Select Water Solutions Inc-A 2025年度报告

GrossMargin1Before D&A Select Water Solutions, Inc. (“Select”orthe“Company”)is the clearmarket leader in full-life cycle watersolutionsfor the energy industry,supported by the Company’s criticalwater infrastructure assets, chemicalmanufacturing and water treatmentand recycling technologies. Million308$ MillionBarrels332 WaterInfrastructure Organic &M&A Growth WaterSustainability Select has thelargest produced waterrecycling and infrastructure platformin the industryand proprietaryautomation technology to reducespills and provide water balancing tocustomers More than 1 billion barrels ofproduced water recycledsince 2021,significantly reducing the need for freshwater for our customers Select has a proven strategy of value-accretive, M&A withmore than 30acquisitions since 2021and hasachieved organic growth through ourfixed long-term infrastructure footprint A Letter toStockholders March 17, 2026 I am pleased to update you on Select Water Solution’s recentperformance, following a record setting 2025, as well asour outlook for the future ahead. We continued to executeour long-term strategy, strengthened our infrastructure-led business model, and invested in growth initiatives thatwe believe will drive sustainable value creation in the yearsahead. right-of-first-refusal acreage in 2025 across an averagecontract term of 11 years. •Completed strategic infrastructure-focused bolt-on assetacquisitions and customer asset conveyances in 2025(including new recycling, storage and disposal assets),adding capacity and scale in our core Northern Delawarefootprint and other key basins. •Returned $41.0 million to stockholders through dividendsand share repurchases, and maintained our commitmentto an attractive, sustainable stockholder return profile. I want to thank our employees, many of whom are alsostockholders, for their hard work and commitment to safetyand operational excellence. Their efforts, together with thesupport and trust of our customers, made 2025 a year ofmeaningful progress for Select. Our Water Infrastructure segment remains the centerpiece ofour strategy, transforming Select into a more durable growth-orientedinfrastructure franchise.During 2025,we grewrecycled volumes by 18%, driving continued year-over-yeargrowth for the Water Infrastructure segment and expandingthe segment to our largest by profitability, underscoring itsvital contribution to our long-term growth trajectory. In 2025, we improved our consolidated margins, streamlinedour Water Services segment, and drove significant market sharegains in our Chemical Technologies segment, all while makingsubstantial progress on our core Water Infrastructure growthstrategy. We also advanced our diversification initiatives inmunicipal and industrial markets and continued to build outour technology capabilities in beneficial reuse and mineralextraction. These efforts position Select as a differentiated,recycling-first water infrastructure provider with growingexposure to long-term, contract-backed cash flows. Near-term, we remain focused on the expansion of ourdifferentiatedNorthern Delaware Basin infrastructurenetwork. This area combines some of the most productivewells and lowest development costs in the industry withsome of the most complex water management challengesalongside evolving regulatory requirements. Our recycling-first water network in the Northern Delaware Basin gathershundreds of thousands of barrels per day through regionalhubs and pipeline systems that help match water supplyand demand across a wide geographic area. In 2025, wesupplemented our organic build-out with customer assetconveyances and targeted acquisitions, adding recycling,storage and disposal capacity in Eddy and Lea County,New Mexico. These assets, together with our constructionbacklog, support our expectation for continued year-over-year revenue growth in Water Infrastructure in 2026. Highlighting our 2025 performance and strategic progress: •Water Infrastructure revenue and gross profit increasedmeaningfully again year-over-year, with the segmenthaving grown from our smallest business to our largestby profitability, supported by more than 800% WaterInfrastructure revenue growth over the past five years. •Achievedrecord consolidated Adjusted EBITDA ofapproximately $260 million for 2025.1•Generated $214.7 million in cash flow from operatingactivities in 2025, enabling strategic investments in keygrowth areas and stockholder value initiatives.•Recycled more than 330 million barrels of producedwater during 2025 and reached a cumulative milestoneof 1 billion barrels recycled since the beginning of 2021.•Executed multiple new minimum volume commitmentsand added nearly 1 million acres of new dedicated and Beyond New Mexico, we are applying the same disciplinedinfrastructure approach across other basins where we havestrong customer relationships and attractive geology. Wemaintain leading disposal positions in the Haynesville andMarcellus and see emerging opportu