Select Water Solutions Inc (WTTR) 2025 Q1 法說會逐字稿

Greetings and welcome to the Select quarter Solutions 2025 1st quarter earnings conference call.

問候並歡迎參加 Select Quarter Solutions 2025 第一季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Garrett Williams, Vice President of Corporate finance and Investor Relations.

現在我很高興介紹您的主持人，公司財務和投資者關係副總裁 Garrett Williams。

Thank you, sir. You may begin.

謝謝您，先生。你可以開始了。

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 first quarter of 2025.

謝謝接線員，大家早安。感謝您參加 Select Water Solutions 電話會議和網路廣播，以回顧我們 2025 年第一季的財務和營運表現。

With me today are John Schmitz, our founder, Chairman, President and Chief Executive Officer, Christopher 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.

今天與我一起的有我們的創始人、董事長、總裁兼首席執行官約翰·施密茨 (John Schmitz)、執行副總裁兼首席財務官克里斯托弗·喬治 (Christopher George)、執行副總裁兼首席營運官邁克爾·斯卡克 (Michael Skarke) 以及執行副總裁兼首席戰略和技術官邁克·里昂斯 (Mike Lyons)。

Before I turn the call over to John, I have a few housekeeping items to cover.

在我把電話轉給約翰之前，我有幾件事要處理。

A replay of today's call will be available by webcast and accessible from our website at selectwater.com.

今天的電話會議重播將透過網路直播提供，並可從我們的網站 selectwater.com 存取。

There will also be recorded telebonic replay available until May 21, 2025. The access information for this replay was also included in yesterday's release.

錄製的電視回放也將持續到 2025 年 5 月 21 日。這次重播的存取資訊也包含在昨天的發布中。

Please note that the information reported on this call speaks only as of today, May 7th, 2025, and therefore time sensitive information may no longer be accurate as to the time of the replay listing or transcript reading.

請注意，本次通話中報告的資訊僅截至今天（2025 年 5 月 7 日），因此重播清單或文字記錄的閱讀時間可能不再準確。

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.

此外，管理階層在本次電話會議中所作的評論可能包含美國聯邦證券法所定義的前瞻性陳述。

These forward-looking statements reflect the current view of select's management. However, various risks, uncertainties, and contingencies could call their actual results, performance, or achievements to differ materially from those expressed in the statements made by management.

這些前瞻性陳述反映了 select 管理階層的當前觀點。然而，各種風險、不確定性和意外事件可能導致其實際結果、業績或成就與管理層聲明中表達的結果、業績或成就有重大差異。

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.

鼓勵聽眾閱讀我們的 10-K 表年度報告。我們目前的 8-k 表報告以及 10-Q 表季度報告，以了解這些風險、不確定性和意外事件。

Please refer to our earnings announcement released yesterday for reconciliation of non-gap financial measures. Now I would like to turn the call over to John.

請參閱我們昨天發布的收益公告，以了解非差距財務指標的調節情況。現在我想把電話轉給約翰。

Thanks, Garrett. Good morning and thank you for joining us. I am pleased to be discussing select water solutions again with you today.

謝謝，加勒特。早安，感謝您加入我們。我很高興今天再次與大家討論精選水解決方案。

The first quarter of 2025 was a strong start to the year for select I like to start with some of the key 1st quarter highlights, an overview of the several large contracts we recently secured, and other strategic and market updates. Then I'll hand it over to Chris to discuss the first quarter results and forward outlook in more detail.

2025 年第一季對於精選產品來說是一個強勁的開端，我想從第一季度的一些關鍵亮點、我們最近獲得的幾份大合約的概述以及其他戰略和市場更新開始。然後我將交給克里斯更詳細地討論第一季的業績和未來展望。

In the first quarter, we increased revenue by 7%, outpacing the general macro environment, increased adjusted EBITDA by 14%, and improved consolidated gross margins by 1% points.

第一季度，我們的營收成長了 7%，超過了整體宏觀環境的成長，調整後的 EBITDA 成長了 14%，綜合毛利率提高了 1 個百分點。

We achieved strong revenue growth of 21% in chemical technologies and 8% in water services while maintaining a strong 54% gross margins in water infrastructure.

我們在化學技術領域實現了 21% 的強勁收入成長，在水務服務領域實現了 8% 的強勁收入成長，同時在水基礎設施領域維持了 54% 的強勁毛利率。

In addition to these operational gains, we reduced consolidated SG&A by 6% and grew net income by $12 million.

除了這些營運收益之外，我們還將合併銷售、一般及行政費用降低了 6%，淨收入增加了 1,200 萬美元。

Water infrastructure saw an increase in both recycling and disposal volumes in the 1st quarter, a trend we anticipate will continue into the 2nd quarter While revenue was modestly down sequentially.

第一季度，水利基礎設施的回收量和處理量都有所增加，我們預計這一趨勢將持續到第二季​​度，而收入則環比略有下降。

This was consistent with our expectation and was driven entirely by reduced revenues from our legacy freshwater pipeline assets.

這與我們的預期一致，完全是由於我們原有的淡水管道資產收入減少所致。

This includes a 40 mile freshwater pipeline in the northern Delaware that was taken offline in order to convert the asset to transport produced water.

其中包括特拉華州北部一條 40 英里長的淡水管道，該管道被下線，以將其轉換為運輸採出水。

This pipeline has since been integrated into our expanding northern Delaware network and will provide tremendous operational and strategic benefits as the primary north-south trunk line for this system.

該管道現已融入我們不斷擴展的北特拉華州網絡，並將作為該系統的主要南北幹線提供巨大的營運和戰略優勢。

Since the start of the year, we have signed several new agreements for large gathering, recycling, distribution, and disposal projects that significantly add to our contracted and dedicated acreage position and provide substantial long-term re revenue potential.

自今年年初以來，我們已簽署了幾項大型收集、回收、配送和處置項目的新協議，這些協議大大增加了我們的合約和專用土地面積，並提供了巨大的長期再收入潛力。

These latest contract rewards add to our industry leading recycling footprint and further advance the weighting of our profitability coming from contracted and full life cycle and production weighted revenues.

這些最新的合約獎勵擴大了我們行業領先的回收足跡，並進一步提高了我們來自合約和全生命週期以及生產加權收入的盈利能力。

Specifically looking at the northern Delaware Basin in New Mexico, we have quickly developed a leading water infrastructure network with the recent winds taking our total contracted footprint in the basin to more than $1 million acres under dedication or right of first refusal agreements in this basin alone.

具體來看新墨西哥州北部的特拉華盆地，我們已迅速開發出領先的水利基礎設施網絡，最近的風力使我們在該盆地的總合約佔地面積超過 100 萬美元英畝，僅在該盆地就已簽訂了專用權協議或優先購買權協議。

The strategic location of our latest development projects encompassing a large portfolio of tier one well inventory combined with the structure of our contracts with industry leading EP partners give us confidence that these infrastructure assets will be strong contributors to our earnings, not only in late 205, but well into the future years to come.

我們最新開發項目的戰略位置涵蓋了大量的一級油井庫存，再加上我們與行業領先的 EP 合作夥伴簽訂的合約結構，讓我們有信心，這些基礎設施資產不僅在 205 年末，而且在未來幾年都將為我們的盈利做出強大的貢獻。

While macro pressure and potential activity dislocations caused by the recent tariff and global trade announcements have been major topics as of late, we are well positioned with a diversified footprint across all major US unconventional bases.

儘管近期關稅和全球貿易公告造成的宏觀壓力和潛在活動混亂已成為主要話題，但我們已在美國所有主要非常規基地擁有多元化的佈局，處於有利地位。

This includes a rapidly growing asset base in the Permian Basin as well as market leading positions in natural gas basins such as the Haynesville and the Marcellus Utica, which we expect to demonstrate resilience this year.

這包括二疊紀盆地快速成長的資產基礎以及海恩斯維爾和馬塞勒斯尤蒂卡等天然氣盆地的市場領先地位，我們預計這些盆地今年將展現出韌性。

Looking closer at the latest contract awards, the largest of the new agreements is an 11 year contract supporting the largest single capital project in the history of this company, encompassing water recycling, storage, disposal, and both gathering and distribution pipelines in the northern Delaware Basin in Eddy County for existing key customers in the region.

仔細查看最新的合約授予，新協議中最大的一份是一份為期 11 年的合同，用於支持該公司歷史上最大的單一資本項目，包括為該地區現有主要客戶在埃迪縣北部特拉華盆地建設水回收、儲存、處置和收集及分配管道。

This agreement adds more than 265,000 additional dedicated and right of first refusal acres supporting the customer's long-term development plans in the basin. Importantly, This project builds up the value of our existing Lee County infrastructure network and will add approximately 100 miles of incremental large diamal diameter pipelines to our existing network.

該協議增加了超過 265,000 英畝的專用土地和優先購買權，以支持客戶在該盆地的長期開發計劃。重要的是，該項目提升了我們現有的李縣基礎設施網路的價值，並將為我們現有的網路增加約 100 英里的增量大直徑管道。

This buildout will provide a critical east west expansion into Eddy County and will allow us to fully maximize our water balancing and full life cycle water capabilities across a much broader geographic footprint.

