STW Resources Holding Corp Releases Third Quarterly Report for 2015, Posts $8.7 Million in Nine Month Revenues

MIDLAND, TX--(Marketwired - Nov 30, 2015) - STW Resources Holding Corp. (OTCQB: STWS), a provider of high-quality pipeline, water reclamation and processing management services including water desalination, announced today that its financial results for the nine months ended September 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.

STW Resources reported revenues from continuing operations for the nine months ended September 30, 2015, of $8,693,437. Although this represents a 2% increase in revenues from the nine months ended September 30, 2014, gross profit during the nine months ended September 30, 2015, increased by $2,264,176, or 349% over the nine months ended September 30, 2014. The Company's gross profit margin during the nine months ended September 30, 2015, increased to 34% as compared to 8% during the nine months ending September 30, 2014. The significant improvement in gross profit margin demonstrates the success of corporate initiatives set forth by Company management to increase profitability by reducing cost of revenues, improving operating efficiencies, and shedding less profitable business units.

During the three months ended September 30, 2015, revenues from water reclamation and desalination services increased to $1,063,219 from $118,859 during the three months ended June 30, 2015, an increase of 795% over the prior quarterly period. Total revenues for the three months ended September 30, 2015 increased to $3,907,570 from $2,587,460, an increase of $1,320,110, or 51% over the prior quarterly period.

During the nine months ended September 30, 2015, the Company discontinued its operations of STW Energy LLC and STW Oilfield Construction LLC, realizing losses from discontinued operations of $743,913 and $1,505,616, for the nine months ended September 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, which the Company believes offers the highest growth and profit potential.

The Company's net loss for the nine months ended September 30, 2015 was $6,637,675 as compared to a net loss of $11,641,886 during the nine months ended September 30, 2014, a reduction in net loss of $6,004,211, or 43%.

The Company's 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 $4,319,719 for the nine months ended September 30, 2015, compared to $6,787,018 for the nine months ended June 30, 2014, an improvement of $2,467,299, or 36%.

During the three months ended September 30, 2015, the Company reported revenues of $3,907,570, which represents an increase of $588,287, or 18% growth, over revenues during the three months ended September 30, 2014. Gross profit during the three months ended September 30, 2015, increased by $578,117, or 104% over the three months ended September 30, 2014. The net loss for the three months ended September 30, 2015 was $2,240,933 compared to a net loss of $5,174,294 during the three months ended September 30, 2014, a reduction in net loss of $2,933,301 or 58%.

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About STW Resources Holding Corp.

STW Resources Holdings 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 both Upton County and Ft. Stockton, Texas projects.

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 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).

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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 (www.sec.gov). 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.