes Our first Capital Lemoine with question. question Please Securities. the proceed with

Luke Lemoine

you’ve you along and you potential? for have announced Hey all our continually reorg, frame done good morning. how to acquisitions get of Just about XQ Luke this maybe that organically, year, facility think this Lemoine, should to but several KPIs, or talked Piper you little could yesterday. about recycling profitability as profitability rev don’t a if invest Sandler. Nick, growth. on the and integrated this just you’re Once revenue a initiatives we and and with John the outside various see is little we you you a segment-level side significant wanted And us? bit of or up tough kind complete

Nick Swyka

Sure.

direction some we So XQ gave there.

the of to rest growth quarter you today, year, Water the third quarter that we Infrastructure second out what in into from tailwinds given in on you that, have CapEx will that long-term and on solid projects it some a infrastructure, this of majority on focused behind total cases, so, adding basis. doing for year around contracted saw then Group look the that I first moving described think you into I recycling from think that many the of and as pace connecting be that

the torque the that, that’s I given most you’ll think the the remainder that segment see through year. of So in

benefit. in integrating we on at there, out the on we we’ve operations, system, we’re focused what have but existing any together As the shale taking great on had some good On look to momentum Water throughout opportunities on acquired ability very there the a we’ve without Chemicals, further do putting Services, have line. transaction Lower that there costs expand roof basins. unified beyond We basis XX

to innovate R&D We development. also some that we have the have ability continue to under new around

in margin I our our well. think group existing you’re continuation on in strong strongest that to so as you’ll to Chemicals the acquisitions, performance based the see infrastructure footprint, I But ability And very growth the overall, the high invest asset see asset opportunities. footprint, in of going think

John Schmitz

Luke, John. Yes. a to this here. with I’ll Nick it add bit little is

to history company, you company the $X.X really billion the see if you you’ll look at million somewhere $XXX high around XXXX, think I the back point the of of of go and EBITDA.

to that did think XXXX that ability infrastructure assets about base. and and The the management shifted infrastructure just to opportunity the whether If way recycling added. of did together, we wells distribution what streams. place at It’s around very streams collection contracts just The we ranches, it’s different. ability put disposal and we much put productive in you surface use with and XXXX or waste into look transactions asset what that we’ve and to or agreements water, in exchange revenue and is the

water of the will the of the this And the company of – coming application more asset of of because recycle majority lot But Nick said, of well, revenue and full side base to out of as relationship, production contract being this of because just that’s life the now directed instead transactions side fixed CapEx of is the is way cycle a long-term well. where the water be completion targeted. of drilling now the opportunity and these of

the is and opportunity So that asset a it heavily different base we’ve the very the within piece of much weighted it created, infrastructure to business.

Luke Lemoine

out? talked the Anything cash good then quantification the kind getting on of reorganizing, [ph] that on of or about side and a this. on either that, taken uplift with streamlining margin and of flow cost taking to reorganizing, Okay. are a free hear you kind bit rebranding And being out, you costs

John Schmitz

go first. I’ll Yes,

in company and wins probably a about multiple the of of of is at nature. the multiple work into operations it’s are is – work that and But of first top transactions year some it’s either is us. we and was another, we very that us. the one not behind do. company different systems, down very ticketing that the of clear front us, that execute from consolidating to have and system of lot consolidation And and going different not managed in we lot on executive it’s to be the of another, manage to on that – And yards able branch and us to think at integration being from field did in front we’re things of behind that I or the we’re really the processes ERP region the mentioned Nick with this processing working of that to the capital ERP a streamlining it, in to multiple effect inherited systems, big a has early new a today. being half than one

It market rebranding of comments different can single the as our Chris dozen different from, to and has customers a to with different across that positions will and that United do ERP XX the also going bill communicate that what system. companies and around the customers go to our take three really we States with or said, market

needs is big streamlining system us integration is and that ERP So of capital really ticketing the working that really still rebranding system. the where of that of today. a And the is the and in hung up field the integration piece front of is the

Nick Swyka

company have that becoming rebranding we If as is position and really think ourselves well. benefits It talk the we working specifically, does capital working I about how we’re market. in more the so Yes. the about capital

to our if X flow million flow look improved million. from Now performance, cash fourth quarter’s overall we at cash XX operating

increased XX flow mentioned, our by As free million. I cash

And made there. considerable progress so we

the through the acquisition. working partial the capital and collect capital typically our of operated. days working don’t quarter acquisitions the quarter Breakwater built you from a Now partial that they entirety given XX of we corporate acquired through operations We

the so number overall And capital working did increase.

progress made So good more a lot certainly there. have we We to work do.

I working capital a for pretty into big this tailwind expect – XXXX. We will turn mentioned as

investments, in that’s provide flow us extremely XXXX considering mechanisms whether a lot acquisitions. cash considering or increasing That’ll of free shareholder strong. new organic new it’s new expect of We returns or optionality,

potential the about XXXX. excited for there really I’m So

Luke Lemoine

Okay, got time. Appreciate the it.

