Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record adjusted EBITDA of $260 million, despite a challenging macro environment [17][25] - The company improved consolidated margins and achieved a gross profit margin of 54% in Q4 2025 [18][22] - Adjusted EBITDA for Q4 2025 was $64.2 million, exceeding guidance [25] Business Line Data and Key Metrics Changes - The Water Infrastructure segment saw revenue growth of over 800% over five years, becoming the largest segment by profitability [8] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization [13][24] - The Water Services segment maintained market-leading positions and achieved 7% revenue growth in Q4 2025 [20][23] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain between $55-$65 [17] - The company expects 20%-25% year-over-year growth in the Water Infrastructure segment for 2026 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakevens [9][10] - Strategic investments are being made in long-term diversification efforts, including beneficial reuse and mineral extraction [7][12] - The company aims to grow its water infrastructure to account for over 60% of consolidated gross profit in the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, supported by ongoing infrastructure projects and market demand [16][30] - The company is well-positioned to generate healthy and durable free cash flows over the long term, with a focus on capital allocation for growth and shareholder returns [30] Other Important Information - The company is exploring additional opportunities in lithium extraction and other high-margin revenue streams [44][45] - The Peak Rentals business is under strategic evaluation to maximize value for shareholders while supporting core water infrastructure growth [15][50] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted a mix of smaller opportunities and some larger projects in the Northern Delaware, with a focus on leveraging the existing system for attractive returns [32][34] Question: Future growth for infrastructure business - Management indicated ongoing expansion in Lea and Eddy County, with potential for growth into other basins [37] Question: Lithium extraction partnerships - Management confirmed ongoing evaluations for additional high-margin opportunities, including iodine and strontium extraction [44][45] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select [46][50] Question: Beneficial reuse pilots - Management highlighted successful pilots in collaboration with operators and universities, focusing on treated produced water for agricultural applications [53][56]

Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record Adjusted EBITDA of $260 million, despite a challenging macro environment [17][25] - The company improved consolidated margins and achieved a gross profit margin of 54% in the fourth quarter [18][22] - Adjusted EBITDA for the fourth quarter was $64.2 million, exceeding guidance [25] Business Line Data and Key Metrics Changes - The Water Infrastructure segment saw revenue growth of over 800% over five years, becoming the largest segment by profitability [8] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization [13][24] - The Water Services segment maintained market-leading positions and achieved 7% revenue growth in the fourth quarter [20][22] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain between $55-$65 [17] - The company expects 20%-25% year-over-year growth in the Water Infrastructure segment for 2026 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakevens [9][10] - Strategic investments are being made in long-term diversification efforts, including beneficial reuse and mineral extraction [7][12] - The company aims to grow its water infrastructure to represent over 60% of consolidated gross profit in the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, supported by ongoing construction projects and customer demand [16][21] - The company is well-positioned to benefit from market-leading positions in key gas basins and anticipates stable activity levels [17][18] Other Important Information - The company is targeting a reduction in SG&A expenses to below 11% of revenue for the full year 2026 [25] - Capital expenditures for 2026 are expected to be between $175 million and $225 million, with a focus on water infrastructure growth [27][28] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted that smaller opportunities are more prevalent as the system matures, with some larger projects still being pursued [32][34] Question: Long-term growth opportunities beyond Northern Delaware - Management indicated potential expansion into other basins, including Winkler County, and emphasized the unique opportunities in Lea and Eddy County [35][37] Question: Lithium extraction partnerships and other high-margin opportunities - Management confirmed ongoing evaluations of additional high-margin revenue streams, including iodine and strontium extraction [42][44] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select [46][50] Question: Beneficial reuse pilots - Management highlighted successful pilots in collaboration with operators and universities, focusing on treated produced water applications [53][56]

Financial Data and Key Metrics Changes - Revenue increased by 7% in Q1 2025, with adjusted EBITDA rising by 14% and consolidated gross margins improving by one percentage point [7][15] - Net income grew by $12 million, while consolidated SG&A expenses decreased by 6% [7][19] - The company expects consolidated adjusted EBITDA to rise to between $68 million and $72 million in Q2 2025 [19] Business Line Data and Key Metrics Changes - Chemical Technologies saw a strong revenue growth of 21%, while Water Services experienced an 8% increase [7][18] - Water Infrastructure maintained a robust gross margin of 54%, despite a sequential revenue decline driven by legacy freshwater pipeline assets [7][16] - The Water Services segment's gross margins improved to 19.45% in Q1 2025, up from 16.4% in the previous quarter [18] Market Data and Key Metrics Changes - The Northern Delaware Basin now has over 1,000,000 acres under dedication or right of first refusal agreements, indicating a strong market position [9] - New Mexico represents 54% of the company's total fixed recycling capacity, showcasing significant growth in this area [12] - The company anticipates continued growth in the Permian Basin and other natural gas basins, despite potential macroeconomic pressures [10][66] Company Strategy and Development Direction - The company is focused on expanding its water infrastructure and enhancing its recycling capabilities, with several large contracts recently secured [8][25] - A strategic partnership for ultra-long-term municipal, industrial, and agricultural water supply in Colorado has been initiated [15] - The company aims to maintain a disciplined approach to leverage while funding capital projects and enhancing liquidity [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic pressures and potential activity dislocations [10][14] - The company expects continued growth in consolidated adjusted EBITDA of 6% to 12% during Q2 2025, with a focus on water infrastructure [13][19] - Management highlighted the importance of long-term contracts and full life cycle revenues for stability and growth [25] Other Important Information - The company implemented a new ERP system across all operations, which is expected to yield efficiencies over time [24] - Capital expenditures for 2025 are now expected to be between $225 million and $250 million, up from previous estimates [22] - The company is actively pursuing acquisition opportunities to enhance its asset base and operational capabilities [67] Q&A Session Summary Question: Activity levels in the Permian Basin - Management confirmed no pullback in activity levels in the Permian Basin to date, indicating confidence in their asset positioning [28][29] Question: Upcoming catalysts for AV Farms project - Management is engaging stakeholders and has letters of intent with potential customers, indicating strong demand and optimism for future revenue generation [30][32] Question: Role of CNA companies in AB Farms project - Management stated that Select will eventually take over operational roles while collaborating with CNA for commercialization [39][41] Question: Impact of tariffs on water infrastructure contracts - Management indicated that tariffs are not expected to materially impact water infrastructure projects due to domestic supply chains [45] Question: Supply chain resilience in Chemical Technologies - Management highlighted efforts to localize the supply chain, reducing reliance on international sourcing, particularly from China [46] Question: Future growth in water infrastructure - Management expects to maintain a double-digit growth trajectory in water infrastructure, supported by ongoing projects and contracts [52][56]