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.
Recommended Reading
Blackstone in Talks to Buy US Pipeline Stakes from EQT for $3.5B, Sources Say
2024-10-28 - If the talks are successful, the deal would help natural gas producer EQT slash the debt pile it accumulated from its acquisition of pipeline operator Equitrans Midstream earlier this year.
Crescent Energy Bolts On $905MM Central Eagle Ford Acreage
2024-12-03 - Crescent Energy will purchase Eagle Ford assets from Carnelian Energy Capital Management-backed Ridgemar Energy for $905 million, plus WTI-based contingency payments of up to $170 million.
DT Midstream to Buy 3 Pipe Networks from ONEOK in $1.2B Deal
2024-11-19 - ONEOK plans to use the proceeds from the sale of the Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission to focus on other operational priorities.
Investment Firm Aethon Explores Options for $10B US Natgas Assets, Sources Say
2024-11-13 - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Nov. 12.
BP Seeks Buyers for US NatGas Pipeline System Stake, Sources Say
2024-12-06 - BP is seeking buyers for a stake in its U.S. natural gas pipeline network, sources say.