Select Water Solutions, Inc.

you and welcome to the Select Water Solutions second quarter 2025 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference please press star zero on your telephone keypad. Please note this conference is being recorded. I would now like to turn the conference over to Garrett Williams. Please go ahead sir.

Thank you, operator, and good morning, everyone. We appreciate you joining us for Select Water Solutions conference call and webcast to review our financial and operational results for the second quarter of 2025. With me today are John Schmitz, our founder, chairman, president, and chief executive officer, Chris George, executive vice president and chief financial officer, Michael Starkey, executive vice president and chief operating officer, and Mike Lyons, executive vice president and chief strategy and technology officer. Before I turn the call over to John, I have a few housekeeping items to cover. A replay of today's call will be available by webcast and accessible from our website at selectwater.com. There will also be a recorded telephonic replay available until August 20, 2025. The access information for this replay was also included in yesterday's earnings release. Please note that the information reported on this call speaks only as of today, August 6, 2025, and therefore, Time-sensitive information may no longer be accurate as of the time of the replay listening or transcript reading. In addition, the comments made by management during this conference call may contain forward-looking statements within the meaning of the United States Federal Securities Law. These forward-looking statements reflect the current views of select management. However, various risks, uncertainties, and contingencies could cause our actual results, performance, or achievements to differ materially from those expressed in the statements made by management. The listener is encouraged to read our annual report on Form 10-K. our court reports on Form 8K, as well as our quarterly reports on Form 10Q to understand those risks, uncertainties, and contingencies. Please refer to our earnings announcement released yesterday for reconciliations of non-guided financial measures. Now, I'd like to turn the call over to John.

