Select Water Solutions 'A'

Select Water Solutions emphasizes the shift from on-demand services to a contract-based water infrastructure model and reports a record EBITDA of $93 million with prospects for further growth. The core growth driver is the Upper-Delaware network with over 1,000 miles of pipeline, 29 million barrels of storage capacity and high recycling capability; the company reports gross margins of 50–60% in the infrastructure segment. Select is building additional revenue streams through lithium and iodine extraction and beneficial reuse, plans $200–250 million in capex for Eddy/Lea, and reports conservative accounting (debt < EBITDA), a dividend and opportunistic share buybacks. » Altro su de.investing.com

Select Water Solutions has extended an existing water management agreement with a publicly traded, investment-grade operator to 12 years and has secured an additional 256,000 acres exclusively in the northern Delaware Basin. The overall agreement covers about 875,000 acres, of which 500,000 acres are exclusive and 375,000 acres are subject to a right of first refusal; 104,000 acres will be converted from right of first refusal to exclusivity. Select plans roughly 100 miles of pipelines, storage capacity for three million barrels and additional recycling capacity of 60,000 barrels per day; costs are estimated at $100–120 million, with commissioning by the end of 2027. The expansion results in additional contractually committed growth capital expenditures in 2027 and gives Select an option to acquire multiple saltwater disposal wells for integration into the Permian network. » Altro su de.investing.com

Select Water Solutions reported Q2 revenue of $396 million, adjusted EBITDA of $93 million and net income of $23 million, all above prior guidance. Water Infrastructure delivered record revenue of $102 million with 1.5 million barrels per day handled and a seven-year Northern Delaware Basin agreement carrying a 128 million-barrel minimum-volume commitment. Chemical Technologies and Water Services also outperformed expectations, and management raised 2026 net capital spending to $250–$290 million to fund infrastructure projects, acquisitions and pipeline growth. The company expects continued Water Infrastructure growth, potential mineral-extraction revenue in 2027, and Q3 consolidated adjusted EBITDA of $90–$94 million. » Altro su finance.yahoo.com