此次擴建將為埃迪縣提供重要的東西向擴展，並使我們能夠在更廣泛的地理範圍內充分發揮我們的水平衡和全生命週期供水能力。

Furthermore, we also capitalized on our existing right of first refusal agreements with the same customer exercising our rights to convert an additional 25,000 acres into long-term dedication supported by adding an incremental 14 miles of large diameter pipeline build out.

此外，我們還利用與同一客戶簽訂的現有優先購買權協議，行使我們的權利，將另外 25,000 英畝土地轉換為長期專用地，並透過增加 14 英里的大直徑管道建設提供支援。

Upon the completion of these recently awarded projects, we will have more than $1.3 million barrels per day of recycling throughput capacity in the northern Delaware Basin supported by long-term contracts with blue chip operators.

這些近期中標項目完成後，我們將在北特拉華盆地擁有超過 130 萬桶/天的回收吞吐能力，並透過與藍籌業者簽訂的長期合約提供支援。

On a performer basis, New Mexico will now represent 54% of our total fixed recycling capacity, a significant achievement for us over the last two years.

從績效角度來看，新墨西哥州現在將占我們總固定回收能力的 54%，這是我們過去兩年的重大成就。

Additionally, in the first quarter, we executed an agreement to expand our infrastructure on the central basin platform recycling project we announced last quarter with a large public ENP operator. The previous announced Greenfield recycling facility in the Central Basin platform added a 124,000 acre dedication and is now being interconnected with 22 miles of parallel produced water gathering and treated produced water distribution pipelines.

此外，在第一季度，我們與一家大型公共 ENP 營運商簽署了一項協議，以擴大我們上個季度宣布的中央盆地平台回收項目的基礎設施。先前宣布的中央盆地平台綠地回收設施新增了 124,000 英畝的專用地，目前正在與 22 英里的平行生產水收集和處理過的生產水分配管道互連。

Finally, we are also highly encouraged by the long-term growth opportunities in our agricultural, industrial, and municipal water pursuits and have continued to progress our AV farms investments as planned with an additional senior water rights acquisition during the 1st quarter.

最後，我們也對農業、工業和市政用水領域的長期成長機會感到非常鼓舞，並將繼續按計劃推進 AV 農場的投資，並在第一季獲得了額外的優先水權。

These opportunities should provide further stability and steady earnings to the select for decades to come once fully developed over the next two to three years.

一旦在未來兩到三年內充分開發，這些機會將為未來幾十年的精選者提供進一步的穩定性和穩定的收入。

Now looking at the rest of the business, our water services and chemical technology segments continue to provide strong source of free cash flow for us, with these two segments continuing to generate strong conversion of 70% or greater of their gross profit to free cash flow, helping to fund our water infrastructure growth plans.

現在看看其餘業務，我們的水務服務和化學技術部門繼續為我們提供強大的自由現金流來源，這兩個部門繼續將其 70% 或更多的毛利強勁轉化為自由現金流，幫助資助我們的水基礎設施成長計畫。

While we expect revenue to decrease sequentially for these two segments, we actually expect them to generate more free cash flow in the 2nd quarter of 2025 relative to the first quarter due to the improved margins and reduced maintenance capital required during the quarter.

雖然我們預計這兩個部門的收入將連續下降，但我們實際上預計，由於本季利潤率提高且所需維護資本減少，它們在 2025 年第二季度將產生比第一季更多的自由現金流。

Looking forward, we do expect a lower commodity price and supply chain dislocations resulting from the tariff and trade-related uncertainty to impact the oil and gas industry overall. However, we believe the direct impacts on select will be limited in the near term, and we expect continued growth in our consolidated adjusted EBITDA of 6% to 12% during the second quarter.

展望未來，我們確實預期大宗商品價格下跌以及關稅和貿易相關不確定性所導致的供應鏈混亂將對整個石油和天然氣產業產生影響。然而，我們認為短期內對精選產品的直接影響將是有限的，我們預計第二季合併調整後 EBITDA 將繼續成長 6% 至 12%。

While we haven't seen a material impact to the overall activity levels yet, oil prices at current levels could drive decreases in activity through the second half of the year. We are fully preparing for the potential impact.

雖然我們尚未看到對整體活動水平產生實質影響，但當前油價水平可能會導致今年下半年活動減少。我們正在為潛在的影響做好充分準備。

To the more completion oriented parts of our business largely within the services and chemicals. However, we have built significant resilience into the business in recent years with our strategic focus on water infrastructure growth, increasing full life cycle and production weighted revenues, the strength of our contract portfolio, and uniqueness of our acreage and inventory we have underwritten.

我們的業務中更注重完成的部分主要集中在服務和化學品方面。然而，近年來，我們透過策略重點關注水利基礎設施成長、增加全生命週期和生產加權收入、增強合約組合實力以及承保的土地面積和庫存的獨特性，為業務建立了顯著的彈性。

Looking back over the last 24 months, we are very proud of the contract and asset base we have put together in a relatively short period of time, and this gives us strong confidence in our positioning as we look ahead.

回顧過去的 24 個月，我們對在相對較短的時間內建立的合約和資產基礎感到非常自豪，這使我們對未來的定位充滿信心。

At this point, I'll hand it over to Chris to speak to our financial results and outlook in a bit more detail.

現在，我將把時間交給克里斯，讓他更詳細地介紹我們的財務表現和前景。

Chris, Thank you, John, and good morning everyone. Select made great strides in the first quarter, which included strong revenue, adjusted EBITDA and net income growth, very healthy water infrastructure, gross margins before DNA of 54%.

克里斯，謝謝你，約翰，大家早安。Select 在第一季取得了長足的進步，包括強勁的收入、調整後的 EBITDA 和淨收入增長、非常健康的水基礎設施、DNA 前的毛利率達到 54%。

Significant new water infrastructure contract winds, including sizable additional acreage dedications in the Permian Basin.

大量新的水利基礎設施合約即將簽訂，其中包括在二疊紀盆地額外投入大量土地。

Our first strategic partnership to support ultra long term municipal, industrial and agricultural water supply in Colorado.

我們的第一個戰略合作夥伴關係旨在支持科羅拉多州的超長期市政、工業和農業供水。

The rollout of our new ERP system across the company and the closing of our new 5 year sustainability lied credit facility, including $300 million of revolver commitments and $250 million of funded term loan commitments.

我們在整個公司推出了新的 ERP 系統，並結束了新的 5 年期可持續性信貸安排，其中包括 3 億美元的循環信貸承諾和 2.5 億美元的定期貸款承諾。

The additional capital and liquidity provided through our new credit facility provides a prudent source of financing to support our additional water infrastructure project wins and the initiation of our large scale senior water rights investments in Colorado.

透過我們的新信貸安排提供的額外資本和流動性提供了一個審慎的融資來源，以支持我們贏得額外的水基礎設施項目以及在科羅拉多州啟動大規模高級水權投資。

Maintaining a disciplined approach to the use of leverage has been a core tenet of Select over our history and has benefited us during times of cyclical stress in the market.

堅持以嚴謹的方式使用槓桿一直是 Select 歷史上的核心原則，並且在市場週期性壓力時期使我們受益。

We firmly expect to maintain this discipline, and with the continued free cash flow generation from our base businesses and our enhanced overall liquidity, we are well positioned to fund our capital projects while maintaining a conservative leverage profile in a variety of market conditions.

我們堅定地希望保持這一紀律，並且隨著我們的基礎業務繼續產生自由現金流和我們增強的整體流動性，我們有能力為我們的資本項目提供資金，同時在各種市場條件下保持保守的槓桿率。

Looking at our recent first quarter segment performance in more detail, as I mentioned earlier, water infrastructure maintained a strong 54% gross margin before DNA during the period.

更詳細地回顧我們最近第一季的分部業績，正如我之前提到的，水利基礎設施在此期間保持了 DNA 之前 54% 的強勁毛利率。

While our freshwater pipeline business declined approximately $8 million in revenue during the quarter, continued gains in our strategic recycling and disposal divisions limited the reduction for the overall segment to $4 million sequentially.

雖然我們的淡水管道業務在本季的收入下降了約 800 萬美元，但我們的策略回收和處置部門的持續成長將整個部門的收入減少限制在 400 萬美元。

As John touched on earlier, a large driver of the impact was from our large diameter freshwater pipeline in New Mexico that we have now successfully converted into a produced water line tied into our expanded infrastructure network in the region.

正如約翰之前提到的，產生這一影響的一大因素是我們位於新墨西哥州的大直徑淡水管道，現在我們已成功將其改造成一條生產水管道，與該地區擴建的基礎設施網絡相連。

In addition to growing our recycling and disposable volume sequentially, we also achieved a single facility record 500,000 barrels per day, peak recycling rate at one of our northern Delaware recycling facilities in Lee County during the first quarter.

除了連續增加我們的回收量和一次性使用量之外，我們在第一季還實現了單設施每天 50 萬桶的記錄，這是位於李縣的北特拉華州回收設施之一的峰值回收率。

This improved rate helped us achieve a new monthly record during March for total barrels recycled at a single facility.

