The purchase of EnWater Solutions LLC by WaterBridge Resources LLC on Aug. 22 will enable WaterBridge to expand its water gathering and disposal business into a full-cycle infrastructure system that can provide southern Delaware Basin producers with one-stop integrated solutions.
EnWater’s assets in Reeves and Pecos counties, Texas, include five saltwater disposal wells with over 100 miles of interconnected gathering pipeline and nearly 150,000 barrels per day (Mbbl/d) of permitted disposal capacity. By year-end 2018, WaterBridge expects to increase total capacity to more than 300 Mbbl/d and 200 total miles of interconnected pipeline for gathering.
“The acquisition of EnWater Solutions provides an ideal platform to further implement and execute our vision of becoming a full-service integrated water midstream company,” said Steve Johnson, founder and CEO of WaterBridge, in a statement. “The EnWater team has developed a first-class business, strategically positioned in the core of one of the most economic oil- and gas-producing regions in the United States. Looking ahead, we see abundant opportunities to continue to serve and partner with strong local producers, as we endeavor to establish WaterBridge as the premier water midstream provider in the Delaware Basin.”
WaterBridge said it will leverage the expansion of its produced water gathering and disposal systems acquired through this transaction as part of its focus to provide production companies with a full suite of water midstream services. The company said it anticipates adding high-deliverability water supply, including recycled produced water, in response to market demand to meet customers specifications.
“WaterBridge’s acquisition of EnWater perfectly aligns with Five Point’s strategy to develop and invest in permanent infrastructure solutions to handle water needs of oil and gas operators,” said David Capobianco, CEO and managing partner of Five Point Capital Partners, in a statement. “Our partnership with the WaterBridge team has been a great success, and we are pleased to provide continued support as the team executes on exciting new opportunities in the Delaware Basin.”
In connection with the closing of the acquisition, certain members of EnWater’s executive team, including Jason Long, Michael Reitz and Cody Allen, will join WaterBridge.
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