WaterBridge Resources LLC acquires produced water assets of Concho Resources Inc.
Under the agreement, WaterBridge will manage all of Concho's produced water transportation and disposal.
HOUSTON, JAN. 4, 2019 -- WaterBridge Resources LLC (together with its subsidiaries, "WaterBridge") announced today that it has entered into a long-term produced water management services agreement with and has acquired the produced water assets of COG Operating LLC, a subsidiary of Concho Resources Inc. ("Concho") in the southern Delaware basin.
Under the terms of the agreements, WaterBridge will manage all of Concho's produced water transportation and disposal subject to the dedication of operated acres and any future acreage operated by Concho within an 800,000-acre area of mutual interest in Reeves, Pecos and Ward counties, Texas. The acquired assets include three disposal wells with 45,000 bpd of permitted capacity and approximately 44 miles of pipeline.
"We have been very fortunate to grow our relationship with Concho through the evolution of our company from Pelagic Water Systems and EnWater into WaterBridge," says Jason Long, Chief Commercial Officer of WaterBridge. "Concho is a top-tier operator and a leader in the Permian Basin. We are excited to strengthen our relationship with Concho and to further expand our operations to support Concho's growth in the region."
The closing of the Concho transaction follows several critical accomplishments in WaterBridge's path to developing the largest integrated water management network in North America.
WaterBridge currently owns and operates over 1.2 million bpd of produced water disposal capacity throughout the southern Delaware Basin that is connected via 300 miles of pipeline. The Delaware platform has approximately 285,000 dedicated acres under long-term contracts from nineteen producers.
"The Concho transaction represents another key milestone for the WaterBridge and Five Point teams," said David Capobianco, CEO and Managing Partner of Five Point Energy LLC. "Concho's decision to expand their relationship with WaterBridge further validates our approach in developing a large, integrated produced water handling network that offers producers the capacity and flow assurance needed to scale their development programs."