WaterBridge Resources Acquires Arkoma Basin Produced Water Gathering & Disposal Company
WaterBridge Resources LLC’s affiliate, WaterBridge Resources II LLC, has closed on the acquisition of Arkoma Water Resources, LLC from USG Surface Facilities I, LLC. WaterBridge II was formed in conjunction with the acquisition and is supported by $300 million in equity commitments from Five Point Capital Partners LLC and its affiliates.
Arkoma Water Resources operates approximately 110 miles of produced water pipeline and 95 miles of gas lift pipeline infrastructure, along with three water transfer facilities and five saltwater injection facilities, located in Hughes and Pittsburg Counties, Oklahoma.
In connection with the acquisition, USG and its affiliates have dedicated current and future leasehold exploration and production activities within a 1.1 million acre area of mutual interest pursuant to 10-year, fixed-fee produced water gathering and disposal agreements that include certain minimum volume commitments. WaterBridge plans to expand the system in support of the development program and intends to use its excess transportation and disposal capacity to handle the transport and disposal of produced water volumes from third-party producers in the Arkoma Basin.
Consistent with its strategy in the Delaware Basin, WaterBridge plans to implement a holistic and comprehensive water management system in the Arkoma Basin that includes a state-of-the-art network of produced and flow back water gathering and disposal systems, supply and sourcing water capabilities and facilities, and customized water treatment and recycling solutions for reuse of existing flowback and produced water.
“This strategic acquisition complements our existing produced water, supply water, transportation pipeline and SWD infrastructure businesses, and enables WaterBridge to provide additional services for producers in Oklahoma,” said WaterBridge CEO Stephen Johnson. “With the increased drilling activity and extremely encouraging well results from area producers, the Arkoma basin is a key focus area for WaterBridge.”
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