Select Water Solutions COO Trims His Stake — the Bull Case Is Real but So Is the Cash Burn

Select Water Solutions' COO Michael Skarke sold 110,000 shares (23.37% of his direct holdings) for $1.91 million in May 2026. While the company has a strong bull case with hard-to-replicate water infrastructure serving the energy sector and 33.6% YoY revenue growth, significant concerns remain: negative free cash flow of $67 million last quarter, $200-250 million capex guidance for 2026, and a dilutive equity raise in February. The company's profitability depends on infrastructure being fully contracted before E&P activity softens, making it a cyclical bet in an uncertain energy market.