The following is a summary of the Secure Energy Services Inc. (SECYF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Secure Energy reported adjusted EBITDA of $127 million, or $0.53 per basic share for Q3 2024, meeting the high end of expectations with a robust industry driving demand.

• Full-year adjusted EBITDA guidance reaffirmed within $470 million to $490 million.

• Net revenue for Q3 was $374 million, a decrease year-over-year which was partially mitigated by strong customer demand and pricing increases.

• Net income for the quarter stood at $94 million, or $0.39 per basic share, marking a significant increase from last year.

• Total debt-to-adjusted EBITDA ratio was at 1.1 times, significantly below the target leverage ratio of 2 to 2.5 times, indicating strong financial health.

• Share buybacks continued, returning $77 million to shareholders alongside dividends.

Business Progress:

• The company's name change to Secure Waste Infrastructure Corp to reflect strategic transformation.

• Advanced organic growth capital program with $19 million spent primarily on two new water pipelines and enhancements at the Clearwater heavy oil terminal.

• Positioned with significant financial flexibility for further growth and returning shareholder value via continued strategic acquisitions and share buybacks.

Opportunities:

• Substantial growth in volumes processed at facilities, especially due to increases in water, waste, and oil recovery from production activities.

• Expansion plans paced with capital expenditure, primarily on the Clearwater heavy oil terminal and waste processing facilities.

• Continued utilization of share buybacks as a strategic opportunity to enhance shareholder value given the significant undervaluation compared to peers.

Risks:

• Despite the diversification and strategic dispositions, net revenue showed a decrease due to the divestiture of 29 facilities impacting financial metrics year-over-year.

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