Executed 12-year amended agreement with a large public operator for produced water gathering and disposal and treated water supply and distribution across more than 875,000 dedicated and right-of-first-refusal ("ROFR") acres in the Northern Delaware Basin

Amendment adds 256,000 newly dedicated acres, including the conversion of 104,000 acres of prior ROFR acreage into dedicated acreage

GAINESVILLE, Texas, Aug. 18, 2026 /PRNewswire/ -- Select Water Solutions, Inc. (NYSE: WTTR) ("Select," the "Company," "we" or "us") announced today that it has entered into an amended and expanded agreement with a leading, investment-grade public operator (the "Operator") for comprehensive water management including recycling, disposal, and pipeline gathering and distribution across Select's Northern Delaware Basin infrastructure network, adding multiple new development areas to the existing agreement. Additionally, the agreement increases certain fixed pricing terms and extends the term of the agreement for a period of 12 years following the effective date.

As part of this contractually backed expansion, Select has agreed to construct an additional approximately 100 miles of pipelines, three million barrels of storage capacity, and 60,000 barrels per day of additional recycling capacity to support the Operator's long-term development plans in Eddy County, New Mexico. In total, the amended agreement is supported by approximately 500,000 dedicated acres and approximately 375,000 ROFR acres. This consolidated acreage position includes the conversion of 104,000 acres from prior ROFR acres into dedicated acres, 256,000 newly dedicated acres and 104,000 new ROFR acres.

The expansion project will interconnect with Select's existing and ongoing buildout of its broader Northern Delaware network in New Mexico. The full expansion project is expected to cost approximately $100 - $120 million and be operational by the end of 2027. This project adds contracted growth capital deployment in 2027, while the Company's 2026 capital expenditure guidance remains unchanged at this time.

Additionally, as part of the agreement and in consideration of Select's commitment to build and operate the expanded system, the Operator has agreed to grant Select the exclusive option to take assignment and conveyance of multiple saltwater disposal wells ("SWDs") in Lea County, New Mexico and Culberson County, Texas. In the event Select exercises this option, the SWDs are expected to be integrated into Select's existing Permian Basin network, adding incremental future disposal capacity to Select's existing integrated recycling and disposal networks.

John Schmitz, Chairman of the Board, President and CEO, stated, "This customer is a leading, investment-grade operator in the Permian Basin, and importantly has been a key partner of Select's since anchoring Select's first permanent commercial recycling facility in the Northern Delaware Basin back in late 2023. We appreciate the Operator's collaboration and support that has contributed to the growth of our integrated recycling and disposal platform in the region, allowing us to deliver stewardship-oriented and cost-efficient solutions to the region. We are excited to expand that relationship across the whole of Eddy and Lea Counties, New Mexico with our latest contract award.

"In partnership with this Operator, Select has leveraged its water infrastructure network to provide comprehensive water management solutions that deliver predictable, long-term cost savings for the Operator's capital expenditure and lease operating expense requirements. This amendment and extension bolsters our Northern Delaware footprint, and we are proud to grow alongside this key customer to deliver produced water recycling, disposal, pipeline gathering, and treated produced water distribution across their growing development plans," concluded Schmitz.

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 "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast" "intend," "may," "plan," "potential," "preliminary," "project," "see," "should," "will," 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: global economic distress, including that resulting from the sustained Russia-Ukraine war and related economic sanctions, instability and continued hostilities in the Middle East and elsewhere, including military conflict involving Iran, instability in Venezuela, economic uncertainty as a result of changing trade policies, disruptions in global oil and gas markets and inflation and elevated interest rates, each of which may decrease demand for oil and natural gas or contribute to volatility in the prices for oil and natural gas, which may decrease demand for our services; 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; actions taken 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 announced supply limitations, which may be exacerbated by military conflict in the Middle East involving Iran and the resumption of sales of previously sanctioned oil from Venezuela and Russia; the impact of central bank policy actions, such as sustained, elevated  interest rates in response to, among other things, high rates of inflation, and disruptions in the bank and capital markets; the degree to which consolidation among our customers may affect spending on United States ("U.S.") drilling and completions activity, including the recent consolidation in the Permian Basin; impacts related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs; the impact of changes in diplomatic and trade relations, and the results of countermeasures and any tariff mitigation initiatives; changes in safety, health, environmental and other governmental policy and regulation; the enactment or promulgation of new laws or regulations or changes or modifications in existing laws, regulations, rules or governmental policies with respect to taxation; the level of capital spending and access to capital markets by oil and gas companies in response to changes in commodity price or reduced demand; the potential deterioration of our customers' financial condition, including defaults resulting from actual or potential insolvencies; trends and volatility in oil and gas prices, and our ability to manage through such volatility; the impact of current and future laws, rulings, governmental regulations and policies, including those related to accessing water, disposing of wastewater, transferring produced water, interstate freshwater and produced water transfer, chemicals, carbon pricing, pipeline construction, emissions, hydraulic fracturing, leasing, permitting or drilling on federal lands and various other environmental matters; regional impacts to our business, including our key infrastructure assets within the Permian Basin, the Bakken, and the Haynesville regions; capacity constraints on regional oil, natural gas and water gathering, processing and pipeline systems that result in a slowdown or delay in drilling and completion activity, and thus a decrease in the demand for our services in our core markets; the impact of regulatory and related policy actions by federal, state and/or local governments, such as the Inflation Reduction Act of 2022, which may negatively impact the future production of oil and gas in the U.S., thereby reducing demand for our services; our ability to hire and retain key management and employees, including skilled labor; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms, or at all; our health, safety and environmental performance; the impact of competition on our operations; the degree to which our exploration and production customers may elect to operate their water-management services in-house rather than source these services from companies like us; our level of indebtedness and our ability to comply with covenants contained in our sustainability-linked credit facility or future debt instruments; delays or restrictions in obtaining permits by us or our customers; constraints in supply or availability of equipment used in our business; 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, and in the markets we serve, including the rate of inflation and potential economic recession; acts of terrorism, war or political or civil unrest in the U.S. or elsewhere, such as the Russia-Ukraine war, the instability and continued hostilities in the Middle East, including military conflict involving Iran and any potential conflict with Venezuela; information technology failures or cyberattacks; accidents, weather, natural disasters or other events affecting our business; and the 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.

 

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SOURCE Select Water Solutions, Inc.