Select Water Solutions Enhances Water Infrastructure in Northern Delaware Basin with Key Public Operator Partnership
In a major development for the water management sector, Select Water Solutions, Inc. (NYSE: WTTR) has announced an expansion of its existing agreement with a prominent public operator in the Northern Delaware Basin. This move marks a significant milestone for both entities, reinforcing their commitment to sustainable water management practices. Under the newly amended 12-year agreement, Select will undertake water gathering, disposal, and the treatment of water on an extensive scale, covering over 875,000 acres dedicated to water management operations throughout the region.
The agreement introduces a substantial addition of 256,000 acres, which includes the transformation of 104,000 acres formerly designated as right-of-first-refusal (ROFR) into dedicated acreage. This transition not only solidifies Select's position in the market but also enhances the operational capabilities of the public operator, allowing for improved service delivery and resource management. The amended contract is designed to address the increasing demand for effective water solutions in the rapidly developing areas of Eddy County, New Mexico.
To facilitate the anticipated growth, Select Water Solutions has committed to constructing approximately 100 miles of new pipelines and expanding its storage capacity by three million barrels. Furthermore, the company will augment its recycling capabilities to handle an additional 60,000 barrels per day, ensuring that the needs of the public operator are met comprehensively. This initiative is backed by a substantial investment estimated at $100 - $120 million, with plans for the expansion to become operational by the end of 2027.
Select Water Solutions has established a solid presence in the Northern Delaware Basin, initially partnering with this public operator to anchor its first permanent recycling facility back in late 2023. The company’s Chairman, John Schmitz, expressed excitement about this expanded partnership, emphasizing the operator's vital role in helping Select grow its integrated recycling and disposal network. Schmitz remarked, "This customer is a leading, investment-grade operator in the Permian Basin, and their collaboration has been instrumental in advancing our services. We look forward to strengthening our relationship and delivering long-term cost-efficient solutions that benefit both parties."
As part of this new agreement, Select will also have the exclusive option to take over several saltwater disposal wells located in Lea County, New Mexico, and Culberson County, Texas. This strategic move is expected to be integrated into Select's Permian Basin network, further enhancing its existing recycling and disposal capabilities.
The collaboration highlights Select Water Solutions' ongoing commitment to sustainable operations and environmental stewardship. The company believes that effective management of water resources is crucial for both operational success and environmental conservation. As a front-runner in the provision of sustainable water and chemical solutions to the energy sector, Select focuses on addressing the challenges posed by water management throughout the lifecycle of wells. With this expansion, Select aims to set a benchmark for responsible water resource management while contributing to the overall growth of the region.
Overall, this agreement marks a significant step toward optimizing water management strategies in one of the most active oil-producing regions of the United States, as Select Water Solutions partners with a trusted operator to fulfill complex water management needs. As the landscape of water sustainability evolves, such partnerships will be fundamental in driving the energy industry's shift toward environmentally responsible practices.
The agreement introduces a substantial addition of 256,000 acres, which includes the transformation of 104,000 acres formerly designated as right-of-first-refusal (ROFR) into dedicated acreage. This transition not only solidifies Select's position in the market but also enhances the operational capabilities of the public operator, allowing for improved service delivery and resource management. The amended contract is designed to address the increasing demand for effective water solutions in the rapidly developing areas of Eddy County, New Mexico.
To facilitate the anticipated growth, Select Water Solutions has committed to constructing approximately 100 miles of new pipelines and expanding its storage capacity by three million barrels. Furthermore, the company will augment its recycling capabilities to handle an additional 60,000 barrels per day, ensuring that the needs of the public operator are met comprehensively. This initiative is backed by a substantial investment estimated at $100 - $120 million, with plans for the expansion to become operational by the end of 2027.
Select Water Solutions has established a solid presence in the Northern Delaware Basin, initially partnering with this public operator to anchor its first permanent recycling facility back in late 2023. The company’s Chairman, John Schmitz, expressed excitement about this expanded partnership, emphasizing the operator's vital role in helping Select grow its integrated recycling and disposal network. Schmitz remarked, "This customer is a leading, investment-grade operator in the Permian Basin, and their collaboration has been instrumental in advancing our services. We look forward to strengthening our relationship and delivering long-term cost-efficient solutions that benefit both parties."
As part of this new agreement, Select will also have the exclusive option to take over several saltwater disposal wells located in Lea County, New Mexico, and Culberson County, Texas. This strategic move is expected to be integrated into Select's Permian Basin network, further enhancing its existing recycling and disposal capabilities.
The collaboration highlights Select Water Solutions' ongoing commitment to sustainable operations and environmental stewardship. The company believes that effective management of water resources is crucial for both operational success and environmental conservation. As a front-runner in the provision of sustainable water and chemical solutions to the energy sector, Select focuses on addressing the challenges posed by water management throughout the lifecycle of wells. With this expansion, Select aims to set a benchmark for responsible water resource management while contributing to the overall growth of the region.
Overall, this agreement marks a significant step toward optimizing water management strategies in one of the most active oil-producing regions of the United States, as Select Water Solutions partners with a trusted operator to fulfill complex water management needs. As the landscape of water sustainability evolves, such partnerships will be fundamental in driving the energy industry's shift toward environmentally responsible practices.
Topics Energy）
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