XML 37 R25.htm IDEA: XBRL DOCUMENT

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 17—SEGMENT INFORMATION

Select Inc. is an oilfield services company that provides solutions to the onshore oil and natural gas industry in the United States. The Company’s services are offered through three operating segments. Operating 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 operating segment reflects a reportable segment led by separate managers that report directly to the Company’s CODM.

During the first quarter of 2019, the Company made the decision to sell and wind down certain operations within its former Wellsite Services segment, including the operations of its Affirm subsidiary, its sand hauling operations and its Canadian operations. As a result, the Company reevaluated its segment structure and changed its reportable segments to Water Services, Water Infrastructure, and Oilfield Chemicals.

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, containment, and water treatment and water network automation. Additionally, this segment includes the operations of our accommodations and rentals business, which were previously a part of the former Wellsite Services segment.

Water Infrastructure — The Water Infrastructure segment consists of the Company’s strategic infrastructure assets and ongoing infrastructure development projects, including operations associated with our water sourcing and pipelines, produced water gathering systems and salt water disposal wells.

Oilfield Chemicals — The Oilfield Chemicals segment develops, manufactures and provides a full suite of chemicals used in hydraulic fracturing, stimulation, cementing and well completions, including polymer slurries, crosslinkers, friction reducers, buffers breakers and other chemical technologies, to leading pressure pumping service companies in the United States. 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.

The results of our remaining service lines that were previously a part of the former Wellsite Services segment, 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, 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 income, net			—			(1,701)			—			—
		$	323,887		$	8,639		$	29,749		$	23,166


		For the three months ended June 30, 2018
					Income (loss)			Depreciation and			Capital
		Revenue			before taxes			Amortization			Expenditures
		(in thousands)
Water services		$	234,040		$	27,039		$	18,947		$	33,321
Water infrastructure			55,733			7,030			5,219			7,214
Oilfield chemicals			64,842			1,031			2,823			3,424
Other			39,343			911			3,456			1,860
Eliminations			(711)			—			—			—
Income from operations						36,011
Corporate			—			(11,216)			807			—
Interest expense, net			—			(1,342)			—			—
Other income, net			—			1,720			—			—
		$	393,247		$	25,173		$	31,252		$	45,819


		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 income, net			—			(5,663)			—			—
		$	686,533		$	10,217		$	62,267		$	54,811


		For the six months ended June 30, 2018
					Income (loss)			Depreciation and			Capital
		Revenue			before taxes			Amortization			Expenditures
		(in thousands)
Water services		$	452,395		$	49,757		$	37,839		$	51,218
Water infrastructure			109,790			12,779			10,256			14,650
Oilfield chemicals			128,472			1,962			5,738			5,679
Other			80,167			(58)			7,494			5,378
Eliminations			(1,182)			—			—			—
Income from operations						64,440
Corporate			—			(21,042)			1,348			—
Interest expense, net			—			(2,493)			—			—
Other income, net			—			862			—			—
		$	769,642		$	41,767		$	62,675		$	76,925

Total assets by segment as of June 30, 2019 and December 31, 2018 is as follows:


		As of			As of
		June 30, 2019			December 31, 2018
		(in thousands)
Water services		$	873,107		$	865,992
Water infrastructure			312,638			250,207
Oilfield chemicals			171,457			173,762
Other			19,975			70,644
		$	1,377,177		$	1,360,605