Select Water Solutions, Inc. · NYSE:WTTR
Select Water Solutions — Select Energy Services — Seaport Global 2018 Energy Conference
17 slides from Select Water Solutions's conference presentation, August 2018
Slide 1: Select Energy Services, Inc. Seaport Global 2018 Energy Conference
Select Energy Services, Inc. Seaport Global 2018 Energy Conference August 2018
Slide 2: Disclaimer Statement
Disclaimer Statement Cautionary Statement Regarding Forward Looking Statements This presentation, including the oral statements made in connection herewith, contains certain statements and information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securitie
Slide 3: Unmatched Water-Oriented Oilfield Services Franchise
Unmatched Water-Oriented Oilfield Services Franchise Merger with Rockwater combined two of the largest water solutions companies servicing the North American unconventional oil & gas industry. On a Q2 2018 basis, Select had: P Annualized Revenue of ~$1.6 billion1 P Annualized Adjusted EBITDA of ~$27
Slide 4: Select Energy Services – Company Snapshot
Select Energy Services – Company Snapshot Segment Overviews 1H18 Revenue by Segment & Geography1,2 4% Leading provider of total water solutions to 14% 10% the U.S. unconventional oil and gas industry 37% Water Comprehensive water solutions extending 10% 17% Solutions from sourcing to disposal 12
Slide 5: Scalable and Reliable Water Sourcing and Logistics Are Critical to Unconventional Production
Scalable and Reliable Water Sourcing and Logistics Are Critical to Unconventional Production Evolution of the Oil & Gas Industry’s Approach To Water Emerging Pre - 2008 2008 - 2010 Current Multi-Well Pad Conventional Vertical Early Horizontal Leading Edge Horizontal Development Frac Water per ~15,00
Slide 6: Market Leading Comprehensive Water and Chemical Solutions Company
Market Leading Comprehensive Water and Chemical Solutions Company Completions-Oriented Activities Production-Oriented Activities 90% of Revenue1 10% of Revenue1 Temporary Post-Frac Water Treatment/ Transfer Recycling Flowback / Water Water Pre-Frac Hydraulic Fluids Production Well Sourcing Containme
Slide 7: Industry Leading Customer Base for Water Solutions
Industry Leading Customer Base for Water Solutions Deep customer breadth and diversity as evidenced by no single customer representing more than 6% of revenue and top 20 customers representing approximately 54% of revenue for the Water Solutions segment1 Top Water Solutions Customers Large, divers
Slide 8: Differentiated Oilfield Chemicals Franchise
Differentiated Oilfield Chemicals Franchise Oilfield Chemical Solutions Franchise Completion Chemicals Production Chemicals 87% of Oilfield Chemicals Segment Revenue1 13% of Oilfield Chemicals Segment Revenue1 Leading developer, manufacturer and provider of chemical Engineered chemical solutions
Slide 9: Recent Growth in Financial Performance & Liquidity
Recent Growth in Financial Performance & Liquidity Quarterly Revenue1 Recent Financial Performance Commentary1 2Q18 saw sequential revenue growth of ~4.5% over 1Q18, ($ in millions) $376 $393 representing annualized revenue of ~$1.6 billion $374 $355 Adjusted EBITDA saw an 14% increase in 2Q18 a
Slide 10: Robust Cash Flow Generation with Room to Expand
Robust Cash Flow Generation with Room to Expand • Cash Flow from $mm Cash Flow Summary $mm Liquidity Operations fully covered all capex year to date, 80 250 even after a net working capital increase of nearly 60 199.9 200 $50mm 11.3 40 • We are commencing 60.2 internal initiatives to 53.4 150 20 add
Slide 11: Significant Growth Opportunities
Significant Growth Opportunities Evaluating multiple projects that involve the development of fixed infrastructure connecting both: Water □ Strategic water sources to E&P operator activity Infrastructure □ Producing wells to disposal and recycling facilities Development Long lead time projects t
Slide 12: Attractive Underlying Fundamentals
Attractive Underlying Fundamentals Oilfield Pressure Proppant Land Other Oilfield Chemicals Pumpers Companies Drillers Services High Completion Exposure Hard to Replicate Platform Low Capital Intensity Favorable Competitive Dynamics More favorable Less favorable Differentiated platform driven by att
Slide 13: Market Leading Specialized Pure-Play with a Strong Balance Sheet focused on Return on Assets
Market Leading Specialized Pure-Play with a Strong Balance Sheet focused on Return on Assets 1,400 miles of lay-flat hose 280 well testing spreads Market Leader 1.5 bn barrels of annual water source rights Multiple operating infrastructure projects 75% of total revenue from water-related s
Slide 14: Appendix
Appendix 14
Slide 15: Permian Takeaway Capacity Thoughts
Permian Takeaway Capacity Thoughts Private Companies in the Permian Make Up Less than 10% of Our H2O Business While recent oil and gas takeaway capacity concerns in the Permian are an issue for both Permian activity as well as the overall supply / demand environment, this is a larger concern for s
Slide 16: Select Legal & Ownership Structure
Select Legal & Ownership Structure Crestview & Other Legacy Crestview Public Owners SCF Partners Owners Partners Class B Shares Class A Shares Class A Shares Class A Shares (24.4% of Voting (56.8% of (3.6% of Voting (15.2% of Voting Power) Voting Power) Power) Power) Ownership Summary1 24.4% Select
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Select Energy Services, Inc. 2016 2017 2018 ($ in millions) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Income/(Loss) ($228) ($35) ($25) ($12) ($10) $3 ($15) $16 $25 Taxes 0 0 (1) 0 (0) (0) (1) 0 1 Interest Expense 4 4 4 1 1 0 5 1 0 Depreciation and Amortization 27 22 22 22 23 24 35 31 3
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