Select Water Solutions Shares Surge on $700 Million Pilot Water Acquisition

Shares of Select Water Solutions, Inc. (NYSE:WTTR) jumped 13% in after-hours trading Thursday after the company announced a definitive agreement to acquire Pilot Water Solutions LLC. The deal is valued at $700 million plus up to $15 million in potential contingent consideration.

Transaction Details

The acquisition will be executed on a debt-free basis and consists of $600 million in cash and $100 million in Select's Class A common stock. Select plans to fund the cash portion through a combination of cash on hand and committed debt financings.

The transaction is expected to close in the fourth quarter of 2026, pending customary closing conditions and regulatory approvals, including under the Hart-Scott-Rodino Act. Upon closing, the company projects its pro forma net leverage will remain below 2.0x.

Strategic Expansion in the Delaware Basin

Pilot Water Solutions is a private water midstream company with significant operations in the Delaware Basin. The acquisition provides Select with a substantial portfolio of assets, including:

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• Approximately 2.7 million barrels per day of active permitted disposal capacity.
• Over 700 miles of pipeline infrastructure.
• Long-term agreements covering 306,000 acres and minimum volume commitments of 480,000 barrels per day.

This move is set to dramatically scale Select's operations. The company projects its Water Infrastructure segment will represent approximately 70% of its pro forma profitability by 2027, with the combined platform handling over 2.5 million barrels per day of produced water.

Financial Outlook

According to the announcement, the acquisition is expected to be highly accretive. Pilot Water is projected to generate between $100 million and $110 million of Adjusted EBITDA in 2026.

Select anticipates the deal will add $120 million to $130 million to its 2027 EBITDA, before accounting for an additional $10 million to $15 million in targeted cost synergies. This positions the combined entity for significant earnings growth.