Benzinga | Aug 17, 2021 10:44AM EDT

Select Energy Services Enters Into "Stalking Horse" Asset Purchase Agreement To Acquire Agua Libre Midstream And Other Water Related Assets From Basic Energy Services

Select Energy Services, Inc. (NYSE:WTTR) today announced that it has entered into an asset purchase agreement for the acquisition of substantially all of the assets of Agua Libre Midstream, LLC and other water-related assets, operations and assumed liabilities (together "Agua Libre") from Basic Energy Services, Inc. ("Basic").

The asset purchase agreement constitutes a "stalking horse" bid in a sale process being conducted under Section 363 of Chapter 11 of the U.S. Bankruptcy Code. As such, the Company's acquisition of Agua Libre remains subject to approval by the United States Bankruptcy Court for the Southern District of Texas Houston Division, and is subject to court-approved bidding procedures, including the potential receipt of competing offers for Agua Libre and certain other of Basic's assets and operations at auction. It is expected that the sale process will be completed during the second half of 2021 and the business is expected to remain operational throughout the process.

Based in Fort Worth, TX, Agua Libre is a leading provider of water midstream, logistics and production services to the oil and gas industry, including operations in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. If consummated, the Agua Libre acquisition would significantly expand Select's produced water infrastructure footprint and water reuse capabilities, particularly across the Permian Basin, and further increase the Company's revenue weighting towards production-related services and solutions.