Select Water Solutions Inc (WTTR) 2025 Q2 法說會逐字稿

Thank you, and welcome to the Select Water Solutions second quarter 2025 earnings conference call. (Operator Instructions) Please note, this conference is being recorded. I would now like to turn the conference over to Garrett Williams. Please go ahead, sir.

謝謝，歡迎參加 Select Water Solutions 2025 年第二季財報電話會議。（操作員指示）請注意，本次會議正在錄音。現在我想將會議交給加勒特·威廉斯。先生，請繼續。

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 Skarke, Executive Vice President and Chief Operating Officer; and Mike Lyons, Executive Vice President and Chief Strategy and Technology Officer.

謝謝接線員，大家早安。感謝您參加 Select Water Solutions 的電話會議和網路廣播，以回顧我們 2025 年第二季的財務和營運表現。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·喬治 (Chris 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. A replay of today's call will be available via 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.

在我把電話轉給約翰之前，我還有一些事情要處理。今日電話會議的重播將透過網路直播提供，並可造訪我們的網站 selectwater.com。此外，錄音電話會議重播也將持續到2025年8月20日。這次重播的訪問資訊也包含在昨天的收益報告中。

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's management.

請注意，本次通話中報告的資訊僅截至今天（2025 年 8 月 6 日），因此，時間敏感資訊在重播或閱讀記錄時可能不再準確。此外，管理階層在本次電話會議中發表的評論可能包含美國聯邦證券法含義內的前瞻性陳述。這些前瞻性陳述反映了 Select 管理層的當前觀點。

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.

然而，各種風險、不確定性和意外事件可能導致我們的實際結果、績效或成就與管理階層聲明中所表達的結果、績效或成就有重大差異。我們鼓勵聽眾閱讀我們的 10-K 表年度報告、8-K 表當前報告以及 10-Q 表季度報告，以了解這些風險、不確定性和意外事件。請參閱我們昨天發布的收益公告，以了解非公認會計準則財務指標的對帳。

Now I'd like to turn the call over to John.

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. 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.

謝謝，加勒特。早安，感謝您加入我們。我很高興今天再次與您討論 Select Water Solutions。在 Select 的 2025 年第二季度，我們提高了獲利能力和現金流，同時繼續推進圍繞擴大水利基礎設施、規模和利潤率的策略目標。我想先介紹第二季的一些主要亮點，概述我們最近完成的幾份大合約和交易以及其他策略和市場更新。然後克里斯將更詳細地介紹第二季的業績和未來展望。

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 gains of nearly 2 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 D&A to 55%.

第二季度，我們的淨收入成長了22%，調整後EBITDA成長了13%。重要的是，我們提高了每個部門的營業利潤率，使綜合毛利率提高了近 2 個百分點。由於回收量和處置量的成長，我們在水基礎設施領域實現了強勁的營收和利潤成長，同時折舊攤銷前毛利率成長至 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 are now underway with multiple strategic opportunities to rationalize our Water Services segment in support of our rapidly growing water infrastructure platform.

自第二季開始以來，我們已經簽署了幾項新的大型收集、回收、配送和處置項目的長期協議。這些協議繼續擴大我們在新墨西哥州的合約和專用土地面積，並提供有意義的長期收入潛力。我們最近也實施了多項策略機遇，以合理化我們的水務服務部門，支持我們快速發展的水基礎設施平台。

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 life cycle 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.

正如我們之前所指出的，我們一直非常注重評估我們的水服務組合，以便我們將時間和資金集中在提供高毛利率、持續成長和全生命週期水解決方案的領域。2025 年 7 月，我們與 OMNI Environmental Solutions 完成了一項創意交易，這使我們能夠同時實現多個策略目標。

In this one transaction, we were able to strategically grow our infrastructure business while monetizing and rationalizing certain noncore 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.

在這次交易中，我們能夠策略性地發展我們的基礎設施業務，同時將我們的水務服務部門的某些非核心部分貨幣化和合理化。作為交易的一部分，我們收購了巴肯地區的一個特殊垃圾掩埋場、一個加工和處理廠、處置設施和一個石油回收資產。

Now with 4 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.

目前，我們在該地區擁有 4 個活躍的垃圾掩埋場，並擴大了固液分離和增強油回收的整合範圍，我們在巴肯地區建立了明確的市場領先的固體管理足跡，以配合我們龐大的傳統廢水處理組合。我們將在今年下半年對設施中的資產進行升級和擴建，但我們很高興透過這筆交易為 2026 年的基礎設施業務增加額外的高毛利率成長潛力。

In exchange for these assets, OMNI acquired Select's trucking operation in the Northeast, Mid-Con 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.

作為交換這些資產，OMNI 收購了 Select 在東北部、中部康乃狄克州和巴肯地區的卡車運輸業務。我們預計，隨著時間的推移，這筆交易將提高我們的綜合利潤率，降低我們的營運風險，並簡化我們在多個盆地的業務。雖然 OMNI 交易是合理化朝著水務服務組合邁出的重要一步，但我們相信，仍有更多機會利用水務部門內的某些策略資產。因此，我們現在正在正式探索融資和資本結構選擇，以釋放水務部門內設備租賃業務 Peak Rentals 的價值。

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 success.

作為這項工作的一部分，我很高興能與能源和電力領域備受尊敬且經驗豐富的高管 Scott McNeil 合作。斯科特在多家成功能源公司的組建、領導和貨幣化過程中發揮了重要作用，並在營運和資本形成方面擁有豐富的經驗。斯科特 (Scott) 加入我們，擔任 Peak 的首席執行官，並將領導該業務的策略發展和交易規劃。安德勒 (Pat Anderle) 繼續擔任 Peak 總裁，保持長期以來推動 Peak 成功的營運領導、執行紀律和客戶關注。

The Peak platform includes wellsite 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 oilfield electrification accelerates.

Peak平台包括井場設備、壓力和流量控制系統，以及新興的分散式發電業務。15 年來，Peak 一直是向能源市場部署傳統柴油分散式電力解決方案的領導者。最近，Peak 又利用了對其天然氣發電機和專有電池供電系統快速成長的需求。隨著油田電氣化進程加快，行動離網電源的需求正在激增。

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.

由於電網建設滯後，這些解決方案可確保關鍵能源基礎設施保持在線並提供有彈性且可靠的備份。當我們利用 Peak 的分散式電源解決方案來支援我們在西德克薩斯州和新墨西哥州偏遠地區快速建立自己的水基礎設施平台時，我們每天都能看到這種影響。

Peak 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, Peak 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 applications.

Peak 憑藉其顯著的優勢、成熟的租賃平台、龐大的營運基礎以及與頂級營運商的強大客戶關係，正在向分散式能源領域擴張。此外，Peak 已與專有電池儲存解決方案的關鍵供應商達成長期獨家協議，我們相信 Peak 是第一家將電池電源系統與發電機整合到現場用於上游和中游應用的公司。

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 stand-alone capital structure. We completed the formal carve-out of Peak as a stand-alone operating company earlier this year, and we are well prepared for various potential outcomes.

為了支持匹克在分散式發電業務中的發展勢頭，並確保該業務能夠獲得不會與我們的水基礎設施成長需求競爭的專用成長資本，我們正在評估建立獨立資本結構的交易。我們在今年稍早完成了將 Peak 正式分拆為獨立營運公司的工作，並且我們已經為各種可能的結果做好了充分的準備。

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 ratable, repeatable water infrastructure growth and more directly, the continued build-out of our large-scale Northern Delaware Basin infrastructure network in New Mexico.

雖然最終結果仍有待確定，但我們預計將繼續保持對 Peak 在分散式電力領域的未來成長和價值創造的經濟敞口，同時保持長期戰略一致性，以支持我們的核心水基礎設施成長策略。最終，OMNI 和 Peak 計劃均旨在將 Select 的近期優先事項集中在我們的核心戰略上，即建設和促進可評估、可重複的水基礎設施增長，更直接地說，繼續建設我們在新墨西哥州的大型北特拉華盆地基礎設施網絡。

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 Lea counties, adding approximately 60,000 acres of additional leasehold dedication and 385,000 acres under right of first refusal agreements.

現在回到我們在新墨西哥州的基礎建設。我很高興在第二季度在特拉華州北部簽署了多份新的長期合同，以擴大我們在埃迪縣和利亞縣的現有網絡，增加約 60,000 英畝的額外租賃土地和 385,000 英畝的優先購買權協議。

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'm 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.

這些新合約涵蓋了整個水生命週期，包括收集、回收、處理和處理後的水分配，並承保了多個新的回收設施和近 30 英里的額外雙線大直徑管道。但更讓我興奮的是，在每筆交易中，我們的 E&P 營運商合作夥伴都同意將其現有回收和處置基礎設施的所有權或營運權直接轉讓給 Select。

Select will continue to contractually support each of these customers' core operations, but we will 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 life cycle water balancing capabilities. We greatly appreciate the trust that our partners have in Select's reliability as a large water network operator and believe we are well positioned for more long-term contracts ahead.

