WaterBridge Resources LLC acquired Arkoma Water Resources LLC from USG Surface Facilities I LLC through its affiliate WaterBridge Resources II LLC for an undisclosed amount, the Houston company said Oct. 10.
The acquisition expands WaterBridge's operating presence into multiple basins, where its other core focus is in the southern Delaware Basin. Waterbridge also secured additional equity commitments from Five Point Capital Partners LLC and its affiliates as part of the transaction, which brings the company's total Five Point equity commitments to $500 million.
The acquired company operates about 110 miles of produced water pipeline and 95 miles of gas lift pipeline infrastructure, along with three water transfer facilities and five saltwater injection facilities, located in Hughes and Pittsburg counties, Oklahoma.
In connection with the acquisition, USG and its affiliates have dedicated current and future leasehold exploration and production activities within a 1.1 million acre area of mutual interest pursuant to 10-year, fixed-fee produced water gathering and disposal agreements that include certain minimum volume commitments.
WaterBridge said it plans to expand the system in support of the development program and intends to use its excess transportation and disposal capacity to handle the transport and disposal of produced water volumes from third-party producers in the Arkoma Basin.
"With the increased drilling activity and extremely Basin is a key focus area for WaterBridge," WaterBridge CEO Stephen Johnson said in a statement. "Notably, the acquisition expands upon WaterBridge's existing asset footprint and multi-basin portfolio strategy, providing an excellent platform for future system expansion."
WaterBridge II was formed in conjunction with the acquisition and is supported by $300 million in equity commitments from Five Point and its affiliates, increasing Five Point's aggregate equity commitments to WaterBridge to $500 million.
Five Point expects to increase its commitment to WaterBridge as the company executes its growth strategy in both the Delaware and Arkoma basins, and continues to expand its operations into other prolific producing oil and gas plays, according to the company press release.
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