Select Water Solutions (WTTR) outlined its strategic shift toward sustainable water management at the 17th Annual Midwest IDEAS Conference on Tuesday, detailing record financial performance and capital allocation plans.
The company, which operates in key U.S. shale basins including the Permian, Haynesville, and Bakken, reported a record adjusted EBITDA of $93 million in the second quarter, alongside Chemical Technologies revenue of $96 million—a 23% sequential increase. For the trailing twelve months ending June 2026, Select Water Solutions posted revenue of $1.43 billion and EBITDA of $253 million. Its market capitalization stands at approximately $2.7 billion.
Capital expenditures are projected at $250 million to $290 million for 2025, with roughly $200 million earmarked for growth initiatives. Maintenance capital needs are estimated at about $60 million annually, while a $192 million equity offering completed in February 2025 bolstered its balance sheet. Leverage remains low at approximately 0.7x, compared with an industry average of 2.5x to 3.0x, supported by a debt-to-equity ratio of 0.28.
Select Water Solutions highlighted its expanding role in water infrastructure, which currently accounts for about 50% of total profitability and is targeted to reach 60% by 2027. The company’s gross margin has improved to above 30%, up from roughly 20% historically, with Water Infrastructure margins ranging between 55% and 60%. Growth guidance for the Water Infrastructure segment in 2025 has been raised to 25%-30%, from a prior 20%-25% range.
The company manages approximately 1.5 million barrels of produced water daily, including 1.1 million barrels recycled and 400,000 barrels disposed. Management expects capacity to scale to about 2 million barrels per day within 18 months. Since 2021, Select Water Solutions has recycled over 1 billion barrels of water, with disposal capacity expanded by roughly 250,000 barrels over the past 18 to 24 months. Its pipeline network exceeds 1,000 miles, and its acreage contract portfolio covers more than 2 million acres, with an average contract tenor of 11 years.
New growth avenues include a $75 million investment in Colorado water rights within the Arkansas River Valley and projected cash flows of $20 million to $30 million from four mineral extraction deals—three focused on lithium and one on iodine—expected to ramp by 2030. The company also generated $6 million in revenue from data center water solutions in the second quarter.
Select Water Solutions emphasized its commercial framework in water recycling, noting that major operators such as Chevron and Exxon now utilize treated produced water for completion needs, displacing fresh water alternatives. The company’s dividend yield stands at 1.46%, having been raised for four consecutive years.
Management reiterated its long-term goal of directing 70% of profitability to the Water Infrastructure segment.
