[Context: On October 23, H2O Midstream, backed by EIV Capital, announced a long-term water services agreement with Legacy Reserves Inc. (NASDAQ: LGCY) in the Permian Basin. Further details and related links are below.]
H2O Midstream Announces Long-Term Water Services Agreement With Legacy Reserves In The Permian Basin
HOUSTON, Oct. 23, 2018 /PRNewswire/ — H2O Midstream today announced the execution of a long-term water services agreement with a subsidiary of Legacy Reserves Inc. (“Legacy”) (NASDAQ: LGCY). Under this agreement, H2O Midstream will gather, dispose, and redeliver for reuse produced water from several of Legacy’s horizontal wells in Howard County, Texas. In addition, H2O Midstream will continue to deliver third-party produced water to Legacy for its hydraulic fracturing operations.
“H2O Midstream is pleased to expand our services and relationship with Legacy to serve its produced water needs by offering multi-source water options to lower their operating costs,” said Darrell Bull, Executive Vice President and Chief Commercial Officer. “We are able to offer our customers the option of redelivery of their own produced water, sales of third-party produced water, or transportation of excess produced water via pipeline into third-party disposal wells.”
Dan Westcott, Legacy’s President and Chief Financial Officer, commented “We made the decision to enter into a long-term relationship with H2O Midstream to outsource a portion of our produced water needs due to the reliability and efficiency of their water hub infrastructure and interconnected water gathering system. We expect this agreement to improve our full-cycle water costs, reduce our environmental footprint, and promote safety.”
“We are excited to gain Legacy’s trust and are committed to helping our operating customers achieve cost savings by lowering lease operating costs and reducing capital while delivering reliable, safe and sustainable operations,” commented Jim Summers, H2O Midstream’s Chief Executive Officer.
Located in Howard County, the first third-party, truck-free produced water storage and disposal hub in the state of Texas consists of two 500,000 barrel ponds connected to a network of 13 disposal wells totaling 265,000 bpd of capacity via a pipeline network of more than 150 miles.
About H2O Midstream
H2O Midstream was founded on the vision that water should be treated as a commodity, not a waste. Led by an executive team with over 120 years of collective midstream experience, H2O Midstream partners with producers, landowners, and other stakeholders to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain.
H2O Midstream is funded via a private equity commitment from EIV Capital and co-investments from EIV’s institutional partners representing more than $70 billion in assets under management.