Select 將繼續透過合約支援每個客戶的核心運營，但我們也將有機會利用這些資產實現更廣泛的系統水平衡和商業化。這有力地證明了 Select 憑藉其全生命週期水平衡能力在市場上提供的經濟和營運價值。我們非常感謝合作夥伴對 Select 作為大型水網運營商的可靠性的信任，並相信我們已做好準備，可以簽訂更多長期合約。

We also continue to grow our disposal capacity and takeaway 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 ROFR dedicated acres.

我們也將繼續擴大我們的處理能力和外送能力，以配合這個大型網路的建設，並計劃隨著時間的推移繼續擴大這一能力，以支持長期的網路優化和效率。僅在北特拉華盆地這些最近授予的項目完成後，我們將擁有每天約 180 萬桶的回收吞吐能力和超過 100 萬英畝的租賃和 ROFR 專用土地。

On a pro forma basis, New Mexico will have gone from contributing 0 to now more than 60% of our total fixed recycling capacity across the Permian in about a 2 years' time. To further reflect on this point, across the last 5 quarters, we have added on an average more than 77,000 dedicated leasehold acres and more than 140,000 ROFR acres per quarter, a tremendous pace of contract growth in a short period of time.

從形式上看，新墨西哥州在大約兩年的時間內將從貢獻 0 增長到現在佔二疊紀盆地總固定回收能力的 60% 以上。為了進一步反映這一點，在過去的 5 個季度中，我們平均每季增加超過 77,000 英畝的專用租賃土地和超過 140,000 英畝的 ROFR 土地，在短時間內實現了驚人的合約成長速度。

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 breakeven 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.

實際上，我們繼續增加大量積壓的合約未來收入和現金流，這些收入和現金流由業內一些地質條件最佳、盈虧平衡井庫存最低的公司承保。我相信，隨著時間的推移，我們將繼續在投資組合中添加更多合同，並且我對未來幾年將提供的成長潛力感到興奮。

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 macro activity 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-lea ding 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.

最終，我們對水基礎設施的成長潛力保持高度信心，並相信該領域將在 2025 年預期的兩位數成長的基礎上，在 2026 年實現 20% 的強勁同比增長。雖然宏觀活動環境可能在下半年為我們的水務服務和化學業務中更多以完工為導向的部分帶來挑戰，但我們在這些領域仍保持市場領先地位，並預計它們將繼續產生強勁的自由現金流，同時我們專注於發展我們的水基礎設施領域。

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?

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。克里斯？

Thank you, John, and good morning, everyone. In the second quarter, Select had a strong performance in light of varying activity levels and made great progress in advancing strategic objectives during the quarter. During the second quarter, we achieved 22% sequential growth in net income, 13% sequential growth in adjusted EBITDA, higher gross margins before D&A across each segment, growth in both our recycling and disposal volumes and continued water infrastructure long-term contract wins.

謝謝你，約翰，大家早安。第二季度，Select 在不同的活動水準下均表現強勁，並在推進本季策略目標方面取得了巨大進展。在第二季度，我們的淨收入環比增長 22%，調整後 EBITDA 環比增長 13%，各部門折舊攤銷前毛利率均有所提高，回收量和處置量均有所增長，並且繼續贏得水基礎設施長期合約。

Looking at our second quarter in more detail. Water Infrastructure produced a strong quarter with revenues increasing 12% and gross profit before D&A growing [15%], well ahead of our expectations. The segment also generated a strong 55% gross margin before D&A during the period, up 1.5 percentage points from the prior quarter and more than 4 percentage points compared to the prior year.

更詳細地了解我們的第二季。水利基礎設施本季表現強勁，營收成長 12%，扣除折舊攤銷前的毛利成長 [15%]，遠超出我們的預期。該部門本季的折舊攤銷前毛利率也達到了 55%，較上一季上升 1.5 個百分點，較去年同期上升 4 個百分點以上。

Looking ahead for our Water Infrastructure segment, we expect overall activity in Q3 to be relatively steady with our anchor tenant customers with some modest variability in interruptible activity, resulting in revenues that are relatively steady to potentially slightly down low single-digit percentage points in the third quarter relative to what was a very strong Q2.

展望我們的水基礎設施部門，我們預計第三季度的整體活動將相對穩定，我們的主要租戶客戶在可中斷活動方面會有一些適度的變化，從而導致收入相對穩定，相對於表現非常強勁的第二季度，第三季度的收入可能會略有下降，下降幅度可能在個位數的低百分點左右。

We should also maintain gross margins before D&A above 50%. However, based on our current customer schedules and new projects coming online, we anticipate a strong Q4 for infrastructure with revenue and gross profit expected to increase double-digit percentages sequentially, resulting in a 2025 exit rate that remains in line with our prior guidance.

我們也應將折舊攤銷前毛利率維持在 50% 以上。然而，根據我們目前的客戶計劃和上線的新項目，我們預計第四季度基礎設施將表現強勁，收入和毛利預計將環比增長兩位數百分比，從而使 2025 年的退出率與我們先前的預期保持一致。

Importantly, with our latest contract awards, we are adding new capital projects that should continue to provide growth for this segment into 2026 and beyond, a testament to our water infrastructure strategy overall and the strength of its future earnings potential. While we will continue to closely monitor market conditions in partnership with our key customers with a strong 2025 exit rate and new projects expected to come online throughout 2026, we believe we are on track to deliver 20% growth in Water Infrastructure in 2026 compared to full year 2025.

重要的是，透過我們最新的合約授予，我們正在增加新的資本項目，這些項目應該會在 2026 年及以後繼續為該領域帶來增長，這證明了我們的整體水基礎設施戰略及其未來盈利潛力的強勁。我們將繼續與主要客戶密切合作，密切關注市場狀況，預計 2025 年的退出率將很高，而新項目將在 2026 年全年上線，我們相信，與 2025 年全年相比，2026 年水利基礎設施將實現 20% 的增長。

We also remain on target to well exceed our previous goal of achieving 50% or more of our consolidated gross profit coming from water infrastructure on an exit rate basis in 2025, particularly in light of the OMNI transaction. While we've achieved much in the past two years, we anticipate this contribution trend to continue into 2026 and beyond.

我們也將繼續努力超越先前的目標，即到 2025 年，以退出率計算，實現 50% 或更多的綜合毛利潤來自水利基礎設施，特別是考慮到 OMNI 交易。雖然我們在過去兩年中取得了巨大成就，但我們預計這種貢獻趨勢將持續到 2026 年及以後。

Switching to the Water Services segment. In the second quarter, we saw revenues decrease by approximately 4% sequentially, driven primarily by weakening activity levels in the latter part of the quarter. This decrease, however, was below the low end of our prior revenue guide of an expected 5% to 10% decline, and our gross margins before D&A and services held relatively flat at around 20% during Q2.

轉向水務服務領域。在第二季度，我們的營收季減了約 4%，這主要是由於本季後半段活動水準減弱所致。然而，這一降幅低於我們先前預期的 5% 至 10% 的收入指引的低端，而我們的 D&A 和服務前的毛利率在第二季度保持相對平穩，約為 20%。

I believe the Water Services segment performed favorably compared to the market activity overall in the first half of 2025. However, we should experience further reductions in the second half of the year attributable to both activity and the larger rationalization efforts mentioned earlier.

我認為，與 2025 年上半年的整體市場活動相比，水務服務部門的表現良好。然而，由於前面提到的活動和更大規模的合理化努力，我們應該會在下半年經歷進一步的減少。

Immediately after quarter end, Select closed on the aforementioned OMNI asset swap transaction that resulted in the divestiture of certain trucking and related operations in the Northeast, MidCon and Bakken regions, along with modest cash and stock consideration. Additionally, and separate to the OMNI transaction, Select also exited the remainder of its trucking operations in the MidCon and Haynesville regions for cash consideration.

季度結束後，Select 立即完成了上述 OMNI 資產互換交易，該交易導致其剝離了東北部、MidCon 和巴肯地區的部分卡車運輸和相關業務，並獲得了少量現金和股票對價。此外，除了 OMNI 交易之外，Select 還以現金形式退出了 MidCon 和 Haynesville 地區剩餘的卡車運輸業務。

These combined actions significantly reduced our remaining trucking footprint to just the Permian, Rockies and Eagle Ford regions. To put that into context, for the trailing 12-month period ended June 30, 2025, the divested trucking operations represented more than 1/3 of the revenue and more than 1/5 of the gross profit before D&A of Select's trucking business unit and approximately 10% and 5% of the total revenue and gross profit for Water Services as a segment as a whole.

