Select Water Solutions announced a significant 7-year agreement with an unnamed public operator for produced water transportation in the Northern Delaware Basin. This deal involves the acquisition of 14 saltwater disposal wells, construction of a new pipeline, and a substantial minimum volume commitment, indicating a material expansion of Select's infrastructure and revenue streams.
Select Water Solutions (WTTR) has secured a substantial 7-year agreement with a major public operator in the Northern Delaware Basin. This deal is significant because it involves the conveyance of 14 saltwater disposal wells and the construction of 19 miles of new pipeline, expanding WTTR's operational footprint and capacity. The 128-million-barrel minimum volume commitment provides a strong, predictable revenue stream for WTTR over the long term, enhancing its financial stability and market position in the crucial Delaware Basin. For traders, this represents a clear positive catalyst for WTTR, suggesting increased revenue and market share, with the short-term implication being potential upward pressure on the stock as investors digest the long-term growth prospects and the immediate capital expenditure for the project.