Select Water Solutions has signed a 12-year amended agreement with a major public operator to expand its water infrastructure across the Northern Delaware Basin, according to the company's August 18 announcement.
The Gainesville, Texas company (NYSE: WTTR) will handle produced water gathering, disposal, and treated water supply for the unnamed, investment-grade operator.
The acreage math:
More than 875,000 combined dedicated and right-of-first-refusal acres now under the deal
256,000 newly dedicated acres added
104,000 acres converted from ROFR status to fully dedicated
Total split: roughly 500,000 dedicated acres and 375,000 ROFR acres
Building Season in Eddy County
Select isn't just signing paper, it's pouring concrete. The company plans to build about 100 miles of new pipeline, three million barrels of storage, and 60,000 barrels per day of recycling capacity to serve the operator's development plans in Eddy County, New Mexico.
Price tag: $100 to $120 million, with the system operational by the end of 2027. Select says its 2026 capital budget stays put for now, so this is next year's problem, in a good way.
There's a sweetener too. Select scored an exclusive option to take over multiple saltwater disposal wells in Lea County, New Mexico, and Culberson County, Texas, which would slot right into its existing Permian network if exercised.
CEO John Schmitz called the operator a partner dating back to 2023, when it anchored Select's first permanent recycling facility in the basin.
Water management used to be an afterthought in the Permian. Now it's a 12-year commitment with its own construction schedule.
🥾Want to advertise in TheJobWalk? Learn More🥾
