WaterBridge Secures $345 Million Capital to Fund Acquisitions
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Houston-based company WaterBridge has raised $345 million of equity capital to fund its acquisitions of water infrastructure and growth projects.
The proceeds will be used by WaterBridge to acquire 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.
“Our ability to raise attractive capital in a challenging market is a clear reflection of our team’s success in building the premier produced water handling 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,” said David Capobianco, CEO and managing partner of Five Point Energy and chairman of WaterBridge.
ACQUISITIONS FROM LEADING PRIVATE PRODUCERS
WaterBridge acquired produced water 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. Contemporaneous with the acquisition, WaterBridge and Primexx entered into a 20-year produced water management agreement at market rates for Primexx’s operated acreage within an extensive area of mutual interest.
Additionally, WaterBridge recently acquired produced water infrastructure from Tall City Exploration III and Jetta Permian 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. WaterBridge and each of the operators entered into 15-year produced water management agreements at market rates for operated acreage within an extensive area of mutual interest.
With the closing of these transactions, WaterBridge has more than 600,000 acres under long-term dedication in the Southern Delaware Basin. WaterBridge’s integrated water infrastructure provides 1.7 million bpd of produced water handling capacity over 800 miles of large-diameter pipelines and 70 handling and disposal facilities.
“We are excited to welcome Magnetar Capital, a renowned institutional investor with extensive midstream experience, to the team. The addition of a top-tier capital provider who shares our vision on the future growth of WaterBridge will allow us to continue adding high-quality producers such as Primexx, Jetta and Tall City as customers on our integrated produced water handling network,” said Steven Jones, co-president and chief financial officer of WaterBridge.
About WaterBridge
WaterBridge is a portfolio company of Five Point Energy founded in January 2016 and headquartered in Houston, Texas. WaterBridge develops, owns and operates permanent, integrated water infrastructure networks in the Southern Delaware and Arkoma basins to address the produced water management requirements of its blue-chip customer base under long-term, fee-based contracts. WaterBridge benefits from a first-mover advantage in the emerging water midstream sector with the most experienced management team in the industry.
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