Select Water Solutions (WTTR) Stock Analysis & Winston Score

Select Water Solutions helps oil and gas companies manage water during the drilling process. When companies drill for oil or natural gas, they use enormous amounts of water, and that water has to be sourced, transported, treated, and disposed of safely. Select Water Solutions handles all of those steps, making it a behind-the-scenes service provider to the energy industry across the United States. The company earns money by charging oil and gas producers for water-related services, including water sourcing, recycling, and disposal, as well as selling chemical products used in drilling operations. It operates primarily in major U.S. shale basins like the Permian Basin and Eagle Ford. Its main competitive advantage is its integrated water infrastructure network, which is expensive and time-consuming for competitors to replicate. The biggest risk the company faces is that its revenue depends heavily on how much drilling activity is happening, which rises and falls with oil and gas prices.