[Context: On June 14, Five Point Energy-backed WaterBridge Resources announced a $200m million revolving credit facility, which coincides with the company’s fifth acquisition in 2018. Further details, advisors and related links are below.]
WaterBridge Resources LLC Announces $200 million Revolving Credit Facility to Fund Growth Projects
HOUSTON, June 14, 2018 /PRNewswire/ — WaterBridge Resources LLC (“WaterBridge” or the “Company”) announced that its subsidiary WaterBridge Operating LLC has entered into a $200 million revolving credit facility (the “Credit Facility”) led by SunTrust Bank with a syndicate of nine financial institutions. The Credit Facility will be used for general corporate purposes and to support WaterBridge’s investments in water infrastructure in the Permian Basin in west Texas and the Arkoma Basin in southeast Oklahoma. Upon closing, WaterBridge and its affiliates have more than $700 million in committed capital, including $500 million from Five Point Energy LLC, to fund ongoing growth and expansion efforts in multiple domestic basins.
“WaterBridge is pleased to have the support of our banking partners as we continue to grow to meet our customers’ needs,” said Steve Jones, Executive Vice President and CFO of WaterBridge. “Our revolving credit facility, together with $500 million in equity commitments from Five Point Energy, provides us significant resources to continue expanding our leading position in the water management sector.”
The closing of the Credit Facility coincides with the Company’s fifth acquisition in 2018. Through organic development and acquisitions, WaterBridge has built a premier water midstream system in the southern Delaware region of the Permian Basin. The Company’s Permian Basin infrastructure supports multiple blue-chip upstream operators in Reeves and Ward counties and includes 19 salt water disposal facilities, more than 70 miles of produced water pipelines and over 500 MBbls/d of disposal capacity.
In addition, WaterBridge owns and operates water midstream infrastructure in the Arkoma Basin that includes five salt water disposal facilities, 115 miles of produced water pipelines and over 80 Mbbls/d of disposal capacity.
“The recent expansion of our produced water infrastructure footprint is being driven by the continued growth of the oil rich and associated natural gas and gas liquids production in the southern Delaware Basin. Our growth in the area is supported by long term contracts and minimum volume commitments with our high-quality customers”, said Steve Johnson, founder and CEO of WaterBridge. “Over the next several years, supplies of oil and gas in the southern Delaware Basin could more than double. The substantial produced water volume that is associated with this increased hydrocarbon growth will yield strategic opportunities to leverage the unique scale of our footprint to better serve producers in the basin.”
About WaterBridge Resources LLC
WaterBridge Resources is a fee-based, growth oriented midstream company focused on the water management requirements of oil and gas producers in high-growth basins. Our assets include large-scale water pipeline systems and related facilities that provide reliable and efficient gathering, reuse and disposal of produced water, and supply water to support hydraulic fracturing operations. WaterBridge is led by Steve Johnson, John Durand, Jason Long and Steve Jones, and is supported by equity commitments from Five Point Energy.
About Five Point Energy LLC
Five Point Energy is a leading private equity firm focused on the midstream energy sector. The firm was founded by industry veterans who have had successful careers investing in, building and running midstream companies. Five Point’s strategy is to acquire and develop in-basin assets, provide value-added growth capital, and build world-class midstream companies with premier management teams and industry-leading E&P partners. The firm is focused on providing in-basin crude oil, natural gas, liquids and water management midstream solutions to E&P companies in the Permian Basin, Eagle Ford, Mid-Continent and Rockies. Based in Houston, Five Point Energy manages more than $2.0 billion of capital across multiple investment funds.