The following information is provided by Energy Advisors Group (EAG). All inquiries on the following listings should be directed to EAG. Hart Energy is not a brokerage firm and does not endorse or facilitate any transactions.

Energy Advisors Group (EAG) is representing a private company in the sale of its water business necessary for “mission critical completions” and other oilfield service activities in a de-risked portion of the Midland Basin, the firm said.

The area is under active development across four benches with clear visibility, robust economics, and substantial running room. Customers include the most active operators utilizing high-intensity fracs and the business includes over 36,000 dedicated acres, according to EAG.

Gross revenue is forecast at about $15.7 million in 2023 with $3.5 million in cash flow. Aggressive drilling, water recycling/reuse and the purchase of land to reduce royalty burdens could see cash flow grow to over $17 million/year (on revenues of $34.4 million ) in 2026. 

Highlights:

  • Midland Basin Water Supply for Sale
  • Corporate Sale of Profitable Business
  • Close to Active Development
  • 1 Million Barrels of Water in Multiple Frac Pits
  • ~250,000 bbl/d of Water Current Capacity
  • Rapid Development Ongoing
  • Solid Dedicated Customers
  • 36,000+ Acres Exclusive Commitment
  • Strong Local Owner/Operator/Office
  • System Infrastructure Allows Expansion
  • Multiple Upside Opportunities
  • Growing to More Than $15 Million Revenue in 2023

Primary Midland Basin Assets:

  • Two 500,000-bbl water supply pits
  • 250,000 bbl/d water production capacity
  • Supplies top operators and includes 36,000 dedicated acres
  • 26 miles of lay flat hose
  • 10+ miles of poly gathering lines
  • 16 roadbores, favorable easements

Secondary Midland Basin Assets:

  • 50,000-bbl water pit located just off of Highway 158
  • 220+ surface acres with 58 water wells
  • 40,000 bbl/day of water production capacity

A virtual data room is available. For information contact Wesley Adams at wadams@energyadvisors.com or Brian Lidsky at blidsky@energyadvisors.com.

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