這些綜合措施大大減少了我們剩餘的卡車運輸足跡，只剩下二疊紀、落基山脈和鷹福特地區。具體來說，在截至 2025 年 6 月 30 日的過去 12 個月中，剝離的卡車運輸業務佔 Select 卡車運輸業務部門收入的 1/3 以上和折舊及攤銷前毛利潤的 1/5 以上，佔整個水務服務部門總收入和毛利潤的約 10% 和 5%。

Additionally, as previously noted, and as part of our broader efforts to focus Select around our core infrastructure and full life cycle water solutions thesis, we recently stood up the Peak Rentals business within the Water Services segment of Select to be a stand-alone operating company and have begun evaluating strategic alternatives for this business.

此外，如前所述，作為我們更廣泛努力的一部分，將 Select 的重點放在我們的核心基礎設施和全生命週期水解決方案上，我們最近將 Select 水務部門內的 Peak Rentals 業務設立為獨立運營的公司，並已開始評估該業務的戰略替代方案。

As part of the structured carve-out, we have incurred certain incremental costs at both the cost of sales and SG&A levels in order to ensure that Peak is well positioned to operate independently, leading into any potential strategic opportunities. While we expect some impact from weakening activity levels, these rationalization efforts represent a sizable portion of the approximately 25% revenue decline we anticipate in the third quarter for Water Services. However, even with the meaningful expected revenue reduction, we expect margins to remain relatively flat to Q1 and Q2 levels of approximately 19% to 20% in the third quarter of 2025.

作為結構化剝離的一部分，我們在銷售成本和銷售、一般及行政費用層面產生了一定的增量成本，以確保 Peak 能夠獨立運營，從而抓住任何潛在的戰略機會。雖然我們預期活動水準減弱會產生一定影響，但這些合理化措施佔了我們預期第三季水務服務收入約 25% 下降的相當大一部分。然而，即使預期收入大幅減少，我們預計利潤率在 2025 年第三季仍將保持相對平穩，約為第一季和第二季的 19% 至 20% 的水平。

Moving on to the Chemical Technologies business. This segment saw a sequential revenue decline of approximately 11% during the second quarter in excess of our guided expectations, driven primarily by pullbacks in activity levels associated with some of our pressure pumping customers. However, gross margins before D&A of 17.5% in the second quarter exceeded our guided range of 14% to 16%, resulting in modestly higher gross profit before D&A in the second quarter of 2025 as compared to the first quarter.

轉向化學技術業務。該部門第二季度的收入環比下降約 11%，超出我們的預期，主要原因是部分壓力泵客戶的活動水平下降。然而，第二季折舊及攤銷前毛利率為 17.5%，超過了我們 14% 至 16% 的預期範圍，導致 2025 年第二季折舊及攤銷前毛利略高於第一季。

During the third quarter, we expect revenue to decrease low to mid-single-digit percentages, outperforming the overall activity environment on the heels of continued success with new product development initiatives while holding relatively steady 15% to 17% gross margins.

在第三季度，我們預計收入將下降低至中等個位數百分比，在新產品開發計劃繼續取得成功的同時，表現優於整體活動環境，同時保持相對穩定的 15% 至 17% 的毛利率。

Looking back on a consolidated basis, in the second quarter, SG&A increased to $39 million or just under 11% of revenue, partially impacted by incremental SG&A costs incurred as part of our Peak carve-out. We expect SG&A to hold relatively steady on a gross dollar basis during the second half of the year. Though over time, we will continue to look for opportunities to rationalize the cost structure of the business in conjunction with the ongoing rationalization efforts in Water Services.

回顧合併後的數據，第二季度，銷售、一般及行政費用增加至 3900 萬美元，佔收入的略低於 11%，部分原因是由於我們的峰值剝離而產生的增量銷售、一般及行政費用的影響。我們預計，下半年銷售、一般及行政費用總額將保持相對穩定。但隨著時間的推移，我們將繼續尋找機會，結合水務服務領域持續的合理化努力，合理化業務成本結構。

Altogether, we saw solid consolidated adjusted EBITDA of $73 million during the second quarter of 2025, above the high end of our previous guided range, largely resulting from the stronger-than-expected margin performance out of our Water Infrastructure segment.

總體而言，我們在 2025 年第二季度實現了穩健的合併調整後 EBITDA 7300 萬美元，高於我們先前指導範圍的高端，這主要得益於我們水基礎設施部門的利潤率表現強於預期。

For the third quarter of 2025, we expect consolidated adjusted EBITDA of $55 million to $60 million as softening activity in the US Lower 48 impacts the more completions-oriented Water Services and Chemical Technologies segments, along with the immediate impact of the OMNI transaction.

對於 2025 年第三季度，我們預計合併調整後 EBITDA 為 5,500 萬至 6,000 萬美元，因為美國本土 48 個州的疲軟活動影響了更注重完井作業的水務和化學技術部門，以及 OMNI 交易的直接影響。

While activity declines will impact the short-term outlook of our Water Services and Chemical Technologies businesses, we are confident in the continued long-term growth prospects for our Water Infrastructure segment and the additional resilience that our growing contract portfolio will bring over time.

雖然活動減少將影響我們水務服務和化學技術業務的短期前景，但我們對水基礎設施部門持續的長期增長前景以及我們不斷增長的合約組合將隨著時間的推移帶來的額外彈性充滿信心。

And as we've outlined, with new projects coming online through the back part of the year and into 2026, the Water Infrastructure segment is poised for continued sequential growth with 10% quarter-over-quarter growth in Q4 of 2025 and 20% year-over-year growth during 2026.

正如我們所概述的，隨著今年下半年和 2026 年新項目的上線，水利基礎設施領域將繼續保持連續增長，2025 年第四季度環比增長 10%，2026 年同比增長 20%。

I'll now hit on a few below-the-line items and cash flow details before we wrap up. Looking at our other costs for the first quarter, D&A increased approximately $3 million in Q2 to approximately $43 million. With additional growth CapEx, we expect D&A to see a similar increase in Q3 to approximately $45 million. Interest expense should remain relatively steady, and our effective book tax rate applied to pretax operating income should stay in the low 20% range, with cash taxes on the year remaining low at around $10 million or less.

在我們結束之前，我現在要談一些低於標準的項目和現金流細節。從第一季的其他成本來看，折舊及攤銷前成本 (D&A) 在第二季增加了約 300 萬美元，達到約 4,300 萬美元。隨著資本支出的額外成長，我們預計 D&A 在第三季將出現類似的成長，達到約 4,500 萬美元。利息支出應保持相對穩定，適用於稅前營業收入的有效帳面稅率應保持在 20% 的低位，年度現金稅應保持在 1000 萬美元或更低的低點。

While we need to conduct further analysis, given recent federal legislation, we would expect our cash tax obligations to remain relatively muted across the next couple of years as well. On the cash flow side, we generated more than $10 million of free cash flow during Q2 even with the significant ramp to $79 million during the quarter primarily in support of contracted infrastructure projects.

雖然我們需要進一步的分析，但考慮到最近的聯邦立法，我們預計未來幾年我們的現金稅義務也將保持相對溫和。在現金流方面，我們在第二季度產生了超過 1000 萬美元的自由現金流，儘管本季度自由現金流大幅增加至 7900 萬美元，主要用於支援合約基礎設施項目。

During the second quarter, we also deployed $3 million to acquire bolt-on infrastructure assets in the Permian to strategically support our existing recycling and disposal networks. As demonstrated by our latest project awards, we are seeing our large backlog materializing into actionable contracts. Following the recent project wins, we still expect $225 million to $250 million of net CapEx in 2025 with a bias towards the higher end of the range, though we have now added to our growth CapEx backlog into 2026.

在第二季度，我們也投入了 300 萬美元收購二疊紀盆地的附加基礎設施資產，以策略性地支持我們現有的回收和處置網路。正如我們最新的專案獎項所表明的那樣，我們看到大量積壓訂單正在轉化為可操作的合約。在最近的專案中標之後，我們仍然預計 2025 年的淨資本支出將達到 2.25 億至 2.5 億美元，並且偏向該範圍的高端，儘管我們現在已經將成長資本支出積壓增加到 2026 年。

We maintain our expectation of $50 million to $60 million of this CapEx going towards ongoing maintenance and margin improvement initiatives in the near term. Absent the ongoing sizable growth capital outlays, our business maintains a very maintenance-light capital model. Our operating assets have significant free cash flow generating capabilities and flexibility to manage maintenance spend in accordance with market conditions without impacting our operational performance.

我們預計，這筆資本支出中的 5,000 萬至 6,000 萬美元將用於短期內的持續維護和利潤率提高計畫。由於缺乏持續大量的成長資本支出，我們的業務保持著極低維護成本的資本模式。我們的營運資產具有強大的自由現金流產生能力和靈活性，可以根據市場狀況管理維護支出，而不會影響我們的營運績效。

While near-term cash flow will be impacted by reduced activity levels, we continue to generate very solid 70%-plus free cash flow capture out of our base water services and chemicals profitability and are very well positioned to fund our water infrastructure growth projects while maintaining a healthy balance sheet overall in a challenging market.

