Select Water Agrees to Acquire Pilot Water Solutions for $700 Million

Select Water Solutions, Inc. (NYSE: WTTR) announced on September 24, 2026, that its subsidiary, Select Water Solutions, LLC, entered into a definitive agreement to acquire Pilot Water Solutions LLC. The transaction, valued at approximately $700 million, is intended to add a leading water midstream company with a core position in the Delaware Basin to Select Water’s infrastructure portfolio.

Under the terms of the Membership Interest Purchase Agreement, the Sellers will receive aggregate consideration consisting of $600 million in cash and $100 million in shares of Select Water’s Class A common stock. The number of shares issued will be calculated by dividing $100 million by the 30-day volume-weighted average price of Select’s stock immediately prior to closing. Additionally, the Sellers are eligible to receive a contingent cash payment of $15 million upon the satisfaction of certain operational milestones expected in early 2027.

The Purchase Agreement includes a provision for a true-up payment. If the 30-day volume-weighted average share price six months after the closing date is lower than the price at closing, Select must make a cash payment to the Sellers to cover the difference.

Financial projections for Pilot Water indicate it is expected to generate $100 million to $110 million of Adjusted EBITDA for the full year 2026, growing to $120 million to $130 million in 2027. The company also holds a robust contract portfolio, including approximately 480,000 barrels per day of minimum volume commitments and 306,000 acres under long-term agreements. Its infrastructure platform includes about 2.7 million barrels per day of active permitted disposal capacity and over 700 miles of pipeline infrastructure.

The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals, including the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Select Water has entered into debt commitment letters with J.P. Morgan Chase Bank, N.A. and Bank of America to provide financing for the cash portion of the consideration.

In a separate transaction announced on September 23, 2026, Select Water sold an indirect 55% interest in its Peak Rentals business for approximately $41.5 million in cash and a $35.3 million seller note. Following this sale, the Company will retain a 45% indirect interest in the business.