Select Water Solutions, a provider of water infrastructure and chemical solutions to the energy industry, has completed its approximately $700 million acquisition of Pilot Water Solutions, a private water midstream company operating primarily in the Delaware Basin.
The transaction expands Select’s water infrastructure footprint and strengthens its position in managing produced water generated by oil and natural gas operations.
Under the agreement, a Select subsidiary acquired Pilot Water on a debt-free basis for approximately $700 million in aggregate consideration.
The consideration included approximately $600 million in cash paid at closing and 5,149,331 newly issued shares of Select Class A common stock.
The agreement also provides for a potential additional $15 million payment tied to operational milestones expected in early 2027, along with a possible stock-price-related adjustment.
Pilot Water adds established water midstream infrastructure, contractual revenues, minimum volume commitments, and operational capacity to Select’s existing network.
Select expects the acquisition to support its recycling and disposal operations while creating opportunities to capture additional produced water volumes across the Delaware Basin.
The company also activated a new $500 million revolving credit facility in connection with the transaction, replacing its previous sustainability-linked senior secured credit arrangement.
Select provides water management services throughout the lifecycle of oil and gas wells, including infrastructure, water treatment, recycling, and chemical solutions.
The addition of Pilot Water brings greater operational scale to its infrastructure platform and expands the resources available to serve energy producers.
The transaction is expected to support future expansion opportunities while creating potential efficiencies through integrated water management services.
KEY QUOTES:
“We are excited to announce the completion of our acquisition of Pilot Water Solutions and to welcome the Pilot Water employees to the Select family. The addition of Pilot Water enhances our position as one of the leading water midstream providers in the Delaware Basin, and further strengthens Select’s unique ability to manage the industry’s growing produced water volumes with comprehensive solutions. Pilot Water’s sizable contractual revenue, minimum volume commitments, and its significant operational and undeveloped capacity, complements Select’s extensive acreage dedications and enables future growth and produced water volume capture. We look forward to integrating our industry leading recycling business and pro forma scaled disposal platform in the Delaware Basin to more efficiently address the basin’s full life-cycle water needs and to unlock value and cost savings for our customers.”
John Schmitz, Chairman, President And CEO Of Select Water Solutions
