Select Energy Services, Inc. Investor Presentation June 2019
Selects Value Proposition Market Leading Pure Play in Large, Growing Water Market Highly Differentiated Capital Discipline with Technology and Strategic Strong Cash Flow Infrastructure Generation Capabilities 3
U.S. Shale: Best Solution to Global Oil Demand Growth IEA Projected Future Oil Supply/Demand Balance 105 Global energy demand is estimated to grow 25% to 2040 100 U.S. shale will need to add 10 million Bbl/d to 95 meet…
Water Market Growing in Size and Complexity 2019 U.S. Water Market Estimated to be 20-25 Billion1 5% 5% Injection Disposal 6% 29% Post-Frac Fluids Hauling U.S. water Water Storage 8% market growing Water Acquisition with…
Select Energy Services Company Snapshot Segment Overviews1 1Q19 Revenue by Segment2,3 6% Comprehensive water services Water including water transfer, flowback 18% Services Water and well testing, water storage and containment,…
Growth in Financial Performance & Liquidity Annual Revenue1 Financial Performance Commentary1 1,800 ( in millions) Efficiency, execution and pricing improvements 1,600 1,529 have led to increased profitability, even as labor 1,400…
Robust Cash Flow Generation with Room to Expand With 81 million of cash flow in 2018, Select has the ability to generate robust FCF and expects to generate 65-80 million in 2019 from continuing operations, or 95-110 million including…
Industry Leading Customer Base in Every Basin Top Water Solutions Customers Top Oilfield Chemicals Customers Expertise and technology allow Select to provide solutions to meet the ever growing complexity of leading edge…
Differentiation through Technology Technology Capability Differentiated Results Operational visibility AquaView monitoring & Data collection measurment Quality control Decreased OpEx AquaLogic automation Increased HSE…
Growth Opportunities in Both Pre-Frac and Post-Frac Water Infrastructure With 10+ years of operations, Select has the landowner and regulatory relationships, the asset portfolio and the balance sheet to support the ever increasing…
Strategic Infrastructure Project Northern Delaware Pipeline Project Select recently announced the commencement of Phase I and Phase II of a new 40 million permanent pipeline infrastructure development in Eddy and Lea Counties in…
Growth Opportunities in Water Services Margin enhancement through increased Margin operational efficiency Enhancement Investments to reduce labor and expand higher- capacity equipment Enhanced technological innovation with…
Strategies to Maximize Value Per Share Operational excellence and innovation/technical achievements Maximizing Free Cash Flow Disciplined approach to growth, achieve strong returns through cycles Maintain a strong…
Selects Value Proposition Market Leading Pure Play in Large, Growing Water Market Highly Differentiated Capital Discipline with Technology and Strategic Strong Cash Flow Infrastructure Generation Capabilities 15
Appendix 16
Select Corporate Profile Select Corporate Profile1 Listing and Ticker Symbol NYSE: WTTR Recent Share Price 10.70 Market Capitalization 1,151MM Enterprise Value 1,161MM Total Outstanding Shares 106.0MM Average Daily Trading…
Revised Segment Structure Overview With the intent to increase transparency into our business, and in conjunction with the further development of our water-related infrastructure offering and the sale & winding down of certain…
Revised Segment Structure Overview, continued As a result of the resegmentation, certain reclassifications have been made to the Companys prior period financial information in order to conform to the current period presentation Water…
Market Leading Comprehensive Water and Chemical Solutions Company Completions-Oriented Activities Production-Oriented Activities Temporary Post-Frac Water Treatment/ Transfer Recycling Flowback / Water Water Pre-Frac…
Historical Financial Summary by Segment ( in millions) 2018 2019 Q1 Q2 Q3 Q4 Q1 Revenue by Segment Water Services 218,230 233,954 233,504 211,096 220,595 Water Infrastructure 54,057 55,727 65,877 54,454 53,616 Oilfield Chemicals…
Historical Financial Summary by Segment (cont.) ( in millions) 2018 2019 Q1 Q2 Q3 Q4 Q1 D&A Water Services 18,891 18,947 19,987 25,050 21,263 Water Infrastructure 5,037 5,219 5,960 6,826 6,089 Oilfield Chemicals 2,915 2,824 2,115…
Water Represents a Critical, but Lower-Cost Input to the Frac, with Less Price Volatility Secular trends driving demand for increasingly complex and sophisticated water solutions Water is a critical component of a successful well…
Select is a Proven Partner Meeting the Complexity Demanded in Todays Oilfield Technology Scale Expansive suite of remote monitoring and Largest water solutions service provider in the automation technologies within our oil and gas…
Growth in Permian Drilled but Uncompleted Wells Supports Future Growth in Completions Activity U.S. Drilled but Uncompleted (DUC) Well Inventory: Last 2 Years 9,000 8,000 7,000 Total U.S. +48% 6,000 5,637 wells to 8,500 5,000 4,000…
Scalable and Reliable Water Sourcing and Logistics Are Critical to Unconventional Production Evolution of the Oil & Gas Industrys Approach To Water Emerging Pre - 2008 2008 - 2010 Current Multi-Well Pad Conventional Vertical…
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