Infra Growth
Q: Can you maintain double-digit growth?
A: Management expects strong performance with a base growth of around 15% in 2025 and steady momentum into 2026 with margins over 50%, driven by new contract wins and infrastructure expansion.

Tariff Protection
Q: Are contracts protected from tariffs/inflation?
A: They emphasized that their Water Infrastructure projects use domestic polyethylene pipelines, ensuring material cost stability and no adverse tariff impact.

AV Farms Catalysts
Q: What triggers revenue at AV Farms?
A: The team is advancing strong LOIs and engaging local stakeholders, with key contracts pending that will unlock revenue generation and earnings potential.

AV Farms Timing
Q: Will construction wait for offtake agreements?
A: Management confirmed that project build-out will proceed only after securing customer offtake contracts to underpin the asset’s economics.

AV Farms Operations
Q: Who will operate post-investment?
A: Initially leveraging partner expertise, Select plans to take over full operational control in the long term, ensuring smooth transition and effective management.

Chemicals Supply
Q: How localized is the chemicals supply chain?
A: They have domesticated most sourcing, reducing imports to below 50%, which bolsters supply resilience and cost control.

Permian Activity
Q: Any pullback in Permian activity?
A: Management noted there has been no observed pullback in the Permian, underscoring the strength of their asset positioning.

Recompletion Shift
Q: Will downturns drive more recompletion activity?
A: They indicated that past downturns see focus on reoptimizing existing assets, with producers favoring recompletes to maximize returns.

Bakken Shift
Q: Is there movement toward non-Permian areas?
A: While acknowledging potential shifts, management remains confident across all basins, including Bakken, to balance activity.

Dry Gas Outlook
Q: How’s activity in dry gas basins?
A: They reported a consistent and favorable outlook in dry gas basins, with Haynesville particularly benefiting from rising LNG demand.

Regional Differences
Q: Differences between Haynesville and Marcellus?
A: Haynesville is expected to see more near-term uplift owing to LNG opportunities compared to the Marcellus, which remains steady.

M&A Strategy
Q: How does M&A integrate with growth?
A: The focus is on strategically acquiring isolated, well-located assets that complement organic growth, often at attractive below replacement costs.

Utilization Upside
Q: What’s the benefit of increased capacity use?
A: Enhanced capacity utilization in key assets is expected to deliver highly attractive returns, making each incremental barrel very accretive.

Margin Impact
Q: How does capacity use affect margins?
A: Management indicated that margin uplift from higher capacity utilization will be at or above the returns seen from new projects, reinforcing strong cost economics.

Water Balancing
Q: Could lower activity hurt water balancing?
A: They can counter any imbalance through a broad network and digital forecasts, ensuring reliable water movement across the basin.

CapEx Adjustments
Q: Will asset sales offset higher CapEx?
A: The plan includes netting increased growth CapEx with asset sales, which helps maintain a robust free cash flow yield despite higher investments.