Select Water Solutions Inc. said on Tuesday it had expanded a long-term water management agreement in the Northern Delaware Basin, adding 256,000 acres and extending the contract to 12 years.
The deal, with an investment-grade public operator that has partnered with Select since late 2023, increases the total acreage under management to approximately 875,000. Of this, 500,000 acres are dedicated and 375,000 remain subject to a right-of-first-refusal arrangement. The expansion includes the conversion of 104,000 acres from right-of-first-refusal status to dedicated acreage.
Under the agreement, Select will invest between $100 million and $120 million to build roughly 100 miles of pipelines, 3 million barrels of storage capacity, and 60,000 barrels per day of additional recycling capacity. The infrastructure is designed to support development plans in Eddy County, New Mexico, and is expected to become operational by the end of 2027.
The contract also grants Select an exclusive option to assume multiple saltwater disposal wells in Lea County, New Mexico, and Culberson County, Texas, which would be integrated into the company’s existing Permian Basin network if exercised. The agreement covers produced water gathering and disposal, treated water supply and distribution, recycling, and pipeline gathering across Select’s Northern Delaware Basin infrastructure.
Select’s 2026 capital expenditure guidance remains unchanged, with the expansion project adding contracted growth capital deployment in 2027, the company said.
