October 22, 2019
GERARDO RIVERA SPOKE AT THE SHALE WATER EXPO ON THE MIDSTREAM EXECUTIVE PANEL AT 9:00 AM AT NRG ENERGY CENTER ON OCTOBER 22.
Shale Water Conference & Expo took place on October 22–23, 2019 at the NRG Energy Center in Houston, TX. Gerardo spoke on the Water Midstream Executive Panel to discuss the following topics: E&Ps becoming more open to turning over full-cycle water management to a midstream business and total cost of ownership models for water management; significant concerns regarding SWD operations going forward, e.g. overpressurization, seismicity, injection rate/pressure restrictions, permit challenges, and capital efficiencies; general thinking on lay-flat hose recycled water transfers, e.g. spill risk mitigation, new API proposed standards for best practices, hose type, connector types, etc.; and are Central Process Facility (CPF) recycle operations gaining any foothold in the industry.
Also of note, Mark Houser, CEO of University Lands, was the Keynote Speaker on October 22. To learn more about this conference, visit this article.
August 21, 2019
H2O MIDSTREAM ANNOUNCES ACQUISITION OF SABALO ENERGY PRODUCED WATER ASSETS AND CLOSE OF 15-YEAR AGREEMENT
HOUSTON, TX, August 21, 2019 – H2O Midstream LLC (“H2O Midstream”) announced today the acquisition of produced water infrastructure from Sabalo Energy, LLC (“Sabalo”) concurrent with the execution of a 15-year acreage dedication to provide produced water gathering, disposal and recycling services to Sabalo. The acquired assets are adjacent to H2O Midstream’s existing operations in Howard County, Texas and consist of over 37 miles of pipeline, nine salt water disposal wells, four Ellenburger salt water disposal well permits, and several third-party interconnects. The Sabalo system is already pipeline-connected to H2O Midstream’s expansive produced water gathering network, bringing the combined system to 435,000 bpd of disposal capacity, 240,000 bpd of deep disposal permits, and 190 total miles of pipeline. In addition to ongoing buildout to accommodate Sabalo’s development program, H2O Midstream is adding 40,000 bpd of recycling capacity with the option to expand to 80,000 bpd over time.
“The acquisition of Sabalo’s water infrastructure is an important step in realizing our vision of being the premier integrated water midstream provider in the Permian Basin,” said Jim Summers, Chief Executive Officer of H2O Midstream. “The scale of our produced water 'supersystem' in the Midland Basin, coupled with our University Lands partnership in the Delaware Basin, allows us to provide our customers with an unmatched level of service, flexibility, and reliability as they have put their trust in our hands. We are excited to partner with Sabalo in meeting their produced water disposal and recycling needs for years to come.”
Barry Clark, the Chief Executive Officer of Sabalo, stated, “Due to the strong working relationship, location of complementary gathering infrastructure, and proven reliability demonstrated by H2O Midstream, we determined they were the best team to purchase, operate, and continue the buildout of our integrated water gathering and recycling infrastructure. As a result of this transaction, Sabalo has secured a long-term partnership to gather all of its produced water via pipe and the optionality to scale up produced water recycling operations to meet the needs of an aggressive completion schedule in the future.”
Concurrent with the Sabalo acquisition, EIV Capital and multiple co-investors substantially increased their equity commitment for H2O Midstream to pursue additional growth opportunities throughout the Permian Basin.
About H2O Midstream
H2O Midstream was founded on the vision that water should be treated as a commodity, not a waste, and 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. Based in Houston, Texas, with offices in Big Spring and Austin, H2O Midstream is committed to providing best in class water midstream services to its customers through the use of permanent infrastructure and interconnected gathering, disposal, storage and re-use facilities. Led by an executive team with over 200 years of collective oil and gas upstream and midstream experience, H2O Midstream owns and operates the Permian’s only truck-free, third-party produced water hub and pipeline network consisting of 1,000,000 barrels of storage and 435,000 barrels per day of permitted disposal capacity from 16 owned and six third-party SWDs, all interconnected via 190 miles of pipeline.
