Select Water Solutions to Acquire Pilot Water Solutions

Select Water Solutions, Inc. (NYSE: WTTR) has entered into a definitive agreement to acquire Pilot Water Solutions LLC, a private water midstream company with operations concentrated in the Delaware Basin. The deal is valued at $700 million in cash and stock, with an additional $15 million in potential contingent consideration.

Pilot Water Solutions operates a significant infrastructure network, including pipelines and water disposal capacity, supported by a robust contract portfolio. Over 80% of its annual revenue is secured by long-term agreements. The company's projected 2027 EBITDA is estimated between $120 million and $130 million.

Select Water Solutions stated the acquisition will enhance its position as a water infrastructure provider in the United States. The combined entity is expected to create an integrated system for recycling and disposing of produced water, aiming to capture full lifecycle economics. The company anticipates that its water infrastructure segment will represent approximately 70% of its overall profitability by 2027.

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals. Select Water Solutions projects maintaining a strong balance sheet, with a pro forma net leverage ratio below 2.0x upon closing.