| SEGMENT INFORMATION |
NOTE 16—SEGMENT INFORMATION Select Inc. is a leading provider of sustainable water and chemical solutions to the energy 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 Infrastructure — The Water Infrastructure segment consists of the Company’s fixed infrastructure assets, including operations associated with our water distribution pipeline infrastructure, our water recycling facilities, our produced water gathering pipelines, SWDs, and our solids management facilities, primarily serving E&P companies. Water Services — The Water Services segment primarily consists of the Company’s water-related services businesses, including water sourcing, water transfer, fluids hauling, water monitoring, water containment and water network automation, primarily serving E&P companies. Additionally, this segment includes the operations of our accommodations and rentals and flowback and well testing businesses. Chemical Technologies — The Chemical Technologies 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 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 for the recycling and treatment of produced water and to optimize the fracturing fluid system in conjunction with the quality of water used in well completions. In assessing segment results and allocating resources, the CODM places particular emphasis on significant expense categories, including cost of revenue, selling, general & administrative expenses, and depreciation, accretion, and amortization. The CODM evaluates segment performance primarily based on segment EBITDA, which serves as the key profitability measure for decision-making. The Company reports EBITDA by segment as a measure of segment performance. The Company defines EBITDA as net income, plus interest expense, income taxes, and depreciation, amortization and accretion. 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, 2025 | | | | | | | | | | | | | | | | | | | | | | Water Infrastructure | | Water Services | | Chemical Technologies | | Other | | Eliminations | | Totals | Revenue | | $ | 81,244 | | $ | 217,952 | | $ | 68,300 | | $ | - | | $ | (3,281) | | $ | 364,215 | Costs of revenue excluding depreciation, amortization and accretion | | | (39,262) | | | (173,341) | | | (56,086) | | | - | | | 3,281 | | | (265,408) | Depreciation, amortization and accretion | | | (22,252) | | | (17,089) | | | (1,713) | | | (1,918) | | | | | | (42,972) | Selling general and administrative | | | (5,356) | | | (8,943) | | | (4,583) | | | (20,053) | | | | | | (38,935) | Other(1) | | | 4,024 | | | 2,371 | | | 123 | | | (1,581) | | | | | | 4,937 | | | | | | | | | | | | | | | | | | | | Net income | | | | | | | | | | | | | | | | | $ | 11,671 | Interest expense, net | | | | | | | | | | | | | | | | | | 5,645 | Tax expense | | | | | | | | | | | | | | | | | | 4,521 | Depreciation, amortization and accretion | | | | | | | | | | | | | | | | | | 42,972 | EBITDA | | $ | 40,650 | | $ | 38,039 | | $ | 7,754 | | $ | (21,634) | | | | | $ | 64,809 | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 60,756 | | $ | 5,386 | | $ | 807 | | $ | 343 | | | | | $ | 67,292 |
| | | | | | | | | | | | | | | | | | | | | For the three months ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | Water Infrastructure | | Water Services | | Chemical Technologies | | Other | | Eliminations | | Totals | Revenue | | $ | 68,880 | | $ | 231,550 | | $ | 66,828 | | $ | - | | $ | (2,127) | | $ | 365,131 | Costs of revenue excluding depreciation, amortization and accretion | | | (35,304) | | | (178,393) | | | (55,960) | | | - | | | 2,127 | | | (267,530) | Depreciation, amortization and accretion | | | (14,629) | | | (21,012) | | | (1,804) | | | (748) | | | | | | (38,193) | Selling general and administrative | | | (4,566) | | | (7,669) | | | (4,704) | | | (22,042) | | | | | | (38,981) | Other(1) | | | (121) | | | 1,267 | | | (580) | | | (109) | | | | | | 457 | | | | | | | | | | | | | | | | | | | | Net income | | | | | | | | | | | | | | | | | $ | 14,899 | Interest expense, net | | | | | | | | | | | | | | | | | | 2,026 | Tax expense | | | | | | | | | | | | | | | | | | 3,959 | Depreciation, amortization and accretion | | | | | | | | | | | | | | | | | | 38,193 | EBITDA | | $ | 28,889 | | $ | 46,755 | | $ | 5,584 | | $ | (22,151) | | | | | $ | 59,077 | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 34,760 | | $ | 13,218 | | $ | 827 | | $ | 147 | | | | | $ | 48,952 |
