Select Water Solutions, Inc. · NYSE:WTTR
Select Water Solutions — Select Energy Services — Investor Presentation (July 2022)
22 slides from Select Water Solutions's investor presentation, July 2022
Slide 1: Select Energy Services, Inc. Company Overview | July 2022
Select Energy Services, Inc. Company Overview | July 2022
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: Company Overview
Company Overview 3
Slide 4: Company Snapshot
Company Snapshot Segment Overviews 1H 2022 Revenue by Segment1 + Comprehensive water services 24% including water transfer, Water Services flowback and well testing, water Water Water Infrastructure storage and containment, fluids Services hauling, water monitoring and Oilfield Chemicals automation
Slide 5: Market Leading Sustainable Water & Chemical Solutions
Market Leading Sustainable Water & Chemical Solutions Completions-Oriented Activities: ~75% of 2021 revenue Production-Oriented Activities: ~25% of 2021 revenue Beneficial reuse in non-O&G applications Water Solids Recycling & Transfer & Separation Reuse Automation & Disposal (23% of ’21 Revenue) (2
Slide 6: Key Strategies to Maximize Value
Key Strategies to Maximize Value Build and Bolster the Market Leading Base Business • Proven market leader in sustainable water and chemical solutions that will grow profitable market share through scale, operational efficiency, innovation and technical achievements • Improving Customer Activity – S
Slide 7: Recent Strategic Acquisitions
Recent Strategic Acquisitions Over the last four quarters, Select executed on a number of strategic M&A transactions, adding nearly $300 million of annualized run-rate revenue to reinforce the base business while adding a sizable pipeline and disposal infrastructure footprint across the U.S., with m
Slide 8: Recent Growth in Financial Performance
Recent Growth in Financial Performance Recent Financial Performance Quarterly Revenue1,2 Commentary1,2,3 $400,000 Water Services Water Infrastructure $120 Oilfield Chemicals Rev ($000s) / Completion Market Share Gains $350,000 $100 $300,000 + Select’s revenue/completion increased ($000 per well comp
Slide 9: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity • Select’s strong debt free balance sheet and asset light business model provide significant free cash flow generating opportunities Net Cash & Liquidity Profile As Of 06/30/22 First-of-its-Kind Sustainability-Linked Credit Facility Cash $ 25.7 + On March 17, 2022, S
Slide 10: Select is Dedicated to Sustainability
Select is Dedicated to Sustainability Select is dedicated to supporting the entire water value chain. We are committed to accomplish that through the integration of services, infrastructure, chemistry and technology. Key Metrics Near Term ESG Initiatives Treated Water Piped Water (distribution + gat
Slide 11: Top Customers – TTM
Top Customers – TTM Select’s expertise, technology and financial strength lead to a premier, diversified customer base with no customer representing more than 8% of our revenue 1. Top 30 Customers for the trailing twelve months ending June 30, 2022 11
Slide 12: ESG & Technology Updates
ESG & Technology Updates 12
Slide 13: Technology From Start to Finish
Technology From Start to Finish Pre-Frac Frac Post-Frac Automated Measuring & Automated Tank Proportioning & Well Testing Pump Automation Monitoring Manifolds Recycling Technology Technologies • Pond and Pit Mapping • Increased Operational • Automated Actuated • Automated Proportioning • Tank Monito
Slide 14: What is Total Cost Per Barrel
What is ? Evaluate each well with Sourcing Treatment Delivery Chemistry By designing and implementing Identifying and Comprehensive on- Leveraging an Developing, testing evaluating water data the-fly treatment established network and manufacturing entire water and chemical systems, to match the righ
Slide 15: Case Study: Permian Produced Water Recycling Facility
Case Study: Permian Produced Water Recycling Facility + Recently commenced operations on state-of-the-art operator-owned produced water recycling facility in Martin County, TX in the core of the Midland Basin + Select connected existing infrastructure from adjacent operators to increase facility uti
Slide 16: Key Summary Highlights
Key Summary Highlights Market leader in sustainable water and chemical solutions Market Leader through scale, operational excellence, innovation and technical achievements Strong Balance Strong balance sheet with meaningful cash position enables Sheet operational and strategic optionality Delive
Slide 17: Appendix
Appendix 17
Slide 18: Automated Water Networks
Automated Water Networks Select’s suite of WaterONE™ automated equipment and AquaView® monitoring & measurement solutions provide real-time and reliable data and control that ensures best-in-class environmental management that’s customizable, powered by SCADA and accessible from phone, tablet, or la
Slide 19: Case Study: Methane & Waste Gas Management
Case Study: Methane & Waste Gas Management + Select has an exclusive contractual relationship with Emission Rx for high efficiency waste gas combustors (emission control devices) used in the management of methane emissions + Emission Rx enclosed combustor design highlights include: □ 99.99% combusti
Slide 20: Strategic M&A Updates
Strategic M&A Updates + On February 23, 2022 closed on the acquisition of Nuverra Environmental Services, Inc. (NYSE American: NES) (“Nuverra") Total consideration of ~$55 million, consisting of 4.2 million Class A shares and the assumption and repayment of approximately $19 million of debt Nuve
Slide 21: Strategic M&A Updates
Strategic M&A Updates + On October 1, 2021 closed on the acquisition of substantially all of the assets of Agua Libre Midstream, LLC and other water-related assets, operations and assumed liabilities (together "Agua Libre") from Basic Energy Services, Inc. ("Basic") Total consideration of ~$21.1 m
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2020 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Net Income / (Loss) $ (291,219) $ (53,047) $ (36,259) $ (21,208) $ (401,732) $ (27,421) $ (19,616) $ (14,204) $ 11,155 $ (50,086) $ 7,985 $ 14,581 Interest Expense 331 513 789 503 2,136 435 400 419 457 1,711 720 494 Deprecia
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