The acquisition includes a substantial infrastructure footprint, featuring 2.7 million barrels per day of active permitted disposal capacity and over 700 miles of pipeline. By integrating Pilot Water’s assets, Select aims to capture a larger share of the water midstream market, projecting that its Water Infrastructure segment will account for approximately 70% of total pro forma profitability by 2027.
Select Water Solutions to Acquire Pilot Water in $700 Million Deal
Select Water Solutions has entered into a definitive agreement to purchase Pilot Water Solutions for $700 million, a move designed to consolidate its water midstream infrastructure in the Delaware Basin. The deal, expected to close in late 2026, combines cash and equity to expand Select’s disposal and recycling capacity.
Financial terms stipulate a payment of $600 million in cash and $100 million in Class A common stock, with an additional $15 million in potential earnout payments tied to operational milestones. Select anticipates the transaction will add between $120 million and $130 million in EBITDA by 2027, bolstered by $10 million to $15 million in identified annual cost synergies. The company intends to finance the cash portion through a mix of cash on hand and new debt commitments provided by J.P. Morgan Chase Bank and Bank of America, maintaining a pro forma net leverage ratio below 2.0x at closing.
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