Select Energy Services Announces Completion of Merger with Rockwater Energy Solutions


Nov 01, 2017

HOUSTON, Nov. 1, 2017 /PRNewswire/ — Select Energy Services, Inc. (NYSE: WTTR) (“Select”), a leading provider of total water solutions to the North American unconventional oil and gas industry, today announced that it has completed its stock-for-stock merger transaction with Rockwater Energy Solutions, Inc. (“Rockwater”).

Select issued approximately 37.3 million shares of common stock in exchange for all of Rockwater’s outstanding equity and now has a total of approximately 106.3 million shares of common stock outstanding.  Holli Ladhani, the former Chairman, CEO and President of Rockwater, is now the CEO and President of the combined company, and John Schmitz, previously the Chairman and CEO of Select, is now the full-time Executive Chairman.

Ms. Ladhani stated, “The combination of Select and Rockwater creates the undisputed leader in the provision of water-related solutions to the unconventional US shale industry.  This market has shown tremendous growth as the water needs of the industry have increased at a rate well in excess of the growth in drilling activity, and we expect this growth to continue.  Furthermore, we believe the combined company’s asset base, which includes an extensive network of logistically correct water sources and approximately 1,400 miles of layflat hose, positions us to be the water solutions provider of choice for E&P operators across every major U.S. shale basin.  Select intends to bring the very best in people, equipment, technology, service and solutions to our oil and gas customers.

“With 2017 second quarter annualized sales of more than $1.2 billion collectively, a post-merger market cap of approximately $1.7 billion and a strong, well-capitalized balance sheet, we are well positioned to capture the benefits from increased well intensity and the favorable market dynamics for oil field service companies focused particularly on the completion side of the unconventional oil and gas market.”

Mr. Schmitz added, “We are excited to combine two companies that have long been at the forefront in recognizing the importance of water logistics as it relates to the development of our unconventional oil and gas resource base.  Each company brings to the merger a leading water franchise encompassing end-to-end water solutions, from sourcing to disposal with full fluids management in between.  We intend to leverage each company’s strong reputation for quality performance and innovation to build on our current growth.”

Concurrent with the closing of the merger, Select also announced that it has entered into a five-year, $300 million asset based lending (“ABL”) facility with a group of banks led by Wells Fargo Bank, NA.

All of the U.S. water-oriented services of the two companies will be operated under the Select brand name while the chemical segment of legacy Rockwater will retain the Rockwater brand name.  Select’s corporate headquarters will be located in Houston, Texas while operational headquarters of the water business will remain in Gainesville, Texas.

Management will discuss the closing in more detail during its third quarter earnings conference call scheduled for Thursday, November 9, 2017 at 10:00 am eastern.  Please dial 201-389-0872 and ask for the Select Energy Services call at least 10 minutes prior to the start time, or join live over the Internet by logging on to the web at the address http://investors.selectenergyservices.com/events-and-presentations. A telephonic replay of the conference call will be available through November 16, 2017 and may be accessed by calling 201-612-7415 using passcode 13672864#.  A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.

About Select Energy Services, Inc.

Select is a leading provider of total water solutions to the North American unconventional oil and gas industry.  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, and disposal.  Select, under its Rockwater Energy Solutions brand, 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 U.S. and Western Canada.  For more information, please visit Select’s website, http://www.selectenergyservices.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 “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 factors discussed or referenced in the “Risk Factors” section of the prospectus we filed with the SEC on April 24, 2017, relating to our recently completed initial public offering and the “Risk Factors” section of our most recent Quarterly Report on Form 10-Q filed with the SEC on August 11, 2017.  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.

WTTR-PR

Contacts:

Select Energy Services
Gary Gillette, CFO & SVP
Justin Briscoe, VP, Corporate Development
940.668.0259
IR@selectenergyservices.com

Dennard – Lascar Associates
Ken Dennard / Lisa Elliott
713.529.6600
WTTR@dennardlascar.com

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SOURCE Select Energy Services, Inc.