Select Water Solutions, Inc. · NYSE:WTTR
Select Water Solutions — Select Energy Services — Piper Sandler 22nd Annual Energy Conference 2022
22 slides from Select Water Solutions's conference presentation, March 2022
Slide 1: Select Energy Services, Inc.
Select Energy Services, Inc. Piper Sandler 22nd Annual Energy Conference | March 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 2021 Revenue by Segment1 + Comprehensive water services 28% including water transfer, flowback and well testing, water Water Water Services storage and containment, fluids Services hauling, water monitoring and automation and other on-site 52% Water Infrastructure
Slide 5: Market Leading Sustainable Water & Chemical Solutions
Market Leading Sustainable Water & Chemical Solutions Completions-Oriented Activities Production-Oriented Activities Temporary Recycling & Production Water Reuse Chemicals Transfer Treatment & Flowback & Water Water Hydraulic Fluids Landfill Well Well Sourcing Containment Fracturing Containment Oper
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: Strategic M&A Updates
Strategic M&A Updates1 Over the last three quarters, Select executed on a number of strategic M&A transactions, adding nearly $300 million of annualized run-rate revenue2 to reinforce the base business while adding a sizable pipeline and disposal infrastructure footprint across the U.S., with meanin
Slide 8: Recent Growth in Financial Performance
Recent Growth in Financial Performance Recent Financial Performance Quarterly Revenue1,2 Commentary1,2,3 Market Share Gains ($000 per well completion) + Select’s revenue/completion increased ($ in 000s) 19% from 1Q20 to 4Q21, despite well completions being down 23% over this period(2) Quarterly Adju
Slide 9: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity • As of Dec 31, 2021, Select maintains a strong balance sheet with a $86 million net cash position • Q1 cash balance will be impacted by the repayment of ~$19 million of Nuverra outstanding debt as well as incremental working capital needs driven by substantial recen
Slide 10: Top Customers – 2021
Top Customers – 2021(1) Select’s expertise, technology and financial strength lead to a premier, diversified customer base with no customer representing more than 6% of our revenue 1. Top 30 Customers for the year ended December 31, 2021 10
Slide 11: ESG & Technology Updates
ESG & Technology Updates 11
Slide 12: Select is Dedicated to ESG
Select is Dedicated to ESG First-of-its-Kind Sustainability-Linked Credit Facility 2021 ESG Highlights1 + On March 17, 2022, Select successfully transitioned its existing Asset-Backed Loan facility into a Sustainability-Linked Loan facility, while extending the facility through March of 2027 + Selec
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: 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 15: Treatment Cost
What is ? Connecting services to address dynamic problems Water Quality and • Water quality issues Compositional Analysis • Pre-frac spec and delivered spec differ • On-the-fly changes to frac chemistry are costly Water Sourcing and sub-optimal Result Water Transfer • A better performing well • A ch
Slide 16: 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 17: 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 18: 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 Strong balance sheet with meaningful cash position enables Balance Sheet operational and strategic optionality Delive
Slide 19: Appendix
Appendix 19
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 ~$51 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 22
Select Energy Services — Piper Sandler 22nd Annual Energy Conference 2022 on 6ix