• Select Water Solutions and LibertyStream Infrastructure Partners previously entered a definitive agreement to deploy lithium carbonate production facilities at Select’s water treatment and recycling sites in the Midland Basin, with an initial plant targeting up to 1,000 tonnes per year by December 2026 and further expansions planned in 2027.
• This move repurposes Select’s existing water recycling infrastructure into a platform for lithium extraction, potentially opening a new revenue stream tied to energy transition materials.
• Next, we’ll examine how this lithium carbonate partnership, built on Select’s water recycling capabilities, reframes the company’s long-term investment narrative.

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What Is Select Water Solutions' Investment Narrative?

For WTTR to make sense in a portfolio, you need to believe in its core role as a water solutions provider to U.S. energy producers and in management’s ability to translate that niche into consistent, if modest, growth and ongoing cash returns. The recent lithium carbonate partnership with LibertyStream adds a new angle, but it does not suddenly replace the main short term drivers, which still look tied to activity levels in the Midland Basin, pricing for water services and how effectively WTTR controls costs after a year of thinner margins. Where it does matter is in shifting the conversation on risk: investors now have to weigh early stage project execution, capital needs and commodity price exposure in lithium, on top of existing concerns around valuation, dividend coverage and the stock’s relatively high earnings multiple.

However, lithium-linked execution and profitability risks are now an extra layer investors should not ignore. Select Water Solutions' shares have been on the rise but are still potentially undervalued by 40%. Find out what it's worth.

Exploring Other Perspectives

Three Simply Wall St Community fair value views span roughly US$14.33 to US$21.45 per share, underscoring how far opinions can spread. Against that backdrop, the lithium partnership’s execution risk and WTTR’s rich earnings multiple give you important context when thinking about how those expectations might intersect with the company’s future performance.

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 this assessment? Create your own narrative 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 2 key rewards and 4 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.