On Point Oilfield Holdings, LLC has closed on a $250 million senior credit facility with Texas Capital Bank to fund infrastructure projects in the Permian Basin.
On Point was formed in October 2016 with an equity commitment from White Deer Energy and an initial Permian platform acquisition of seven saltwater disposal assets (118,000 Bbls/d total permitted capacity) and eight saltwater disposal permits (152,000 Bbls/d capacity). To date, On Point has drilled three deep disposal permits into the Ellenberger formation in Howard County, acquired an saltwater disposal asset from a third party, and added an additional 75,000 Bbls/d of permitted capacity to its asset base.
The company owns and operates 11 disposals with 205,500 Bbls/d of permitted capacity and has the rights to develop 15 additional disposal permits with over 300,000 Bbls/d of permitted capacity. On Point plans to use the growth capital to continue drilling new deep disposal wells to increase capacity while also constructing long-term pipeline infrastructure to keep up with strong market demand from its customers in the Permian Basin. On Point is also evaluating opportunities to acquire existing disposal and pipeline infrastructure from E&P companies.