H2O Midstream said Oct. 23 it signed a long-term water services agreement with a subsidiary of Legacy Reserves Inc. (NASDAQ: LGCY) to handle the E&P’s produced water needs in the Permian Basin.
Under this agreement, H2O Midstream will gather, dispose and redeliver for reuse produced water from several of Legacy’s horizontal wells in Howard County, Texas.
Dan Westcott, Legacy’s president and CFO, said the company expects the agreement with H20 will improve full-cycle water costs as well as reduce its environmental footprint and promote safety.
“We made the decision to enter into a long-term relationship with H2O Midstream to outsource a portion of our produced water needs due to the reliability and efficiency of their water hub infrastructure and interconnected water gathering system,” Westcott said in a statement.
The agreement expands on third-party produced water delivery services H20 Midstream is already providing from the company’s water hub infrastructure hub in Howard to Legacy for its hydraulic fracturing operations.
The H20 Midstream hub in Howard is the first third-party, truck-free produced water storage and disposal hub in the state of Texas, according to the company press release.
Under its agreement with Legacy, H20 Midstream will be able to offer the company multi-source water options that will help lower operating costs, said Darrell Bull, executive vice president and chief commercial officer of H20 Midstream.
“We are able to offer our customers the option of redelivery of their own produced water, sales of third-party produced water, or transportation of excess produced water via pipeline into third-party disposal wells,” Bull said in a statement.
The H20 Midstream water hub infrastructure consists of two 500,000 barrel ponds connected to a network of 13 disposal wells totaling 265,000 barrels per day of capacity via a pipeline network of more than 150 miles.
“We are excited to gain Legacy’s trust and are committed to helping our operating customers achieve cost savings by lowering lease operating costs and reducing capital while delivering reliable, safe and sustainable operations,” H2O Midstream CEO Jim Summers said in a statement.
Recommended Reading
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-15 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Spartan Delta Ups Bought Deal Financing to $59MM
2025-01-14 - Underwriters have agreed to purchase approximately 22.2 million of Spartan Delta Corp. common shares, for resale to the public, at CA$3.82 per share (US$2.66), the company said.
Riverstone’s Leuschen Plans to IPO Methane-Mitigation-Focused SPAC
2025-01-14 - The SPAC will be Riverstone Holdings co-founder David Leuschen’s eighth, following the Permian Basin’s Centennial Resources, the Anadarko’s Alta Mesa Holdings and the Montney’s Hammerhead Resources.
Gigablue Enters CCS Agreement with Investment Firm SkiesFifty
2025-01-14 - Carbon removal company and investment firm SkiesFifty have partnered to sequester 200,000 tons of CO2 over the next four years.
Colonial Shuts Pipeline Due to Potential Gasoline Leak
2025-01-14 - Colonial Pipeline, the largest refined products pipeline operator in the United States, said on Jan. 14 it was responding to a report of a potential gasoline leak in Paulding County, Georgia and that one of its mainlines was temporarily shut down.