這項改進幫助我們在三月創造了單一設施回收桶總數的月度新紀錄。

With several projects set to come online for our water infrastructure business during the 2nd quarter, we expect revenue to increase double digit percentages in Q2, with margins remaining above 50%.

由於我們的水利基礎設施業務的多個項目將在第二季度上線，我們預計第二季度的收入將實現兩位數的百分比增長，利潤率仍將保持在 50% 以上。

While the overall macroeconomic outlook weighs on the market overall, we still expect a continued growth trajectory for water infrastructure over the second half of the year compared to the first half of the year.

儘管整體宏觀經濟前景對市場造成壓力，但我們仍預計下半年水利基礎建設將較上半年繼續保持成長動能。

On a full year over year basis, we believe we are currently still tracking within, albeit towards the 15% lower end of our previously guided range for both revenue and gross profit growth for the segment in 2025 as we contemplate the potential impacts on near-term activity levels from a lower commodity price environment.

與去年同期相比，我們認為，由於考慮到較低大宗商品價格環境對近期活動水平的潛在影響，我們目前仍在跟踪我們先前對 2025 年該部門收入和毛利潤增長的指導範圍，儘管接近 15% 的低端。

Importantly though, with our latest new contract awards, we are adding additional capital projects that should continue to provide a further level of growth for this segment in 2026 and beyond.

但重要的是，隨著我們最新授予的新合同，我們正在增加額外的資本項目，這些項目應該會在 2026 年及以後繼續為該領域提供進一步的增長。

Testament to our water infrastructure strategy overall and the strength of its future earnings potential.

證明了我們的整體水基礎設施策略及其未來獲利潛力的強勁。

Switching over to water services, this segment saw revenues increase by about 8% sequentially, driven primarily by improved activity levels coming out of the seasonal 4th quarter and strong gains in our water transfer business unit.

轉向水務服務，該部門的收入環比增長約 8％，主要原因是第四季度季節性活動水平的提高以及水轉移業務部門的強勁增長。

This was at the higher end of our expected revenue guidance and our gross margins before DNA and services increased to 19.45% during Q1, a meaningful improvement compared to 16.4% in the fourth quarter.

這處於我們預期收入指導的高端，並且我們的 DNA 和服務前的毛利率在第一季度上升至 19.45%，與第四季度的 16.4% 相比有顯著改善。

We expect a 5% to 10% revenue decline in the second quarter for water services as we see decreased traditional freshwater sourcing sales and legacy trucking revenues resulting from ongoing operational consolidation decisions. We expect these decisions to support a creative gains for the segment, driving gross margins to improve further into the 20% to 22% range in Q2.

我們預計第二季水務服務收入將下降 5% 至 10%，因為我們看到持續的營運整合決策導致傳統淡水採購銷售和傳統卡車運輸收入下降。我們預計這些決策將支持該部門的創造性收益，推動毛利率在第二季進一步提高到 20% 至 22% 的範圍內。

On the chemical technology side, this segment saw strong sequential revenue growth of 21% during the first quarter, well exceeding our guided expectations, driven by continued new product development, key customer wins, and ongoing market share gains.

在化學技術方面，該部門第一季營收季增 21%，遠超我們的預期，這得益於持續的新產品開發、關鍵客戶的贏得以及市場份額的持續成長。

During the 2nd quarter, its variable activity levels modestly impact the business. We expect revenue to decrease mid-single digit percentages, but expect to sustain relatively steady 14% to 16% gross margins during the second quarter.

在第二季度，其可變的活動水準對業務的影響不大。我們預計第二季營收將下降中等個位數百分比，但預計毛利率將維持相對穩定的 14% 至 16%。

Looking back on a consolidated basis in the first quarter, SG&A decreased to $37 million or just under 10% of revenue.

回顧第一季的合併數據，銷售、一般及行政費用下降至 3,700 萬美元，佔收入的 10% 以下。

We expect SG&A to stay at 10% to 11% of revenue in the second quarter of 2025.

我們預計 2025 年第二季銷售、一般及行政費用 (SG&A) 將維持在營收的 10% 至 11%。

Altogether, we saw a consolidated adjusted EBITDA of $64 million during the first quarter of 2025, just above the high end of our guidance, largely resulting from the stronger than expected marginal performance in our water infrastructure segment.

總體而言，我們在 2025 年第一季實現了 6,400 萬美元的合併調整後 EBITDA，略高於我們預期的高端，這主要得益於我們水基礎設施部門的邊際業績強於預期。

An outsized top line performance from our water services and chemical techno technology sectors.

我們的水務服務和化學技術技術領域取得了超乎尋常的業績。

In the second quarter of 2025, we expect an uplift in consolidated adjusted EBITDA to $68 to $72 million as strong sequential increases in the water infrastructure segment more than offset anticipated declines in water services and chemical technologies.

2025 年第二季度，我們預計合併調整後 EBITDA 將上升至 6,800 萬至 7,200 萬美元，因為水基礎設施部門的強勁連續成長超過了水服務和化學技術的預期下滑。

While activity declines in the second half of the year may further impact the outlook for our more completions oriented water services and chemical technologies businesses after Q2, we are confident in the continued growth prospects for a water infrastructure business and the additional resilience that our latest contract awards will bring.

雖然下半年活動的下降可能會進一步影響我們第二季度後更注重完工的水務服務和化學技術業務的前景，但我們對水基礎設施業務的持續增長前景以及我們最新的合約授予將帶來的額外彈性充滿信心。

With new projects slated to come online throughout the next 12 months, we expect to drive continued growth into 2026 and beyond for the water infrastructure.

隨著未來 12 個月內新項目陸續上線，我們預計水利基礎設施將在 2026 年及以後繼續成長。

Looking at our other costs for the first quarter, depreciation, amortization, and accretion remain fairly steady in Q1 at approximately $40 million.

從第一季的其他成本來看，折舊、攤提和增值在第一季保持相當穩定，約 4,000 萬美元。

We expect DNA to remain in the low $40 million dollar range per quarter, though modestly increasing from continued organic infrastructure investment and recent bolt on acquisitions.

我們預計 DNA 每季仍將保持在 4,000 萬美元左右的低位，但由於持續的有機基礎設施投資和最近的附加收購，其收入將略有增加。

Interest expense increased sequentially in conjunction with incremental borrowings under our new sustainability Link credit facility, and we expect it to remain at the $4 to $5 million dollar range per quarter.

隨著我們新的可持續性連結信貸安排下的增量借款，利息支出連續增加，我們預計將保持在每季 400 萬至 500 萬美元的範圍內。

Our effective book tax rate applied to pre-tax operating income should stay in the low 20% range, with cash taxes on the year remaining low at around $10 million or less.

我們適用於稅前營業收入的有效帳面稅率應保持在 20% 的低位，而年度現金稅仍保持在 1000 萬美元或更低的低位。

In the first quarter, we spent approximately $48 million of CapEx primarily in support of water infrastructure projects, and as demonstrated by the announced project awards on today's call, we are seeing a large backlog materializing into actionable contracts.

在第一季度，我們花費了大約 4800 萬美元的資本支出，主要用於支持水利基礎設施項目，正如今天電話會議上宣布的項目獎勵所表明的那樣，我們看到大量積壓訂單正在轉化為可操作的合約。

Following the recent project wins, we now expect $225 to $250 million of net CapEx in 2025, up from $170 million to $190 million.

繼最近贏得專案之後，我們預計 2025 年的淨資本支出將達到 2.25 億至 2.5 億美元，高於 1.7 億至 1.9 億美元。

We maintain our expectation of $50 million to $60 million of this CapEx going to ongoing maintenance and margin improvement initiatives.

我們預計該資本支出中的 5,000 萬至 6,000 萬美元將用於持續的維護和利潤率提高計劃。

Absent the sizable growth capital outlays, our business maintains a very maintenance-like capital model, and we have significant free cash flow generating capabilities and flexibility to manage this maintenance spend in accordance with market conditions without impacting our overall operational performance.

在沒有大量成長資本支出的情況下，我們的業務保持著非常類似維護的資本模式，並且我們擁有顯著的自由現金流產生能力和靈活性，可以根據市場情況管理這些維護支出，而不會影響我們的整體營運績效。

While the additional growth caps will reduce our free cash flow expectations on the year, we believe these contracted capital projects are highly accretive investments that will greatly benefit Select for many years to come.

雖然額外的成長上限將降低我們對今年自由現金流的預期，但我們相信這些簽約資本項目是高度增值的投資，將在未來許多年為 Select 帶來巨大利益。

Altogether, we are also adjusting our free cash flow expectation for the year, the 5% to 15% conversion rate relative to our adjusted.

總而言之，我們也正在調整今年的自由現金流預期，相對於調整後的5%至15%的轉換率。

During the first quarter, we also deployed $86 million towards various acquisition and investment opportunities.

第一季度，我們也向各種收購和投資機會投入了 8,600 萬美元。

We deployed $14 million to acquire multiple disposal assets in the Midland Basin and key pipeline assets in the Delaware Basin, each strategically supporting our existing recycling and disposal networks.

