Select Water Solutions to Acquire Pilot Water in $700 Million Deal

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.

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.