Select Water Solutions to Acquire Pilot Water for $700M, Boosting Delaware Basin Footprint — Select Water Solutions, Inc.

Event summary

Select Water Solutions to acquire Pilot Water Solutions for $700M, including $15M contingent cash consideration.
Pilot Water brings 2.7M barrels/day of active disposal capacity and 0.9M barrels/day of undeveloped capacity.
Deal expected to close in Q4 2026, adding $120–130M in 2027 EBITDA before synergies.
Combined entity will handle over 2.5M barrels/day of produced water by 2027.
Select aims for 70% of pro forma profitability from Water Infrastructure by 2027.

The big picture

The acquisition solidifies Select's position as a diversified water midstream leader, with the Delaware Basin becoming a core growth driver. The deal reflects broader industry trends of consolidation and infrastructure-led strategies to optimize produced water management. With nearly 90% of the combined company's MVCs backed by investment-grade customers, Select enhances its long-term cash flow visibility.

What we're watching

Integration Challenges: Whether Select can smoothly integrate Pilot Water's operations and realize $10–15M in cost synergies.
Delaware Basin Growth: How the combined platform will capture full lifecycle economics of produced water in the region.
Financial Discipline: The pace at which Select maintains sub-2.0x net leverage post-acquisition.