Select Water Solutions to buy Pilot Water for $700M

What's the deal? Select Water SolutionsDealroom has a profile for this one. Try Dealroom → has agreed to acquire Pilot Water SolutionsDealroom has a profile for this one. Try Dealroom →, a private water midstream company operating primarily in the Delaware Basin, in a cash-and-equity deal valued at $700 million. Terms include $600 million in cash, $100 million in Class A common stock, and up to $15 million in potential earnout consideration. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals.

What does Pilot Water bring? Pilot Water runs about 2.7 million barrels per day of active permitted disposal capacity, another 0.9 million barrels per day of undeveloped capacity, and more than 700 miles of pipeline. More than 80% of its annual revenue is backed by long-term contracts averaging over seven years, including 480,000 barrels per day of minimum volume commitments and 306,000 dedicated acres.

Why now? A new 175,000-barrel-per-day contract is set to lift Pilot Water's daily produced water volumes from roughly 850,000 barrels per day in early 2026 to about one million in 2027.

What's the endgame? Folding Pilot Water into Select's Delaware Basin network creates an integrated recycling and disposal platform spanning the full lifecycle of produced and treated water. Combined volumes handled are projected to top 2.5 million barrels per day in 2027.

By the numbers: Pilot Water is expected to add $120–$130 million of EBITDA in 2027, before $10–$15 million of targeted cost synergies over the next 12 to 18 months. Select expects to keep pro forma net leverage below 2.0x at closing, with water infrastructure projected to make up about 70% of its profitability by 2027.

The signal: The deal underscores continued consolidation in Delaware Basin water midstream, as operators build scale to capture more of the growing volumes of produced water tied to oil and gas drilling.

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