Delaware Basin Recycling Facility Marks Milestone in Sustainable Water Management

Rhea-AI Summary

Select Water Solutions (NYSE: WTTR) and Occidental announced significant progress in their joint water management initiative in the Northern Delaware Basin. The Lost Tank recycling facility in Lea County, New Mexico has reached a milestone of recycling over 50 million barrels of produced water since its 2022 launch.

The facility has expanded from an initial capacity of 60,000 barrels per day to 180,000 barrels per day, supported by 1.9 million barrels of storage. Select constructed a 13-mile produced water pipeline to Occidental's Mesa Verde assets, enabling greater flexibility in water recycling and reuse. The network features advanced automation for dynamic water balancing and is planned to expand by 2025, integrating into a broader system with 12 million barrels of total storage capacity.

Positive

• Facility capacity tripled from 60,000 to 180,000 barrels per day
• Successfully recycled over 50 million barrels of produced water
• Network expansion planned for 2025 with 12 million barrels storage capacity
• 13-mile pipeline infrastructure completed, enhancing operational efficiency

Negative

• None.

Insights

Water Infrastructure & Sustainability Analyst

The Lost Tank facility's achievement of processing 50 million barrels of produced water represents a significant operational and financial milestone for Select Water Solutions (WTTR). The facility's expansion from 60,000 to 180,000 barrels per day demonstrates strong market demand and operational efficiency in the Delaware Basin, one of the most active oil-producing regions in North America.

The strategic value of this project extends beyond mere water recycling. The 13-mile pipeline infrastructure creates a valuable asset network that generates recurring revenue through water handling fees while reducing transportation costs. The planned expansion to 12 million barrels of storage capacity positions Select advantageously in the growing water management market, where scale and efficiency are important competitive advantages.

This partnership with Occidental, a major Permian Basin operator, provides Select with a stable, long-term revenue stream and potential for expansion. The automated water balancing system and multi-operator service capability create additional revenue opportunities by allowing Select to serve multiple customers through the same infrastructure, maximizing asset utilization and return on investment.

From a sustainability perspective, the facility addresses two critical challenges: reducing freshwater consumption and minimizing disposal well usage. This positions Select favorably amid increasing regulatory scrutiny of water disposal practices and growing ESG requirements from institutional investors. The successful track record at Lost Tank and South Curtis Ranch facilities enhances Select's credibility as a leading sustainable water solutions provider, potentially leading to similar partnerships with other major operators.

Lost Tank recycling facility reaches 50 million barrels of produced water

GAINESVILLE, Texas, Feb. 12, 2025 /PRNewswire/ -- Select Water Solutions, Inc. (NYSE: WTTR) ("Select"), a leading provider of sustainable water and technology solutions to the energy industry, and Occidental, one of the largest oil and gas producers in the United States and the Permian Basin, are pleased to announce significant progress in their joint initiative of reducing freshwater usage and reliance on disposal in the Northern Delaware Basin through successful development and commercialization of the Lost Tank recycling facility in Lea County, New Mexico.

The Lost Tank facility began operations in 2022 with an initial recycling capacity of 60,000 barrels per day and has since expanded to process 180,000 barrels per day supported by 1.9 million barrels of storage. To date, over 50 million barrels of produced water have been recycled at the facility, reducing environmental impact while meeting the growing water management needs of the region.

As part of this collaborative effort, Select also constructed a 13-mile produced water pipeline to Occidental's Mesa Verde assets in Southeast New Mexico. This infrastructure connects produced water assets to Lost Tank, enabling greater flexibility for water recycling and reuse. With advanced automation, the system supports dynamic water balancing across the network, allowing water to efficiently be treated, reused, and redirected to multiple operators to reduce disposal volumes while adapting to changing schedules and operational demands. The network is expected to expand further by 2025, with plans to increase pipeline connectivity and integrate the facility into a broader system with total storage capacity of 12 million barrels.

"This facility underscores our commitment to sustainability and innovation," said John Schmitz, Select's Chairman, President, and CEO. "By focusing on produced water recycling, we aim to reduce freshwater dependence and disposal volumes, supporting environmentally responsible water infrastructure in the Delaware Basin."

The Lost Tank facility builds on the ongoing partnership between Select and Occidental, which began with the South Curtis Ranch operation in Martin County, TX. This collaboration continues to advance innovative and sustainable water management practices across the Permian Basin.

"Through the treatment and reuse of produced water, we leverage innovation and collaboration to optimize and preserve water," said Babatunde Cole, President and General Manager of Occidental's Delaware Basin Business Unit. "We are committed to sustainable practices and effective water management, which benefit the Delaware Basin and beyond."