雖然短期現金流將受到活動水準下降的影響，但我們繼續從基礎水務服務和化學品盈利能力中獲得非常穩健的 70% 以上的自由現金流，並且完全有能力為我們的水基礎設施增長項目提供資金，同時在充滿挑戰的市場中保持整體健康的資產負債表。

In summary, we advanced our strategic initiatives in Q2 and remain confident in our overall strategic outlook. We are proud to have positioned the company with strong liquidity, resilient earnings streams and growing contract coverage, and we look forward to continuing to deliver on our strategy.

總而言之，我們在第二季度推進了我們的策略舉措，並對我們的整體策略前景充滿信心。我們很自豪能夠為公司帶來強大的流動性、有彈性的獲利流和不斷增長的合約覆蓋率，我們期待繼續實現我們的策略。

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

這樣，我會將其交給接線員以解答任何問題。操作員？

(Operator Instructions)

（操作員指示）

Jim Rollyson, Raymond James.

吉姆羅利森、雷蒙詹姆斯。

Hey, good morning. Nice quarter. And John, you talked a bit about this, but you guys continue to sign new contracts with duration, with acreage dedication and you even have customers giving you their assets now for you to run. Curious, as you look at the market and the opportunity set, what inning do you think we're in from an opportunity perspective as far as that goes? And is the macro on the oil side having any impact on kind of the pace of desire to do that? Or is just the magnitude of the water challenge really superseding that?

嘿，早安。不錯的季度。約翰，你談到了這一點，但你們繼續簽署有期限、有土地使用權的新合同，甚至還有客戶將他們的資產交給你們經營。好奇的是，當您觀察市場和機會集時，您認為從機會角度來看我們處於什麼階段？石油方面的宏觀因素對實現這一目標的步伐有何影響？或者只是水資源挑戰的嚴重性真的超過了這一點？

Yes. Thanks, Jim. As far as where we are in the inning of the build-out, I think our team has really put some major contracts in place and some dedication. And as far as the big projects, the two that we just announced and a few we still have in the that we haven't announced yet. I would tell you that we're pretty far into the build-out now. We have to physically put the plants and the pipe in place. But the major wins, I think we've got that done. What isn't done and what is starting to happen now is as you put this network together, you cross either that ROFR acreage or you cross undedicated position.

是的。謝謝，吉姆。就我們在建設階段所處的位置而言，我認為我們的團隊確實簽訂了一些重要合約並做出了一些奉獻。至於大型項目，我們剛剛宣布了兩個，還有一些尚未宣布。我想告訴你，我們現在已經完成了相當多的建設工作。我們必須將植物和管道實際放置到位。但我認為我們已經取得了重大勝利。尚未完成但正在開始發生的事情是，當您將這個網路整合在一起時，您要么跨越 ROFR 面積，要么跨越未專用位置。

And what we're having happen to us now is we're receiving the calls of add-ons, people that want to come into the network that it could service their acreage and be an economic value in a meaningful way. And that's just starting to happen, Jim, right now. So big projects, we're pretty far on our way. We got to build them out, picking up the pieces as we go through the acreage. It's just starting, Jim.

我們現在遇到的情況是，我們接到了附加組件的電話，人們希望加入網絡，以便它可以為他們的土地提供服務並以有意義的方式產生經濟價值。而這才剛開始發生，吉姆。對於如此大型的項目，我們已經走了很長一段路了。我們必須把它們建起來，在穿過這片土地時把碎片撿起來。一切才剛開始，吉姆。

Yes. And maybe to follow -- go ahead, Michael.

是的。或許可以繼續——繼續吧，麥可。

No, I was just going to maybe address part of your question on the backlog. I would say that the backlog is strong, and it's flat despite converting these projects from opportunities to signed contracts, and that removes it from the backlog, but we're continuing to backfill for them so that it's relatively flat. And I don't see the near-term macro headwinds changing that. I think we will be able to continue to deliver projects as we have on a quarterly basis going forward.

不，我只是想回答你關於積壓問題的部分問題。我想說的是，積壓訂單很強勁，儘管將這些項目從機會轉化為已簽署的合同，但它仍然持平，並且將其從積壓訂單中移除，但我們會繼續為它們填補空缺，以便它相對持平。我認為短期宏觀不利因素不會改變這一點。我認為我們將能夠繼續像往常一樣按季度交付專案。

Got it. Thanks for that. And as you guys kind of look at that acreage that isn't locked up that crosses pads, maybe just relative size of what you have locked up versus -- because obviously, your ROFR acreage currently is a bigger number than your dedicated acreage. But when you add that in plus the guys that aren't even involved yet, I'm just curious how much opportunity that still provides.

知道了。謝謝。當你們看到那些尚未鎖定的跨墊土地面積時，可能只是你們鎖定的土地面積的相對大小——因為很明顯，你們目前的 ROFR 土地面積比你們的專用土地面積要大。但是當你把這些加上那些還沒參與的人時，我只是好奇這還能提供多少機會。

Yes, I might take a shot at that and kind of let John clean me up. I mean the first thing I'd point out is that the ROFR acreage is twice what we have under dedication. And so there's a meaningful growth impact there that hasn't been fully developed, but we certainly think we're well positioned to capture it.

是的，我可能會嘗試一下，讓約翰幫我清理一下。我的意思是，我要指出的第一件事是，ROFR 土地面積是我們專用土地面積的兩倍。因此，那裡有一個尚未完全開發的有意義的成長影響，但我們當然認為我們已準備好去抓住它。

In terms of new acreage out there, I'd really look to kind of the expansion that we have in Eddy County, which the deals that we announced largely allow us to continue our expansion in Eddy County backed by long-term contract. And we're traversing a lot of acreage that is not tied into our system and much of which, frankly, isn't committed, which John alluded to.

就新的種植面積而言，我真正關注的是我們在埃迪縣的擴張，我們宣布的交易在很大程度上使我們能夠在長期合約的支持下繼續在埃迪縣擴張。我們正在穿越很多與我們的系統無關的土地，其中很多，坦白說，還沒有投入使用，正如約翰所提到的。

So I think there's a real opportunity there for us to connect it and tie it into the system. And I think that's what makes me so excited is we're really building, a, system of size and scale in New Mexico, and it uniquely positions us to solve the localized imbalance of produced water and completion water. And that's going to allow for continued growth, as you've seen over the last few quarters, but also stability across the system.

所以我認為我們確實有機會將其連接並納入系統。我認為讓我如此興奮的是，我們確實在新墨西哥州建立了一個龐大的系統，它使我們能夠以獨特的方式解決採出水和完井水的局部不平衡問題。正如您在過去幾個季度所看到的那樣，這將促進持續成長，同時也確保整個系統的穩定性。

Got you. And then as a follow-up, John, quite interesting development on the Peak side of things. And obviously, know Scott McNeil pretty well, but would love to get your view on just maybe framing the market opportunity as you guys see it for that business because it's going to be a unique strategy with trying to carve that out and still keep economic benefits, but just love to see maybe just put some brackets around where you think that economic opportunity is.

明白了。接下來，約翰，關於 Peak 方面的事情的發展相當有趣。顯然，我非常了解斯科特·麥克尼爾，但我很想聽聽你對這個業務的市場機會的看法，因為這將是一個獨特的戰略，試圖開拓這個市場，同時仍然保持經濟利益，但我只是想看看你認為經濟機會在哪裡，也許可以加上一些括號。

Yeah. I think Peak because of where it's been since really the beginning of what is Select has a very unique position, but it always -- Peak always participated on the drilling and completion side of the business. So when you think about temporary housing, potable water, wastewater, communications and power generation, we were really around drilling rigs and completion frac crews. But the 350-plus MSAs we got are with companies that are in the production business as well.

是的。我認為 Peak 自 Select 成立之初就佔據著非常獨特的地位，而且它始終——Peak 一直參與鑽井和完井業務。因此，當您想到臨時住房、飲用水、廢水、通訊和發電時，我們實際上關注的是鑽井平台和完井壓裂隊。但我們收到的 350 多份 MSA 也來自從事生產業務的公司。

So the lack of electrical grid generation and the way that continues to grow in length of time before it gets put in place, Jim, allows Peak to really have an opportunity of which it's now taking advantage of taking those MSAs and going into the production side of the business in a meaningful way. So I think it's got a really good position.

因此，吉姆，電網發電的缺乏以及在電網投入使用之前時間的不斷增長，讓 Peak 真正有機會利用這個機會，現在它正在利用這些 MSA 並以有意義的方式進入業務的生產方面。所以我認為它的地位確實很好。

What really advanced that position is Select and these contracts that Michael and the team have put together are in that same area and that same electric generation problem is real. And we had to start supporting ourselves in the midstream side of the business to power generate these recycling or transfer or disposal wells in areas there's not electricity.