我們投入了 1400 萬美元收購米德蘭盆地的多個處置資產和特拉華盆地的關鍵管道資產，每個資產都為我們現有的回收和處置網絡提供戰略支持。

Additionally, as mentioned on our last call, we completed the initial $62 million funding of our investment in a farms during the first quarter, supporting the consolidation of a large portfolio of land, water, and storage rights in Colorado.

此外，正如我們上次電話會議中提到的，我們在第一季完成了對農場投資的初始 6,200 萬美元融資，以支持整合科羅拉多州大量土地、水和倉儲權。

We were pleased to further support the business with an incremental $10 million investment during the quarter to add additional senior water rights to the portfolio, taking our total investment to date up to $72 million. And thereby increasing our ownership position of the partnership to 39%.

我們很高興在本季增加 1000 萬美元的投資來進一步支持該業務，為投資組合增加額外的優先水權，使我們迄今為止的總投資達到 7,200 萬美元。從而使我們在合夥企業的所有權比例增至 39%。

Accordingly, our remaining future capital commitments for the partnership are now $74 million which we expect to deploy over the next one to three years.

因此，我們對該合作夥伴關係剩餘的未來資本承諾目前為 7,400 萬美元，我們預計將在未來一到三年內部署。

We are very excited about the long term water supply opportunities in this region and the economic development and jobs growth that these rights can create.

我們對該地區的長期供水機會以及這些權利所能創造的經濟發展和就業成長感到非常興奮。

We look forward to partnering with various agricultural, industrial, and municipal partners in the region for the overall benefit of the Arkansas River Valley and the state of Colorado at large.

我們期待與該地區的各個農業、工業和市政合作夥伴合作，以造福阿肯色河流域和整個科羅拉多州。

Another notable achievement for Select in the first quarter of 2025 was the successful implementation of our new ERP system across the full company.

Select 在 2025 年第一季取得的另一項顯著成就是在整個公司成功實施了新的 ERP 系統。

Having previously rolled out the new system for our chemicals business more than a year ago, we're excited to now have the system integrated across all of our water-related operations as well.

一年多前，我們就為化學品業務推出了新系統，現在我們很高興將該系統整合到我們所有與水相關的業務中。

While we expect this system will allow us to yield more efficiencies over time. In the first quarter, we did see the impact of operating cash flows from an outsized $62 million increase to working capital as we rolled this system out alongside strong revenue gains.

我們期望隨著時間的推移，系統將使我們獲得更高的效率。在第一季度，隨著我們推出該系統並實現強勁收入成長，我們確實看到了營運現金流對營運資本的影響，增加了 6,200 萬美元。

However, we fully expect these higher working capital levels to abate in the coming quarters to more normalized levels, releasing cash over the remainder of the year.

然而，我們完全預期這些較高的營運資本水準將在未來幾季下降到更正常的水平，並在今年剩餘時間內釋放現金。

As we think about our overall capital allocation framework, we maintain our prioritization of adding long-term contracts, full life cycle, and production weighted revenues, and generally finding ways we can deliver a long term resiliency, a creative growth, and strong returns to our water solutions platform.

當我們考慮我們的整體資本配置框架時，我們優先考慮增加長期合約、全生命週期和生產加權收入，並普遍尋找能夠為我們的水解決方案平台帶來長期彈性、創造性成長和強勁回報的方法。

In summary, during the first quarter of 2025, we had a number of key milestones, advanced our strategic initiatives, and improved our overall financial performance.

總而言之，在 2025 年第一季度，我們實現了一系列關鍵里程碑，推進了策略舉措，並提高了整體財務表現。

Perhaps more importantly, even as we face economic uncertainty in a period of potential activity volatility, we have positioned the company with strong liquidity, resilient earning streams, and growing contract coverage spanning the best rock in the lower 48.

或許更重要的是，即使我們在潛在活動波動時期面臨經濟不確定性，我們仍為公司提供了強大的流動性、有彈性的收入流以及覆蓋美國本土 48 個最佳岩石的不斷增長的合約覆蓋範圍。

With that I'll hand it over to the operator for any questions, operator.

說完我將把麥克風交給接線員，以便回答任何問題。

Thank you. We will now be conducting a question and answer session. I (Operator Instructions)

謝謝。我們現在將進行問答環節。我（操作員指示）

Bobby Brooks, Northland Capital Markets

布魯克斯（Bobby Brooks），北國資本市場

Hey, good morning guys.

嘿，大家早安。

Thank you for taking my question. First, I just wanted to touch on you guys mentioned how the water your water infrastructure footprint is really aligned with growth areas in the permit and more and more specifically where there's very low break even. So just with that in mind, I'd assume you haven't seen much of an activity pull back in those areas. I just wanted to make sure I'm thinking about this right.

感謝您回答我的問題。首先，我只想談談你們提到的水基礎設施足跡如何與許可證中的成長區域真正保持一致，更具體地說，在盈虧平衡點非常低的地方。因此，只要考慮到這一點，我認為你不會看到這些地區的活動出現太大的回落。我只是想確保我對此的思考是正確的。

Bobby, this is Michael skarke, That's correct. We have not seen any pullback to date, so it's not to say that we won't see it further based on what operators do, but we feel really good about the assets we've put in place. We feel really good about the contracts. We feel really good about the rock that we've underwritten to support those capital investments.

鮑比，我是麥可‧斯卡克，沒錯。到目前為止，我們還沒有看到任何回調，所以這並不是說根據運營商的做法我們不會看到進一步的回調，但我們對已經投入的資產感到非常滿意。我們對這些合約感到非常滿意。我們對於我們承保的、支持這些資本投資的岩石感到非常高興。

Got it. And then just switching gears to the AV Farms Colorado project, I think this is something I continue to feel like this is really fascinating development for you in expanding outside the traditional energy market, but, just to just the question that I had with it is what from our side of the table what are kind of the upcoming.

知道了。然後，我們再轉到 AV Farms Colorado 項目，我認為這是一個我一直覺得非常有趣的發展，可以拓展到傳統能源市場之外，但是，我的問題是，從我們的角度來看，接下來會發生什麼。

Catalysts or pieces that you need to accomplish before eventually seeing it become a revenue generating opportunity.

在最終將其視為創收機會之前，您需要完成的催化劑或部分。

Thanks Bobby. Great question. So at the moment we're really engaging everybody in the region, all the relevant stakeholders. I think we're seeing demand actually be stronger than anticipated, and we have LOIs in place with several potential off takers and customers. And so I think really where we're focused is actively discussing with them, getting terms in place, and I think very much on track to meet the previously announced earnings potential of the asset.

謝謝鮑比。好問題。因此，目前我們確實正在與該地區的每個人、所有相關利害關係人接觸。我認為我們看到的需求實際上比預期的要強勁，我們已經與幾個潛在的承購商和客戶簽訂了意向書。因此，我認為我們真正關注的是積極與他們討論，制定條款，並且我認為我們非常有可能實現先前宣布的資產獲利潛力。

I think we're pretty bullish on timing, but of course more details come once we get those deals signed. So there's more wood to chop here certainly, but this is going to be a fantastic asset for us and for the local partners that we're engaging. I mean it creates a tremendous amount of economic growth and jobs locally and it really fits a much needed shortfall in the market overall. So we're really excited and we're focused on getting these early you know contracts in place that will fundamentally underpin the asset for decades to come following that.

我認為我們對時機非常樂觀，但當然，一旦我們簽署了這些協議，就會有更多細節公佈。當然，這裡還有很多事情要做，但這對我們以及我們正在合作的當地合作夥伴來說將是一筆寶貴的財富。我的意思是，它在當地創造了大量的經濟成長和就業機會，並且確實填補了整個市場急需的缺口。因此，我們非常興奮，我們專注於儘早簽訂這些合同，這些合約將從根本上為未來幾十年的資產提供支撐。

Got it. That's super helpful call and just to make sure I'm understanding it correctly, it seems like then.

知道了。這是一個非常有用的電話，只是為了確保我理解正確，看起來就是這樣。

You're not going to, you won't stuff won't move forward in terms of like construction and kind of connecting these assets and building them up until there's customer off take agreements underpinning them is that the right kind of cadence of it?

在有客戶承接協議支撐這些資產之前，你不會、不會在建設、連結這些資產和建立它們等方面取得進展，這是正確的節奏嗎？

Yeah, that's right, we've done the heavy lifting here around the consolidation, and so I think you'll see this thing really spool up with those contracts underpinning it and then then everything becomes quite clear around the economics and paybacks and so on, but it's exactly in line with what we had outlined before we're again super optimistic on the on the asset.

是的，沒錯，我們在整合方面做了大量工作，所以我認為你會看到這件事在那些支撐它的合約下真正地發展起來，然後一切都會變得非常清晰，包括經濟和回報等等，但這與我們之前概述的完全一致，我們對資產再次非常樂觀。

Thank you. I appreciate it. Look forward to hosting you guys in a couple weeks here on the fireside chat. I'll return to the queue.

謝謝。我很感激。期待幾週後在這裡與你們進行爐邊談話。我會回到隊列。

Tom Curran, Seaport Research Partners

湯姆·柯倫（Tom Curran），海港研究合作夥伴

Morning guys.

