June 14, 2017
H2O MIDSTREAM ACQUIRES PERMIAN BASIN PRODUCED WATER ASSETS FROM ENCANA OIL & GAS
Building Integrated Produced Water Gathering, Disposal, and Re-Use System to Serve Multiple Producers Throughout the Region
HOUSTON, TX, JUNE 14, 2017 – H2O Midstream announced today the acquisition of produced water infrastructure from Encana Oil & Gas (USA) Inc. (“Encana”) (TSX: ECA) (NYSE: ECA) concurrent with the execution of an acreage dedication based midstream water services agreement. Under the agreement, H2O Midstream will gather, dispose and deliver for re-use produced water for a substantial portion of Encana’s acreage position in Howard County, Texas. In connection with the acquisition, H2O Midstream will assume ownership and operation of Encana’s existing produced water gathering system consisting of over 100 miles of interconnected pipeline and five salt water disposal wells totaling 80,000 barrels per day of permitted disposal capacity.
H2O Midstream plans to expand the existing system significantly through the addition of new produced water pipelines, additional disposal wells, and the construction of a state-of-the-art water storage and re-use hub. By 2018, H2O Midstream expects to have more than 200 miles of pipeline for gathering, 140,000 barrels per day of disposal capacity, and over 2 million barrels of storage to serve Encana as well as other nearby producers.
“We are pleased to have been selected as Encana’s long-term partner in this exciting area,” said Jim Summers, Chief Executive Officer of H2O Midstream. “This acquisition fits perfectly with our strategy of building an expansive gathering, disposal, and storage network to provide producers a full suite of midstream water services in the Permian Basin. Our goal is to create long-term value for our partners by significantly lowering their lease operating costs, reducing their total capital requirements and delivering best in class service in the areas of reliability, safety, and sustainability”.
About H2O Midstream
Based in Houston, Texas, with offices in Big Spring and Dallas, H2O Midstream is committed to reducing the cost of water for producers and improving environmental and safety conditions through the use of permanent infrastructure and interconnected gathering, disposal, storage and re-use facilities. The executive management team of H2O Midstream has more than 120 years of combined experience, has executed more than $2 billion of capital projects, and has closed $5 billion of acquisitions. Led by Jim Summers, along with partners Darrell Bull, Stephen McNair, David Ishmael, and Gauri Potdar, 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 $50 billion in assets under management.
H2O MIDSTREAM FEATURED IN MIDSTREAM BUSINESS
December 14, 2016
H2O MIDSTREAM ANNOUNCES NEW LEADERSHIP
Stephen McNair joins Executive Leadership Team as Executive Vice President and Chief Development Officer
HOUSTON, TX, DECEMBER 14, 2016 – H2O Midstream LLC announced today the addition of Stephen McNair to its Executive Leadership Team as Executive Vice President and Chief Development Officer. Stephen served most recently as President of Pioneer Water Management LLC, a wholly owned subsidiary of Pioneer Natural Resources (PXD), one of the largest independent producers in the Permian Basin. In his role at Pioneer, Stephen oversaw the largest midstream water operation in North America, responsible for Pioneer’s water requirements including supply, transportation, storage, re-use, and disposal of up to 2 million barrels of water per day.
“Stephen is an incredibly well respected leader in the industry today”, said Jim Summers, Chief Executive Officer of H2O. “With his background in both the traditional midstream space and more recently water midstream operations, Stephen is the perfect fit to help us grow our business in the Permian Basin and throughout North America.”
Over his 31-year career, Stephen has worked in both the upstream and midstream sectors of the oil and gas industry, having held numerous technical, commercial, and executive leadership positions at established majors and independents, including Conoco, Phillips, DCP Midstream, Teppco, Crosstex, and Pioneer.
“I cannot think of a better time to apply the midstream business model and best practices to water management as the demand for efficient and low cost water services becomes critical to the upstream sector’s development of their acreage positions.”, said McNair. “I am pleased to join the exceptionally talented H2O Midstream team”.
Stephen earned a B.S. in Chemical Engineering from Texas A&M Universityand an MBA from Oklahoma City University.
