HOUSTON, July 12, 2021 /PRNewswire/ -- Select Energy
Services, Inc. (NYSE: WTTR) ("Select" or "the Company"), a leading
provider of sustainable full life cycle water and chemical
solutions to the U.S. unconventional oil and gas industry, today
announced that it has acquired Complete Energy Services, Inc.
("Complete"), an operating subsidiary of Superior Energy Services,
Inc. ("Superior"). Select has acquired substantially all of the
water-related assets and ongoing operations of the business,
including working capital. Superior will retain certain non-core
and non-water-related assets that were part of Complete as part of
the transaction. In consideration, Select has issued 3.6
million shares of Class A common stock and paid $14.2 million in cash, subject to standard
post-closing adjustments, to Superior to close the transaction.
Complete is a leading provider of completion and
production-related water solutions, including water transfer,
flowback and well testing, water heating, containment, fluids
handling, produced water gathering and disposal solutions across
the United States, including the
Permian, Mid-Continent, DJ and Powder River Basins and the
Marcellus and Utica Shales.
John Schmitz, Select's Chairman,
President and CEO, stated, "I am excited to expand Select's
world-class water-related services and infrastructure footprint
through this consolidation opportunity. This acquisition will
strengthen our geographic footprint, particularly in the
Mid-Continent, Permian and Rockies, while adding new geographic
breadth through a market leading position in the Powder River
Basin. Complete and its legacy operating companies possess an
illustrious 50+ year operating history and we anticipate strong
operational and customer benefits from the acquisition.
"With this transaction, we will be adding more than 300,000
barrels per day of permitted daily disposal capacity in
Oklahoma and Texas. More importantly, this sizable existing
disposal portfolio provides us with a significant footprint of
recurring produced water volumes and meaningful optionality for
incremental infrastructure development, including gathering and
recycling infrastructure across larger networked systems. Supported
by our strong technology platform and our market leading position
in sustainable full life cycle water and chemicals solutions, our
FluidMatch™ capabilities provide a holistic approach to produced
water sourcing, treatment and recycling, chemistry and logistical
delivery. We believe there remains significant opportunity to
consolidate, further commercialize and transition legacy
infrastructure assets such as these towards new sustainable
strategies revolving around our water recycling and FluidMatch™
expertise in order to both limit waste and decrease fresh water
demand in the industry, while simultaneously generating better well
results for our customers.
"In addition to these market enhancement benefits, we believe
that consolidation in the oilfield service markets remains a key
priority for the industry to regain profitability, and this
acquisition advances that objective. While we certainly believe
there are cost synergy opportunities to be gained from this
acquisition, we will be deliberate and strategic in implementing
our integration plan.
"We expect to realize immediate operational advantages as well.
We are experiencing a strong recovery in many of our markets, with
increasingly tight labor supply and increasing demand for
comprehensive water solutions. With this transaction, we are
excited to welcome Complete's over 700 field personnel to the
Select team, and believe we have the opportunity to meaningfully
expand our service capabilities and add depth to our operational
leadership.
"Finally, with more than 60% of Complete's year-to-date revenues
coming from production-related services and infrastructure, we are
adding additional stability to our revenue base, roughly doubling
our production-related revenues from about 10% year-to-date to
approximately 20% on a pro forma basis. Diversifying our revenue
streams into longer-cycle activities also allows us to consider
incremental long-term capital allocation strategies.
"We still maintain a strong balance sheet, with no debt
and a meaningful cash position, backed by incremental revenue and
gross profit. We will continue to look for additional ways to
strategically deploy our capital and public currency to generate
benefits for Select and our shareholders. We look forward to
working with the Complete team to realize all of the benefits of
this acquisition and its diversified portfolio of assets for our
shareholders, customers, employees and other partners," concluded
Mr. Schmitz.
