WaterBridge Holdings LLC announced that it has closed a transaction with Colgate Energy, LLC to acquire the produced-water infrastructure from Colgate’s recent asset acquisition from Occidental.
In connection with the acquisition, WaterBridge and Colgate have entered into a new 15-year produced water management agreement for all of Colgate’s operated acreage within a significantly expanded area in Reeves and Ward Counties, Texas.
The acquired assets include 10 water handling facilities and associated water midstream infrastructure with aggregate handling capacity of approximately 100,000 bpd, as well as approximately 50 miles of produced water pipelines.
WaterBridge will manage the newly acquired produced water infrastructure and integrate these assets into its broader southern Delaware platform. Further, WaterBridge and Colgate have consolidated existing produced water management contracts into a new produced water management services agreement whereby Colgate has dedicated all of the operated acreage recently acquired from Occidental, as well as the legacy Colgate and Luxe Energy acreage previously dedicated to WaterBridge. Subsequent to this transaction, Colgate will have over 86,100 gross operated acres dedicated to WaterBridge in the southern Delaware Basin.
“Colgate’s decision to expand their relationship with WaterBridge further validates our position as the water solutions provider of choice in the Delaware Basin,” says Jason Long, Co-CEO and COO of WaterBridge. “This transaction further enhances our ability to manage and distribute over two million barrels per day of produced and recycled water across our Permian platform.”
“Five Point and WaterBridge have built the leading water solutions platform in the Permian by continuing to support the success of our customers,” says David Capobianco, chairman of the board of WaterBridge and CEO of Five Point Energy. “We are excited to strengthen our relationship and to further expand our operations to support Colgate’s growth in the region.”
With the closing of this transaction, WaterBridge has approximately 600,000 acres operated by over 20 blue-chip producers under long-term dedication in the southern Delaware Basin. The newly acquired infrastructure will be integrated into WaterBridge’s extensive Delaware Basin water network, which following this transaction provides over 2.1 million bpd of water handling, reuse and redelivery capacity via 959 miles of large-diameter pipelines and 97 water handling facilities.