| | | | | | | | | | | | | | | | | | | | | For the six months ended June 30, 2025 | | | | | | | | | | | | | | | | | | Water Infrastructure | | Water Services | | Chemical Technologies | | Other | | Eliminations | | Totals | Revenue | | $ | 153,890 | | $ | 445,899 | | $ | 144,986 | | $ | - | | $ | (6,176) | | $ | 738,599 | Costs of revenue excluding depreciation, amortization and accretion | | | (75,362) | | | (355,083) | | | (121,078) | | | - | | | 6,176 | | | (545,347) | Depreciation, amortization and accretion | | | (42,049) | | | (34,254) | | | (3,426) | | | (2,843) | | | | | | (82,572) | Selling general and administrative | | | (11,039) | | | (17,731) | | | (9,108) | | | (38,489) | | | | | | (76,367) | Other(1) | | | 3,487 | | | 2,307 | | | 704 | | | (1,644) | | | | | | 4,854 | | | | | | | | | | | | | | | | | | | | Net income | | | | | | | | | | | | | | | | | $ | 21,231 | Interest expense, net | | | | | | | | | | | | | | | | | | 10,521 | Tax expense | | | | | | | | | | | | | | | | | | 7,415 | Depreciation, amortization and accretion | | | | | | | | | | | | | | | | | | 82,572 | EBITDA | | $ | 70,976 | | $ | 75,392 | | $ | 15,504 | | $ | (40,133) | | | | | $ | 121,739 | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 101,432 | | $ | 23,790 | | $ | 2,012 | | $ | 839 | | | | | $ | 128,073 |
| | | | | | | | | | | | | | | | | | | | | For the six months ended June 30, 2024 | | | | | | | | | | | | | | | | | | Water Infrastructure | | Water Services | | Chemical Technologies | | Other | | Eliminations | | Totals | Revenue | | $ | 132,734 | | $ | 462,131 | | $ | 141,901 | | $ | - | | $ | (5,087) | | $ | 731,679 | Costs of revenue excluding depreciation, amortization and accretion | | | (71,372) | | | (360,090) | | | (118,134) | | | - | | | 5,087 | | | (544,509) | Depreciation, amortization and accretion | | | (28,530) | | | (42,126) | | | (3,681) | | | (2,006) | | | | | | (76,343) | Selling general and administrative | | | (8,820) | | | (16,420) | | | (9,956) | | | (47,765) | | | | | | (82,961) | Other(1) | | | (202) | | | (524) | | | 528 | | | 177 | | | | | | (21) | | | | | | | | | | | | | | | | | | | | Net income | | | | | | | | | | | | | | | | | $ | 18,774 | Interest expense, net | | | | | | | | | | | | | | | | | | 3,298 | Tax expense | | | | | | | | | | | | | | | | | | 5,411 | Depreciation, amortization and accretion | | | | | | | | | | | | | | | | | | 76,343 | EBITDA | | $ | 52,340 | | $ | 86,145 | | $ | 13,283 | | $ | (47,942) | | | | | $ | 103,826 | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | 61,413 | | $ | 23,416 | | $ | 2,369 | | $ | 83 | | | | | $ | 87,281 |
| (1) | Other includes lease abandonment costs, impairments, bargain purchase gain, gains or losses on sales of property and equipment, tax receivable agreements expense, equity in losses of unconsolidated entities and other income and expenses. |
Total assets by segment as of June 30, 2025 and December 31, 2024, is as follows: | | | | | | | | | As of | | As of | | | June 30, 2025 | | December 31, 2024 | | | | (in thousands) | Water Infrastructure | | $ | 803,897 | | $ | 652,870 | Water Services | | | 553,265 | | | 523,545 | Chemical Technologies | | | 141,092 | | | 136,658 | Other | | | 48,235 | | | 53,209 | Total | | $ | 1,546,489 | | $ | 1,366,282 |
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