大家早安。

Just following up on a farmer, could you speak to, the roles that, CNA companies is taking, both commercially when it comes to the LOIs you're working on and then operationally and specifically on the operational side, if we if we fast forward 2 or 3 years from now, when, you.

只是跟進一位農民，您能否談談 CNA 公司在商業方面（當涉及到您正在處理的意向書時）以及在運營方面（特別是在運營方面）所扮演的角色，如果我們從現在起快進 2 或 3 年，那時，您。

Invested the remaining $74 million you've committed you've moved to a 56% majority LP stage and then you know consolidated ADF.

投資了您承諾的剩餘 7400 萬美元，您就進入了 56% 多數 LP 階段，然後您就會知道合併的 ADF。

How should [CA's] operational role evolve along the way or do you expect select to sort of. Become ever more directly involved operationally sort of learned from [CNA] over the next 2 to 3 years will [CNA] continue to have, a dominant or lead operation role even after you've hit 56% consolidated? Could you just expound on that for us?

[CA] 的營運角色應如何演變，或者您是否希望選擇演變。在未來 2 到 3 年內，從 [CNA] 學到的更直接的營運參與方式是，即使在達到 56% 的整合率之後，[CNA] 是否還會繼續發揮主導或領導營運的作用？您能為我們詳細解釋一下嗎？

Yeah, sure, thanks Tom. So I think we're treating this very much as the partnership that it is, so I think we all play a role in commercializing the asset. I think longer term, certainly the plan and aligned with all of our partners is that Select will own and operate this asset. So we were, part of our core capabilities that we're bringing to the table is around.

是的，當然，謝謝湯姆。所以我認為我們將其視為一種合作關係，所以我認為我們都在資產商業化過程中發揮作用。我認為從長遠來看，當然計劃和與我們所有合作夥伴一致的是，Select 將擁有並經營這項資產。因此，我們所要展示的核心能力的一部分就在於此。

Operating deep, very attractive reservoirs, operating pipelines as needed, operating and doing the day to day, water movements. I mean that's something that's been core across our services business for a long time and it's something we do extensively in our infrastructure business, which is why this asset is such a great fit for us now and you know for the decades to come.

操作深層、極具吸引力的水庫，根據需要操作管道，操作並進行日常水流運動。我的意思是，這是我們服務業務長期以來的核心，也是我們在基礎設施業務中廣泛開展的工作，這就是為什麼這項資產現在以及未來幾十年對我們如此適合。

Because that that system is a large system and it and it demands an operator that has the capabilities that we bring. So I think it's both, upfront we're doing our standard, commercialization of the asset which we're very good at and then on the back end. If you know if we signed a multi-decade, contract, we are absolutely 100% committed to operating that asset in the long term and we're very good at it so that's part of the reason why we're here and why it's such a core fit.

因為該系統是一個大型系統，它需要具有我們所提供的能力的操作員。所以我認為兩者兼而有之，前期我們正在進行我們擅長的標準資產商業化，然後是後端。如果您知道我們是否簽署了一份長達數十年的合同，我們絕對 100％ 致力於長期運營該資產，而且我們非常擅長這一點，所以這也是我們在這裡的原因之一，也是為什麼它如此核心契合。

And just so I'm clear, then I know CNA in particular, has been a pioneer in in lease following, and it may bring some really unique, differentiated expertise to that aspect of AVF is the expectation that at some point select will also take over that.

為了明確起見，我知道 CNA 一直是租賃追蹤領域的先驅，它可能為 AVF 帶來一些真正獨特、差異化的專業知識，預計在某個時候 select 也會接管這一點。

That aspect of ADF and you know sort of get up to speed on everything involved with these following.

ADF 的這個方面，您知道，可以快速了解與以下內容相關的所有內容。

Yeah, I mean every aspect of the deal is something that we're comfortable with and again we brought the partners to the table because of their capabilities. So I think, to your specific point, everybody around the table for this for this deal plays a part, and I think we will certainly be the long term owner operator in all respects here so.

是的，我的意思是，我們對這筆交易的每個方面都感到滿意，而且我們再次讓合作夥伴參與進來，是因為他們的能力。所以我認為，就你的具體觀點而言，參與這筆交易的每個人都發揮了作用，而且我認為我們肯定會在各方面成為長期的業主經營者。

Happy to follow up the.

很高興跟進。

Got it. No, that was helpful clarification. Thanks for that, Mike. And then, turning to, water infrastructure, could you speak to how your anchor tenant contracts are structured when it comes to inflation and construction costs from raw materials, especially for large diameter pipe, are there provisions in there to protect you, that explicitly refer to tariffs?

知道了。不，這是很有幫助的澄清。謝謝你，麥克。然後，談到水利基礎設施，您能否談談當涉及通貨膨脹和原材料建設成本時，您的主要租戶合約是如何構建的，特別是對於大直徑管道，其中是否有明確提到關稅的條款來保護您？

Yeah, speaking on tariffs, to start just more broadly, Tom, we don't expect a material impact on water infrastructure as a result of tariffs or cost escalations for water infrastructure, our supply chain is domestic and the pipelines are polyethylene and not steel. And so we've run all of our projects back through kind of updated cost estimates, and we're not going to see any material changes. So our economics on the projects are intact and as underwritten.

是的，談到關稅，湯姆，從更廣泛的角度來說，我們預計關稅或水利基礎設施成本上漲不會對水利基礎設施產生重大影響，我們的供應鏈是國內的，管道是聚乙烯而不是鋼材。因此，我們對所有項目都進行了重新審核，並根據更新後的成本估算，我們不會看到任何重大變化。因此，我們的專案經濟狀況完好無損，並且得到了承保。

Great to hear. Last one for me, similar, but for the chemical technologies division, could you elaborate on CT's supply chain, how localized is it and to the extent it does rely on inputs, that are imported, what's the nature of the exposure?

很高興聽到這個消息。對我來說最後一個問題類似，但是對於化學技術部門，您能否詳細說明 CT 的供應鏈，它的本地化程度如何，以及它在多大程度上依賴進口的投入，風險的性質是什麼？

Yeah, fair question, Tom. Obviously, being a chemicals manufacturing business, there is a supply chain of raw materials that is an important part of managing the operational cost structure of that business.

是的，這個問題問得好，湯姆。顯然，作為一家化學品製造企業，原材料供應鏈是管理該企業營運成本結構的重要組成部分。

We've been particularly, coming out of the pandemic quite focused on, adding resiliency to that supply chain, and we've domesticated the vast majority of that supply chain into the US and reduced our overall.

特別是在走出疫情後，我們非常注重增強供應鏈的彈性，我們已經將絕大部分供應鏈轉移到美國，並減少了整體成本。

International product sourcing to less than 150% with you know with about half of that coming out of China.

國際產品採購量不到 150%，其中約一半來自中國。

Obviously if you think about raw materials, the number of those are oil-based, and so any lower pricing on the oil side will actually benefit pricing on certain raw materials and that can be managed against some of the other potential.

顯然，如果你考慮原材料，其中許多都是以石油為基礎的，因此石油方面的任何較低價格實際上都會有利於某些原材料的價格，並且可以與其他一些潛力相抗衡。

Costs we might see through. I think it's less of a direct impact for us overall and more of an impact on other large scale manufacturers of raw materials that we may source from as well. So net, we don't expect anything to be materially disruptive to our near term outlook.

我們或許能看透成本。我認為這對我們整體的直接影響較小，但對其他我們可能採購的大型原料製造商的影響較大。因此，我們預計不會有任何事情對我們的近期前景造成重大破壞。

We've got a lot of resiliency in the supply chain, and our team's done a really great job over the last few years of bringing the vast majority of that. Stateside and even over the last 12 months we've actually been focused on adding additional vertical integration into our manufacturing capabilities with some of our own base raw materials.

我們的供應鏈具有很強的彈性，我們的團隊在過去幾年中做得非常出色，實現了絕大多數的彈性。在美國，甚至在過去的 12 個月裡，我們實際上一直致力於利用我們自己的一些基礎原料來增加我們的製造能力的垂直整合。

That was a focus for us last year and that's something that's actually allowed us to increase the overall manufacturing capacity of our plant to near record levels here as we integrated some of those raw materials into our own manufacturing.

這是我們去年關注的重點，由於我們將部分原材料整合到我們自己的製造過程中，這實際上使我們能夠將工廠的整體製造能力提高到接近創紀錄的水平。

Makes sense. .

有道理。。

Thank you my questions, Michael and Chris. I'll get back in the queue.

謝謝我的提問，邁克爾和克里斯。我會回到隊列中。

Makes sense.

有道理。

Don Crist, Johnson Rice

唐克里斯特、約翰遜賴斯

Good morning guys. Hope y'all are doing well.

大家早安。希望你們一切都好。

I had a question around water infrastructure kind of behind or, looking forward past the 2nd quarter. I went back and tried to count how many projects you have under construction right now and kind of lost count. As we look kind of towards the back half of 25 and into 26.

我有一個關於水利基礎設施的問題，或者關於第二季度之後的情況。我回去嘗試數一數你們現在有多少個項目正在建設中，但數不清了。我們正展望 25 年的後半段以及 26 年。

Do you think you can kind of maintain a double digit growth per quarter or somewhere near that as all these projects come on? I mean, obviously you're spending a lot of capital now that'll be, and these projects will be completed somewhat around year end. Just kind of curious as you give us a little guidance on how that looks going into the 26.

