A pair of large-scale asset purchases in the Permian is seen as transforming WaterBridge Resources into one of the largest water midstream companies in the region.
On the same day in December, two deals were announced involving WaterBridge that included the acquisition of sizable water operations in the Permian. In the meantime, another company with extensive SWD operations in three different basins was reported to consider going public or, for the right price, a sale of itself.
In a deal announced Dec. 20, WaterBridge Resources agreed to acquire the South Pecos Water Disposal Assets from NGL Energy Partners in a $238.8 million cash deal.
The WaterBridge purchase includes nine saltwater disposal facilities plus additional permits in southern Reeves and Ward Counties, near Pecos, Texas.
NGL retains its Delaware Basin operations in northern Reeves, Loving and Winkler Counties in Texas and southern Eddy and Lea Counties in New Mexico.
Also on Dec. 20, Halcón Resources announced it sold all of its Delaware Basin water assets to WaterBridge for $200 million in cash.
Located in Pecos, Reeves, Ward and Winkler counties, the sale includes ten disposal wells with permitted capacity of 120 M BWPD, recycling facilities and approximately 60 miles of water gathering lines.
WaterBridge also agrees to be the sole supplier of fresh and recycled water for Halcón’s operations within the 209 M acre “area of mutual interest.”
When the Halcón purchase was announced Dec. 20, WaterBridge issued a release the next day indicating it had expanded its access to funding with a $800 million debt facility led by an affiliate of SunTrust and 15 other financial institutions.
WaterBridge describes its water midstream operations as a premier system in the southern Delaware. Its existing operations in Reeves and Ward counties include 19 saltwater disposal facilities, more than 70 miles of produced water pipelines and 500 M BWPD of disposal capacity.
Another Texas water midstream company was reported to be preparing for a sale or initial public offering in early 2019 as a means of financing its anticipated growth.
Goodnight Midstream, based in Dallas, was said to be working with the private equity firm, Tailwater Capital, to evaluate an IPO or a sale, according to a wire service report. Goodnight would consider selling if it received an offer valuing it at $2 billion, according to the report.
The company operates disposal facilities in the Permian, Eagle Ford and Bakken plays where is has a combined disposal capacity of 400 M BWPD, according to the published report. The company plans to increase disposal capacity in the Delaware Basin by 100 M BWPD, the report noted.