The acquisitions encompass a range of assets, including 21 active saltwater disposal wells, two slurry injection wells, a solids treatment facility, and various permits for additional recycling and disposal facility development
Select Water Solutions closed three infrastructure acquisitions across East Texas and the Rockies region in January 2024. (Credit: u_nnjglrk13q from Pixabay)
In a move aimed at bolstering its water infrastructure assets, Select Water Solutions, a provider of water and chemical solutions to the energy industry, has announced multiple acquisitions in the Haynesville Shale and Rockies regions.
The acquisitions, totalling approximately $90m in cash consideration, are set to fortify Select Water Solutions’s water Infrastructure segment and expand its operational capacity.
The acquisitions encompass a range of assets, including 21 active saltwater disposal wells, two slurry injection wells, a solids treatment facility, and various permits for additional recycling and disposal facility development. These additions are projected to contribute approximately 450,000 barrels per day of permitted disposal capacity to Select’s operations.
One notable acquisition involved the disposal assets and operations of Tri-State Water Logistics. This transaction, completed in January 2024, not only added 11 active saltwater disposal wells and one slurry injection facility but also augmented Select Water Solutions’s disposal capabilities in the Haynesville Shale region.
Additionally, Select Water Solutions secured five approved permits with 75,000 barrels per day of permitted capacity through this deal.
Moreover, Select Water Solutions finalised the acquisition of assets and operations from Iron Mountain Energy during the same period. This acquisition, focused on East Texas near the Louisiana border, furnished Select Water Solutions with an additional 159,000 barrels per day of disposal capacity from 11 saltwater disposal wells and one slurry injection well.
The deal also included a recently completed solids separation facility, enhancing Select Water Solutions’s solids management operations.
Expanding its footprint further, Select Water Solutions completed the acquisition of water disposal assets and operations in the Rockies region, providing 20,000 barrels per day of active disposal capacity and 40,000 barrels per day of additional permitted disposal and recycling capacity.
These assets, supported by long-term pipeline agreements averaging 12 years in duration, offer opportunities for network integration and sustainable water management solutions in the region.
Select Water Solutions board chairman, president, and CEO John Schmitz said: “Select is the leader in delivering full life cycle water solutions to meet the growing need for long-term produced water management in the energy industry, and our recent acquisitions strengthen this position. The three acquisitions will bring additional contracted revenue and earnings power to our Water Infrastructure segment and strategically complement our existing water infrastructure networks in the Haynesville Shale and Rockies regions.
“With the additions of Iron Mountain and Tri-State Water’s disposal operations, we have a tremendous opportunity to efficiently integrate these assets into our existing 60-plus mile gathering pipeline system in the Haynesville Shale, expanding our overall water handling capacity and extending the geographic footprint of the network.”