Select Water Solutions COO Trims His Stake — the Bull Case Is Real but So Is the Cash Burn
Written by Seena Hassouna for The Motley Fool -> 110,000 shares directly sold for a total transaction value of ~$1.91 million. The sale accounted for 23.37% of Michael Skarke’s direct holdings. All activity was conducted through direct ownership. Michael Skarke (EVP & COO) of
110,000 shares directly sold for a total transaction value of ~$1.91 million.
The sale accounted for 23.37% of Michael Skarke’s direct holdings.
Michael Skarke (EVP & COO) of Select Water Solutions (NYSE:WTTR) reported the direct sale of 110,000 shares for a total of approximately $1.91 million over two open-market transactions on May 11 and May 12, 2026, according to a SEC Form 4 filing .
Transaction value based on SEC Form 4 weighted average purchase price ($17.40); post-transaction value based on May 12, 2026 market close ($18.05).
* 1-year performance is calculated using June 4th, 2026 as the reference date.
Select Water Solutions is a leading provider of integrated water management and chemical solutions, operating at scale with approximately 3,700 employees and a diversified revenue base. The company leverages permanent and semi-permanent infrastructure to deliver end-to-end water lifecycle management, supporting critical operations in the energy sector. Its competitive advantage lies in its ability to offer comprehensive services and products tailored to the complex needs of large E&P customers.
Skarke’s discretionary sale while the stock was near the upper end of its recent range. But with significant skin still in the game, this isn't a vote of no confidence, but it's worth understanding what you're actually buying before drawing any conclusions. When a shale operator drills a well, someone has to source the water, pipe it to the site, treat it with the right chemistry during fracking, then manage the wastewater that flows back — Select charges fees at every step, from per-barrel disposal rates to chemical sales to long-term contracted recycling capacity. That infrastructure is hard to replicate, which is the TLDR bull case. Water Infrastructure revenue grew 33.6% year-over-year as recycling volumes ramped under long-term contracts, and the company is deliberately shifting its mix toward higher-margin, contracted revenue — an internal execution story more than an oil price story. The catch is that investors are funding that build today against revenues that arrive later. Free cash flow was negative $67 million last quarter, capital expenditure guidance for 2026 runs $200–250 million, and the company raised $192 million in a dilutive equity offering in February at well below current prices. If E&P activity softens before the infrastructure is fully contracted and earning, the payback timeline stretches. Oil and its relate industries are inherently cyclical. Although WTTR does have some buffers built in I personally still feel wary of buying a stock like this in the current energy market . The time to buy was probably about a year ago.
Before you buy stock in Select Water Solutions, consider this:
