Select Energy Services, Inc. Historical Segment Results | November 6, 2019 Disclaimer Statement 2 Cautionary Statement Regarding Forward Looking Statements This presentation contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, regarding Select Energy Services, Inc.'s ( ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2019 was $45.2 million, a decrease of 7.6% compared to $48.9 million in Q2 2018, primarily due to challenges in the lay flat hose business [18] - Adjusted EBITDA for Q2 2019 was $5.3 million, an increase from $4.1 million in Q1 2019, with an adjusted EBITDA margin increase of 324 basis points [30] - The net loss for Q2 2019 was $5 million, improved from a net loss of $11.2 million in the same period last year [28] Business Line Data and Key Metrics Changes - Revenue in Rocky Mountain internal trucking operations increased by 3.7% year-over-year, while third-party trucking revenue decreased by approximately 17% [20] - In the Northeast division, revenue improved by 11.6% year-over-year due to the acquisition of new disposal wells, with disposal revenue more than tripling compared to Q2 2018 [21] - The Southern division experienced a 10.5% revenue decrease, primarily due to reduced disposal volumes from a key pipeline customer [22] Market Data and Key Metrics Changes - Rig counts in the operating basins increased by 1% year-over-year, with the number of wells completed up by 5% [24] - Oil production volumes increased by 14% and gas production by 19% in the basins where the company operates [24] Company Strategy and Development Direction - The company is focused on creating scale, improving market presence, and enhancing customer value propositions while maintaining a conservative leverage ratio [14] - Strategic investments are being made in core assets, with a disciplined approach to capital spending [31] - The company is diversifying its customer base and developing strategies to better serve top customers [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive market environment and the need for ongoing improvements to translate initiatives into better financial results [15] - The company is focused on optimizing operations, improving safety records, and reducing costs while maintaining service quality [13] Other Important Information - General and administrative expenses decreased by 16.7% year-over-year to $4.7 million, primarily due to cost-saving initiatives [27] - Total liquidity available as of June 30, 2019, was $22.6 million, consisting of cash and revolver availability [32] Q&A Session Summary Question: No questions were raised during the Q&A session - Management indicated that there were no questions and thanked participants for their time [36]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Select Energy Services, Inc. as of June 30, 2019, including balance sheets, income statements, cash flows, and detailed notes Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2019 ($ thousands) | December 31, 2018 ($ thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 23,818 | 17,237 | | Total current assets | 421,228 | 432,152 | | Total property and equipment, net | 468,211 | 502,848 | | Goodwill | 266,934 | 273,801 | | **Total assets** | **1,377,177** | **1,360,605** | | **Liabilities and Equity** | | | | Total current liabilities | 164,239 | 179,719 | | Long-term debt | — | 45,000 | | **Total liabilities** | **250,329** | **249,832** | | **Total equity** | **1,126,848** | **1,110,773** | Consolidated Statement of Operations Highlights (Unaudited) | Metric ($ thousands, except per share data) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **323,887** | **393,247** | **686,533** | **769,642** | | Gross profit | 39,939 | 56,728 | 85,936 | 104,677 | | Income from operations | 11,179 | 24,795 | 17,812 | 43,398 | | **Net income** | **8,068** | **25,023** | **9,468** | **41,155** | | Net income attributable to Select Energy Services, Inc. | 6,200 | 16,963 | 7,335 | 27,062 | | **Class A EPS - Diluted** | **$0.08** | **$0.24** | **$0.09** | **$0.39** | Consolidated Statement of Cash Flows Highlights (Unaudited) | Cash Flow Activity ($ thousands) | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | 74,735 | 64,305 | | Net cash used in investing activities | (21,056) | (59,097) | | Net cash (used in) provided by financing activities | (47,234) | 3,465 | | **Net increase in cash and cash equivalents** | **6,581** | **8,527** | [Note 1: Business and Basis of Presentation](index=11&type=section&id=NOTE%201%E2%80%94BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) The company is a leading provider of water-management and chemical solutions to the U.S. oil and gas industry, restructuring its segments in Q1 2019 to Water Services, Water Infrastructure, and Oilfield Chemicals - The company provides full life cycle water-management services combined with related chemical products for the oil and gas industry[25](index=25&type=chunk) - In Q1 2019, the company changed its reportable segments to Water Services, Water Infrastructure, and Oilfield Chemicals after deciding to divest certain operations from its former Wellsite Services segment[35](index=35&type=chunk) [Note 3: Acquisitions and