SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 16—SEGMENT INFORMATION

Select Inc. is a leading provider of comprehensive water-management and chemical 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.

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, including operations associated with our water sourcing and pipeline infrastructure, our water recycling solutions, and our produced water gathering systems and saltwater disposal wells, as well as solids disposal facilities, primarily serving E&P companies.

Oilfield Chemicals — The Oilfield Chemicals segment provides technical solutions, products and expertise related to chemical applications in the oil and gas industry. We develop, manufacture, manage logistics and provide a full suite of chemicals used in hydraulic fracturing, stimulation, cementing, pipelines and well completions for customers ranging from pressure pumpers to major integrated and independent oil and gas producers. This segment also utilizes its chemical experience and lab testing capabilities to customize tailored water treatment solutions designed to optimize the fracturing fluid system in conjunction with the quality of water used in well completions.

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

	For the three months ended September 30, 2022
			Income		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	222,108	$	23,892	$	16,926	$	7,318
Water Infrastructure		76,047		11,193		7,471		10,555
Oilfield Chemicals		79,705		8,657		2,275		1,121
Other		—		(3)		—		—
Eliminations		(2,788)		—		—		—
Income from operations				43,739
Corporate		—		(15,307)		543		527
Interest expense, net		—		(616)		—		—
Bargain purchase gain		—		(3,273)		—		—
Other income, net		—		668		—		—
	$	375,072	$	25,211	$	27,215	$	19,521

	For the three months ended September 30, 2021
			(Loss) Income		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	113,564	$	(1,622)	$	13,698	$	7,847
Water Infrastructure		36,787		(544)		6,860		8,578
Oilfield Chemicals		55,538		(39)		2,346		2,066
Other		—		(2)		—		—
Eliminations		(1,256)		—		—		—
Loss from operations				(2,207)
Corporate		—		(11,568)		562		378
Interest expense, net		—		(419)		—		—
Other income, net		—		87		—		—
	$	204,633	$	(14,107)	$	23,466	$	18,869

	For the nine months ended September 30, 2022
			Income		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	583,955	$	40,772	$	47,857	$	21,309
Water Infrastructure		196,970		17,070		27,341		32,234
Oilfield Chemicals		232,120		18,027		7,228		2,017
Other		—		(111)		—		—
Eliminations		(7,301)		—		—		—
Income from operations				75,758
Corporate		—		(43,338)		1,635		3,031
Interest expense, net		—		(1,830)		—		—
Bargain purchase gain		—		13,768		—		—
Other income, net		—		4,173		—		—
	$	1,005,744	$	48,531	$	84,061	$	58,591

	For the nine months ended September 30, 2021
			(Loss) Income		Depreciation and		Capital
	Revenue		before taxes		Amortization		Expenditures
	(in thousands)
Water Services	$	257,511	$	(24,834)	$	39,091	$	10,820
Water Infrastructure		107,922		228		19,561		18,160
Oilfield Chemicals		148,817		(291)		6,920		3,266
Other		—		(18)		—		—
Eliminations		(4,758)		—		—		—
Loss from operations				(24,915)
Corporate		—		(32,277)		1,835		379
Interest expense, net		—		(1,254)		—		—
Other expense, net		—		(2,876)		—		—
	$	509,492	$	(61,322)	$	67,407	$	32,625

Total assets by segment as of September 30, 2022 and December 31, 2021, is as follows:

	As of		As of
	September 30, 2022		December 31, 2021
	(in thousands)
Water Services	$	565,747	$	533,071
Water Infrastructure		306,105		229,803
Oilfield Chemicals		189,933		180,732
Other		10,616		6,586
	$	1,072,401	$	950,192