Select Water Solutions, Inc.

Greetings, and welcome to the Select Water Solutions fourth quarter 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Garrett Williams, Vice President, Corporate Finance and Investor Relations. Garrett, please go ahead.

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 fourth quarter and full year 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 Skarke, 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 March 4, 2026. 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, February 18, 2026, and therefore, Time-sensitive information may no longer be accurate as 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 laws. These forward-looking statements reflect the current views of SELEX 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 current reports on Form 8-K, as well as our quarterly reports on Form 10-Q to understand those risks, uncertainties, and contingencies. Please refer to our earnings announcement released yesterday for reconciliations of non-GAAP financial measures. Now, I would 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. 2025 was another record-setting year for Select, both operationally and financially. I'll start with some of our 2025 highlights and provide an update on our key strategic development efforts. Now I'll hand it off to Chris to speak to the fourth quarter and the financial outlook in more detail. In 2025, we improved our consolidated margins streamlined our water services segment, and drove significant market share gains in our chemical technology segment. We made key investments in long-term diversification efforts across the municipal and industrial space and advanced our technology efforts in both beneficial reuse and mineral extraction. But importantly, we made great strides in our core water infrastructure growth strategy including the ongoing build-out of our premier Northern Delaware water infrastructure network. During 2025, we grew recycled produced water volumes by 18%, resulting in more than 330 million barrels of recycled during the year. We also hit a significant milestone during the fourth quarter, achieving one billion barrels recycled since the beginning of 2021, which helped drive the water infrastructure revenue growth of more than 800% across that same five-year period. During that time, we've seen water infrastructure grow from our smallest segment to now our largest segment by profitability. Importantly, we continue to add inventory and underwrite future infrastructure growth, and in 2025, we executed multiple new MBCs and added nearly 1 million new dedicated acreage with an average contract term of 11 years. Accordingly, we are well on track towards growing our water infrastructure to our stated target of greater than 60% of our consolidated gross profit in the next 24 months, supported by sizable additional year-over-year growth of 20 to 25 percent in 2026 has compared to 25. Our industry faces significant evolving produced water challenges and these challenges are perhaps most keenly felt in the northern Delaware basin. We've made a strategic choice to focus in this basin. which contains some of the most productive geology and lowest break-evens in the industry, but also produces the highest water cuts in a region with decreasing disposal availability and increasing regulatory scrutiny. In the northern Delaware, our Recycling First infrastructure network gathers hundreds of thousands of barrels per day, with our facilities acting as distribution hubs that can balance water longs and shorts across a broad regional footprint through expansive dual line pipeline networks. Additionally, the network can be balanced as needed with our interconnected traditional disposal solutions or alternatively enable future beneficial reuse and out of basin disposal solutions. Our unique infrastructure model sets up Select to be the cost advantage provider versus other competitors in the industry, creating significant economic value and cost savings for our customers while generating attractive long-term returns for Select. We also continue to partner with our customers to find the most economic and operationally efficient ways to enhance the utilization of their existing infrastructure. Notably, at times, this may result in our customers operationally transferring or direct conveyance of their existing water-related infrastructure assets to us. Select's ability to integrate these assets into our existing commercial network drives greater operational efficiencies, reduced costs, and yields enhanced systems reliability. Throughout 2025, we have then conveyed multiple recycling disposal and storage facilities from key partner customers. This continued in the fourth quarter as we reached an agreement with a top customer for the direct conveyance of three existing treated produced water storage facilities as well as a permit for additional disposal facilities in Eddy County, New Mexico. We have since drilled and completed this disposal facility with immediate plans to integrate it into our broader network. We believe this is a strong endorsement of our customers' trust in Select and the value-added solutions we are providing. When combined with an additional disposal acquisition we completed in the fourth quarter, we added 55,000 barrels per day of new disposal capacity in the northern Delaware during the quarter. These new assets and contract awards, combined with the significant backlog of our ongoing construction projects, will drive additional network capacity and geographic reach across the entirety of the northern Delaware basin supporting the strong 20 to 25% growth outlook I mentioned for the water infrastructure segment in 2026. We are also finding new ways to leverage the produced water volumes within our existing infrastructure asset base to generate incremental cash flow and high margins royalty stream without requiring incremental capital investment. This includes recently announced strategic partnership for produced water lithium extraction in both the Hainesville and the Permian regions, which should begin contributing initial royalty revenues by early 2027 and growing from there. In summary, our water infrastructure growth strategy is working. I'm excited to see the continued growth from this segment in the years ahead. Now shifting briefly over to our other segments before I hand it over to Chris, our chemical technology segment proved adaptable during 2025, achieving tremendous growth in market share gains in spite of a softer activity environment. This included 19% year-over-year revenue growth, and more importantly, 45% growth in gross profit before DNA. Our research and development efforts continue to drive new product enhancements and demand for advanced chemical technologies. Growing lateral links and increased focus on enhancing recovery rates for oil in place continue to drive demand from our highest quality friction reducers and our advanced surfactant product offering. I am very pleased with our recent market share gains and technology advancements, and I am cautiously optimistic about the renewed focus from our customers on securing high-quality offerings that improve well performance. On the water services side, we were focused on streamlining this segment throughout the past year to simplify our service offerings and position us for the long-term operational efficiency and margin enhancement. Overall, our water services segment performed quite well against a challenging market environment in 2025, maintaining its market-leading positions across each of the segment's core service offerings. We continue to evaluate strategic alternatives for our peak rentals business with a measured and disciplined approach to ensure an outcome that best serves each of PEAK and SELECT's strategic focuses and growth initiatives while maximizing the value for SELECT shareholders. While we proceed with this process, PEAK continues to garner increased traction in its power solutions offering while generating ample excess free cash to support SELECT's core water infrastructure growth strategy. To conclude, I believe that SELECT remains extremely well positioned to meaningfully grow our adjusted EBITDA in 2026 with a unique integration of high growth water infrastructure solutions alongside steady market leading water services and chemical technology solutions. I'm excited for the year ahead and firmly believe our current strategy will continue to drive long-term value for Select shareholders. At this point, I'll hand it over to Chris to speak to our recent financial results and the 2026 outlook in a bit more detail. Chris?