真正推動這一進程的是 Select，而邁克爾和團隊簽訂的這些合約都涉及同一領域，而且同樣的發電問題也確實存在。我們必須開始在業務的中游方面自力更生，為沒有電力的地區提供這些回收、轉運或處置井的電力。

The other thing I would tell you is that we were very early in establishing a relationship with a battery company. And we did our own investigation, if you will, of applying that battery technology along with our diesel power generation in the same application that we've been doing for many years now and the same kind of load. And what we found is that you could apply that battery and that generator will run roughly 20% of the time versus generator direct, and it will burn about 20% of the fuel.

我想告訴你的另一件事是，我們很早就與一家電池公司建立了合作關係。如果你願意的話，我們做了自己的調查，將電池技術與柴油發電技術一起應用於我們多年來一直在做的相同應用和相同類型的負載中。我們發現，與發電機直接供電相比，使用電池和發電機供電可以節省約 20% 的運行時間，並且還能燃燒約 20% 的燃料。

And you can size the battery for the peak demand position and you don't have to size the generator for the peak demand. You just have to size the generator for the job. And it's really an economic value. It really cleans up the electricity currency going into the job. It really allows a more quieter workplace, and it allows automation application around that electricity that is harder to do with full diesel power generation 24 hours. So we're excited about it.

您可以根據尖峰需求位置確定電池尺寸，而不必根據尖峰需求確定發電機尺寸。您只需根據工作需求確定發電機的尺寸即可。這確實具有經濟價值。它確實清理了投入工作的電力貨幣。它確實可以讓工作場所變得更加安靜，並且可以實現圍繞電力的自動化應用，而這在 24 小時全柴油發電的情況下很難實現。所以我們對此感到很興奮。

Derek Podhaizer, Piper Sandler.

德里克波德海澤、派珀桑德勒。

Just to follow on Jim's question with Peak rentals. Maybe if you could just help us provide just some further details around the kit, maybe how much capacity Peak has right now from a megawatt perspective? What's owned, maybe what's deployed on an active megawatt perspective? Types of units, are these the smaller sub-1 gigawatt units? Or are these more like the recips in that 2 to 3-megawatt range? Just maybe some more color on the actual fleet size and type of kits.

只是想繼續回答 Jim 關於 Peak 租約的問題。也許您可以幫助我們提供有關該套件的更多詳細信息，例如從兆瓦的角度來看，Peak 目前的容量是多少？從活躍的兆瓦角度來看，什麼是擁有的，什麼是部署？單位類型，這些是較小的 1 千兆瓦以下單位嗎？或者這些更像是 2 至 3 兆瓦範圍內的往復運動？也許只是對實際艦隊規模和裝備類型有更多了解。

Yes. So this is John. So the current fleet size and the space we have participated in since we started peak back in '07 is the smaller portable diesel power generations. So definitely the smaller units. But even the units that we're deploying today, both in the midstream and the production side of what we're doing are still the smaller recip units. They're bigger than what we've done in the past. So they're 400 kW type stuff on electric submersible pumps or midstream application of water movement, but they definitely are still smaller portable recip units.

是的。這就是約翰。因此，自 2007 年開始達到高峰以來，我們目前的車隊規模和參與的空間都是較小的便攜式柴油發電機。所以肯定是較小的單位。但即使我們今天部署的單位，無論是在中游還是在生產方面，仍然是較小的往復單位。它們比我們過去所做的更大。因此，它們是用於電動潛水泵或中游水運動應用的 400 kW 類型的設備，但它們肯定仍然是較小的便攜式往復裝置。

But on the growth side of it, Derek, the focus around the natural gas units, those are definitely growing to larger scale units and focus more on that production side and the infrastructure application to build-out. But regardless of the unit type, they fit within our existing production and refurbishment capabilities from the business to date. And so we've got a large legacy of being able to manage all different types of units, and we're going to continue to look at scaling up appropriately, particularly on the natural gas side.

但就成長方面而言，德里克，重點圍繞天然氣單位，這些單位肯定會成長到更大規模，並且更加重視生產方面和基礎設施應用的建設。但無論單位類型如何，它們都符合我們迄今為止現有的生產和翻新能力。因此，我們擁有管理各種不同類型單位的豐富經驗，我們將繼續考慮適當擴大規模，特別是在天然氣方面。

Got it. That makes sense. And maybe just like total size of the fleet megawatt like today and where you think it can go next year?

知道了。這很有道理。也許就像今天兆瓦的總規模一樣，您認為明年它會達到什麼水平？

We haven't put anything out specifically on the total fleet size, and we're investing in it, I would say, robustly this year. The ultimate, I would say, scale of the fleet over the next 12 to 24 months will probably be somewhat dependent upon the ultimate outcome of what we're able to accomplish here because there's clearly growth in demand. There's clearly opportunities to deploy units. We're focused on what the scale of that backlog can look like and what our order book can grow into.

我們還沒有公佈有關總機隊規模的具體信息，但我想說，今年我們將大力投資該領域。我想說，未來 12 到 24 個月內船隊的最終規模可能在某種程度上取決於我們在這裡能夠完成的最終結果，因為需求顯然正在增長。顯然存在部署部隊的機會。我們關注的是積壓訂單的規模以及我們的訂單量可以成長到多少。

Got it. That's helpful. And then just a follow-up, switching back over to infrastructure. Obviously, a lot of exciting growth opportunities as we think about 2026. You gave a 20% year-over-year growth number there. Maybe just an early look into 2026 CapEx budget. Maybe you could just put some guardrails around it, how we should think about it? What CapEx will be required to support that 20% growth?

知道了。這很有幫助。然後只是後續工作，切換回基礎設施。顯然，展望 2026 年，我們將看到許多令人興奮的成長機會。您給出了 20% 的年成長數字。也許只是對 2026 年資本支出預算的初步了解。也許你可以把它周圍設置一些護欄，我們該如何考慮它？需要多少資本支出來支持 20% 的成長？

I'm just thinking through more of the -- all the moving pieces as far as seeing a cash flow inflection in infrastructure. But maybe just we'll start with the CapEx and what you think you'll need to in order to support that 20% growth number.

我只是在思考更多——就基礎設施的現金流變化而言，所有活動的部分。但也許我們只是從資本支出開始，以及您認為需要什麼才能支持 20% 的成長數字。

Yeah. It's a good question, Derek. One thing to be clear on is that current outlook of 20% or so is based on the projects we have underwritten via contract today. So obviously, we've got a backlog of capital being deployed in the back half of '25, and we've now backlog some additional projects into the first half of next year. Between the second half of '25 and the first half of '26, we probably got about [$225 million] of capital deployment, probably about $75 million to potentially $100 million of which is in the first half of next year. So that 20% is underwritten by those current contracts and those current projects now under construction.

是的。這是個好問題，德瑞克。需要明確的一點是，目前 20% 左右的預期是基於我們今天透過合約承保的項目。顯然，我們在 2025 年下半年已經積壓了大量資金，現在我們又將一些額外的項目積壓到明年上半年。在 2025 年下半年到 2026 年上半年之間，我們可能獲得了約 [2.25 億美元] 的資本部署，其中大約 7,500 萬美元到 1 億美元可能在明年上半年。因此，20% 由現有合約和正在建造的項目承保。

Now that said, we certainly continue to feel optimistic about our ability to add new contracts into the portfolio over the back half of '25 and certainly across the full year '26. And so our expectation would be that we continue to add new projects under contract and that capital deployment over the course of 2026 has opportunity to look more like the capital deployment of 2025.

話雖如此，我們當然仍然對我們在 25 年下半年以及 26 年全年將新合約添加到投資組合中的能力感到樂觀。因此，我們期望我們能夠繼續增加合約下的新項目，並且 2026 年的資本部署有機會更像 2025 年的資本部署。

So we think that there's certainly upside to add to the backlog there with new contracts. And to the extent we're able to successfully do that, that add to the portfolio, and that would add growth opportunity beyond the 20% we're looking at already underwritten today.

因此，我們認為，透過簽訂新合約來增加積壓訂單肯定是有好處的。如果我們能夠成功做到這一點，那麼這將擴大投資組合，並增加超過我們今天已經承保的 20% 的成長機會。

But from an operational standpoint, the current construction timeline extends into the third quarter of next year.

但從營運角度來看，目前的建設時間表將延長至明年第三季。

Bobby Brooks, Northland Capital Markets.

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

So the 12-year contract within Eddy County announced on today's release, it was specifically mentioned that it will connect to the ongoing Eddy County network expansion that was announced on the 1Q call. This would lead me to believe that this new contract announced would materially accelerate the payback on this capital project that is currently underway without much additional CapEx. Is my logic here fair? Or is there something maybe I'm missing?

