Select Water Solutions Inc. entered an amended and expanded agreement with a Permian Basin operator for comprehensive water management including recycling, disposal, and pipeline gathering and distribution across Select's Northern Delaware Basin infrastructure network.

The agreement adds multiple new development areas to the existing agreement, increases certain fixed pricing terms, and extends the term of the agreement for a period of 12 years following the effective date.

As part of this contractually backed expansion, Select has agreed to construct an additional ~100 miles of pipelines, 3 million bbl of storage capacity, and 60,000 b/d of additional recycling capacity to support the operator's long-term development plans in Eddy County, New Mexico.

In total, the amended agreement is supported by about 500,000 dedicated acres and about 375,000 right-of-first-refusal (ROFR) acres. This consolidated acreage position includes the conversion of 104,000 acres from prior ROFR acres into dedicated acres, 256,000 newly dedicated acres and 104,000 new ROFR acres.

The expansion project will interconnect with Select's existing and ongoing buildout of its broader Northern Delaware network in New Mexico. The full expansion project is expected to cost about $100 - $120 million and be operational by the end of 2027.

Additionally, as part of the agreement and in consideration of Select's commitment to build and operate the expanded system, the 0perator has agreed to grant Select the exclusive option to take assignment and conveyance of multiple saltwater disposal wells (SWDs) in Lea County, New Mexico, and Culberson County, Texas. In the event Select exercises this option, the SWDs are expected to be integrated into Select's existing Permian Basin network, adding incremental future disposal capacity to Select's existing integrated recycling and disposal networks.