Select Energy Services, Inc. (NYSE:WTTR) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 10:00 am ET


Select Energy Services, Inc. (NYSE:WTTR) Q3 2018 Earnings Conference Call Transcript


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Greetings and welcome to the Select Energy Services' Third Quarter 2018 Earnings 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, Mr. Chris George, VP, IR & Treasurer. Thank you. You may begin.

Chris George

Thank you, operator and good morning, everyone. We appreciate you joining us for the Select Energy Services' conference call and webcast to review our 2018 third quarter results. With me today are John Schmitz, our Executive Chairman; Holli Ladhani, our President and CEO; and Nick Swyka, SVP and CFO.

Before I turn the call over, I have a few house-keeping items to cover. A replay of today's call will be available by webcast and accessible from our website at There will also be a recorded replay available until November 21st, 2018. The access information for this replay was also included in yesterday's earnings release. Please note that the information reported on this call speaks only as of today, November 7th, 2018 and therefore time-sensitive information may no longer be accurate as of the time of the replay or transcript reading.

(Forward-Looking Cautionary Statements)

The listener is encouraged to read our Annual Report on Form 10-K for the year ended December 31st, 2017, our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K to understand those risks, uncertainties and contingencies. Also, please refer to our third quarter earnings announcement released yesterday for reconciliations of non-GAAP financial measures.

And now, I'd like to turn the call over to our Founder and Executive Chairman, John Schmitz.

John Schmitz

Thank you, Chris and I would like to welcome everyone to the Select Energy Services' 2018 third quarter conference call. I'm very pleased with the team's execution and our third quarter financial results. During the quarter, we saw record high revenues, margins, adjusted EBITDA, net income and operating cash flow for Select and the public company. While we did see activity begin to soften late in the quarter, overall our customers remain fairly active for most of the period.

We saw flat to modest incremental increases in rigs, frac crews, completions and frac stages on a full quarter average basis. While we are just at the beginning of our normal 2019 budgeting process, we will be watching E&P budgets closely as they emerge in the coming weeks and months. We continue to believe that our position as the largest water solution provider with operations at all major unconventional basins, our Bluechip client base and our outstanding balance sheet should position us to take advantage of many coming opportunities into the market.

With that, let me turn it over to Holli to give you detailed information on the quarter and our outlook before she hands the call over to Nick to cover the financials. Holli?

Holli Ladhani

Thanks John and good morning everyone. To echo John's comments, we're very proud of the team and