Select Announces 2021 Second Quarter Conference Call
Schedule
Select also announced today that it will release second quarter
2021 financial results on Tuesday, August 3,
2021 after the market closes. In conjunction with the
release, the Company has scheduled a conference call on
Wednesday, August 4, 2021 at
11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss today's news
in conjunction with second quarter results.
What:
|
Select Energy
Services Second Quarter 2021 Earnings Conference Call
|
When:
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Wednesday, August 4,
2021 at 11:00 a.m. Eastern / 10:00 a.m. Central
|
How:
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Live via phone – By
dialing 201-389-0872 and asking for the
|
|
Select Energy
Services call at least 10 minutes prior to the start time,
or
|
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Live over the
Internet – By logging onto the web at the address below
|
Where:
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http://investors.selectenergyservices.com/events-and-presentations
|
About Select Energy Services, Inc.
Select Energy Services is a leading provider of sustainable full
life cycle water and chemical solutions to the unconventional oil
and gas industry in the United States. Select provides for
the sourcing and transfer of water, both by permanent pipeline and
temporary hose, prior to its use in the drilling and completion
activities associated with hydraulic fracturing, as well as
complementary water-related services that support oil and gas well
completion and production activities, including containment,
monitoring, treatment and recycling, flowback, hauling, gathering
and disposal. Select also develops and manufactures a full
suite of specialty chemicals used in the well completion process
and production chemicals used to enhance performance over the
producing life of a well. Select currently provides services
to exploration and production companies and oilfield service
companies operating in all the major shale and producing basins in
the United States. For more information, please visit
Select's website, http://www.selectenergy.com.
Cautionary Statement Regarding Forward-Looking
Statements
All statements in this communication other than statements of
historical facts are forward-looking statements which contain our
current expectations about our future results. We have attempted to
identify any forward-looking statements by using words such as
"believe," "expect," "will," "estimate" and other similar
expressions. Although we believe that the expectations reflected,
and the assumptions or bases underlying our forward-looking
statements are reasonable, we can give no assurance that such
expectations will prove to be correct. Such statements are not
guarantees of future performance or events and are subject to known
and unknown risks and uncertainties that could cause our actual
results, events or financial positions to differ materially from
those included within or implied by such forward-looking
statements. Factors that could materially impact such
forward-looking statements include, but are not limited to: the
severity and duration of world health events, including the
COVID-19 pandemic, related economic repercussions and the resulting
severe disruption in the oil and gas industry and negative impact
on demand for oil and gas, which is negatively impacting our
business; actions by the members of OPEC+ with respect to oil
production levels and announcements of potential changes in such
levels, including the ability of the OPEC+ countries to agree on
and comply with supply limitations; operational challenges relating
to the COVID-19 pandemic and efforts to mitigate the spread of the
virus, including logistical challenges, protecting the health and
well-being of our employees, remote work arrangements, performance
of contracts and supply chain disruptions; the level of capital
spending and access to capital markets by oil and gas companies,
including significant recent reductions and potential additional
reductions in capital expenditures by oil and gas producers in
response to commodity prices and dramatically reduced demand;
trends and volatility in oil and gas prices, and our ability to
manage through such volatility; and other factors discussed or
referenced in the "Risk Factors" section of our Annual Report on
Form 10-K for the year ended December 31,
2020, our subsequently filed Quarterly Reports on Form 10-Q
and those set forth from time to time in our other filings with the
SEC. Investors should not place undue reliance on our
forward-looking statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and we
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, changed circumstances or otherwise, unless required
by law.
Contacts:
|
Select Energy
Services
|
|
Chris George - VP,
Investor Relations & Treasurer
|
|
(713)
296-1073
|
|
IR@selectenergy.com
|
|
|
|
Dennard Lascar
Investor Relations
|
|
Ken Dennard / Lisa
Elliott
|
|
713-529-6600
|
|
WTTR@dennardlascar.com
|
WTTR-PR
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SOURCE Select Energy Services, Inc.