Select's focus on reducing greenhouse gas ("GHG") emissions resulted in a 9% reduction in combined Scope 1 and Scope 2 emissions intensity from 2022
Select treated or recycled 18.4 billion gallons of water, a 37% increase from 2022
Select recycled 6.6 billion gallons of water at our fixed facilities, a 47% increase from 2022, reflecting the continued expansion of our Water Infrastructure segment
Select meaningfully exceeded the annual water recycling and employee safety targets embedded in the Company's sustainability-linked credit facility for 2023 by 319% and 57%, respectively
HOUSTON, July 10, 2024 /PRNewswire/ -- Select Water Solutions (NYSE: WTTR), a leading provider of sustainable water management and chemical solutions, proudly announces the publication of its 2023 Sustainability Report. This report underscores Select's unwavering commitment to environmental stewardship, operational excellence, and innovative practices that drive sustainable growth in the energy sector.
John Schmitz, Chairman of the Board, President and Chief Executive Officer, stated, "Each year we have the opportunity to reflect back on our achievements as they relate to sustainability and environmental performance, and in 2023, we were proud to have made substantial progress toward our goals. Both our produced water recycling and safety performance targets associated with our sustainability-linked credit facility were once again meaningfully exceeded in 2023. We've honed our focus as a water and chemistry technology innovator and continued to expand our footprint with additional fixed recycling facilities, underwritten by long-term customer contracts. By investing in and developing these strategic infrastructure assets, Select is not only expanding its operational capacity but also reinforcing its commitment to a sustainability strategy. Our advanced chemical solutions contribute to optimizing our recycling process, verifying consistent water quality and enhancing the operational efficiency of oil and gas production.
"As we move through 2024, our enthusiasm for Select's future is stronger than ever. We are committed to advancing our growth mission with precise operational execution, significant infrastructure investments, consistent earnings growth, and returning capital to our shareholders, all underpinned by our steadfast dedication to sustainability. We owe immense thanks to our team of talented and committed employees, whose steadfast support of these goals continues to propel us forward," concluded Mr. Schmitz.
Select's 2023 Sustainability Report outlines the policies, processes, procedures, and performance by which Select Water Solutions sets and advances its Environmental, Social, and Governance ("ESG") objectives. The report highlights the Company's dedication to environmental stewardship and its efforts to foster sustainable development within the communities where it operates.
Highlights of Select's 2023 sustainability report include:
- Reported key ESG performance metrics guided by multiple external disclosure frameworks
- Disclosed Scope 1 and Scope 2 emissions and intensity data utilizing Environmental Protection Agency (EPA) guidance and calculation methods, along with progress on the Company's emissions reduction initiatives
- Efforts to reduce GHG emissions resulted in a 10% reduction in Scope 1 emissions intensity and a 2% reduction in Scope 2 emissions intensity for a combined 9% reduction in overall emissions intensity
- Meaningfully surpassed the annual threshold and target levels for both total recordable incident rate ("TRIR") (57% outperformance) and recycled produced water via fixed facilities (319% outperformance) as outlined in Select's sustainability-linked credit facility
- Reported a 47% year-over-year increase in barrels of produced water recycled at our fixed recycling facilities
- Achieved a 176% year-over-year increase in recycled produced water as a percent of total barrels of water sold
- Increased wastewater disposal volumes by 18% year-over-year
- Maintained a diverse workforce with 53% of the total employee base represented by traditionally underrepresented ethnic groups and 48% of employees in management represented by underrepresented ethnic and gender groups
- Achieved a lost time incident rate ("LTIR") of 0.16 and a TRIR of 0.44
- Sourced 99% of chemicals from companies with active or partially implemented ESG or sustainability programs
The 2023 Sustainability Report reviews the application of Select's business principles and supporting policies across its operations. It includes comprehensive discussions with internal and external stakeholders, supplemented by consultations with third-party experts. This report follows the recommended disclosures of the Task Force on Financial Climate-related Disclosures (TCFD), the topics suggested by the Sustainability Accounting Standards Board (SASB) Sustainable Industry Classification System® (SICS) for the Oil & Gas Services, Water Utilities, and Chemicals industries, and the Global Reporting Initiative (GRI) standards. Select is committed to regularly reporting on our ESG policies, procedures, and performance through our website and annual Sustainability Report. Readers are encouraged to view the complete Sustainability Report at https://www.selectwater.com/sustainability/.
About Select Water Solutions, Inc.
Select is a leading provider of sustainable water and chemical solutions to the energy industry. These solutions are supported by the Company's critical water infrastructure assets, chemical manufacturing and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the Company's continued success. For more information, please visit Select's website, https://www.selectwater.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 "could," "believe," "anticipate," "expect," "intend," "project," "will," "estimates," "preliminary," "forecast" and other similar expressions. Examples of forward-looking statements include, but are not limited to, the expectations of plans, business strategies, objectives and growth, projected financial results and future financial and operational performance, expected capital expenditures, our share repurchase program and future dividends. 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. These risks and uncertainties include the risks that the benefits contemplated from our recent acquisitions may not be realized, the ability of Select to successfully integrate the acquired businesses' operations, including employees, and realize anticipated synergies and cost savings and the potential impact of the consummation of the acquisitions on relationships, including with employees, suppliers, customers, competitors and creditors. Factors that could materially impact such forward-looking statements include, but are not limited to: the global macroeconomic uncertainty related to the Russia-Ukraine war and related economic sanctions; the conflict in the Israel-Gaza region and continued hostilities in the Middle East, including rising tensions with Iran; the ability to source certain raw materials and other critical components or manufactured products globally on a timely basis from economically advantaged sources, including any delays and/or supply chain disruptions due to increased hostilities in the Middle East; actions by the members of the Organization of the Petroleum Exporting Countries ("OPEC") and Russia (together with OPEC and other allied producing countries, "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, which may be exacerbated by the recent Middle East conflict; actions taken by the Biden Administration or state governments, such as executive orders or new or expanded regulations, that may negatively impact the future production of oil and natural gas in the U.S. or our customers' access to federal and state lands for oil and gas development operations, thereby reducing demand for our services in the affected areas; the severity and duration of world health events, and any resulting impact on commodity prices and supply and demand considerations; the impact of central bank policy actions, such as sustained, elevated interest rates in response to high rates of inflation, and disruptions in the bank and capital markets; the level of capital spending and access to capital markets by oil and gas companies, trends and volatility in oil and gas prices, and our ability to manage through such volatility; the impact of current and future laws, rulings and governmental regulations, including those related to hydraulic fracturing, accessing water, disposing of wastewater, transferring produced water, interstate freshwater transfer, chemicals, carbon pricing, pipeline construction, taxation or emissions, leasing, permitting or drilling on federal lands and various other environmental matters; regulatory and related policy actions intended by federal, state and/or local governments to reduce fossil fuel use and associated carbon emissions, or to drive the substitution of renewable forms of energy for oil and gas, may over time reduce demand for oil and gas and therefore the demand for our services, including as a result of the Inflation Reduction Act of 2022 or otherwise; growing demand for electric vehicles that may result in reduced demand for refined products deriving from crude oil such as gasoline and diesel fuel, and therefore the demand for our services; the impact of advances or changes in well-completion technologies or practices that result in reduced demand for our services, either on a volumetric or time basis; changes in global political or economic conditions, generally, including as a result of the fall 2024 presidential election and any resultant political uncertainty, and in the markets we serve, including the rate of inflation and potential economic recession; and other factors discussed or referenced in the "Risk Factors" section of our most recent Annual Report on Form 10-K 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.
WTTR-PR
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SOURCE Select Water Solutions, Inc.