About Select Water Solutions, Inc.

Select is a leading provider of sustainable water and technology solutions to the energy industry. These solutions are supported by the Company's critical water infrastructure assets, chemical manufacturing and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the Company's continued success.  For more information, please visit Select's website, https://www.selectwater.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "could," "believe," "anticipate," "expect," "intend," "project," "will," "estimates," "preliminary," "forecast" and other similar expressions. Examples of forward-looking statements include, but are not limited to, the expectations of plans, business strategies, objectives and growth, projected financial results and future financial and operational performance, expected capital expenditures, our share repurchase program and future dividends. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could materially impact such forward-looking statements include, but are not limited to: the global macroeconomic uncertainty related to the Russia-Ukraine war and related economic sanctions; instability and related hostilities in the Middle East, including heightened tensions with Iran, Lebanon and Yemen; the ability to source certain raw materials and other critical components or manufactured products globally on a timely basis from economically advantaged sources, including any delays and/or supply chain disruptions due to increased hostilities in the Middle East; actions by the members of the Organization of the Petroleum Exporting Countries ("OPEC") and Russia (together with OPEC and other allied producing countries, "OPEC+") with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with supply limitations, which may be exacerbated by the recent Middle East conflicts; actions taken by federal or state governments, such as executive orders or new or expanded regulations, that may negatively impact the future production of oil and natural gas in the U.S. or our customers' access to federal and state lands for oil and gas development operations, thereby reducing demand for our services in the affected areas; the severity and duration of world health events, and any resulting impact on commodity prices and supply and demand considerations; the impact of central bank policy actions, such as sustained, elevated  interest rates in response to, among other things, high rates of inflation, and disruptions in the bank and capital markets; the degree to which consolidation among our customers may affect spending on U.S. drilling and completions activity; the level of capital spending and access to capital markets by oil and gas companies, trends and volatility in oil and gas prices, and our ability to manage through such volatility; the impact of current and future laws, rulings and governmental regulations, including those related to hydraulic fracturing, accessing water, disposing of wastewater, transferring produced water, interstate freshwater transfer, chemicals, carbon pricing, pipeline construction, taxation or emissions, leasing, permitting or drilling on federal lands and various other environmental matters; regulatory and related policy actions intended by federal, state and/or local governments to reduce fossil fuel use and associated carbon emissions, or to drive the substitution of renewable forms of energy for oil and gas, may over time reduce demand for oil and gas and therefore the demand for our services, including as a result of the Inflation Reduction Act of 2022; growing demand for electric vehicles that may result in reduced demand for refined products deriving from crude oil such as gasoline and diesel fuel, and therefore the demand for our services; the impact of advances or changes in well-completion technologies or practices that result in reduced demand for our services, either on a volumetric or time basis; changes in global political or economic conditions, generally, including as a result of the fall 2024 presidential election and any resultant political uncertainty, and in the markets we serve, including the rate of inflation and potential economic recession; and other factors discussed or referenced in the "Risk Factors" section of our most recent Annual Report on Form 10-K and those set forth from time to time in our other filings with the SEC. Investors should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.

Contacts:	Select Water Solutions
	Garrett Williams – VP, Corporate Finance &
	Investor Relations
	(713) 296-1010
	IR@selectwater.com
	Dennard Lascar Investor Relations
	Ken Dennard / Natalie Hairston
	(713) 529-6600
	WTTR@dennardlascar.com

 

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SOURCE Select Water Solutions, Inc.

FAQ

How many barrels of water has WTTR's Lost Tank facility recycled since 2022?

The Lost Tank recycling facility has recycled over 50 million barrels of produced water since beginning operations in 2022.

What is the current daily processing capacity of WTTR's Lost Tank facility?

The Lost Tank facility currently processes 180,000 barrels per day, up from its initial capacity of 60,000 barrels per day.

How long is the pipeline connecting WTTR's Lost Tank facility to Occidental's Mesa Verde assets?

Select Water Solutions constructed a 13-mile produced water pipeline connecting the Lost Tank facility to Occidental's Mesa Verde assets in Southeast New Mexico.

What will be the total storage capacity of WTTR's expanded water system by 2025?

The expanded network is planned to have a total storage capacity of 12 million barrels by 2025.

When did WTTR's Lost Tank recycling facility begin operations?

The Lost Tank recycling facility began operations in 2022 with an initial recycling capacity of 60,000 barrels per day.