[Context: On December 19, Bison announced agreements to acquire Gulfport Energy’s (NSYE: GPOR) water infrastructure in the SCOOP. Further details and related links are below.]
Bison announced an agreement to acquire Gulfport’s SCOOP water infrastructure, but did not provide deal terms. In a separate release, Gulfport issued a press release stating:
Non-Core Asset Divestitures
Gulfport recently entered into a definitive agreement to divest its water infrastructure assets across its SCOOP position to a third-party water service provider. Gulfport expects to receive $50 million in cash upon closing and has an opportunity to earn potential additional incentive payments in excess of $50 million over the next 15 years, subject to Gulfport’s ability to meet certain thresholds which will be driven by, among other things, the Company’s future development program and future water production levels. The agreement contains no minimum volume commitments. The Company anticipates closing the transaction during January 2020. Scotiabank served as financial advisor to Gulfport on the divestiture of its water infrastructure assets.
Bison Acquires Gulfport’s SCOOP Water Infrastructure and Enters into 15-Year Water Gathering, Recycle and Reuse Agreements
OKLAHOMA CITY, Dec. 19, 2019 /PRNewswire/ — Bison, Oklahoma’s largest water infrastructure, logistics and solutions provider, today announced that it has entered into definitive agreements to acquire Gulfport Energy Corporation’s (NASDAQ: GPOR) water infrastructure in the SCOOP for an upfront payment and other contingent consideration based on the timing, pace and magnitude of Gulfport’s future development program and water production levels.
Simultaneously, the parties entered into 15-year agreements whereby Bison will exclusively manage all of Gulfport’s water gathering, recycling, storage, reuse, disposal, transportation, logistics and sourcing within a dedicated area across Grady, Garvin and Stephens counties. The acquired assets include the 15-year agreements, a multi-line water gathering and delivery system, 2.3 million barrels of storage capacity, 40,000 barrels per day of recycling capacity, 55,000 barrels per day of freshwater supply capacity, associated real property and a pending saltwater disposal permit.
North Whipple, CEO of Bison, commented: “Today’s announcement is another major milestone for our company, which has grown exponentially throughout the year and now serves over 12 E&P customers dedicated to our infrastructure under long-term agreements. In addition to serving Gulfport’s development for the next 15 years, these assets will allow us to bring new recycling and reuse solutions to our customers throughout the SCOOP. We are proud to have been selected among the many other bidders in this highly competitive process and believe it is a testament to our proven track record of responsibly managing water infrastructure of any size, scale and scope across Oklahoma.”