Divestitures](index=16&type=section&id=NOTE%203%E2%80%94ACQUISITIONS%20AND%20DIVESTITURES) During the first half of 2019, the company finalized the purchase price for the Pro Well Acquisition at $11.8 million and divested its Affirm and Canadian operations - The purchase price for the Pro Well Acquisition was finalized at **$11.8 million** in March 2019, resulting in **$1.1 million** of goodwill[48](index=48&type=chunk)[49](index=49&type=chunk) - The company divested its Affirm and Canadian operations through four transactions, selling property and equipment with a net book value of **$18.6 million** and recording a net loss of **$3.4 million** for the six months ended June 30, 2019[50](index=50&type=chunk) [Note 4: Revenue](index=18&type=section&id=NOTE%204%E2%80%94REVENUE) Revenue is primarily generated from short-term customer agreements, with the Permian Basin being the largest revenue-generating region across all segments Revenue by Geographic Region ($ thousands) | Geographic Region | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Permian Basin | 148,118 | 154,422 | 310,783 | 282,783 | | MidCon | 48,515 | 67,425 | 106,978 | 129,024 | | Eagle Ford | 41,033 | 42,486 | 79,759 | 89,028 | | Bakken | 20,361 | 39,487 | 46,143 | 79,261 | | **Total** | **323,887** | **393,247** | **686,533** | **769,642** | - The Permian Basin, MidCon, and Eagle Ford regions collectively comprised **74%** of Water Services segment revenue in Q2 2019, while the Permian Basin and Bakken comprised **81%** of Water Infrastructure revenue, and the Permian Basin and MidCon comprised **75%** of Oilfield Chemicals revenue in the same period[59](index=59&type=chunk) [Note 5: Leases](index=20&type=section&id=NOTE%205%E2%80%94LEASES) The company adopted the new lease standard on January 1, 2019, reporting right-of-use assets of $75.3 million and total lease liabilities of $95.3 million as of June 30, 2019 Lease Balances as of June 30, 2019 ($ thousands) | Balance Sheet Item | Classification | Amount | | :--- | :--- | :--- | | **Assets** | | | | ROU Assets | Long-term right-of-use assets | $75,302 | | Finance lease assets | Property and equipment | $422 | | **Liabilities** | | | | Operating lease liabilities - ST | Current operating lease liabilities | $19,553 | | Operating lease liabilities - LT | Long-term operating lease liabilities | $75,169 | | Finance lease liabilities - ST | Current portion of finance lease obligations | $421 | | Finance lease liabilities - LT | Other long term liabilities | $129 | - The weighted-average remaining lease term is **4.8 years** for operating leases and **1.3 years** for finance leases, with weighted-average discount rates of **5.3%** and **5.2%**, respectively[66](index=66&type=chunk) [Note 8: Goodwill and Other Intangible Assets](index=24&type=section&id=NOTE%208%E2%80%94GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) As of June 30, 2019, goodwill was $266.9 million and net other intangible assets were $142.4 million, with a goodwill impairment of $4.4 million recorded for the Affirm business Changes in Goodwill by Segment - H1 2019 ($ thousands) | Segment | Balance Dec 31, 2018 | Resegmentation | Divestiture/Impairment | Balance June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Water Solutions | 266,801 | (266,801) | — | — | | Wellsite Services | 7,000 | (7,000) | — | — | | Water Services | — | 186,335 | — | 186,468 | | Water Infrastructure | — | 80,466 | — | 80,466 | | Other | — | 7,000 | (7,000) | — | | **Total** | **273,801** | **—** | **(7,000)** | **266,934** | - A goodwill impairment of **$4.4 million** was recorded for the Affirm business based on expected proceeds from its sale and wind-down[74](index=74&type=chunk) [Note 9: Debt](index=25&type=section&id=NOTE%209%E2%80%94DEBT) The company has a $300.0 million senior secured revolving credit facility with no outstanding borrowings and $240.0 million available capacity as of June 30, 2019 - As of June 30, 2019, the company had **no outstanding borrowings** under its credit facility, compared to **$45.0 million** outstanding as of December 31, 2018[85](index=85&type=chunk) - The borrowing base under the credit agreement was **$256.4 million** as of June 30, 2019, with an available borrowing capacity of **$240.0 million**[85](index=85&type=chunk)[86](index=86&type=chunk) [Note 17: Segment Information](index=41&type=section&id=NOTE%2017%E2%80%94SEGMENT%20INFORMATION) The company operates through three reportable segments: Water Services, Water Infrastructure, and Oilfield Chemicals, with Water Services being the largest by revenue and assets for the six months ended June 30, 2019 Segment Financials for Six Months Ended June 30, 2019 ($ thousands) | Segment | Revenue | Income (loss) before taxes | Capital Expenditures | Total Assets (as of June 30, 2019) | | :--- | :--- | :--- | :--- | :--- | | Water Services | 423,877 | 39,894 | 22,615 | 873,107 | | Water Infrastructure | 105,335 | 7,003 | 28,780 | 312,638 | | Oilfield Chemicals | 130,116 | 6,437 | 3,352 | 171,457 | | Other | 33,073 | (5,850) | 64 | 19,975 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, discussing business overview, industry trends, operational metrics, and a detailed comparison of financial results [Results of Operations](index=54&type=section&id=Results%20of%20Operations) For Q2 2019, total revenue decreased 17.6% to $323.9 million and net income fell 67.8% to $8.1 million, primarily due to divestitures and reduced activity in the Water Services segment Q2 2019 vs Q2 2018 Results of Operations ($ thousands) | Metric | Q2 2019 | Q2 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **323,887** | **393,247** | **(69,360)** | **(17.6)%** | | Gross profit | 39,939 | 56,728 | (16,789) | (29.6)% | | Income from operations | 11,179 | 24,795 | (13,616) | (54.9)% | | **Net income** | **8,068** | **25,023** | **(16,955)** | **(67.8)%** | - The Q2 revenue decrease was driven by a **$31.6 million** reduction from divested operations (Affirm, sand hauling, Canadian) and a **$31.9 million** decrease in Water Services revenue due to reduced activity and pricing pressure[184](index=184&type=chunk)[186](index=186&type=chunk)[189](index=189&type=chunk) Reconciliation of Net Income to Adjusted EBITDA ($ thousands) | Metric | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | | :--- | :--- | :--- | :--- | :--- | | Net income | 8,068 | 25,023 | 9,468 | 41,155 | | EBITDA | 39,227 | 57,767 | 74,416 | 106,935 | | **Adjusted EBITDA** | **51,572** | **68,204** | **104,991** | **127,852** | [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash from operations and its credit facility, with $23.8 million in cash and $240.0 million of available borrowing capacity as of June 30, 2019 - As of June 30, 2019, the company had **$23.8 million** in cash and cash equivalents and **no outstanding bank debt**[229](index=229&type=chunk)[151](index=151&type=chunk) - Available borrowing capacity under the Credit Agreement was approximately **$240.0 million** as of June 30, 2019[229](index=229&type=chunk) Cash Flow Summary - H1 2019 vs H1 2018 ($ thousands) | Cash Flow Activity | H1 2019 | H1 2018 | Change ($) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 74,735 | 64,305 | 10,430 | | Net cash used in investing activities | (21,056) | (59,097) | 38,041 | | Net cash (used in) provided by financing activities | (47,234) | 3,465 | (50,699) | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks primarily related to the volatility of oil and gas industry activity, interest rate fluctuations, and minimal foreign currency exchange risk - The company's business is highly dependent on the level of activity in the U.S. oil and gas industry, which is volatile and influenced by commodity prices[249](index=249&type=chunk)[250](index=250&type=chunk) - Interest rate risk exists due to the variable rates on the company's credit facility, although no borrowings were outstanding as of June 30, 2019[251](index=251&type=chunk) - Foreign currency exchange risk is expected to be minimal in the future due to the recent divestiture of Canadian operations[252](index=252&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2019, while remediating previously identified material weaknesses related to fixed asset accounting - The CEO and CFO concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2019[255](index=255&type=chunk) - The company is remediating material weaknesses identified as of December 31, 2018, related to fixed asset accounting from the Rockwater Merger, and implemented new internal controls during Q1 2019 which are currently being tested[256](index=256&type=chunk)[257](index=257&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect, but is cooperating with an investigation by the U.S. Attorney's Office regarding alterations to emissions control systems - The company is under investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania for altering emissions control systems on less than **5%** of its vehicle fleet, and is cooperating with the investigation and has begun discussions for a resolution[262](index=262&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2018 Form 10-K - No material changes to the Risk Factors disclosed in the 2018 Form 10-K were reported[263](index=263&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2019, the company repurchased 26,716 shares of its stock to satisfy tax withholding obligations related to the vesting of employee restricted stock awards Issuer Purchases of Equity Securities (Q2 2019) | Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | | :--- | :--- | :--- | | April 2019 | 2,573 | $11.45 | | May 2019 | 16,172 | $11.35 | | June 2019 | 7,971 | $10.95 | | **Total** | **26,716** | | [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[265](index=265&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including corporate governance documents, employment agreements, and required certifications by the CEO and CFO

Select Energy Services, Inc. Historical Segment Results | August 6, 2019 Disclaimer Statement 2 Cautionary Statement Regarding Forward Looking Statements This presentation contains certain statements and information that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, regarding Select Energy Services, Inc.'s ("S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10‑Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SELECT ENERGY SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 81‑4561945 (State of incorporation) (IRS Employer Identification Number) 1233 W. Loop Sou ...

Segment Restructuring [9, 10, 11, 12] - Select Energy Services revised its reportable segments to Water Services, Water Infrastructure, and Oilfield Chemicals to provide further transparency and due to the development of water-related infrastructure and the sale/winding down of certain Wellsite Services operations[10] - The Water Services segment includes water transfer, flowback and well testing, fluids hauling, containment, water treatment and monitoring, and the rentals business[10] - The Water Infrastructure segment includes infrastructure assets, water sourcing and pipelines, produced water gathering systems, and salt water disposal wells[11] - The Oilfield Chemicals segment remains unchanged, focusing on chemicals used in hydraulic fracturing, stimulation, cementing, and well completions[11] - The Corporate & Other segment, including Affirm, Canadian operations, and sand hauling, is expected to be divested or wound down during Q2 2019[12] Revenue Performance (Q1 2019) [13] - Total revenue for Q1 2019 was $362.646 million[13] - Water Services revenue was $220.595 million[13] - Water Infrastructure revenue was $53.616 million[13] - Oilfield Chemicals revenue was $66.829 million[13] - Corporate & Other revenue was $21.606 million[13] Gross Profit Before D&A (Q1 2019) [13] - Total Gross Profit before D&A was $77.515 million[13] - Water Services Gross Profit before D&A was $57.474 million[13] - Water Infrastructure Gross Profit before D&A was $12.186 million[13] - Oilfield Chemicals Gross Profit before D&A was $7.302 million[13] - Corporate & Other Gross Profit before D&A was $553 thousand[13] Gross Margin Before D&A (Q1 2019) [13] - Total Gross Margin before D&A was 21.4%[13] - Water Services Gross Margin before D&A was 26.1%[13] - Water Infrastructure Gross Margin before D&A was 22.7%[13] - Oilfield Chemicals Gross Margin before D&A was 10.9%[13] - Corporate & Other Gross Margin before D&A was 2.6%[13]

Select Energy Services, Inc. (NYSE:WTTR) Q1 2019 Results Conference Call May 8, 2019 10:00 AM ET Company Participants Chris George - Vice President, Investor Relations and Treasurer Holli Ladhani - President and Chief Executive Officer Nick Swyka - Senior Vice President and Chief Financial Officer John Schmitz - Founder and Executive Chairman Conference Call Participants Tommy Moll - Stephens Jud Bailey - Wells Fargo Tom Curran - FBR Ian McPherson - Simmons Martin Malloy - Johnson Rice Operator Greetings, a ...

Nuverra Environmental Solutions, Inc. (NES) Q4 2018 Earnings Conference Call March 12, 2019 8:30 AM ET Company Participants Robert Kennedy - Vice President of Finance and Treasurer Charlie Thompson - Chief Executive Officer Stacy Hilgendorf - Chief Financial Officer Conference Call Participants Operator Good morning, and welcome to Nuverra Environmental Solutions Fourth Quarter Earnings Call. This call is being recorded and will be available for the next 30 days on the company website at nuverra.com. I woul ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38066 Select Energy Services, Inc. (Exact name of registrant as specified in its charter) Delaware 81‑4561945 (Sta ...