About H2O Midstream
H2O Midstream is a private equity backed oil and gas midstream company focused exclusively on water. H2O views water as a commodity rather than a waste and partner with producers, traditional midstream companies and oilfield service providers to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain. The company is currently focused on acquiring, building and operating water midstream assets, including gathering systems and transmission pipelines as well as treatment, storage and disposal facilities.
June 21, 2016
H2O Midstream Secures Initial Funding - Forms New Midstream Company Focused Exclusively On Water
Houston, TX – H2O Midstream, LLC announced today that it has secured an initial funding commitment of $100 million, with investments from EIV Capital and co-investments from several of EIV’s institutional partners collectively representing more than $50 billion in assets under management. The company is currently pursuing oil and gas opportunities related to water infrastructure throughout North America.
“We see a tremendous opportunity to help the industry lower costs, increase reliability and improve safety performance while allowing producers to focus on core drilling, completions and production operations,” said Jim Summers, Chief Executive Officer of H2O Midstream. “The key is applying best practices developed over the past 40 years by traditional midstream companies to the current challenges of the emerging water market.”
Experienced Leadership Team
Headquartered in Houston, Texas, H2O Midstream is led by former industry executives with experience at oil and gas majors, traditional midstream companies and private equity funded start-ups.
Jim Summers, Chief Executive Officer, leads the management team and brings over 25 years of experience from the energy industry, having held senior leadership positions at Conoco and BP, as well as privately held start-ups. As the former Chief Operating Officer at Energy Water Solutions and Sector Leader for both Water and Midstream at ERM, Jim is a recognized industry expert in strategic water management.
Darrell Bull, Chief Commercial Officer, brings a 28-year track record from the midstream industry, having held a variety of senior engineering, operations and business development roles at Mobil, Williams and Crestwood. Darrell currently sits on the Editorial Advisory Board for Midstream Business Magazine and is a former Board Member for the Mid-Continent Chapter of the Gas Processors Association.
David Ishmael, Executive Vice President of Engineering and Operations, is a 35-year veteran of the industry, having held key leadership roles at Dynegy, Targa, AB Resources, Quicksilver and Southcross Energy. David is also a former Chairman and Board member for the North Texas Gas Processors Association.
Gauri Potdar, CFA, Vice President of Strategy and Analytics brings 13 years of energy and commodity experience in strategy, finance and business development from roles at Deloitte, Element Markets and S&P Global Platts.
John Jensen, former Executive Vice President at EP Energy, joins H2O Midstream as a member of the Board of Directors. Prior to joining EP Energy, John served for over two decades in a variety of upstream and midstream roles at El Paso Corporation and ConocoPhillips.
The team collectively brings over 125 years of midstream experience to the emerging water market, having designed, built or operated over 10,000 miles of pipeline and related infrastructure during their careers.
Strong Financial Support
H2O Midstream believes the partnership with EIV Capital provides a competitive advantage in the changing energy market as EIV has a history of supporting entrepreneurs as they seek to grow their businesses. Mr. Summers added, “Our relationship with EIV is truly unique in that it provides the best of both worlds. We have access to the operational expertise and creativity necessary to develop solutions for producers that need to move quickly in today’s cost challenged environment. EIV’s strong relationship with our co-investors provides direct access to the additional capital necessary to acquire, develop and build large gathering, storage, treatment and disposal operations needed to support the growth of the industry throughout North America.”
According to Patti Melcher, Managing Partner at EIV, “Safe, reliable, long-term solutions for producers’ water logistics in the oilfield is a growing need, one which we have been seeking to invest in for quite some time. Jim and his team bring a true midstream philosophy and a long-term, life-of-field solution that will assist producers in lowering oilfield water costs vs. the traditional trucking solution – creating a true win-win in this commodity price environment.”
About H2O Midstream
H2O Midstream is a newly formed oil and gas midstream company focused exclusively on water. We view water as a commodity rather than a waste and partner with producers, traditional midstream companies and oilfield service providers to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain. The company is currently focused on acquiring, building and operating water midstream assets including gathering systems and transmission pipelines as well as treatment, storage and disposal facilities.
About EIV Capital
Founded in 2009, EIV Capital is a Houston-based private equity firm specializing in providing growth equity to the midstream sector of the energy industry. EIV has deep midstream operational expertise and coordinates closely with its portfolio companies through all phases of a project, from evaluation to structuring, financing, development and operations. For more information, please visit www.eivcapital.com.