WaterBridge has issued $150m of preferred equity to Magnetar Capital, which has the right to purchase an additional $100m of preferred equity


WaterBridge has issued $150m of preferred equity to Magnetar Capital. Credit: Pixabay/Gerd Altmann.

Houston-based company WaterBridge has raised $345m of equity capital to fund its acquisitions of water infrastructure and growth projects.

The proceeds will be used by WaterBridge to acquire produced water infrastructure from Primexx Energy Partners, Tall City Exploration III and Jetta Permian, as well as organic growth projects in the Southern Delaware Basin.

To fund the transactions, the company has issued $195m of common equity to private equity firm Five Point Energy, an affiliate of Singapore-based sovereign wealth fund GIC, and WaterBridge management.

It has also issued $150m of preferred equity to Magnetar Capital, which has the right to purchase an additional $100m of preferred equity to fund future growth.

WaterBridge chairman and Five Point Energy CEO and managing partner David Capobianco said: “Our ability to raise attractive capital in a challenging market is a clear reflection of our team’s success in building the premier produced water handling network in one of the most economic and de-risked basins available to producers.

“The capacity and redundancy offered by our system will continue to be instrumental in supporting current and future customers’ growing development programs in the Southern Delaware Basin.”

WaterBridge has over 600,000 acres of pipeline in the Southern Delaware Basin

With the completion of these deals, the company has more than 600,000 acres under long-term dedication in the Southern Delaware Basin.  The company’s integrated water infrastructure provides 1.7 million bpd of produced water handling capacity over 800 miles of large-diameter pipelines and 70 handling and disposal facilities.

WaterBridge co-president and chief financial officer Steven Jones said: “We are excited to welcome Magnetar Capital, a renowned institutional investor with extensive midstream experience, to the team.”

“The addition of a top-tier capital provider who shares our vision on the future growth of WaterBridge will allow us to continue adding high-quality producers such as Primexx, Jetta and Tall City as customers on our integrated produced water handling network.”

For the preferred equity transaction, White & Case acted as legal advisor to WaterBridge and Five Point Energy while Winston & Strawn served as legal advisor to WaterBridge in connection with each of the Primexx, Tall City and Jetta transactions.