US-based Select Plans to Complete $700 Million Acquisition of Pilot in Q4 2026

en.Wedoany.com Reported - Select Water Solutions announced that it has signed a definitive agreement to acquire all equity interests of Pilot Water Solutions for $700 million. The consideration consists of $600 million in cash and $100 million in Select Water Class A common stock, plus a contingent cash payment of up to $15 million. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.

Pilot Water's core business is concentrated in the Delaware Basin in the United States, operating approximately 2.7 million barrels per day of permitted produced water disposal capacity, along with approximately 900,000 barrels per day of undeveloped permitted disposal capacity, supported by more than 700 miles of pipeline infrastructure. Currently, more than 80% of the company's average daily produced water handling volumes come from the core of the Delaware Basin in New Mexico and Texas.

Pilot Water's existing long-term contract portfolio covers approximately 306,000 acres, including minimum volume commitments of approximately 480,000 barrels per day. The company recently added a new minimum volume commitment contract of 175,000 barrels per day, which is expected to drive its average daily produced water handling volumes from approximately 850,000 barrels in the first half of 2026 to approximately 1 million barrels in 2027.

Upon completion of the acquisition, the combined water infrastructure platform of Select Water and Pilot Water will have approximately 3.8 million barrels per day of produced water recycling capacity, 4.8 million barrels per day of operating and undeveloped disposal capacity, more than 1,600 miles of pipeline network, and approximately 57 million barrels of treated water and produced water storage capacity. The company expects the combined platform's average daily produced water handling volumes to exceed 2.5 million barrels in 2027.

Select Water has previously continued to expand its water network in the northern Delaware Basin. In August of this year, the company signed a 12-year extension agreement with a large publicly listed oil and gas operator, covering produced water gathering, disposal, and treated water supply across more than 875,000 acres, and adding 256,000 acres of dedicated service area.

On the financial side, Pilot Water is expected to generate adjusted EBITDA of $100 million to $110 million in 2026, increasing to $120 million to $130 million in 2027. Select Water also plans to achieve $10 million to $15 million in annual cost synergies within 12 to 18 months after the transaction closes.