John Schmitz

Luke. Thanks,

Operator

Tom of Our next question Seaport Partners. Research proceed Please your with comes Curran from with the line question.

Tom Curran

morning. Good

John Schmitz

morning, Good Tom.

Tom Curran

XXX? when then the up would of the just working the capital. processing to And include acquisitions? out the don’t Nick, it slid of where as that? left expect just given integration systems, where the picking I call, if approaches the of us attempting of off you’re you the various expect on Microsoft complete conversation believe that’s I migration you’ll around you in field Could the maybe to be with now by last [indiscernible]. that then of assets at you finish to the batch additional ticketing update latest end again, because migration collection the to But also know

Nick Swyka

thank you. Yes,

target avenues that a So process acquisitions, we little Tom, integrate. with obviously more fully a remains and the still brings half to first same, the more that and But ensure, target little work is there. new

mean ability see from the three the the a all run, to going quarter. doesn’t capital the to transition benefits across benefits John of Now platforms going all learning that ERPs ease through time. going and provide mentioned, in and brands which Probably half. to all and to we’ll little curve eight the in always of it more long see first one we’ll to customers of customers a mean drive from But streamlining There’s lot from doesn’t work the the working that’s as say management. better billing I’d with sales in access a our lot three we’re third

XXXX innings quarter in technology on the objectives more in cash our meet if flow our improvement see the we’d We in the quarter early But initiatives even like we’re So that. still addition here. fourth didn’t free to the in that’s pace think have I some the fourth work of of the front. do improvement integration to to given,

John Schmitz

I’d this bit I Nick’s like little could, to comments. Tom, John. add to if a is

we and we’ve field the is the ticket to on of with very what this processing allow footprint put been and that that that’s can ERP we or One make and harvest whatever it us system it’s fits that developed opportunity the asset the it unique whether able to opportunity want things base of, to we’ve this that properly. do the with top sure

in of up we field the through transactions. And the case four ticketing, with ended

We’re times to to we opportunity the that or one, months one picked make right what took and with in one and going do this going asset fits we’re sure base. several efforts the to that

So it is us. we’ve infrastructure along is footprint in put it executed. the together through asset we and well thought as around we think It We primarily now. base long with front think be of that very the to what – to going is opportunity, the position

Tom Curran

for Thanks additional Understood. explanation, that John.

still For of services key be pursuing the do gross will water the through division’s that XQ of streamlining and you XXs low margin to able in services, you’re water to expect reach terms be level? efficiency determinants what XQ to and ability achieve the a sustainably initiative in for the

Michael Skarke

Tom, short, we forward. looking Michael we’re still In at this for forecasting yes, is Skarke. in expect That’s water what going that services.

put lot base efficiency, can and the just to mean, companies efficient business. and as as we’re we through together a mentioned, of make working it it’s we making processes sure that continuing I terms of streamline John execute In as possible. and

simplifies it delivering more to the customer. and allows we’re to the when operations solution that us efficient be So our

John Schmitz

The are service service in information real be a time margins that can Yes, act have different. this, act The get business. a together. companies information going always you’ve got think that Wednesday. put but really Tuesday business, to in of. I’ve information have And flow have processes and lot and a run When put service with of it. consolidated the to on that you it’s to about very we piece I we to good on oilfield put very, in mode, you important is disciplined components the Tom, information one off you like said,

get kind our we of hit will margins believe in We sector that business. that that of do information, and can we

Tom Curran

And split natural for please give That’s of activity? on customer gas-oriented guidance between me. you side and the us idea Would on assumes your XQ what update one your oil-directed helpful. last And your base? then natural an of gas-oriented us

Nick Swyka

Yes.

course, So of there. that the we've, seen weakness has the same market

we're We count. largely Lower Our XX% rig XX the overall Tom, starters. breakdown, for Permian unconventional mirror

oil that's As a far to XX-XX as overall, about gas-weighted, gas.

in especially systems, certainly. does You to the that's less production lot a and infrastructure can Permian associated what benefit don't going strong to some in But lower assets, gas have than very But have some do completions. impacts from be for the on activity ongoing new point prices, gas Haynesville. impacted we We focused there. production that

lot So we're very customers to hopefully the need but cost customers Freeport to in weakness, coming Europe some solutions that market, back to active We positioned, online, inventories. overall, a see there. it do of our lower near-term do have rebuild with to hedging improvement profiles for both weather well and offer

Michael Skarke

more and with Yes, that, the going coming one the side, thing prices efficient. pipeline gas I be seen is increase because down, they're would on solutions to to add recycling Tom, natural we've a material in around conversations

will we're to a or and of of and it LOE And a regardless up but obviously, kind pick slow the operator and activity. And down is to trend going so on for side, whether it's secular we somewhat, recycling expense. way see oil, do – think gas their reduce continue this the to that it's AFEs natural something

