Texas-based water utility company WaterBridge Resources has acquired certain produced water assets in the southern Delaware basin from US oil and gas company Concho Resources’ subsidiary COG Operating for an undisclosed price.
Image: WaterBridge acquires produced water assets in southern Delaware basin. Photo courtesy of rawpixel on Unsplash.
The produced water assets acquired by WaterBridge include three disposal wells with a permitted capacity of 45,000 bpd to go along with nearly 70.8km of pipeline.
The water utility, which is a portfolio company of midstream energy-focused private equity firm Five Point Energy, has also entered into a long-term produced water management services with Concho Resources.
Five Point Energy CEO and managing partner David Capobianco said: “The Concho transaction represents another key milestone for the WaterBridge and Five Point teams.
“Concho’s decision to expand their relationship with WaterBridge further validates our approach in developing a large, integrated produced water handling network that offers producers the capacity and flow assurance needed to scale their development programs.”
As per the terms of the two agreements, the utility will handle all of Concho’s produced water transportation and disposal, which will be subject to the dedication of operated acres and any future acreage operated by the latter within an 800,000-acre area of mutual interest (AMI) in the Texan counties of Reeves, Pecos and Ward.
WaterBridge chief commercial officer Jason Long said: “We have been very fortunate to grow our relationship with Concho through the evolution of our company from Pelagic Water Systems and EnWater into WaterBridge.
“Concho is a top-tier operator and a leader in the Permian Basin. We are excited to strengthen our relationship with Concho and to further expand our operations to support Concho’s growth in the region.”
Last year, the water utility designed and constructed ten water disposal facilities along with 194.7km of pipeline as part of its southern Delaware network expansion plans.
In 2018, the company also purchased Halcón Resources’ water infrastructure assets, which included nearly 96.5km of water gathering pipelines, ten water disposal facilities having a total permitted capacity of 120,000 bpd, freshwater wells and water recycling facilities.
Currently, it owns and operates more than 1.2 million bpd of produced water disposal capacity in southern Delaware Basin that is connected through 483km of pipeline.