[Context: On January 6, InstarAGF-backed Oilfield Water Logistics announced the acquisition of 23 SWD wells from an unidentified major producer in New Mexico to double its Delaware Basin footprint. Further details, advisors and related links are below.]
Oilfield Water Logistics Doubles Footprint in Delaware Basin; Acquisition enhances value proposition for customers
DALLAS–January 06, 2020–(BUSINESS WIRE)–Oilfield Water Logistics (“OWL”), a leading provider of produced water infrastructure solutions in the Permian and Powder River Basins, today announced it has acquired a portfolio of operating assets in New Mexico (the “System”) from a major Permian Basin oil producer (the “Seller”), including 23 saltwater disposal wells and 300 miles of water gathering pipelines.
The Seller also entered into a long-term contract with OWL for water infrastructure solutions, thereby extending a strong existing customer relationship while enabling OWL to offer the benefits of the System to other exploration and production (“E&P”) customers in the region.
“This acquisition complements our current operations in the Northern Delaware Basin, doubling OWL’s footprint and enhancing our capabilities and long-term value proposition for customers,” said Chris Cooper, Chief Executive Officer of OWL. “E&P companies increasingly face operational and logistical challenges related to the transportation, re-use and disposal of produced water. We are proud to partner with North American producers to deliver safe, reliable and sustainable solutions that help our customers to achieve new efficiencies and best practices.”
The financial terms of the transaction were not disclosed.
OWL was advised by Scotiabank, Jackson Walker LLP, and King & Spalding LLP.
About Oilfield Water Logistics
Founded in 2014, OWL’s growing midstream water infrastructure platform in the Permian and Powder River Basins provides essential infrastructure supporting oil production across the midstream water value chain, including produced water gathering, transportation, re-use and disposal. OWL provides long-term stability and volume predictability for its exploration and production customers and is strongly positioned to meet increasing customer demand and to further expand its footprint and service offering. OWL is a portfolio company of InstarAGF Asset Management Inc., a leading North American infrastructure manager.