8-K: Select Water Solutions Appoints Bruce Cope and Tim Roberts to Board of Directors

Select Water Solutions expands its Board of Directors with the appointment of Bruce Cope and Tim Roberts, while Troy Thacker announces his decision to retire at the next Annual Meeting.

Summary

• Select Water Solutions has appointed Bruce E. Cope and Timothy A. Roberts to its Board of Directors, effective January 24, 2025.
• The Board size has been increased to nine directors.
• Troy W. Thacker will not stand for re-election at the 2025 Annual Meeting.
• Mr. Cope brings over 30 years of experience in the oil and gas industry, including roles at Hunt Consolidated and KPMG.
• Mr. Roberts has over 20 years of experience in the oil and gas industry, currently serving as CEO of Iron Horse Midstream, LLC.
• Both new directors will receive standard compensation for non-employee directors.
• The Board expects to appoint Messrs. Roberts and Cope to one or more of its committees at a later date.

Sentiment

Score: 7

Explanation: The announcement is generally positive, highlighting the addition of experienced board members and expressing gratitude to a departing member. The inclusion of a cautionary statement regarding forward-looking statements tempers the overall sentiment.

Positives

• The addition of Bruce Cope and Tim Roberts brings extensive experience in accounting, finance, E&P, and midstream operations to the Board.
• The new directors' insights and customer perspectives are expected to strengthen Select's ability to advance its midstream partnerships and execute its water infrastructure growth strategy.
• The company maintains directors and officers liability insurance and provides indemnification to each member of the Board.

Risks

• The document includes a cautionary statement regarding forward-looking statements, highlighting various risks and uncertainties that could affect actual results.
• These risks include global macroeconomic uncertainty, geopolitical conflicts, actions by OPEC+, government regulations, world health events, and changes in technology and market conditions.

Future Outlook

The company expects that the new directors' expertise will strengthen its ability to advance midstream partnerships, execute its water infrastructure growth strategy, and deliver market-leading water solutions.

Management Comments

• John Schmitz, Select's Chairman of the Board, President and Chief Executive Officer, stated, 'We are pleased to welcome Bruce Cope and Tim Roberts to Selects Board of Directors and believe their strong accounting and finance backgrounds, along with their extensive E&P and midstream operational experience, will provide complementary expertise to our Board.'
• Schmitz also thanked Troy Thacker for his service to the Board and Company.

Industry Context

The appointments reflect a focus on strengthening the Board with individuals who have deep experience in the oil and gas industry, particularly in accounting, finance, and midstream operations, which are critical to Select Water Solutions' business.

Comparison to Industry Standards

• It is common for companies in the oil and gas sector to have board members with extensive experience in finance, accounting, and operations.
• Hunt Consolidated and Cardinal Midstream are well-known companies in the oil and gas industry, and experience at these companies would be considered valuable.
• KPMG is a global audit, tax, and advisory firm, and experience at KPMG would be considered valuable.

Management Changes

Stakeholder Impact

• Shareholders may view the board changes positively, as the new directors bring relevant experience.
• Employees may be affected by any strategic shifts resulting from the new board members' influence.
• Customers could benefit from the enhanced expertise and perspectives on the Board, potentially leading to improved services and solutions.

Next Steps

• The Board will determine committee assignments for Messrs. Roberts and Cope at a later date.
• Mr. Thacker will continue to serve on the Board and Audit Committee until the 2025 Annual Meeting.

Key Dates