How Investors Are Reacting To Select Water Solutions (WTTR) Entry Into Lithium Extraction With Mariana Minerals

• On October 22, 2025, Mariana Minerals and Select Water Solutions announced the groundbreaking of a produced water lithium extraction facility in Joaquin, Texas, set to leverage Select's water network and AI-driven technologies for lithium salt production starting in 2027.
• This collaboration not only introduces a new revenue stream by converting oil and gas waste into high-purity lithium salts, but also marks Select's entry into the critical minerals supply chain using existing infrastructure.
• We'll explore how Select’s move into lithium extraction from produced water may reshape its investment narrative by diversifying beyond oil and gas.

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Select Water Solutions Investment Narrative Recap

To be a shareholder in Select Water Solutions today, you need to believe the company can successfully pivot its water infrastructure expertise toward new opportunities like lithium extraction, while balancing its ongoing reliance on oil and gas. The recent Mariana Minerals partnership could support investor optimism, but the main short-term catalyst remains the expansion and integration of long-term water infrastructure contracts, whereas the largest risk stays its industry concentration; this project does not immediately reduce that risk or guarantee new revenue streams.

The company’s most relevant recent announcement is the October 24, 2025 dividend affirmation, where Select maintained its quarterly cash dividend at US$0.07 per share. Consistent dividends may appeal to income-focused investors, but ongoing free cash flow coverage and sector reliance still frame both the opportunity and risk around new ventures or capital allocation decisions.

In contrast, investors should be aware that the diversification into lithium does not fully insulate Select from the revenue volatility that can arise when key customers in oil and gas reduce their activity or consolidate...

Read the full narrative on Select Water Solutions (it's free!)

Select Water Solutions is projected to deliver $1.4 billion in revenue and $65.5 million in earnings by 2028. This outlook assumes a 1.3% annual decline in revenue and an increase in earnings of $32.5 million from the current level of $33.0 million.

Uncover how Select Water Solutions' forecasts yield a $14.33 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members range from US$14.33 to US$18.00. While opinions differ, the recurring risk of ongoing exposure to oil and gas activity highlights the need to consider broader business resilience.

Explore 3 other fair value estimates on Select Water Solutions - why the stock might be worth just $14.33!

Build Your Own Select Water Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Select Water Solutions research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Select Water Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Select Water Solutions' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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