因此，今天發布的埃迪縣 12 年合約中特別提到，它將與第一季電話會議上宣布的正在進行的埃迪縣網路擴展相連接。這使我相信，這項新合約的宣布將大大加快目前正在進行的這項資本項目的回報，而無需太多額外的資本支出。我的邏輯公平嗎？或者我可能遺漏了什麼？

I certainly appreciate the context of the question, Bobby. We are going to see additional capital deployed with the new projects recently announced, give or take, around $40 million. That said, any time you're adding on to kind of an anchor build-out asset, the economics do have the ability to improve off of that kind of base build-out.

我當然理解這個問題的背景，鮑比。我們將看到最近宣布的新項目將投入額外資本，約 4000 萬美元。也就是說，任何時候你增加某種錨定建設資產，經濟效益確實能夠透過這種基礎建設而得到改善。

So both the capital economics around the interconnection between Eddy and Lea County as well as the expansion now into the second big contract off that system does give us the opportunity to further commercialize that, further reach additional acreage and to Michael and John's points earlier, now we've got access to significantly more uncontracted and/or commercial volumes that we feel like we can add on to that system and improve the overall economics.

因此，埃迪和利亞縣之間互連的資本經濟學以及現在擴展到該系統的第二個大合約確實為我們提供了進一步商業化、進一步擴大種植面積的機會，正如邁克爾和約翰之前所說，現在我們可以獲得更多未簽約和/或商業產量，我們覺得我們可以將這些產量添加到該系統中並改善整體經濟效益。

Yes. We're really excited that the two systems match up together because, again, we think creating one large network is very important. As I mentioned, it helps us balance out longs and shorts and create stability but the 2 acreage positions are -- they're adjacent. They're not overlapping. And so it will be kind of expanding into new territory, which we just think creates more optionality and flexibility.

是的。我們真的很高興這兩個系統能夠匹配在一起，因為我們再次認為創建一個大型網路非常重要。正如我所提到的，它可以幫助我們平衡多頭和空頭並創造穩定性，但這兩個種植面積的位置是 - 它們是相鄰的。它們並不重疊。因此它將擴展到新的領域，我們認為這將創造更多的選擇性和靈活性。

But one thing to add, obviously, as we mentioned, having our customers willing to convey some of their existing infrastructure to us as part of the network build-out is obviously a much more efficient capital deployment opportunity. You're not duplicating capital in the ground. You're not duplicating or conflicting assets with our customers or others in the basin. And we've seen obviously a willingness there from our customers to convey that operatorship and ownership over to us, which is a good outcome for both us and them.

但有一點顯然需要補充，正如我們所提到的，讓我們的客戶願意將他們的一些現有基礎設施作為網路建設的一部分轉讓給我們，顯然是一個更有效的資本部署機會。你不會在地面上重複資本。您不會與我們的客戶或盆地中的其他人重複或衝突資產。我們顯然看到客戶願意將經營權和所有權轉讓給我們，這對我們和他們來說都是一個好的結果。

And maybe just one final point beyond the capital efficiency. I think it really just speaks to the value of the system and the network we've connected. I mean our customer realizes it's better off in our hands than in theirs. It will help us serve them better than if they owned it. And I think that's a very strong statement.

除了資本效率之外，也許還有最後一點。我認為這實際上說明了我們所連接的系統和網路的價值。我的意思是，我們的客戶意識到，交給我們比交給他們更好。它將幫助我們為他們提供比他們自己擁有它更好的服務。我認為這是一個非常有力的聲明。

Really helpful color. And just to maybe follow up on that customers conveying assets to you. I get the rationale of them realizing Select can better operate than themselves. But is there any economic benefit for them doing that? Do you guys maybe give them a little bit of better pricing on these contracts? Or is it just, hey, we have this asset, you can do -- we know you can utilize it better?

確實有用的顏色。也許只是為了跟進向您轉移資產的客戶。我明白他們意識到 Select 可以比他們自己更好地運作的理由。但他們這樣做有什麼經濟利益嗎？你們能不能給這些合約更優惠一點的價格？或者只是，嘿，我們有這個資產，你可以做——我們知道你可以更好地利用它？

I mean from a deal-making standpoint, it's clearly part of the discussion and negotiation when we think about terms and pricing and all of that. But the real value here is around the network effect that it creates. It's less about the assigned value of that asset and more about what putting it into our system allows us to do and how it allows us to serve them better than if they owned it.

我的意思是，從交易的角度來看，當我們考慮條款、定價等問題時，這顯然是討論和談判的一部分。但這裡的真正價值在於它所創造的網路效應。重要的不是資產的指定價值，而是將其放入我們的系統可以讓我們做什麼，以及與資產擁有者相比，我們可以為他們提供更好的服務。

Very helpful context there. And then I really found it helpful commentary on how you expect water infrastructure revenues to scale over the next 18 months. When I take your comments for 4Q '25 revenues up 10% to about $85 million, combine that with the comments on the expectation for 20% year-over-year growth in 2026, that implies water infrastructure revenues on a quarterly basis exiting '26 are above $100 million. So is it right for me to think that as you see it now, Water Infrastructure on a run rate revenue basis yearly is going to be $400 million plus exiting '26?

那裡的背景非常有用。然後，我發現關於您預期未來 18 個月水基礎設施收入將如何擴大的評論確實很有幫助。當我將您對 2025 年第四季營收成長 10% 至約 8,500 萬美元的評論與對 2026 年同比增長 20% 的預期評論結合起來時，這意味著 2026 年結束時水基礎設施季度收入將超過 1 億美元。那麼，我是否可以這樣認為：正如您現在所看到的，到 26 年，水利基礎設施的年運行收入將達到 4 億美元以上？

Yes. Certainly, from a trajectory standpoint, Bobby, you're thinking about it correctly based on the current projects and the schedules that we have in hand and the backlog opportunity. There will be a trajectory over the course of '26 with, as Michael mentioned, projects building out through the first half of the year and partly into Q3 as well. And so that should drive a continued trajectory with an exit rate in '26 materially above, obviously, where we're going to be in the first half of the year, like you outlined there.

是的。當然，從軌跡的角度來看，Bobby，根據當前的項目、我們手頭上的時間表和積壓機會，你的考慮是正確的。正如邁克爾所提到的那樣，26 年期間將會有一個軌跡，該項目將在今年上半年逐步完成，部分項目也將在第三季完成。因此，這應該會推動 26 年的退出率持續上升，顯然，這將大大高於我們今年上半年的水平，就像您概述的那樣。

The only thing, Chris, I'd add to that is the statement I made previously, which is we have been successful over the last 4 or 5 quarters at announcing kind of new long-term commitments that will have additional volumes on the system, and I would expect that to continue in the near future. So we're building for the back half of '26. But my hope is, Bobby, that when we talk again in 3 or 6 months that we're building for the front half of '27.

克里斯，我唯一要補充的是我之前所做的聲明，那就是在過去的 4 或 5 個季度中，我們成功地宣布了新的長期承諾，這將為系統帶來額外的交易量，我預計這種情況將在不久的將來繼續下去。所以我們正在為 26 年下半年做準備。但鮑比，我希望當我們在 3 到 6 個月後再次交談時，我們正在為 27 年上半年做準備。

I think it's important, and Michael and Chris both really touched on it, Bobby, but as Michael said, these assets allowed us to put a network together. These contracts allowed us to put a network together. The interconnect of this system travels through basically 3 pieces, the dedication piece, which is what we're talking about here in the volumes. It travels through the ROFR piece that, as Michael said, is twice the dedication. And then it travels through the undedicated or not ROFR piece, but still it's logistically correct to bring value to us and our customers. And that is upside. And the network brings real value to that upside, and we expect that we will continue to get the calls on the upside.

我認為這很重要，邁克爾和克里斯都確實談到了這一點，鮑比，但正如邁克爾所說，這些資產使我們能夠建立一個網絡。這些合約使我們能夠建立一個網路。這個系統的互連基本上透過 3 個部分，即奉獻部分，也就是我們在卷中討論的內容。正如邁克爾所說，它貫穿了 ROFR 作品，這是雙倍的奉獻。然後它會穿過未專用或非 ROFR 部分，但從邏輯上講它仍然正確地為我們和我們的客戶帶來價值。這就是好處。網路為這一優勢帶來了真正的價值，我們預計我們將繼續獲得這一優勢。

Don Crist, Johnson Rice.

唐克里斯特、約翰遜賴斯。

I appreciate the asset rationalization and selling of some trucking assets. But as you kind of progress through, are there other assets in the portfolio besides Peak that you're currently looking at? I mean, would you sell the rest of the trucking assets? Would you kind of cut deeper and go towards chemicals or anything of that nature? Or is there anything else that we don't know about in the portfolio today that could be a divestiture candidate as we kind of move forward to offset some of the capital you're spending on the construction side?

