SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 17—SEGMENT INFORMATION

Select Inc. is a leading provider of comprehensive water-management solutions to the oil and gas industry in the U.S. The Company’s services are offered through three reportable segments. Reportable segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The Company’s CODM assesses performance and allocates resources on the basis of the three reportable segments. Corporate and other expenses that do not individually meet the criteria for segment reporting are reported separately as Corporate or Other. Each reportable segment is led by a separate manager that reports directly to the Company’s CODM.

The Company’s CODM assesses performance and allocates resources on the basis of the following three reportable segments:

Water Services — The Water Services segment consists of the Company’s services businesses including water transfer, flowback and well testing, fluids hauling, water containment and water network automation, primarily serving E&P companies. Additionally, this segment includes the operations of our accommodations and rentals business.

Water Infrastructure — The Water Infrastructure segment consists of the Company’s infrastructure assets and ongoing infrastructure development projects, including operations associated with our water sourcing and pipeline infrastructure, our water recycling solutions and infrastructure, and our produced water gathering systems and salt water disposal wells, primarily serving E&P companies.

Oilfield Chemicals — The Oilfield Chemicals segment develops, manufactures and provides a full suite of chemicals used in hydraulic fracturing, stimulation, cementing, and well completion and production services, including polymer slurries, crosslinkers, friction reducers, biocides, dry and liquid scale inhibitors, corrosion inhibitors, buffers, breakers and other chemical technologies. This segment also provides chemicals needed by our customers to increase oil and gas production and lower production costs over the life of a well. Our Oilfield Chemicals customers are primarily pressure pumpers, but also include major integrated and independent oil and gas producers.

The results of our service lines divested during 2019, including the operations of our Affirm subsidiary, our sand hauling operations and our Canadian operations, are combined in the “Other” category.

Financial information by segment for the Current and Prior Quarter is as follows:

	For the three months ended March 31, 2020
			(Loss) Income		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	150,152	$	(195,900)	$	17,156	$	1,267
Water Infrastructure		57,884		(82,077)		7,028		2,568
Oilfield Chemicals		71,028		(2,896)		1,998		2,890
Other		—		25		—		325
Eliminations		(779)		—		—		—
Loss from operations				(280,848)
Corporate		—		(9,983)		685		—
Interest expense, net		—		(331)		—		—
Other income, net		—		(222)		—		—
	$	278,285	$	(291,384)	$	26,867	$	7,050

For the three months ended March 31, 2019
	Income (loss)	Depreciation and	Capital

	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	220,880	$	23,660	$	21,262	$	13,126
Water Infrastructure		53,616		3,801		6,089		17,238
Oilfield Chemicals		67,119		2,013		2,453		1,220
Other		23,670		(6,523)		1,714		61
Eliminations		(2,639)		—		—		—
Income from operations				22,951
Corporate		—		(16,318)		1,000		—
Interest expense, net		—		(1,093)		—		—
Other income, net		—		(3,962)		—		—
	$	362,646	$	1,578	$	32,518	$	31,645

Total assets by segment as of March 31, 2020 and December 31, 2019 is as follows:

	As of		As of
	March 31, 2020		December 31, 2019
	(in thousands)
Water Services	$	600,200	$	831,123
Water Infrastructure		230,899		314,026
Oilfield Chemicals		188,472		192,224
Other		7,337		10,247
	$	1,026,908	$	1,347,620