2023 Sustainability Report – Message from the CEO
2023 Sustainability Report
Message from the CEO
To Our Stakeholders,
At our core, Select is deeply committed to serve as the industry’s leading and most trusted partner in sustainable water management solutions. Reflecting back on 2023’s achievements and looking at 2024, we’re proud to have made substantial progress toward our sustainability and growth goals. Over the past fifteen years, primarily serving the energy sector, we’ve honed our focus as a water and chemistry technology innovator. Today, we uniquely offer integrated full lifecycle water and chemical solutions, distinguishing ourselves as a forward-thinking company dedicated to sustainable practices and technological advancements that pave the way for a successful and sustainable future.
As we navigate through the evolving landscape of water management in the energy industry, Select demonstrated exceptional performance across all our business segments in 2023, with our Water Infrastructure segment leading the way. Our strategic focus on acquisitions and organic growth yielded an impressive 84% increase in Water Infrastructure revenue and a 162% boost in Water Infrastructure gross profit compared to 2022. This growth underscores our commitment to sustainability and innovation, as we’ve more than doubled our recycling volumes, enhanced disposal capacities, and optimized system utilization across the board.
Looking ahead, Select realized further expansion with four additional infrastructure asset acquisitions in the first quarter of 2024. These acquisitions, underpinned by long-term contracts, are expected to generate further revenue and margin expansion for the Water Infrastructure segment. Additionally, our ongoing consolidation and internal efficiency initiatives in the Water Services segment are projected to enhance profitability, driving incremental from free cash flow generation to fund our additional investments in new water infrastructure projects.
Our M&A activity has been particularly fruitful, developing and expanding the comprehensive infrastructure asset base we’ve built and acquired over the last three and a half years. Since mid 2021, we successfully completed more than fifteen strategic transactions, further diversifying our asset portfolio and enhancing our geographic reach. These moves ensure that Select remains well-positioned to meet ongoing water infrastructure demands across all unconventional U.S. basins, providing broad exposure and access to our investors to a diverse array of capital allocation opportunities. Select’s geographic diversity also creates meaningful competitive advantage because we learn best practices from all basins, versus just one, and apply this across our entire portfolio. This ultimately produces stronger operational and financial results for our shareholders and our customers.
Select’s commitment to sustainability is deeply integrated into our strategic operations and growth objectives. In 2023, we advanced our environmental initiatives, notably through enhanced water recycling and responsible disposal practices that reduce freshwater use and minimize ecological impact. We remain dedicated to leading the way in sustainable water management solutions, continually optimizing our operations to exceed environmental standards. Our approach both bolsters our operational efficiency and reinforces our leadership in the industry, making us a benchmark for sustainability and innovation.
As we move into 2024, our enthusiasm for Select’s future is stronger than ever. We are committed to advancing our mission with precise operational execution, significant infrastructure investments, sustained earnings growth, and rewarding our shareholders, all underpinned by our unwavering dedication to sustainability. We owe immense thanks to our team of talented and committed employees, whose steadfast support propels us forward. We are very excited to continue our sustainability journey and execute on our growing vision throughout 2024.
Sincerely,
John Schmitz
Chairman, President & CEO
Reporting
Key ESG Data
GRI Index
SASB Index
TCFD Index
Sustainability At Select
Learn more about how Select prioritizes sustainability by downloading our complete report or contact us at:
ir@selectwater.com
713-235-9500
1233 West Loop South, Suite 1400 | Houston, Texas
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