Services and Water Infrastructure
were incremental revenue contributions from the Complete, Agua
Libre and Basic, HB Rentals, Nuverra, Breakwater and Cypress
acquisitions. For the year ended December 31, 2022, our
Water Services, Water Infrastructure and Oilfield Chemicals
revenues constituted 57.6%, 19.5% and 22.9% of our total revenue,
respectively, compared to 51.6%, 20.2% and 28.2%,
respectively, for the year ended December 31, 2021. The revenue
changes by reportable segment are as follows:
Water Services. Revenue increased $405.3 million, or
102.8%, to $799.4 million for the year ended December 31, 2022,
compared to $394.1 million for the year ended December 31, 2021.
The increase was primarily attributable to higher demand for our
services coupled with increased pricing in comparison to the year
ended December 31, 2021. The increase was also impacted by
incremental revenue contributed by the Complete, Basic, HB Rentals,
Nuverra and Breakwater acquisitions.
Water
Infrastructure. Revenue increased by $115.6 million, or 74.7%,
to $270.4 million for the year ended December 31, 2022,
compared to $154.8 million for the year ended December 31, 2021.
The increase was primarily attributable to higher demand for our
services in comparison to the year ended December 31, 2021. The
increase was also modestly impacted by incremental revenue
contributed by the Complete, Agua Libre, Nuverra, Breakwater and
Cypress acquisitions.
Oilfield Chemicals. Revenue increased $101.9 million, or
47.2%, to $317.6 million for the year ended December 31, 2022,
compared to $215.8 million for the year ended December 31,
2021. The increase was primarily attributable to higher demand for
our services, particularly our proprietary friction reducer product
offerings, in comparison to the year ended December 31,
2021.
Costs of Revenue
Costs of revenue increased $482.9 million, or 64.9%, to $1.2
billion for the year ended December 31, 2022, compared to
$743.8 million for the year ended December 31, 2021. The
increase was comprised of a $297.4 million increase in Water
Services costs, a $87.5 million increase in Water Infrastructure
costs and a $74.5 million increase in Oilfield Chemicals costs.
Depreciation and amortization expense also increased by $23.5
million. For the year ended December 31, 2022, inflation also
impacted variable costs for labor, fuel and services. We were able
to pass some of these increased costs to customers with surcharges
and pricing increases.
Water Services. Costs of revenue increased $297.4
million, or 85.8%, to $644.1 million for the year ended
December 31, 2022, compared to $346.7 million for the year
ended December 31, 2021. Cost of revenue as a percent of revenue
decreased to 80.6% from 88.0%, due primarily to economies of scale
from higher revenue activity
Water Infrastructure. Costs of revenue increased
$87.5 million, or 75.5%, to $203.4 million for the
year ended December 31, 2022, compared to $115.9 million for
the year ended December 31, 2021. Cost of revenue as a percent of
revenue slightly increased to 75.2% from 74.9%, due to increased
pricing for many water sources partially offset by a higher
relative contribution of high margin disposal revenue.
Oilfield Chemicals. Costs of revenue increased $74.5 million,
or 39.0%, to $265.6 million for the year ended December 31,
2022, compared to $191.1 million for the year ended December
31, 2021. Cost of revenue as a percent of revenue decreased to
83.6% from 88.6%, due primarily to higher utilization and cost
absorption at our manufacturing facilities.
Depreciation and
Amortization. Depreciation
and amortization expense increased $23.5 million, or 26.1%, to
$113.5 million for the year ended December 31, 2022,
compared to $90.0 million for the year ended December 31,
2021, due primarily to a higher fixed asset base related to
acquisitions occurring after June 30, 2021.