SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 and the Current and Prior Period is as follows:

	For the three months ended June 30, 2020
			Loss		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	56,090	$	(22,518)	$	15,880	$	(48)
Water Infrastructure		15,439		(11,037)		7,024		(205)
Oilfield Chemicals		21,174		(7,216)		2,604		1,614
Other		—		(38)		—		—
Eliminations		(464)		—		—		—
Loss from operations				(40,809)
Corporate		—		(6,996)		834		—
Interest expense, net		—		(513)		—		—
Other expense, net		—		(4,856)		—		—
	$	92,239	$	(53,174)	$	26,342	$	1,361

	For the three months ended June 30, 2019
			Income (loss)		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	202,997	$	16,234	$	21,024	$	9,489
Water Infrastructure		51,719		3,202		6,072		11,542
Oilfield Chemicals		62,997		4,424		1,747		2,132
Other		9,403		673		—		3
Eliminations		(3,229)		—		—		—
Income from operations				24,533
Corporate		—		(13,354)		906		—
Interest expense, net		—		(839)		—		—
Other expense, net		—		(1,701)		—		—
	$	323,887	$	8,639	$	29,749	$	23,166

	For the six months ended June 30, 2020
			Loss		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	206,242	$	(218,418)	$	33,036	$	1,219
Water Infrastructure		73,323		(93,114)		14,052		2,363
Oilfield Chemicals		92,202		(10,112)		4,602		4,504
Other		—		(13)		—		325
Eliminations		(1,243)		—		—		—
Loss from operations				(321,657)
Corporate		—		(16,979)		1,519		—
Interest expense, net		—		(844)		—		—
Other expense, net		—		(5,078)		—		—
	$	370,524	$	(344,558)	$	53,209	$	8,411

	For the six months ended June 30, 2019
			Income (loss)		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	423,877	$	39,894	$	42,286	$	22,615
Water Infrastructure		105,335		7,003		12,161		28,780
Oilfield Chemicals		130,116		6,437		4,200		3,352
Other		33,073		(5,850)		1,714		64
Eliminations		(5,868)		—		—		—
Income from operations				47,484
Corporate		—		(29,672)		1,906		—
Interest expense, net		—		(1,932)		—		—
Other expense, net		—		(5,663)		—		—
	$	686,533	$	10,217	$	62,267	$	54,811

Total assets by segment as of June 30, 2020 and December 31, 2019 is as follows:

	As of		As of
	June 30, 2020		December 31, 2019
	(in thousands)
Water Services	$	559,889	$	831,123
Water Infrastructure		194,622		314,026
Oilfield Chemicals		149,727		192,224
Other		7,076		10,247
	$	911,314	$	1,347,620