Thanks, Garrett. Good morning, and thank you for joining us. I am pleased to be discussing Select Water Solutions again with you today. During Select's second quarter of 2025, We improved our profitability and cash flow while continuing to advance our strategic objectives around growing water infrastructure scale and margin. I'd like to start with some of the key second quarter highlights, an overview of several large contracts and transactions we recently closed, and other strategic and market updates. Then Chris will walk through the second quarter results and forward outlook in more detail. In the second quarter, we increased net income by 22% and adjusted EBITDA by 13%. Importantly, we improved operating margins across each segment, leading to a consolidated gross margin gain of nearly two percentage points. Supported by our growth in both our recycling and disposal volumes, we achieved strong top line and bottom line growth in our water infrastructure segment while growing gross margins before DNA to 55%. Since the start of the second quarter, we have signed several new long-term agreements for large gathering, recycling, distribution, and disposal projects. These agreements continue to add scale to our contracted and dedicated acreage position in New Mexico and provide meaningful long-term revenue potential. We also have recently executed on, or now underway with, multiple strategic opportunities to rationalize our water services segment in support of our rapidly growing water infrastructure platform. As we've previously indicated, We have been very focused on assessing our water service portfolio to allow us to focus our time and capital on the areas that deliver high gross margins, continued growth, and full lifecycle water solutions. During July 2025, we closed on a creative transaction with Omni Environmental Solutions that allowed us to achieve multiple strategic goals at once. In this one transaction, we were able to strategically grow our infrastructure business while monetizing and rationalizing certain non-core parts of our water service segment. As part of the deal, we acquired a special waste landfill, a processing and treatment plant, disposal facilities, and an oil reclamation asset in the Bakken region. Now with four active landfills in the region and an expanded integration into solids-liquid separation and enhanced oil reclamation, we have established a clear market-leading solids management footprint in the Bakken to pair with our sizable, traditional wastewater disposal portfolio. We will spend the back half of the year getting the assets in the facility upgraded and expanded but we are excited to add additional high gross margin growth potential for the infrastructure business in 2026 through this deal. In exchange for these assets, Omni Acquired selects trucking operation in the Northeast, MidCon, and Bakken regions. We expect this deal will have improved our consolidated margins over time, reduced our operational risk profile, and streamline our business in multiple basins. While the Omni transaction is a strong step towards rationalization in the water service portfolio, we believe more opportunities remain to capitalize on certain strategic assets within our water services segment. Accordingly, we are now formally exploring financing and capital structure options to unlock value in peak rentals our equipment rentals business within the water services segment. As part of this effort, I am excited to partner with Scott McNeil, a highly respected and proven executive in the energy and power sector. Scott has been instrumental in the formation, leadership, and monetization of multiple successful energy companies and brings deep experience in both operations and capital formation. Scott joins us as the CEO of Peak and will be leading the strategic development and transaction planning for the business. Pat Anderle continues his role as president of Peak, maintaining the operational leadership, execution discipline, and customer focus that has long driven Peak's success. The Peak platform includes well-side equipment, pressure and flow control systems, and notably an emerging distributed power generation business. For more than 15 years, Peak has been a leader in deploying traditional diesel distributed power solutions into the energy markets. And more recently, Peak has capitalized on the rapidly growing demand for its natural gas generators and proprietary battery power systems. Demand for mobile off-grid power is surging as oil-filled electrification accelerates. As the power grid build-out lags, these solutions ensure critical energy infrastructure stays online with resilient and reliable backup. We see the impact of this every day as we utilize PEAK's distributed power solutions to support the rapid build-out of our own water infrastructure platform in remote regions of West Texas and New Mexico. PEAC is scaling into the distributed power sector with meaningful advantages, an established rental platform, a large base of operations, and strong customer relationships across top-tier operators. Furthermore, PEAC has secured a long-term exclusivity agreement with a critical supplier of proprietary battery storage solution, and we believe Peak is the first company to integrate battery power systems alongside generators in the field for both upstream and midstream application. In order to support Peak's momentum in the distributed power generation business and ensure the business has access to dedicated growth capital that does not compete with our water infrastructure growth needs, we are in the process of evaluating transactions that would establish a standalone capital structure. We completed the formal carve-out of PEAK as a standalone operating company earlier this year, and we are well prepared for various potential outcomes. While the ultimate outcome is still to be determined, we expect to preserve continued economic exposure to PEAK's future growth and value creation in its distributed power space, while maintaining long-term strategic alignment to support our core water infrastructure growth strategy. Ultimately, each of the OMNI and PEAK initiatives are aimed at focusing SELECT's near-term priorities around our core strategy of building and promoting routable, repeatable water infrastructure growth, and more directly, the continued build-out of our large-scale northern Delaware basin infrastructure network in New Mexico. Now shifting back to our infrastructure build-out in New Mexico. I am pleased to have executed multiple new long-term contracts in the northern Delaware during the second quarter to expand on our current network in both Eddy and Lee counties adding approximately 60,000 acres of additional leasehold dedication and 385,000 acres under right of first refusal agreements. These new contracts encompass the full water life cycle, including gathering, recycling, disposal, and treated water distribution, and they underwrite the addition of multiple new recycling facilities and nearly 30 miles of additional dual-line large diameter pipeline. But what I am even more excited about is that in each of these deals, our E&P operator partners have agreed to directly convey the ownership or operations of their existing recycling and disposal infrastructure to Select. Select will continue to contractually support each of these customers' core operations, but we'll have the opportunity to utilize the assets for a broader systems water balancing and commercialization as well. This is a very strong testament to the economic and operational value that Select provides in the marketplace with our full lifecycle water balancing capabilities. We greatly appreciate the trust that our partners have and selects reliability as a large water network operator and believe we are well positioned for more long term contracts ahead. We also continue to grow our disposal capacity and take away in conjunction with this large network build out. With plans to continue to grow this capacity over time to support long term network optimization and efficiency. Upon the completion of these recently awarded projects in the Northern Delaware Basin alone, we will have approximately 1.8 million barrels per day of recycling throughput capacity and more than 1 million acres of combined leasehold and roper dedicated acres. On a pro forma basis, New Mexico will have gone from contributing zero to now more than 60% of our total fixed recycling capacity across the Permian in about a two year's time. To further reflect on this point, across the last five quarters we have added on an average more than 77,000 dedicated leasehold acres and more than 140,000 roper acres per quarter, a tremendous pace of contract growth in a short period of time. In effect, we continue to add a significant backlog of contracted future revenues and cash flows underwritten by some of the best geology and lowest break-even well inventory in the industry. I am confident we'll continue to add more contracts into the portfolio over time, and I am excited about the growth potential this will provide over the coming years. Ultimately, We maintain a high level of confidence around our water infrastructure growth potential and believe the segment is poised to see strong 20% year-over-year growth in 2026, building on the double-digit growth we expect in 2025. While the macroactivity environment may present challenges in the second half for more of the completions-oriented parts of our water services and chemical businesses, We maintain market-leading positions in each of these segments and expect them to continue to generate strong free cash flow while we focus on growing our water infrastructure segment. At this point, I'll hand it over to Chris to speak about our financial results and the outlook in a bit more detail. Chris?