我很讚賞資產合理化和部分卡車運輸資產的出售。但是隨著您的進展，除了 Peak 之外，您目前還在關注投資組合中的其他資產嗎？我的意思是，你會出售剩餘的卡車運輸資產嗎？您是否會更深入地研究化學物質或類似的東西？或者，當我們繼續前進以抵消您在建設方面花費的部分資本時，今天的投資組合中是否還有其他我們不知道的東西可以作為剝離對象？

Yes. Good question, Don. And I'll maybe start and let John add on. As we look at the Services segment here forward, obviously, with the OMNI transaction completing here in July, we significantly rationalized that trucking footprint. We have 3 basins of trucking operations left. I would say those areas have more strategic interaction with our existing infrastructure portfolio and support, I would say, a steady state of produced water delivery to those assets. So we view that as having a good strategic relationship and a production base stability to it with a better margin profile than the assets that we've divested of to date.

是的。問得好，唐。我可能會開始，然後讓約翰補充。當我們展望未來的服務部門時，顯然，隨著 OMNI 交易於 7 月完成，我們顯著合理化了卡車運輸足跡。我們還剩下 3 個卡車運輸作業盆地。我想說這些地區與我們現有的基礎設施組合有著更多的策略互動，我認為它們能夠支援向這些資產穩定輸送產水。因此，我們認為，它具有良好的戰略關係和穩定的生產基礎，並且比我們迄今為止剝離的資產具有更好的利潤率。

Peak, obviously, with an ongoing process here represents a good opportunity to continue to rationalize the portfolio with about -- Peak represents about 20% of the Services segment P&L and about 10% of the consolidated P&L. So while obviously a good-sized business represents an opportunity for us to recapitalize it with growth capital opportunities and continue to help support the overall strategy. Either way, we have a very strong balance sheet.

顯然，Peak 的持續發展為繼續合理化投資組合提供了良好的機會——Peak 約佔服務部門損益表的 20% 和合併損益表的 10%。因此，雖然規模較大的企業顯然為我們提供了一個機會，讓我們能夠利用成長資本機會對其進行資本重組，並繼續幫助支持整體策略。無論如何，我們的資產負債表非常強勁。

And so we have strong cash flow generative capabilities out of both the current services footprint even on a rationalized basis as well as the chemicals business that helps support that growth trajectory within Water Infrastructure. And we feel like we've got the opportunity to continue to invest in that growth trajectory with the current liquidity we have in hand.

因此，我們擁有強大的現金流產生能力，既包括當前的服務足跡（即使在合理化的基礎上），也包括化學品業務，有助於支持水基礎設施的成長軌跡。我們覺得，我們有機會利用我們現有的流動性繼續投資於這一成長軌跡。

We'll obviously maintain a disciplined balance sheet overall. But once you get beyond that, what you have left with -- in the services business really fits what we have in infrastructure and what we're trying to accomplish on a full life cycle basis as well. You've got large-scale, market-leading temporary water logistics capabilities. You've got large aboveground and temporary storage solutions. You've got capabilities of supporting your contracted underwritings with the infrastructure build-out, and we've actually seen some of the more recent contracts successfully integrate that last mile logistics piece as well.

我們顯然會整體保持嚴謹的資產負債表。但一旦你超越了這一點，你所剩下的服務業務就真正符合我們在基礎設施方面所擁有的以及我們試圖在整個生命週期內實現的目標。你們擁有大規模、市場領先的臨時水上物流能力。您擁有大型地上和臨時儲存解決方案。您有能力透過基礎設施建設來支援您的合約承保，而且我們實際上已經看到一些較新的合約也成功地整合了最後一英里的物流部分。

So we feel like we've got a good portfolio approach with the business based on the decisions we've made today. And we look forward to figuring out what the ultimate outcome is on the peak opportunity here. But we continue to see new product development wins in the chemicals business, driven by some of the ongoing secular transitions around longer laterals, produced water reuse, the trends that generally support the water side of the business and the infrastructure demand as well.

因此，我們認為，根據我們今天所做的決定，我們已經對業務採取了良好的投資組合方法。我們期待弄清楚這個高峰機會的最終結果是什麼。但我們繼續看到化學品業務的新產品開發取得勝利，這受到圍繞更長水平井、採出水再利用等正在進行的長期轉型、總體上支持業務水方面的趨勢以及基礎設施需求的推動。

So we'll continue to assess over time, Don. I think what we'll be focused on more near term is how to rationalize the cost structure and the operational processing side of the business in conjunction with the decisions we've already made. But John, anything to add on top of that?

因此，我們會繼續進行評估，唐。我認為我們近期將重點關注的是如何結合我們已經做出的決策來合理化成本結構和業務的營運處理方面。但是約翰，還有什麼要補充的嗎？

Don, I think what we think about all the time in rationalization with Peak, logically, there is a large opportunity in the power generation piece of Peak and the expansion into the production side and the midstream side. It's just -- it is a need of capital for a very attractive opportunity, and it really is not the full life water cycle thought process.

唐，我認為，我們一直在考慮與匹克進行合理化，從邏輯上講，匹克的發電部分以及向生產方和中游方的擴張存在著巨大的機會。這只是——一個非常有吸引力的機會需要資本，而它實際上並不是完整的生命水循環思考過程。

The other one we think about all the time is we want to make sure that we can bring value to our infrastructure customers. And if we have pieces of our business that integrate in a manner that allows us to bring that value, both in utilization to us and revenue dollars and profits, but also in economic value to our customer, we are really focused on what fits with that infrastructure piece to do that, Don.

我們一直在思考的另一件事是，我們希望確保能為我們的基礎設施客戶帶來價值。如果我們的業務部分能夠以某種方式整合，從而為我們帶來價值，不僅為我們帶來利用率、收入和利潤，也為我們的客戶帶來經濟價值，那麼我們真正關注的是如何與基礎設施部分相適應，以實現這一目標，唐。

I appreciate all that color. And again, I applaud you for rationalizing some of the assets. Just one further one for me. You didn't talk about Colorado at all in this press release. I'm guessing that it's still kind of quiet and you're adding assets there, and we should expect big news out of there more in the kind of late '26. Is that still the right kind of time frame?

我很欣賞這些色彩。我再次對你們合理化部分資產表示讚賞。對我來說，還差一個。您在這份新聞稿中根本沒有談論科羅拉多州。我猜它仍然很安靜，你正在那裡增加資產，我們應該期待在 26 年末有更多重大新聞傳出。這仍然是正確的時間框架嗎？

Mike can here we'll throw it over to Mike.

麥克可以在這裡，我們會把它扔給麥克。

Yes. We continue to see great progress. I mean our mission ultimately is to develop a very reliable, efficient water network and banking system that will support all of the stakeholders in the region. So we're really committed to delivering that lasting value and really serve all the community stakeholders there. We have made material progress even in the last quarter. We've completed a landmark engineering study. I think that further indicates and provides justification of how unique our system already is and how unique it will become.

是的。我們繼續看到巨大的進步。我的意思是，我們的最終使命是建立一個非常可靠、高效的供水網路和銀行系統，為該地區的所有利益相關者提供支援。因此，我們真正致力於提供持久的價值並真正服務於那裡的所有社區利益相關者。即使在最後一個季度我們也取得了實質進展。我們完成了一項具有里程碑意義的工程研究。我認為這進一步表明並證明了我們的系統已經是多麼獨特以及它將變得多麼獨特。

So I think that will allow us to demonstrate how ratably and reliably across many years, across drought years that this system will be. And I think we're extremely excited about the demand we continue to see in the market. It's an area where Select can bring its cutting-edge automation, its operational capabilities to really bring this system to life.

所以我認為這將使我們能夠證明該系統在多年乾旱年份的可靠性和可重複性。我認為我們對市場上持續出現的需求感到非常興奮。在這個領域，Select 可以發揮其尖端自動化和營運能力，真正讓這個系統煥發生機。

So that is something that the activities right now are working with local irrigators, developing the partnership into truly a unique large-scale lease fallow and water banking program. All of that makes the system very unique, and we continue to see great demand. And yes, we're pushing all the stakeholder engagement and pushing the commercial side as well, all actively every quarter.

因此，目前的活動是與當地灌溉者合作，將合作關係發展成一個真正獨特的大規模租賃休耕和水庫計劃。所有這些都使得該系統非常獨特，並且我們繼續看到巨大的需求。是的，我們每季都在積極推動所有利害關係人的參與，同時也在推動商業方面的參與。

And moving on to Jeff Robertson with Water Tower Research.

接下來是水塔研究公司的傑夫羅伯森 (Jeff Robertson)。

Just John, a question on Peak, which you've discussed a lot. Would separating that out with its own structure and capital sources, would that allow the water infrastructure business to do anything different with respect to the types of projects that it could take on or the kind of capital commitments that it could make?

