What Select Water Solutions, Inc. told the SEC could break it.

Future availability of and access to water in New Mexico — central to Select's water-services operations there — depends on the outcome of the Supreme Court case Texas v. New Mexico and Colorado; an adverse decision could reduce water availability for its customers' operations.

“the future availability of, and/or access to, water in New Mexico will be affected by the results of a case, Texas v. New Mexico and Colorado, which is currently stayed pending further order by a special master.”

Approximately 8% of the raw material feedstock for chemicals produced in 2025 originated in China and was sold to Select by supplier partners; with U.S. tariffs on Chinese goods at a blended ~48%, tariffs incurred by suppliers could increase costs and reduce profitability.

“Approximately 8% of the raw material feedstock for our chemicals we produced in 2025 originated in China and were sold to us by our supplier partners. As a result, tariffs incurred by our supplier partners could increase our costs and reduce profitability.”

The Permian Basin of Texas and New Mexico is the largest operating region, accounting for approximately 51% of revenue in 2025 (48% in 2024), exposing the company to Basin-specific supply/demand, regulatory and severe-weather risks.

“The Permian Basin of Texas and New Mexico is presently our largest operating region, accounting for approximately 51% and 48% of our revenue in 2025 and 2024, respectively.”

One customer accounted for 10% of consolidated revenue in 2025 and 11% of consolidated receivables at year-end; loss of that customer could adversely affect results.

“There was one customer that accounted for 10 % of the Company's consolidated revenue in 2025. There were no customers that accounted for 10% or more of the Company's consolidated revenues for the years ended December 31, 2024 and 2023.”

Select relies on sole-source and limited-source suppliers for several chemical raw materials and feedstocks, and on single suppliers for certain equipment sets, creating supply-constraint risk for its Chemical Technologies business.

“There are several raw materials for which there are only a limited number of suppliers or a single supplier. To mitigate potential supply constraints, we enter into supply agreements with particular suppliers, evaluate alternative sources of supply and evaluate alternative technologies to avoid reliance on limited or sole-source suppliers.”