Capital Raise: Post Oak and Genesis Park buys Layne Water and invests $200m

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[Context: On April 11, Post Oak Energy and Genesis Park announced leading a $200 million equity commitment to Layne Water Midstream. Layne was acquired from Granite Construction. The company has operations in the Delaware Basin. Further details and related links are below.]


Post Oak Energy Capital and Genesis Park Lead $200 Million Capital Commitment to Layne Water Midstream Holdings, LLC

(Houston) – (BUSINESS WIRE) – April 11, 2019 – Post Oak Energy Capital, LP (“Post Oak”) and Genesis Park, LLC (“Genesis Park”), through investment partnerships each company separately manages, today announced that they have led a $200 million equity commitment to Layne Water Midstream Holdings, LLC (“LWM”). Post Oak and Genesis Park acquired LWM from Granite Construction Incorporated (“Granite”) with an additional commitment to continue to fund the company’s growth. The LWM management team invested alongside Post Oak and Genesis Park.

Layne Water Midstream, based in The Woodlands, Texas and in Midland, Texas, is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, gathering, disposal and recycling infrastructure and services in the Delaware and Midland Basins. LWM began as a subsidiary of Layne Christensen Company, a 136-year-old water management, infrastructure and drilling company that merged with Granite in 2018. LWM is led by Michael Anderson, an executive with significant experience with public and private water infrastructure and energy midstream companies and is supported by a growing team of 19 full-time employees.

LWM began operations in the Delaware Basin in 2017 and has rapidly grown its water infrastructure footprint. LWM has over one million barrels of daily water sourcing, gathering and disposal capacity online, under construction and in various stages of the permitting process. LWM has also formed water infrastructure partnerships with the State of Texas General Land Office on its 88,000 acre position in Reeves and Culberson counties and with the State of Texas University Lands organization on its 160,000 acre position in Loving, Ward and Winkler counties. LWM has a diverse customer base that is in active development on some of the most prolific oil and gas acreage in the United States, which is further supported by multiple long-term commitments and acreage dedications to LWM. LWM is focused on providing reliable, safe and environmentally conscious solutions to its growing producer customer base and continuing to work with its partners to accretively grow its water infrastructure footprint.

Frost Cochran, Post Oak Managing Director, commented, “We are thrilled to be able to build on our existing knowledge and relationships in the Permian to support LWM in the next critical phase of infrastructure buildout for the basin.” He continued, “Through our upstream investments in the Permian and our crude infrastructure buildout at Oryx Midsteam, we recognized the immediate and growing need for integrated water infrastructure and are fortunate to be partnering with the experienced executives at LWM.”

Michael Anderson, LWM’s Chief Executive Officer, added, “The LWM team is looking forward to further growth with Post Oak, Genesis Park, our landowner partners and our customers throughout the next phase of oilfield water management.”

Paul Hobby, Genesis Park Partner, noted, “Water management has become an important focus in the oilfield and beyond. At Genesis Park, we are pleased to partner with Post Oak Energy Capital and Layne Water Midstream to bring infrastructure and technology to provide innovative solutions to this growing opportunity.”

About Post Oak Energy Capital:

Post Oak, which was established in 2006, is a Houston-based private equity firm primarily focused on making domestic investments in the upstream, midstream and oilfield services sectors of the energy industry. Post Oak seeks to identify outstanding oil and gas entrepreneurs and management teams with well-defined business plans that also possess a demonstrated track record of creating accretive value for shareholders.

About Genesis Park:

Genesis Park is a Houston-based lower middle market buyout firm founded in 1999 that focuses on investments in the southern U.S. The firm is actively involved in portfolio companies and places a strong emphasis on solving operational problems and professionalizing management and systems. The Genesis Park partners have worked together for more than 20 years, investing and building businesses in information technology, software, energy services, telecommunications, financial and healthcare industries. The team’s deep Texas roots, operating experience and extensive network gives it unique advantages to bring to portfolio companies.

About Layne Water Midstream:

Layne Water Midstream (“LWM”) is a full cycle water midstream business providing upstream oil and gas companies with water sourcing, disposal and recycling infrastructure and services in the Delaware and Midland Basins. Anchored by exclusive long-term contracts with key customers, landowners, the State of Texas General Land Office and the State of Texas University Lands organization, LWM operates significant source water, water transportation and produced water management infrastructure and is committed to further growth to support its upstream customers in the Delaware and Midland Basins.

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