隨著所有這些項目的實施，您認為您能保持每季兩位數的成長或接近兩位數的成長嗎？我的意思是，顯然你現在花費了很多資金，這些項目將在年底左右完成。我只是有點好奇，您能給我們一些指導，看看 26 號的情況如何。

Yeah, good question. I'll maybe hit a couple of items and then let Michael add on if need be. As we think about the financial trajectory of water infrastructure as we previously mentioned, you would expect to see a good trajectory coming out of the first quarter into Q2 and further into Q3.

是的，好問題。我可能會先討論幾個項目，然後讓邁克爾根據需要添加。正如我們之前提到的，當我們思考水利基礎設施的財務軌跡時，您預計第一季、第二季以及第三季將呈現良好的軌跡。

We expect that. Full year growth rate of that, 15% or so to translate into subsequent growth into 2026 on a base case and that Q3 run rate should be something that lends itself to, materially above that 15%. So as you look forward in 2026, you've got an established kind of base load of growth that's supporting the business and we've now.

我們期待這一點。全年成長率約為 15%，在基準情況下轉化為 2026 年的後續成長，第三季的運行率應該會大大高於 15%。因此，當你展望 2026 年時，你已經擁有了一種既定的、支撐業務的成長基本負荷，而我們現在也已經擁有了。

That with additional projects being layered on here with the latest announcements. So looking forward into 206, we expect to see something that market conditions notwithstanding think probably looks pretty comparable to 2025 on an overall trajectory of growth on both the top line and the bottom line and maintaining a margin profile in that 50% range.

另有其他項目在這裡發布最新公告。因此，展望 2006 年，我們預計，無論市場狀況如何，我們預計在營收和利潤的整體成長軌跡上與 2025 年相當，利潤率也將保持在 50% 左右。

Maybe just to speak to a couple of points a little more specifically, the large project we just announced that's going to really contribute in 2026. We're trying to get online in the fourth quarter this year. There might be a small benefit. We'll see, but that's really going to be an uplift for 2026. And to your point, Don, we have been very successful at finding creative projects and it's really because the recycling first model we put forward is a superior economic model for our customer.

也許只是為了更具體地談談幾點，我們剛剛宣布的大型專案將在 2026 年做出真正的貢獻。我們力爭在今年第四季上線。可能會有一點小好處。我們拭目以待，但這確實會為 2026 年帶來提升。正如您所說，唐，我們在尋找創意項目方面非常成功，這實際上是因為我們提出的回收優先模式對我們的客戶來說是一種卓越的經濟模式。

And we're, as I mentioned, we're underwriting the rock. It's some of the best geology in the United States, and these are creative deals, and there's still more of them out there. The backlog's not what it was last quarter because we just converted over $100 million, but there's still more opportunities, and I think you'll see us continue to pursue those and be well positioned to capture and add real growth to what is a very unique system in the northern Delaware.

正如我所提到的，我們正在承保這塊岩石。這裡擁有全美最好的地質條件，這些都是創意十足的交易，而且還有更多這樣的交易。由於我們剛剛轉換了超過 1 億美元，因此積壓訂單與上一季相比有所減少，但仍有更多機會，我想您會看到我們繼續追求這些機會，並處於有利地位，能夠抓住並為特拉華州北部非常獨特的系統帶來真正的增長。

And maybe a couple of things to add on, we'd previously indicated we thought we had a comparable opportunity to deploy similar growth capital next year that we were going to deploy this year. We've pulled forward some of that into this year based on the pace we were able to execute on some of these additional contracts.

也許還有幾件事需要補充，我們之前曾表示，我們認為明年我們有類似的機會部署與今年類似的成長資本。根據我們執行部分額外合約的速度，我們將部分合約提前到今年完成。

Some of that's a pull forward from a success standpoint and getting these contracts in place. I think we're, optimistic that we're going to be able to backfill that with even further opportunities. What we're talking about from a guidance standpoint, in a base case outlook is really.

其中一些是從成功的角度推動的，並讓這些合約到位。我認為，我們樂觀地認為，我們將能夠透過更多的機會來填補這一空白。我們從指導的角度談論的是基本情況展望。

Based on the initial anchor tenant underwritings and there's a lot of commercialization opportunity to come from there and the more we expand this network, the more capable we'll be with broad, geographic coverage and water balancing capabilities that will add to that commercialization.

根據最初的主要租戶承保情況，有很多商業化機會，我們越擴展這個網絡，我們就越有能力擁有廣泛的地理覆蓋範圍和水平衡能力，這將有助於實現商業化。

I appreciate all that color. And if I could just ask one kind of macro question. I mean, obviously, there's some uncertainty out there right now. And we don't know what happens as we go into the back half of the year. But in your experience, in past down cycles, Have you seen a shift towards kind of recompletes and other kind of activity that may be smaller dollar rather than drilling a whole pad, to keep production up from these EMPs? And are you seeing any kind of indications that that could be the shift in activity as we kind of move to the back half of the year?

我很欣賞所有這些顏色。如果我可以問一個宏觀問題的話。我的意思是，顯然現在存在一些不確定性。我們不知道進入下半年後會發生什麼事。但是，根據您的經驗，在過去的下行週期中，您是否看到轉向某種重新完工和其他類型的活動，這些活動可能花費較少，而不是鑽探整個平台，以保持這些 EMP 的產量？隨著我們進入下半年，您是否看到任何跡象表明這可能是活動轉變？

Hey Don, this is John Smith.

嘿，唐，我是約翰史密斯。

The way I would answer it is, in the past and the length of the time that I spent in this industry.

我的回答是，過去我在這個行業工作了很長時間。

Usually downturns are commodity price compression.

通常經濟衰退會導致大宗商品價格下跌。

A lot of focus gets on the assets that's already available to manage an increase because that's the best dollars that you can apply and The second thing I would add to that, and it's probably different more today than it used to be before unconventional, is that, The amount of you know your inventory that you can Managed to the best of your ability for a higher commodity price and the return profile in the first part of that world life is very important, I think today.

很多焦點都集中在已經可用於管理成長的資產上，因為這是你可以應用的最佳資金，第二件我想補充的事情是，今天的情況可能與以前非常規情況不同，那就是，你知道你可以盡最大努力管理的庫存量，以獲得更高的商品價格，我認為在當今世界生活的第一部分，回報狀況非常重要。

It probably wasn't in the 80s and 90s, but today it really is a very important piece. So I think you will see the dollars that will get spent, be reallocated and really thought through the current based assets, whether through completion or get the most out of what you got as well as protect your inventory.

它可能在 80 年代和 90 年代不存在，但今天它確實是一件非常重要的作品。因此，我認為你會看到所花的資金會被重新分配，並真正考慮當前的基礎資產，無論是透過完成還是充分利用你所擁有的資產以及保護你的庫存。

Right. And kind of what I was driving at is you could see a pickup in the Bakken or kind of midcontinent areas and kind of away from the Permian, which would obviously benefit you on the other side of the Business.

正確的。我想說的是，你可以看到巴肯地區或中部大陸地區以及遠離二疊紀地區的經濟回升，這顯然會讓你在業務的另一邊受益。

Yeah, I mean, we think about it and talk about it all the time. I mean, exposure from gas to oil is extremely good or our exposure to Some of the best rock.

是的，我的意思是，我們一直在思考這個問題並談論這個問題。我的意思是，從天然氣到石油的接觸都非常好，或者說我們對一些最好的岩石的接觸也非常好。

Whether it's in the Permian or in the United States, our exposure to and we actually get affected by this to recompletion Whether it's. Eagle Ford and Bakken.

無論是在二疊紀還是在美國，我們都受到了重新完井的影響。伊格爾福特和巴肯。

Even Barnet. I mean, we actually get good exposure to recompletions of current asset base, just because of our footprint and because of our gas the oil, and, where we started. I mean we started in the very early stages of these places and thereby we got good exposure and good content to recompletion Opportunities.

甚至是巴尼特。我的意思是，我們實際上很好地接觸到了現有資產基礎的重新完工，這只是因為我們的足跡和我們的天然氣石油，以及我們起步的地方。我的意思是，我們在這些地方的早期階段就開始了，因此我們獲得了良好的曝光度和良好的內容以重新完成機會。

I appreciate the color, John. I appreciate it. Thanks. I'll turn it back to the to the operator.

我很欣賞這個顏色，約翰。我很感激。謝謝。我會將其交還給操作員。

Thanks, Don.

謝謝，唐。

Blake McLean, Daniel Energy.

布萊克麥克萊恩、丹尼爾埃涅阿斯。

Hey, good morning, yeah, I like to just kind of stay on that high level macro conversation, and I was hoping you guys could expand a little bit on the op opportunity set in some of those dry gas basins.

嘿，早安，是的，我喜歡繼續進行高層次的宏觀對話，我希望你們可以稍微擴展一下一些乾氣盆地中的操作機會。

How are you seeing activity levels through conversations with customers evolving in the back half of this year and into 26 in places like the Haynesville and the Marcellus?