H2O Midstream is funded via a private equity commitment from EIV Capital and co-investments from several of EIV’s institutional partners collectively representing more than $70 billion in assets under management. For more information, visit www.h2omidstream.com.
Cadence Bank N.A. acted as lead arranger and administrative agent to expand H2O Midstream’s revolving credit facility and Jackson Walker LLP served as legal counsel to H2O Midstream.
Sabalo is a premier private oil and gas company with assets in the core of the northern Midland Basin in Howard County, Texas. Headquartered in Corpus Christi, Sabalo’s core mission is to deliver superior returns to its shareholders and partners through the efficient and responsible development of its unconventional asset base. Sabalo has a successful track record of building strong relationships with its royalty owners and landowners, which remain a key focus in Sabalo’s go-forward development plans. As a part of this, safety and environmentally responsible operations are Sabalo’s number one priority in achieving success.
Sabalo is funded via a private equity commitment from EnCap Investments L.P., a leading provider of growth capital to the independent sector of the US oil and gas industry. For more information, visit www.sabaloenergy.com.
Simmons Energy | A Division of Piper Jaffray℠ served as exclusive financial advisor to Sabalo in this transaction, and Bracewell LLP served as legal counsel to Sabalo.
August 5, 2019
Darrell Bull to speak on the Water Panel at The Oil & Gas Conference® by EnerCom on August 14 in downtown Denver.
EnerCom‘s 24th annual Denver investment conference will take place Aug. 11–14, 2019, at the Denver Downtown Westin hotel. At this year‘s conference, C – level leadership of leading oil and gas companies will present their plans for drilling and completing wells, discuss well results and capital efficiency, and estimate capital expenditures and production for the balance of 2019 and into 2020.
Darrell Bull will speak on the Water Panel at 10:55 AM (MST) on Wednesday, August 14. To learn more about this conference, visit: www.theoilandgasconference.com.
Darrell’s presentation will be live streamed here at the time of the Water Panel: www.theoilandgasconference.com/h2o-midstream
July 25, 2019
H2O Midstream Announces New Strategic Investment Commitments for UL Water Midstream
HOUSTON, TX, July 25, 2019 – UL Water Midstream LLC (“ULWM”) today announced that it has added a new strategic equity partner (the “Strategic Partner”) that will provide further alignment with University Lands along with additional capital to fuel the continued growth of ULWM. The original ULWM partners, H2O Midstream LLC and Layne Water Midstream LLC, will retain joint control of ULWM with the strategic and financial support of its sponsors, EIV Capital LLC, Genesis Park LP and Post Oak Energy Capital LP, along with the new Strategic Partner.
In January 2019, ULWM signed a long-term contract with University Lands to serve as the exclusive preferred water services provider on 167,000 acres located in Ward, Winkler and Loving counties in the Delaware Basin to develop and operate water infrastructure on the University Lands acreage. University Lands manages the surface and mineral interests of 2.1 million acres of land across nineteen counties in West Texas for the benefit of the Permanent University Fund.
Stephen McNair and Byron Bevers, the President and Vice President, respectively, of UL Water Midstream, stated, “This new strategic investment facilitates ULWM growth organically and through acquisitions. The support of all of our investors demonstrates the importance of the development of water infrastructure across the Delaware Basin.”
About UL Water Midstream
UL Water Midstream was formed to provide full-cycle water midstream services to oil and gas producers across University Lands acreage in the Delaware Basin. ULWM is a partnership of H2O Midstream, Layne Water Midstream and the new Strategic Partner. As the preferred water service provider for University Lands on it 167,000 acres in Ward, Winkler and Loving counties, ULWM is uniquely positioned to provide efficient and creative solutions to the water needs and demands of producers on that acreage. ULWM is led by President Stephen McNair, an industry veteran who headed the development of Pioneer Natural Resources’ water business before joining H2O Midstream as EVP and Chief Development Officer. For more information, visit www.ULwatermidstream.com.
H2O Midstream EVP & Chief Commercial Officer