Select Energy Services, Inc. (NYSE:WTTR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET


Select Energy Services, Inc. (NYSE:WTTR) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to Select Energy Services Third 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]

It's now my pleasure to introduce your host, Chris George, Vice President, Investor Relations and Treasurer. Thank you. Mr. George, 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 2019 Second Quarter Results. With me today are John Schmitz, our Executive Chairman; Holli Ladhani, our President and Chief Executive Officer; and Nick Swyka, Senior Vice President and Chief Financial Officer. Before I turn the call over, I have a few housekeeping 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 telephonic replay available until August 21, 2019. 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 7, 2019, and therefore, time-sensitive information may no longer be accurate as of the time of the replay or transcript reading.

In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of Select's management. However, various risks, uncertainties and contingencies could cause our actual results, performance or achievements to differ materially from those expressed in the statements made by management. The listener is encouraged to read our annual report on Form 10-K for the year ended December 31, 2018, our subsequent quarterly reports on Form 10-Q and our current reports on Form 8-K to understand those risks, uncertainties and contingencies. Also, please refer to our second quarter earnings announcement released yesterday for reconciliations of non-GAAP financial measures.

And now, I would like to turn the call over to our President and CEO, Holli Ladhani.

Holli Ladhani

Thanks, Chris. Good morning, everyone, and thank you for joining us today. Overall, we continue to execute on our strategy to strengthen and differentiate our position is the market leader in Integrated Water and Chemical Solutions, while also delivering meaningful free cash flow. The core tenants of this strategy includes developing attractive organic growth opportunities, investing in technologies that differentiate our services, reduce our costs, and expand our market share potential, and finding strategic both on M&A opportunities that enhance our capabilities, broaden our service offerings, and strengthen our customer relationships. We plan to achieve this strategy all while fortifying our balance sheet through solid free cash flow generation and returning capital to shareholders when appropriate. More specifically, during the third quarter, we grew revenues in a challenging market to strong performance on our strategic water infrastructure assets, as well as continued market penetration to our proprietary friction reducer product lines. We delivered $67 million of operating cash flow, which we deployed