您如何看待今年下半年透過與客戶交談而實現的活動水平，以及 Haynesville 和 Marcellus 等地的活動水平是否已發展到 26 個？

Yeah Blake, this is Michael. So we've got a really strong footprint and the infrastructure side of both the Haynesville and the Marcellus. We're going to be the largest disposal provider in both those basins.

是的，布萊克，這是麥可。因此，我們在海恩斯維爾和馬塞勒斯都擁有非常強大的影響力和基礎設施。我們將成為這兩個盆地最大的處置提供者。

We've seen activity pick up this year relative to last year, and the outlook is certainly at this stage is more consistent and more favorable than some of the weakness we're seeing in some of the old place. So those are going to be areas of focus for us, this year and should be areas of strength for us.

我們看到今年的活動相對於去年有所回升，而且現階段的前景肯定比我們在某些​​舊地方看到的一些弱點更加一致、更加有利。因此，這些將是我們今年關注的重點領域，也應該是我們的強項。

It makes sense. Anything.

這是有道理的。任何事物。

You would point out as differentiated between the Hainesville and the more South, I mean you're seeing more, you would expect to see a little bit more activity uplift in the Hainesville near term, just curious if there's any color you provide on that.

您會指出海恩斯維爾與南部地區之間存在差異，我的意思是您會看到更多，您預計短期內海恩斯維爾的活動會有所增加，只是好奇您是否能提供一些相關資訊。

Yeah, I mean, I think that certainly as we look at the next couple of year outlook, the growth in LNG offtake that, that's coming to bear with both.

是的，我的意思是，我認為，當我們展望未來幾年的前景時，液化天然氣需求的成長肯定會對兩者產生影響。

Well underway and recently permitted projects is certainly going to be I think a substantial growth driver for the Hainesville from a demand standpoint and we're certainly seeing a number of customers think through their next couple of year development planning and some of the conversations we're having around the offtake for the produced waters. Certainly I think ramping in the Hainesville side in particular.

我認為，從需求的角度來看，正在順利進行且最近獲得批准的項目肯定會成為海恩斯維爾的一大增長動力，我們也確實看到許多客戶正在考慮未來幾年的發展規劃，以及我們正在就采出水的開採進行的一些對話。當然，我認為海恩斯維爾方面的情況尤其如此。

Got it. Thank you for that. And then maybe just another sort of bigger picture question. You guys have obviously been active in the M&A market. What's the current environment look like there? How are, how is some of the noise, in a lot of things with regards to the macroeconomic environment impacting that and how do you guys think about that versus all of the organic growth opportunities.

知道了。謝謝你。然後也許只是另一個更大的問題。你們顯然在併購市場上很活躍。那裡目前的環境怎麼樣？在許多與宏觀經濟環境有關的事情中，有些噪音是如何影響這一點的？你們如何看待這一點與所有有機成長機會的關係？

You've got in front of you?

你面前有嗎？

Yeah, this is John like.

是的，這很像約翰。

I would say as it relates to select, we continue to see more asset opportunity. We think of it as M&A, but we're really buying strategically located assets that really fit in a positive way throughout our networks and those assets.

我想說的是，就選擇而言，我們繼續看到更多的資產機會。我們將其視為併購，但實際上我們購買的是具有戰略意義的資產，這些資產在我們的網路和資產中具有積極的作用。

Have become somewhat isolated and they become opportunities for us as they become isolated and we think we'll see more of that. We'll probably see more of it really in a down cycle like this, that the potential of, lesser activity, if that's where we end up in the second half, but so we still think there's, good, we call it M&A, but it's really asset purchases for select.

他們變得有些孤立，當他們變得孤立時，他們就成了我們的機會，我們認為我們會看到更多這樣的機會。我們可能會在像這樣的下行週期中看到更多這樣的情況，如果下半年的情況就是這樣，那麼活動可能會減少，但我們仍然認為，這很好，我們稱之為併購，但實際上是選擇性資產購買。

Yeah, I'd say first and foremost the priority from a capital allocation standpoint remains on the organic, backlog of new projects and getting those contracts in place. If we can supplement those projects with bolt on acquisitions, that's a great opportunity for us, and we're often doing that at below replacement costs, more attractively than a Greenfield dollar.

是的，我想說，首先從資本配置的角度來看，優先事項仍然是有機的、新項目的積壓以及新合約的簽訂。如果我們可以透過附加收購來補充這些項目，那麼這對我們來說是一個很好的機會，而且我們通常以低於重置成本的價格做到這一點，比綠地投資更有吸引力。

So, that's something that we'll continue to stay focused on, we just talked about our. Basing footprint across the US as we think about capital allocation, we've got great opportunities to look at every base in the US at those types of opportunities, and it gives us a lot of clarity and conviction on making the right capital allocation choices that are competitive across the full scope of our footprint.

所以，這是我們將繼續關注的事情，我們剛才談到了。當我們考慮資本配置時，我們會將業務範圍設在美國各地，我們有很好的機會在美國的每個基地尋找這類機會，這讓我們更加清晰、更有信心地做出正確的資本配置選擇，這些選擇在我們業務範圍的整個範圍內都具有競爭力。

But first and foremost really excited about the latest contracts in the backlog we have to build out that water infrastructure base over the next 12 months or so. And hope that there's more to come behind that that can continue to be an accretive use of the dollar.

但首先，我們對積壓的最新合約感到非常興奮，我們必須在未來 12 個月左右的時間內建立水利基礎設施基礎。並希望未來能有更多舉措，繼續發揮美元的增值作用。

Understood thank you. Guys very much for the time.

明白了謝謝。大家非常喜歡這個時間。

Thank you, Blake.

謝謝你，布萊克。

Jeff Robertson, Water Tower Research

傑夫羅伯遜，水塔研究

Thank you. To follow up on the commentary around natural gas stations, in particular a place like the Haynesville. Michael, how much upside is there from greater capacity utilization and you is there a point you get to where there are opportunities for.

謝謝。跟進天然氣站的評論，特別是像海恩斯維爾這樣的地方。邁克爾，提高產能利用率能帶來多大好處？您是否已經到達了有機會的階段？

New growth capital projects like what you do, like what you've done in some of the oil basins where you're actually putting in new infrastructure and pipelines and integrating it into the systems with disposal and recycling.

新的成長資本項目就像你們所做的那樣，就像你們在一些油田所做的那樣，你們實際上正在建立新的基礎設施和管道，並將其整合到處理和回收系統中。

That's a great question, Jeff.

傑夫，這個問題問得真好。

The short answer is yes. So we have existing capacity on our system in the Hainesville, and just as a reminder, I think we have a very unique asset in the Hainesville. We have an asset that a gathering pipeline that starts in the heart of the Soto Parish or the Hainesville, and we pick up water all the way along and deposit it in disposal wells we're working on.

簡短的回答是肯定的。因此，我們在海恩斯維爾的系統上擁有現有的容量，並且提醒一下，我認為我們在海恩斯維爾擁有非常獨特的資產。我們擁有一項資產，即一條始於索托教區或海恩斯維爾中心的集水管道，我們沿途收集水並將其存放在我們正在施工的處置井中。

Always working on using some of that for recycling as well, so it's a very unique asset that I don't think could be easily replicated at all.

我們始終致力於利用其中的一部分進行回收利用，因此，這是一種非常獨特的資產，我認為它根本無法輕易複製。

We've had projects in the past where we expanded that pipeline, kind of wide off or teed off to reach new acreage and to service new customers, and those are conversations that are always ongoing and are certainly things that we would look to do at the Hainesville.

我們過去曾有過一些項目，擴大管道，擴大或開動以達到新的面積並服務新客戶，這些都是一直在進行的討論，當然也是我們希望在海恩斯維爾做的事情。

Stabilizes or grows this year and certainly in preparation for the LNG expected offtake in a few years to come.

今年將保持穩定或成長，無疑為未來幾年液化天然氣的預期消費做好準備。

So expanding the existing asset is something that we're looking at, something we're actively doing right now, and I do expect we'll see more of. And then in terms of existing capacity, we are not at capacity on the pipeline or from a disposal standpoint. And so we do have the ability to support our operator partners as they pick up pick up activity or have greater production.

因此，擴大現有資產是我們正在考慮的事情，也是我們現在正在積極做的事情，我確實希望我們會看到更多。就現有產能而言，無論是管線或處置能力，我們的產能都還未達極限。因此，我們確實有能力支持我們的營運商合作夥伴開展活動或提高產量。

And as a reminder, we executed on a couple of acquisitions last year to add additional disposable capacity to that pipeline network to ensure we have the ability to grow with the basin.

提醒一下，我們去年進行了幾次收購，為該管道網路增加了額外的可支配容量，以確保我們有能力隨著盆地的發展而成長。

So now I feel like we're in a position to grow.

所以現在我覺得我們有能力成長了。

Creatively on every incremental barrel of utilization we can put through that system, but the ability to tie in further gathering infrastructure and add that under contract is something that we're going to be very focused on, and our ability to invest that capital from a brownfield standpoint is going to be quite a creative win if we do that.

