[Context: On February 5, Blackstone announced the formation of Waterfield Midstream to pursue water opportunities in the Permian, which received authorization to begin operating back in November 2018. Further details and related links are below.]
Blackstone Energy Partners Announces Its Partnership with Waterfield Midstream – a Permian Basin Oil & Gas Water Management Platform
The Woodlands and New York, February 5, 2019 – Today, Blackstone (NYSE:BX) (“Blackstone”) announced that funds managed by Blackstone Energy Partners L.P. have formed Waterfield Midstream (“Waterfield”), a full-cycle provider of water management services, including water gathering, treatment, recycling and disposal, to provide solutions to producers in the Permian Basin. Waterfield is Blackstone’s water midstream platform in the Permian Basin and has a $500 million equity commitment to pursue greenfield development and acquisitions of water-related infrastructure, helping producers minimize the environmental impact and operating cost of oil and gas production.
Waterfield is led by Co-Chief Executive Officers Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform. Since partnering with Blackstone last summer, Waterfield has put together a highly skilled team that brings together upstream and midstream technical expertise with a deep understanding of the subsurface and operating characteristics of the Permian Basin. This expertise positions Waterfield to provide reliable, turn-key services for its customers.
Recently, Waterfield signed a 15-year contract with Guidon Energy (“Guidon”) to construct a new system to handle Guidon’s water gathering and disposal needs across its ~40,000 acre position in Martin County, Texas. In Martin County, Waterfield is targeting deeper disposal zones, as opposed to shallow disposal zones, to provide long-term flow assurance and to support optimal drilling conditions for its upstream customers. Additionally, Waterfield has entered into an agreement with EagleClaw Midstream (“EagleClaw”) to operate EagleClaw’s water assets in Reeves County, Texas. These assets consist of 58 miles of gathering lines and 390,000 barrels per day of permitted water disposal capacity.
“We are excited to have partnered with Blackstone,” said Co-CEO Scott Mitchell. “Blackstone shares our vision of developing a long-term and sustainable water business focused on flow assurance in the Permian Basin. We are confident that Waterfield can deliver high quality and cost-effective outcomes for our customers. The opportunity to build Waterfield with the commitment and support of Blackstone’s upstream expertise, capital, industry relationships and successful track record greatly enhances our ability to execute this vision.”
“In addition, we are excited to work with Guidon and EagleClaw,” said Co-CEO Mark Cahill. “They are both exceptional companies with technical expertise, operating excellence, financial discipline and integrity. We believe Waterfield Midstream brings those same qualities to the water management market in the Permian Basin.”
Angelo Acconcia, Senior Managing Director at Blackstone who oversees its upstream investments, said, “Our partnership with Scott and Mark is illustrative of our strategy of enabling and building best-in-class management teams with proven technical and operational expertise. We are excited to work with them to build the leading water management platform in the basin and to provide unique, long-term water solutions of scale to upstream companies in the Permian.”
Erik Belz, Principal at Blackstone, added, “We believe that Waterfield addresses a critical need of producers in the Permian Basin both in terms of infrastructure and quality of service. Waterfield’s subsurface capabilities and engineering track record set it apart from other offerings in the market.”
About Blackstone Energy Partners
Blackstone Energy Partners is Blackstone’s energy-focused private equity business, with a successful track record built on our industry expertise and partnerships with exceptional management teams. Blackstone has invested and committed approximately $16 billion of equity globally across a broad range of sectors within the energy industry.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies in which we invest, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $472 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis.