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SEGMENT INFORMATION
9 Months Ended
Sep. 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, 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 completion and production services, including polymer slurries, crosslinkers, friction reducers, biocides, dry and liquid scale inhibitors, corrosion inhibitors, buffers, breakers and other chemical technologies. 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. Our Oilfield Chemicals customers are primarily pressure pumpers, along with major integrated and independent oil and gas producers.

The results of our divested 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 September 30, 2019

    

    

Income (loss)

    

Depreciation and

    

Capital

Revenue

 before taxes

Amortization

Expenditures

(in thousands)

Water services

$

196,772

$

13,787

$

19,418

$

10,061

Water infrastructure

63,953

8,234

6,410

13,873

Oilfield chemicals

67,933

5,514

2,435

3,162

Other

310

(2,347)

Eliminations

 

 

 

 

Income from operations

 

 

25,188

 

 

Corporate

 

 

(12,713)

 

952

 

Interest expense, net

 

 

(438)

 

 

Other income, net

 

 

(2,364)

 

 

$

328,968

$

9,673

$

29,215

$

27,096

For the three months ended September 30, 2018

    

    

Income (loss)

    

Depreciation and

    

Capital

Revenue

 before taxes

Amortization

Expenditures

(in thousands)

Water services

$

233,603

$

25,978

$

19,987

$

30,033

Water infrastructure

65,886

14,224

5,960

11,019

Oilfield chemicals

64,206

2,824

2,115

2,585

Other

33,817

(1,651)

3,791

1,493

Eliminations

 

(542)

 

 

 

Income from operations

 

 

41,375

 

 

Corporate

 

 

(9,117)

 

984

 

Interest expense, net

 

 

(1,322)

 

 

Other income, net

 

 

1,746

 

 

$

396,970

$

32,682

$

32,837

$

45,130

For the nine months ended September 30, 2019

    

    

Income (loss)

    

Depreciation and

    

Capital

Revenue

 before taxes

Amortization

Expenditures

(in thousands)

Water services

$

620,649

$

53,681

$

61,704

$

32,676

Water infrastructure

169,288

15,237

18,571

42,653

Oilfield chemicals

198,049

11,951

6,635

6,514

Other

33,383

(8,197)

1,714

64

Eliminations

 

(5,868)

 

 

 

Income from operations

 

 

72,672

 

 

Corporate

 

 

(42,385)

 

2,858

 

Interest expense, net

 

 

(2,370)

 

 

Other income, net

 

 

(8,027)

 

 

$

1,015,501

$

19,890

$

91,482

$

81,907

For the nine months ended September 30, 2018

    

    

Income (loss)

    

Depreciation and

    

Capital

Revenue

 before taxes

Amortization

Expenditures

(in thousands)

Water services

$

685,998

$

75,735

$

57,826

$

81,251

Water infrastructure

175,676

27,003

16,216

25,669

Oilfield chemicals

192,678

4,786

7,853

8,264

Other

113,984

(1,709)

11,285

6,871

Eliminations

 

(1,724)

 

 

 

Income from operations

 

 

105,815

 

 

Corporate

 

 

(30,159)

 

2,332

 

Interest expense, net

 

 

(3,815)

 

 

Other income, net

 

 

2,607

 

 

$

1,166,612

$

74,448

$

95,512

$

122,055

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

As of

As of

    

September 30, 2019

    

December 31, 2018

(in thousands)

Water services

$

862,342

$

865,992

Water infrastructure

 

320,721

 

250,207

Oilfield chemicals

 

184,882

 

173,762

Other

8,912

70,644

$

1,376,857

$

1,360,605