我們可以創造性地利用該系統實現的每一個增量桶，但結合進一步收集基礎設施並根據合約添加的能力是我們將非常關注的事情，如果我們這樣做，我們從棕地角度投資該資本的能力將是一個非常有創意的勝利。

Can you Provide any color on how the margin uplift from increasing capacity utilization on those assets would compare to some of the other.

您能否詳細說明一下與其他資產相比，提高這些資產的產能利用率所帶來的利潤成長如何？

Opportunities across the asset base.

整個資產基礎上的機會。

From a return on assets that's going to be the most attractive dollar you can push through in terms of just the accretion on the financial margin, it's highly accretive and it would be at or above what we would see from any of our new organic projects.

從資產回報率來看，這將是最具吸引力的美元，就財務利潤的增長而言，它具有很高的增值性，並且將達到或超過我們從任何新的有機項目中看到的水平。

Just briefly, Michael, in the in the northern Delaware Basin, if you did see much of a change in activity from completion activity.

邁克爾，簡單說一下，在特拉華盆地北部，你是否確實看到完井活動發生了很大變化。

Would that cause any issues for your gas balancing operation, I'm sorry, water balancing operations in on those systems?

這會對您的氣體平衡操作造成任何問題嗎？對不起，這些系統中的水平衡操作會造成任何問題嗎？

So to the extent that we see a reduction in activity in and around our system in northern Delaware. That is going to have some impact on our ability to balance the water. However, there's two points that I think are really important, Jeff, and the first is you have to lean on a larger system so that you can access more operators, more acreage, and more completion activity, and that's exactly what we're building out. We're building out a system.

因此，我們看到特拉華州北部系統內部和周圍的活動減少。這將對我們平衡水的能力產生一定的影響。然而，傑夫，我認為有兩點非常重要，第一點是你必須依靠一個更大的系統，這樣你才能接觸到更多的操作員、更多的土地和更多的完井活動，而這正是我們正在建造的。我們正在建立一個系統。

And we converted a freshwater pipeline that runs north south for the majority of New Mexico. We're building out an east west pipeline that's going to go from the far eastern edge of the formation to the far western edge. These are both large diameter pipelines, and our goal is to be able to effect and to serve all of the northern end of the northern Delaware.

我們也改造了一條貫穿新墨西哥州大部分地區南北的淡水管線。我們正在建造一條東西向的管道，從該地層的最東邊緣延伸到最西邊緣。這些都是大直徑管道，我們的目標是能夠影響並服務特拉華州北部的整個北端。

And so what we can do is we can move water from one end of the basin to the other to make sure that we're meeting our customers' needs and we're managing that. So I think that's a really important point and it's something that is largely unique to what we've built.

因此，我們可以做的是將水從盆地的一端移到另一端，以確保滿足客戶的需求，並且我們正在管理這一點。所以我認為這是一個非常重要的觀點，而且它在很大程度上是我們所建造的獨特的東西。

And then on the second piece.

然後是第二件。

Recycling, as I mentioned it earlier, it's a superior economic model for our customers. It is a meaningful cost savings to traditional disposal and sourcing of fresh water. And I think that cost savings is more important now than it is at $100 oil.

正如我之前提到的，回收對我們的客戶來說是一種卓越的經濟模式。與傳統的淡水處理和採購方式相比，這可以顯著節省成本。我認為現在節省成本比油價達到 100 美元時更為重要。

And so while we're delivering, while we're building out these systems, we have operators who are calling us saying, hey, we know you're laying a line here. We want to tie in. We would like to be able to provide interruptible service along their lines so that we can take advantage of, reduced price compared to the traditional model.

因此，當我們交付時，當我們建造這些系統時，會有操作員打電話給我們說，嘿，我們知道你在這裡鋪設線路。我們想要聯合起來。我們希望能夠提供類似的可中斷服務，這樣我們就可以享受與傳統模式相比更低的價格。

So is activity something we're watching? Absolutely something we're watching. But we get, we feel really good about the savings that we can deliver our customers. We feel really good about the network, the contractual positions we have, both firm contracts and interrupts.

那麼，我們正在觀察的是活動嗎？這絕對是我們正在關注的事情。但我們對於能夠為客戶節省的費用感到非常滿意。我們對網路、我們所擁有的合約地位（包括固定合約和中斷合約）感到非常滿意。

Now maybe just that from a technology standpoint I mean we have a digital twin of these systems and we engage with our customers all the time. I mean we're in most cases able to forecast 6 and 12 months out in terms of both water that we're receiving and the jobs that will, run down the pits.

現在也許只是從技術角度來看，我的意思是我們擁有這些系統的數位孿生，並且我們一直與客戶互動。我的意思是，在大多數情況下，我們能夠預測 6 個月和 12 個月後我們所接收的水量以及礦井中的工作量。

So, our team has proven to be extremely capable of finding these potential issues much before they become problems, and frankly what we see a lot of is these forecasted issues become opportunity because we're able to balance the basin pretty effectively. So I think just piggybacking on Michael's point there, I think this very large system is a core asset.

因此，事實證明我們的團隊非常有能力在這些潛在問題成為問題之前就發現它們，坦白說，我們看到很多這些預測的問題都變成了機遇，因為我們能夠非常有效地平衡盆地。因此，我認為，只要順著麥可的觀點，我認為這個非常龐大的系統就是一項核心資產。

Thank you.

謝謝。

Thank you, Jeff.

謝謝你，傑夫。

Bobby Brooks, Northland Capital.

布魯克斯（Bobby Brooks），北國資本（Northland Capital）。

Hey, just one quick one for me. The net, obviously you guys moved up the net CapEx guidance, and you said that mentioned how the maintenance CapEx is staying the same. I just wanted to confirm, I think the last time you talked about that net CapEx number you previously mentioned 1$0 to $20 million in asset sales. Is that still the case?

嘿，我只想說一句話。淨值，顯然你們提高了淨資本支出指導，並且提到了維護資本支出如何保持不變。我只是想確認一下，我想上次您談到淨資本支出數字時，您提到了資產銷售額為 100 萬美元到 2000 萬美元。現在還是這樣嗎？

From a base case standpoint, Bobby, we expect to continue to have opportunities to see some asset sales net against that.

從基本情況的角度來看，Bobby，我們預計將繼續有機會看到一些資產銷售淨額。

I would say that there's always additional opportunities there to monetize underutilize components of the business or things that may not be a needed fit going forward. And then that maintenance spend that you mentioned can be quite flexible if marketing conditions were without impacting the operational capabilities of the business.

我想說的是，總是存在額外的機會來將未充分利用的業務組件或未來可能不再需要的東西貨幣化。如果市場條件不影響業務營運能力，您提到的維護支出可以相當靈活。

So, if you look at the overall capital program, we're absent the, sizable growth capital, we're talking about a, 70% to 80%, potential free cash flow yields on our adjusted event from a base maintenance, standpoint, so. Yes, we're increasing our CapEx and accordingly that that's going to, reduce free cash flow, but this is a very attractive set of opportunities for us. It's going to, anchor the company for.

因此，如果你看一下整體資本計劃，我們缺少可觀的成長資本，從基礎維護的角度來看，我們調整後的事件中潛在的自由現金流收益率為 70% 到 80%。是的，我們正在增加資本支出，因此這將減少自由現金流，但這對我們來說是一個非常有吸引力的機會。它將成為公司的支柱。

Many years to come, and so we're very excited about the opportunity to deploy that capital to the extent that growth capital was not there. There's a significant free cash flow generating capability in the business, both within our traditional services and chemicals businesses that help underwrite our growth here and allow us to maintain a very disciplined balance sheet, but that water infrastructure business.

這是未來很多年的事情，因此，我們對於在沒有成長資本的情況下部署這些資本的機會感到非常興奮。我們的傳統服務和化學品業務都具有顯著的自由現金流產生能力，這有助於保證我們在這裡的成長，並使我們能夠保持非常嚴謹的資產負債表，但水基礎設施業務除外。

To the extent that that growth capital is not there is an extremely high margin, low maintenance capital business that generates a lot of cash on its own. So we're excited about deploying the capital near term, but even more excited over the cash flow generating capabilities of these assets for the next decade.

在沒有成長資本的情況下，有利潤率極高、維護成本低的資本業務，可以自行產生大量現金。因此，我們對近期部署資本感到興奮，但對這些資產在未來十年的現金流產生能力感到興奮。

Yeah, I can for sure see why the excitement behind that makes a lot of sense.

是的，我確實明白背後的興奮之情有多強烈。

Thank you guys. I'll return to the queue.

謝謝你們。我會回到隊列。

This concludes our question and answer session. I would now like to turn the floor back over to Mr. Schmitz for closing comments.

我們的問答環節到此結束。現在我想把發言權交還給施密茨先生，請他作最後評論。

Thanks everyone for joining the call. We appreciate your continued support and interest in learning more about select Water Solutions. I look forward to speaking to you again next quarter.

感謝大家參加電話會議。我們感謝您一直以來的支持以及對了解更多精選水解決方案的興趣。我期待下個季度再次與您交談。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your eyes at this time.

女士們、先生們，今天的電話會議到此結束。此時你可以將眼睛移開。

Thank you for your participation and have a wonderful day.

感謝您的參與並祝您有美好的一天。