Gainesville-based Select Water Solutions said last week it agreed to acquire Pilot Water Solutions, private water midstream company that operates primarily in Delaware Basin, for $700 million ($600 million cash). Pilot’s infrastructure includes about 2.7 million barrels per day of disposal capacity, 0.9 million b/d of undeveloped disposal capacity and more than 700 miles of pipeline. And the portfolio also includes 480,000 b/d of volume commitments and 306,000 dedicated acres. Closing is expected in Q4.
Select’s announcement Sept. 24 said, “The addition of Pilot Water into Select’s existing Delaware Basin water infrastructure network will create a well-balanced, integrated recycling and disposal platform positioned to efficiently capture the full lifecycle economics of produced and treated produced water.” More than 80 percent of Pilot’s daily produced water volumes are handled in the core of the Delaware Basin in Texas and New Mexico with additional operations in Midland Basin, Eagle Ford, Haynesville, Rockies and northeast regions.
John Schmitz, Select’s CEO, president and chairman, said, “By pairing Pilot Water’s existing produced water volumes with Select’s industry-leading Permian Basin water recycling footprint, we expect to optimize disposal capacity, preserve valuable pore space, and maximize the value potential out of every barrel through increased recycling, mineral extraction and future beneficial use.”