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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 18—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 infrastructure, and our produced water gathering systems and saltwater disposal wells, primarily serving E&P companies.

​

Oilfield Chemicals — The Oilfield Chemicals segment provides technical solutions and expertise related to chemical applications in the oil and gas industry. We also have significant capabilities in supplying logistics for chemical applications. We develop, manufacture and provide a full suite of chemicals used in hydraulic fracturing, stimulation, cementing, production, pipelines and well completions. Given the breadth of chemicals and application expertise we provide, our customers range from pressure pumpers to major integrated and independent U.S. and international oil and gas producers. This segment also utilizes its chemical experience and lab testing capabilities to customize tailored water treatment solutions designed to maximize the effectiveness of and optimize the efficiencies of the fracturing fluid system in conjunction with the quality of water used in well completions.

​

​

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

Financial information by segment for the years ended December 31, 2020, 2019 and 2018 is as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended December 31, 2020

​

    

​

​

    

Loss

    

Depreciation and

    

Capital

​

​

Revenue

​

 before taxes

​

Amortization

​

Expenditures

​

​

(in thousands)

Water Services

​

$

322,461

​

$

(250,779)

​

$

61,758

​

$

2,161

Water Infrastructure

​

​

125,710

​

​

(96,290)

​

​

27,599

​

​

6,852

Oilfield Chemicals

​

​

160,825

​

​

(13,365)

​

​

9,443

​

​

7,157

Other

​

​

—

​

​

(733)

​

​

—

​

​

330

Eliminations

​

 

(3,891)

​

 

—

​

 

—

​

 

—

Loss from operations

​

 

​

​

 

(361,167)

​

 

​

​

 

​

Corporate

​

 

—

​

 

(33,610)

​

 

2,872

​

 

—

Interest expense, net

​

 

—

​

 

(2,136)

​

 

—

​

 

—

Other expense, net

​

 

—

​

 

(6,295)

​

 

—

​

 

—

​

​

$

605,105

​

$

(403,208)

​

$

101,672

​

$

16,500

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended December 31, 2019

​

    

​

​

    

Income (loss)

    

Depreciation and

    

Capital

​

​

Revenue

​

 before taxes

​

Amortization

​

Expenditures

​

​

(in thousands)

Water Services

​

$

773,946

​

$

51,185

​

$

80,664

​

$

37,692

Water Infrastructure

​

​

221,661

​

​

15,103

​

​

25,665

​

​

53,839

Oilfield Chemicals

​

​

268,963

​

​

17,942

​

​

8,766

​

​

11,110

Other

​

​

33,365

​

​

(8,066)

​

​

1,714

​

​

64

Eliminations

​

 

(6,346)

​

 

—

​

 

—

​

 

—

Income from operations

​

 

​

​

 

76,164

​

 

​

​

 

​

Corporate

​

 

—

​

 

(53,090)

​

 

3,860

​

 

—

Interest expense, net

​

 

—

​

 

(2,688)

​

 

—

​

 

—

Other expense, net

​

 

—

​

 

(14,301)

​

 

—

​

 

—

​

​

$

1,291,589

​

$

6,085

​

$

120,669

​

$

102,705

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended December 31, 2018

​

    

​

​

    

Income (loss)

    

Depreciation and

    

Capital

​

​

Revenue

​

 before taxes

​

Amortization

​

Expenditures

​

​

(in thousands)

Water Services

​

$

897,160

​

$

89,826

​

$

82,875

​

$

120,883

Water Infrastructure

​

​

230,130

​

​

31,579

​

​

23,042

​

​

33,372

Oilfield Chemicals

​

​

260,281

​

​

(7,107)

​

​

10,496

​

​

10,832

Other

​

​

144,499

​

​

(14,021)

​

​

14,124

​

​

7,045

Eliminations

​

 

(3,140)

​

 

—

​

 

—

​

 

—

Income from operations

​

 

​

​

 

100,277

​

 

​

​

 

​

Corporate

​

 

—

​

 

(38,603)

​

 

3,176

​

 

—

Interest expense, net

​

 

—

​

 

(5,311)

​

 

—

​

 

—

Other expense, net

​

 

—

​

 

(360)

​

 

—

​

 

—

​

​

$

1,528,930

​

$

56,003

​

$

133,713

​

$

172,132

​

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

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

​

    

​

2020

​

2019

​

​

​

(in thousands)

Water Services

​

​

$

515,856

​

$

831,123

Water Infrastructure

 

​

​

204,995

 

​

314,026

Oilfield Chemicals

 

​

​

147,612

 

​

192,224

Other

​

​

​

6,896

​

​

10,247

​

​

​

$

875,359

​

$

1,347,620

​

Revenue by groups of similar products and services are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

For the year ended December 31, 

​

    

2020

    

2019

​

2018

​

​

(in thousands)

Oilfield chemicals

​

$

160,825

​

$

268,963

​

$

260,281

Water transfer

​

​

146,728

​

​

355,535

​

​

443,650

Pipeline logistics and disposal

​

​

91,971

​

​

101,145

​

​

100,172

Accommodations and rentals(1)

​

 

62,593

​

​

150,793

​

​

153,013

Flowback and well testing

​

​

61,839

​

​

208,572

​

​

223,828

Fluid hauling

​

​

52,748

​

​

63,156

​

​

79,568

Water sourcing

​

 

33,739

​

 

120,517

​

​

129,958

Eliminations and other service lines

​

 

(5,338)

​

 

22,908

​

​

138,460

​

​

$

605,105

​

$

1,291,589

​

$

1,528,930

​

(1)During 2020, 2019 and 2018, approximately $28.4 million, $69.0 million and $67.2 million of  accommodations and rentals revenue was accounted for under ASC 842 lease guidance, with the remainder accounted for under ASC 606 revenue guidance.

In connection with the Rockwater Merger in November 2017, the Company expanded into Canada and during 2019, the Company divested and wound down Canadian operations. The Company attributed revenue to the U.S. and Canada based on the location where services were performed or the destination of the products or equipment sold or rented. Long-lived assets consisted of property and equipment and are attributed to the U.S. and Canada based on the physical location of the asset at the end of the period. The Company’s revenue attributed to the U.S. was $605.1 million or 100.0%, $1,283.4 million or 99.4% and $1,480.4 million or 96.8% of total revenue during the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s revenue attributed to Canada was zero, $8.2 million or 0.6% and $48.6 million or 3.2% of total revenue during the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s net long-lived assets attributed to the U.S. was $350.4 million or 100.0%, $452.4 million or 99.8% and $492.4 million or 97.9% of total net long-lived assets as of December 31, 2020, December 31, 2019 and December 31, 2018, respectively. The Company’s net long-lived assets attributed to Canada was zero, $0.9 million or 0.2% and $10.5 million or 2.1% of total net long-lived assets as of December 31, 2020, December 31, 2019 and December 31, 2018, respectively.