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 October 6, 2015 - 5:36 PM EDT
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STW Resources Holding Corp Releases Second Quarterly Report for 2015, Posts $4.8 Million in Six Month Revenues

Company Reports significant Increase in Gross Profit Margins

STW Resources Holding Corp. (OTCQB: STWS), a quality provider of oilfield services, water reclamation and processing management services including water desalination, and rig cleaning services, announced today that its financial results for the six months ended June 30, 2015 have been filed on its Form 10-Q Quarterly Report with the Securities and Exchange Commission (SEC). A detailed Form 10-Q is available on the company web site.

STWS reported revenues from continuing operations for the six months ended June 30, 2015, of $4,785,867. While this represents an 8% reduction in revenues from the six months ended June 30, 2014, gross profit during the six months ended June 30, 2015, increased by $1,686,060, or 1,778% over the six months ended June 30, 2014. Our gross profit margin during the six months ended June 30, 2015, increased to 37% as compared to 2% during the six months ending June 30, 2014. The company demonstrated increased margin expansion during the six months ended June 30, 2015. This significant improvement in gross profit margin, demonstrates the success of management’s initiatives to reduce overall costs, including cost of revenues, improved operating efficiencies, and shedding less profitable revenues sources.

During the six months ended June 30, 2015, the Company discontinued its operations of STW Energy LLC and STW Oilfield Construction LLC, realizing losses from discontinued operations of $733,389 and $363,767, for the six months ended June 30, 2015 and 2014, respectively. The discontinuance of these operations enabled the Company to focus its resources on its more profitable STW Pipeline and STW Water Resources business segments.

Our non-GAAP net loss, which is net loss adjusted for non-cash expenses including stock based compensation, amortization of debt discount, financing costs, and change in derivative liability was $2,019,197 for the six months ended June 30, 2015, as compared to $4,175,329 for the six months ended June 30, 2014, an improvement of $2,156,132, or 51.6%.

During the six months ended June 30, 2015, the Company raised $2,119,000 of notes payable from accredited investors. The Company also closed an initial $5.0 million non equity based credit facility to fund STW Water’s design, engineer and build projects. This will allow the company to execute on high margin water reclamation projects that continue to be in demand within the company’s market area.

During the quarter ended September 30, 2015, the Company will demonstrate the implementation of its growth strategy that will include increased revenues, gross profit margins consistent with the six month ended June 30, 2015, and continued management of our operating expenses.

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About STW Resources Holding Corp.

STW Resources Holding Corp. (OTCQB: STWS) is a quality provider of oilfield services, water reclamation and processing management services, and rig cleaning services through its three subsidiaries. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with “out-of-the-box” design solutions to meet customers' water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial and municipal water and wastewater markets throughout the State of Texas. STW’s model of water ownership has had recent successes and broken ground on the Ft. Stockton, Texas project.

The Company consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, ocean water desalination, industrial, and municipal applications throughout several geographic locations to fill a tremendous need for fresh water in the areas they service. As an independent solutions provider, STW utilizes proven technologies, from various well-known manufacturers. These technologies are available as fixed or mobile units with varying capabilities. STW's process ensures that the most effective and efficient technologies are implemented. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.

ENVIRONMENTAL IMPACT: If STW’s Proprietary Desalination Technology is placed in-line with a Seawater Reverse Osmosis System or used with a geothermal operation, there will be no potentially environmentally sensitive brine concentrate discharged into the local waterways since the system is Zero Liquid Discharge and 95-97%+ of the fresh water is recovered in the process. The waste stream is salt crystals and minerals. This is a completely Blue/Green operation that provides a sustainable supply of power and water for municipal and industrial use.

STW uses the latest technology to install new pipelines and repair and maintain aging water, and oil & gas pipelines (STW Pipeline).


Forward-Looking Statements

This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

STW Resources Holding Corp
Company Contact:
Paul DiFrancesco, 432-296-3000
Investor Relations

Source: Business Wire (October 6, 2015 - 5:36 PM EDT)

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