Transaction values the Houston-based water midstream company at around $2.8bn.


Image: GIC buys stake in WaterBridge Resources. Photo: courtesy of WaterBridge.

Five Point Energy has offloaded a minority stake in Texas-based water midstream company WaterBridge Resources to affiliates of Singaporean sovereign wealth fund GIC.

The stake acquisition by GIC, which has been closed unconditionally, implies an enterprise value of around $2.8bn to the water midstream company, which was founded in 2015.

As per the transaction terms, GIC and Five Point Energy have agreed to a framework to give incremental equity capital to help the water midstream company execute its current pipeline of accretive acquisition and organic growth opportunities.

WaterBridge Resources CEO Stephen Johnson said: “We are very pleased to partner with such a reputable financial institution that shares our vision in building the premier water midstream company. Through our combined resources, WaterBridge has unparalleled access to the capital needed to continue executing the Company’s growth strategy.”

Activities of WaterBridge Resources

Headquartered in Houston, WaterBridge Resources develops, owns and operates permanent, integrated water infrastructure networks to serve the long-term produced water management requirements of its exploration and production customers under long-term, fee-based contracts.

Five Point Energy CEO and managing partner David Capobianco said: “Today’s announced transaction is a reflection of WaterBridge’s accomplishments to date and the significant growth opportunities that the Company is optimally positioned to pursue in the near-term.

“Now, more than ever, there is tremendous demand for the development of large, integrated, environmentally responsible, produced water handling networks that offer producers the capacity and redundancy necessary to scale their development programs.”

Portfolio of WaterBridge Resources

Upon completion of a recently signed deal with PDC Energy, WaterBridge Resources will extend its water midstream portfolio to 885km of pipeline. The water pipeline network of the company connects 56 water handling facilities with nearly 1.4 million bpd of produced water disposal capacity in the southern Delaware Basin.

The company’s Delaware platform has long-term contracts from thirteen producers in the Delaware basin and is spread over nearly 420,000 dedicated acres and 2.4 million acres under area of mutual interest (AMI) with 15 years of weighted-average remaining contract life.

WaterBridge Resources platform in the Arkoma Basin features 10 salt water disposal wells (SWDs) having a produced water disposal capacity of 170,000 bpd. The facilities are linked through 281.6km of pipeline services under long-term contracts from five producers.