WaterBridge Announces Strategic Acquisition of Produced Water Assets and Expanded Dedication with Colgate Energy in the Delaware Basin
WaterBridge Holdings LLC (together with its subsidiaries, “WaterBridge”) announced today that it has closed a transaction with Colgate Energy, LLC (“Colgate”) to acquire the produced water infrastructure associated with Colgate’s recent asset acquisition from Occidental. In connection with the acquisition, WaterBridge and Colgate have entered into a new 15-year produced water management agreement for all of Colgate’s operated acreage within a significantly expanded Area of Mutual Interest in Reeves and Ward Counties, Texas.
The acquired assets include 10 water handling facilities and associated water midstream infrastructure with aggregate handling capacity of approximately 100,000 bpd, as well as approximately 50 miles of produced water pipelines. WaterBridge will manage the newly acquired produced water infrastructure and integrate these assets into its broader southern Delaware platform. Further, WaterBridge and Colgate have consolidated existing produced water management contracts into a new produced water management services agreement whereby Colgate has dedicated all of the operated acreage recently acquired from Occidental, as well as the legacy Colgate and Luxe Energy acreage previously dedicated to WaterBridge. Subsequent to this transaction, Colgate will have over 86,100 gross operated acres dedicated to WaterBridge in the southern Delaware Basin.
“Colgate’s decision to expand their relationship with WaterBridge further validates our position as the water solutions provider of choice in the Delaware Basin,” says Jason Long, Co-Chief Executive Officer and Chief Operating Officer of WaterBridge. “This transaction further enhances our ability to manage and distribute over two million barrels per day of produced and recycled water across our Permian platform.”
“Five Point and WaterBridge have built the leading water solutions platform in the Permian by continuing to support the success of our customers,” says David Capobianco, Chairman of the Board of WaterBridge and CEO of Five Point Energy. “We are excited to strengthen our relationship and to further expand our operations to support Colgate’s growth in the region.”
With the closing of this transaction, WaterBridge has approximately 600,000 acres operated by over 20 blue-chip producers under long-term dedication in the southern Delaware Basin. The newly acquired infrastructure will be integrated into WaterBridge’s extensive Delaware Basin water network, which following this transaction provides over 2.1 million bpd of water handling, reuse and redelivery capacity via 959 miles of large-diameter pipelines and 97 water handling facilities.
Advisors
Winston & Strawn LLP served as legal advisor to WaterBridge in connection with the transaction.
About WaterBridge Holdings LLC
WaterBridge, a portfolio company of Five Point Energy, is the largest pure play water solutions provider in the industry. Headquartered in Houston, Texas, WaterBridge operates in the Delaware Basin in west Texas and the Arkoma Basin in southeast Oklahoma. WaterBridge develops, owns and operates permanent, integrated water infrastructure networks that handle full-cycle water requirements of its blue-chip customer base under long-term, fee-based contracts. WaterBridge benefits from a first-mover advantage in the emerging water midstream sector with the most experienced management team in the industry. For further information, please visit www.h2obridge.com.
About Five Point Energy LLC
Five Point Energy is a leading private equity firm focused on building businesses within the midstream and energy infrastructure sectors. The firm was founded by industry veterans who have had successful careers investing in, building and running midstream companies. Five Point’s strategy is to acquire and develop in-basin assets, provide value-added growth capital, and build world-class midstream companies with premier management teams and industry-leading E&P partners. The firm is focused on providing in-basin crude oil, natural gas, liquids and water management midstream solutions to E&P companies in the Permian Basin, Eagle Ford, Mid-Continent and Rockies. Based in Houston, Five Point targets equity investments ranging from $10 million to over $500 million and has over $3 billion of capital under management across multiple investment funds.