John Schmitz

Yes, the infrastructure the stability Tom, our as bought are recycling now within strong this space, the and that growth that you as Breakwater, facilities, is Nick infrastructure as said, far across follow Basin. revenue we or to Lower important very where you the of are Permian that profitability, John. XX. revenue piece the And go and our especially most and running can if rigs revenue according really really But base

lifecycle that in got on and you it. if very think production the or Haynesville And gathering strong in produced the we disposal with water, that care Nuverra system the system well that is of

the long-term or dollars of high capital production-related importantly natural most directed So potentially it's although just by either focusing near, high where we us opportunity pokes contracts levels gross gas lifecycles for but have in that gives activity. slowdown asset really prices, activity, to do where areas to biggest that is the get really probably could we're base our and not affected has margin

Tom Curran

all my exposure. it. some the the turn to That back. it's side Thanks silver makes it Got of linings natural for nature given taking nice gas hear on unique I’ll sense, your and questions.

John Schmitz

Thanks, Tom.

Operator

with from Research. [Operator Our of Robertson next Jeff with the Tower your Instructions] Water line question comes question. Please proceed

Jeff Robertson

Thanks for effort. rebranding the taking on A questions. my question

businesses? the additional to opportunities. just – You talk they might you be or – of be referenced mentioned – they your And about maybe you accretive those how level, diversification what kind of would existing what at what a margin entail? or high Can would opportunities notion

John Schmitz

adding as This within focused is we of water at together do the right the to this that. we appreciate in what developed And round to in is the add we've chemistry process the this position developed all delivery. job chemistry that of two case. One water have in Sure. which the sets John. two, we position skill the the as the it. happens, usable put our chemistry I movement, containment, put now application we company sourcing water We it for the look really make that of And and technology, question. the fracking needs is areas to with that after source do, it

believe side of or do we of match chemistry life in can that we fits the full this in the if in management that of we this business the into lot and believe water in waste cycle, manner fracking business industries. side We a different that

space. of done that how on chemistry usable But chemistry. the just have focused we're And matching we some, what is that it and and just uniqueness we done and could and the it's oil into we've water somewhere, make besides be needed actually areas other that So to take water. gas just could the

Michael Skarke

Yes. This is Michael again.

one waste things on of to elaborate the John mentioned around Just management.

here managing and business. tasked right industrial in team, front of because the and opportunity grow is apply us, did the something the doing full this them We the with in expanded last management a our an chemistry managing well waste they're kind pit the to X.X and operation the closed acquisitions other fit oilfield products in is look we we years a for us organic waste bottoms in of management. develop we've two waste to that lifecycle. And and drilling expansion continuing is the muds, to So and positioned of as logical really natural

Jeff Robertson

Okay, thank you.

Operator

Please question Our from the next Boyd comes Mark of proceed with with question. Next line Capital. your Shawn

Shawn Boyd

me hear you Can you. okay? Thank

Nick Swyka

ahead. Yes, Shawn, go

Shawn Boyd

we're net Great. now. million it million $XXX $XX about to year, million next CapEx CapEx $XX guidance, was to expected million like be I and thought looks talking to $XX

correct? I estimation? have off I So that that was did on Or

Nick Swyka

Yes, million Shawn, we guidance that at XXXX recently, there. our for $XX finished most Or was XXXX. for

at the million maintenance on and $XX million, it that XX-XX of Looking we growth to $XXX side. as think

So to where come number maintenance think for our accurate pretty in. we I is expect that

Shawn Boyd

it. Got

Okay.

a back of I number of Understood. I bit previous And you something, assets way, is point, like would asked this us for to different to little which of steer you've in you segment? I each at kind guess this – how the at think, of terms that want that's what are the and So go the I organic is year? have sort got growth Luke point,

going thinking can forward, I us little can see helpful, a the by you how emphasis but it on about growth terms if of here Infrastructure, organic in segment. Water we're be just would of give bit guidelines

Nick Swyka

sure. Yes,

laid and going to that revenue be So be think of of that's CapEx really out, piece going Infrastructure, oftentimes most growth mentioned, with the to going we've them those production-levered investment QX, as I contracted the revenue, is around focus with large existing bulk I towards building assets our with of Water growth out enhancing here.

active release E&P. independent comes long-term in large – project recycling customer contract announced have discussions. that respected yesterday press number a of a big our excited about. So a with exciting We really That with we're we the

will expecting lot And those quarterly down those the deals. more to consummate and have a share here so we we we're those pike as year, coming definitely this of

Operator

the Schmitz closing That John turn our will for I remarks. does question-and-answer – back And call to we therefore, over session. conclude will

John Schmitz

you, the Operator. Energy. in appreciate interest I Yes. today Thank Select

well excited very assets now. We the been as the the of opportunities asset space. are in the the to put We – think together this of transactions about got to we've base we've the customer and business movement across landowners in infrastructure these great because water side relationships years base as and the and of two the last have we

you to next talking to and you much. forward thank look very So quarter,

Operator

Ladies your This for and gentlemen, conclude thank today's teleconference. you participation. does

your have a day. You wonderful may disconnect and lines

Select Energy Services (WTTR) 22 Feb 232022 Q4 Earnings call transcript