Select Water Solutions (NYSE: WTTR) has entered into an amended 12-year water management agreement with an undisclosed public operator in the Northern Delaware Basin, covering produced water gathering, disposal, recycling, and treated water distribution across more than 875,000 acres.

The amended agreement adds 256,000 newly dedicated acres, including the conversion of 104,000 acres of prior right-of-first-refusal acreage into dedicated acreage, and 104,000 new right-of-first-refusal acres. In total, the agreement covers approximately 500,000 dedicated acres and 375,000 right-of-first-refusal acres.

As part of the expansion, Select has agreed to construct roughly 100 miles of pipelines, three million barrels of storage capacity, and 60,000 barrels per day of additional recycling capacity in Eddy County, New Mexico. The full project is expected to cost between $100 million and $120 million and be operational by the end of 2027. The company stated its 2026 capital expenditure guidance remains unchanged.

The operator has also granted Select an exclusive option to take assignment of multiple saltwater disposal wells in Lea County, New Mexico, and Culberson County, Texas. If exercised, those wells would be integrated into Select's existing Permian Basin network.

John Schmitz, Chairman, President and CEO, said the operator "has been a key partner of Select's since anchoring Select's first permanent commercial recycling facility in the Northern Delaware Basin back in late 2023."

The expansion will interconnect with Select's existing Northern Delaware network in New Mexico and adds contracted growth capital deployment in 2027, according to the company's press release.