Select Water Solutions (WTTR) 16th Annual East Coast IDEAS Conference summary

Business overview and strategy

• Operates as a fully integrated water management and chemical solutions provider for oil and gas, with three main segments: Water Infrastructure, Water Services, and Chemical Technologies.

• Water Infrastructure is the fastest-growing segment, now contributing about half of gross profit and receiving the most capital investment.

• Transitioned from a service-oriented model to a recycling-first strategy, building scale with 20 recycling facilities and a large disposal and landfill footprint.

• Acquired distressed assets post-pandemic, expanding disposal and recycling capabilities across major U.S. basins.

• Targets 25%-30% year-over-year growth in Water Infrastructure, with capital projects and backlog supporting growth into 2027.

Financial performance and growth outlook

• Water Infrastructure segment operates at 50%-60% gross margins, significantly higher than Water Services and Chemicals (20%-25%).

• Revenue from Water Infrastructure grew from $30-$45 million in 2020-2021 to over $400 million projected for 2026.

• Consolidated gross margins increased from 20% to over 30% in two years, with EBITDA margins now above 20%.

• Raised $200 million in equity capital to accelerate infrastructure build-out, maintaining a strong balance sheet with 0.7x net leverage.

• Expects meaningful consolidated profit growth in 2024 and beyond, with additional upside from diversification into municipal and industrial markets.

Asset footprint and operational highlights

• Operates over 3 million barrels/day of recycling capacity, 100+ disposal wells, 1,000+ miles of pipeline, and $40 million in storage assets.

• Largest presence in the Permian Basin, especially Northern Delaware and New Mexico, with 1.5 million acres under dedication.

• Dual-lined infrastructure enables efficient recycling and redistribution of water, supporting a recycling-first model.

• Added 200,000 new dedicated acres in Q1, with average contract lengths of 11 years, enhancing long-term stability.

• Market-leading disposal provider in the Northeast and Haynesville gas basins, with growing solids management business in the Bakken.