WaterBridge Holdings raised $345 million of equity capital by issuing $195 million of common equity to funds affiliated with Five Point Energy LLC, an affiliate of GIC and WaterBridge management, as well as $150 million of preferred equity to Magnetar Capital, a leading alternative asset manager. Proceeds will be used for acquisitions of produced water infrastructure from Primexx Energy Partners, Tall City Exploration III and Jetta Permian, as well as organic growth projects in the Southern Delaware Basin.
David Capobianco, CEO and managing partner of Five Point Energy and chairman of WaterBridge, said, “Our ability to raise attractive capital in a challenging market is a clear reflection of our team’s success in building the premier produced waterhandling network in one of the most economic and de-risked basins available to producers. The capacity and redundancy offered by our system will continue to be instrumental in supporting current and future customers’ growing development programs in the Southern Delaware Basin.”
WaterBridge acquired producedwater infrastructure from Primexx Energy Partners, Ltd. The assets are located in Reeves County and include approximately 70 miles of pipeline and six disposal wells with 150,000 barrels per day (bpd) of permitted capacity. Additionally, WaterBridge acquired produced-water infrastructure from Tall City Exploration III LLC and Jetta Permian LP in separate transactions. The assets are located in Reeves County, and together include 29 miles of pipeline and two disposal wells with 40,000 bpd of permitted capacity.