約翰，我問一個關於 Peak 的問題，你已經討論過很多次了。將其與自己的結構和資本來源分開，是否會允許水基礎設施業務在其可以承擔的項目類型或可以做出的資本承諾類型方面採取不同的行動？

I don't think we have any limitations that right now, we're harvesting and closing the opportunities that exist to create that water infrastructure business that we continue to expand. And as Michael said, the backlog is strong. So I wouldn't say that it allows us to do anything different than what we're going to do.

我認為我們現在沒有任何限制，我們正在收穫和抓住現有的機會來創建我們將繼續擴大的水基礎設施業務。正如麥可所說，積壓訂單量很大。所以我不會說它允許我們做任何與我們要做的事情不同的事情。

The one thing that it does allow and support is, again, the support of the electrification of that midstream water business that we put together in Eddy and Lea County and other areas, it needs electrical solution. And I believe that having the backbone of Peak to be able to do that is important in our execution there. So I do believe that's an interaction that allows it to make sure there's a strong ability on the electrification side of the business. Michael, you got any.

它確實允許和支持的一件事是，再次支持我們在埃迪和利亞縣以及其他地區建立的中游水業務的電氣化，它需要電力解決方案。我相信，擁有 Peak 這樣的骨幹力量對於我們在那裡的執行至關重要。因此，我確實相信，這種互動可以確保公司在電氣化方面擁有強大的能力。邁克爾，你有什麼嗎？

No, I think that's exactly right. I'd characterize anything we do with Peak as offensive rather than defensive, Jeff. I mean we feel like we're on our front foot on infrastructure, and we can continue to be whether we do something with Peak or not, Peak is just -- there's a tremendous opportunity there, and we'd like to capitalize on it.

不，我認為完全正確。傑夫，我認為我們在 Peak 所做的任何事情都是進攻性的，而不是防禦性的。我的意思是，我們覺得我們在基礎設施方面處於領先地位，無論我們是否與 Peak 合作，我們都可以繼續保持這種勢頭，Peak 只是——這是一個巨大的機會，我們希望利用它。

If I could ask one quick question in the Bakken. John, with the expanded solids footprint that you have, is there growing demand for the services you provide? And are you working on continuing to tie that into a network maybe to replicate what you're doing in the Permian Basin?

如果我可以在巴肯問一個簡單的問題。約翰，隨著你們固體足跡的擴大，你們所提供的服務的需求是否在成長？您是否正在努力將其與網路聯繫起來，以複製您在二疊紀盆地所做的事情？

Yes. I'll say a few things on the infrastructure side, and I believe that solids, liquids management business is very similar in that you can bring a network capability of logistics value to the operators very similar to what we're doing in the infrastructure recycling and disposal space. But if you really look at infrastructure, the management of recycled water solids, liquid separation, landfills and disposal, oil reclamation is a really big piece of all four of those.

是的。我將在基礎設施方面談幾點，我相信固體、液體管理業務非常相似，因為你可以為營運商帶來物流價值的網路能力，這與我們在基礎設施回收和處置領域所做的事情非常相似。但如果你真正專注於基礎設施、再生水固體管理、液體分離、垃圾掩埋和處置，石油回收是這四個面向中非常重要的一部分。

And we think that, that really fits us well as we think about supporting the interaction between our infrastructure recycling water business and then the solids-liquids build-out that we're doing, which includes the landfills. That oil reclamation piece is a very important part of that. Michael, would you --

我們認為，這非常適合我們，因為我們考慮到支持基礎設施回收水業務與我們正在進行的固體液體建設（包括垃圾掩埋場）之間的互動。石油回收是其中非常重要的一環。邁克爾，你願意嗎--

Yes. No, I certainly agree, John. The only thing I'd say is just from the transaction standpoint, we had some trucking operations that we had deemed noncore that were core to the counterparty, and they had a landfill in an area where we were the largest provider of solids management. And so it was a logical swap, and we were strengthening our position and giving up assets that weren't central to kind of the ongoing infrastructure service thesis that we have.

是的。不，我當然同意，約翰。我唯一想說的是，從交易的角度來看，我們有一些我們認為是非核心的貨運業務，但對交易對手來說卻是核心業務，而他們在我們最大的固體管理提供者所在的地區有一個垃圾掩埋場。因此，這是一次合乎邏輯的交換，我們正在加強我們的地位，並放棄那些對於我們正在進行的基礎設施服務論點來說並不重要的資產。

Josh Jain, Daniel Energy Partners.

喬許‧賈恩 (Josh Jain)，丹尼爾能源合作夥伴。

Maybe just one quick one on the Chemical Technologies business. You talked about it falling a bit more than anticipated in Q2 and revenues down low to mid-single digits in Q3. Could you just offer your thoughts on this business moving forward, sort of early indications into '26? And do you think you can hold margins at the current levels where they are today?

也許我只想簡單談談化學科技業務。您談到第二季的降幅比預期要大一些，第三季的營收則下降了低到中等個位數。您能否談談對這項業務未來發展的看法，以及對 26 年的早期跡象？您認為您能將利潤率維持在目前的水平嗎？

Yes. Certainly, good question. On chemicals, we saw a pretty strong Q1. And while Q2 saw a little bit more revenue decline than we anticipated. I think Q3 is actually proving to be quite resilient in the current activity environment. We've been, I think, quite positively pleased with some of the outcomes we've had in recent product development. Some of the ongoing and recent trials we've executed on with customers have been quite successful. And so I think we feel pretty good about the opportunity to continue to grow market share in that business.

是的。當然，這是個好問題。在化學品方面，我們看到第一季表現相當強勁。但第二季的營收下降幅度比我們預期的還要大一些。我認為第三季在當前活動環境下實際上表現出了相當強的彈性。我認為，我們對最近產品開發中所取得的一些成果感到非常滿意。我們與客戶進行的一些正在進行的和最近進行的試驗都相當成功。因此，我認為我們對繼續擴大該業務市場份額的機會感到非常滿意。

That in-basin manufacturing capability we have in the Permian is really kind of a unique opportunity, both from a logistical standpoint as well as a product development turnaround testing and lab capability standpoint as well. And we've been adding some more vertical integration into the raw material side of the supply chain at that plant as well.

無論從物流角度或從產品開發週轉測試和實驗室能力角度來看，我們在二疊紀盆地擁有的盆地製造能力確實是一種獨特的機會。我們也在工廠的供應鏈原料方面增加了一些垂直整合。

So I think we feel good about the ability to hold and protect and see those margins sustain and maybe grow over time given some of that operational efficiency we've gotten and then the new product development are focused on the highest efficiency, highest margin products we've got, supporting the most complex and advanced completions out there on the longer laterals and larger simul trimul frac solutions.

因此，我認為，考慮到我們已經獲得的一些營運效率，我們對保持和保護的能力感到滿意，並且看到這些利潤率能夠維持甚至可能隨著時間的推移而增長，然後新產品開發專注於效率最高、利潤率最高的產品，支援最複雜和最先進的完井技術，包括更長的水平井和更大的同步修剪壓裂解決方案。

So I think it's been a good trajectory for the business overall over the last 12 months. And I think the continued demand on the operator side will help compensate for some of the challenges on the pressure pumping customer side more recently.

所以我認為過去 12 個月我們的業務整體發展趨勢良好。我認為營運商方面的持續需求將有助於彌補最近壓力幫浦客戶方面的一些挑戰。

The one thing I'd add to, Josh, that's becoming very apparent now in the relationship of our chemistry business to our infrastructure business and our temporary last mile water transfer that's in services is as these fracs move to more complex, higher volume, more equipment running in a 24-hour period, our chemistry and the way they can support movement of water through pipe in and around its friction reducers or we call it DRA or drag reducers is becoming very important. And that product is a good high gross margin product for us, but it also brings a considerable amount of value to our customers.

喬希，我想補充的一點是，現在我們的化學業務與基礎設施業務以及我們正在服務的臨時最後一英里輸水之間的關係變得非常明顯，那就是隨著這些壓裂變得更加複雜、容量更大，24 小時內運行的設備更多，我們的化學反應以及它們支持水在管道內和管道周圍的流動的方式，減阻劑或我們稱之為 DRA 或減阻劑或我們稱之為 DRA 或減阻劑或我們變得非常重要。該產品對我們來說是一款很好的高毛利率產品，同時也為我們的客戶帶來了相當大的價值。

If those product offerings and that efficiency can help the customer reduce the time it takes to drill and complete wells and do so more efficiently, it's a great win for us and a great win for the customer.

如果這些產品和效率能夠幫助客戶減少鑽井和完井所需的時間並提高效率，那麼這對我們和客戶來說都是一個巨大的勝利。

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

我們的問答環節到此結束。我想把發言權交還給約翰·施密茨，請他發表最後評論。

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

感謝大家參加此次電話會議。我們感謝您一直以來的支持以及對了解更多有關 Select Water Solutions 的興趣，我期待下個季度再次與您交談。謝謝。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day.

女士們、先生們，感謝你們的參與。今天的電話會議到此結束。您可以斷開線路，享受美好的一天。