Delek Logistics is buying H2O Midstream. Interesting to see a name many would consider to be more G&P traditional midstream or even downstream getting big into produced water! This post shares some thoughts on the combination, as well as key screenshots from various press releases, presentations, and conference call transcripts from the deal parties involved yesterday.

From the deal release: "We will be able to offer in each basin a diverse array of friction reducers in the form of an emulsion, slurry, or dry, which can be linked to additional frac fluid chemistry, such as surfactants, scale control agents, guar, crosslinkers, and other water treatment products and services to support a complete offering. The combination of PfP, ACE, and SNF gives us the best-in-class product lines and services to meet our customers’ specific needs."

During the second quarter of 2024, Select completed the acquisitions of disposal assets for $9.0 million of cash consideration from multiple parties. In the acquisitions, Select acquired one active disposal well with existing operations, one uncompleted disposal well that is expected to be active in the fourth quarter of this year and an additional permit for potential future development. The addition of these wells significantly enhances Select's Northeast disposal capacity, adding an anticipated approximately 15,000 barrels per day of new disposal capacity by year-end, allowing Select to offer more extensive produced water solutions to its customers in the basin.

In March 2021, Eureka Resources announced plans to build a Marcellus Shale wastewater treatment facility in Susquehanna County, Pennsylvania. Both Dimock Township and the Susquehanna County Planning Commission gave their stamp of approval for the project a year later. Eventually, the PA Dept. of Environmental Protection issued a water quality permit for the project. Unfortunately, Eureka recently announced that it is abandoning the project and will not build it after all.

Increased produced water volumes 5% and recycled water volumes 6% versus the second quarter of 2023.

From their earnings release last week: "Our produced water desalination for beneficial re-use continues to gain significant customer interest and despite some regulatory permitting delays on previously announced projects, we are seeing broader industry commitment to desalination solutions. We have expanded our confidential non-disclosure discussions for our proprietary solution with seven different operators across the Permian Basin, South Texas, Mid-Continent and Appalachia regions. We expect to have additional commercial pilot units in place in 2025 that over time are expected to convert into large scale production facilities."

MIlestone scoops up these Permian assets:
- Cross Ell Slurry Injection Facility, 209 Stallings Rd, Big Spring, TX 79720
- Mentone Slurry Injection Facility, 1674 US Hwy 285N, Mentone, TX 79754
- Midkiff Slurry Injection Facility, 22407 S Hwy 349, Midkiff, TX 79755; formerly known as
Hwy 349 SWD

Another truckload of PittBoss downdraft evaporators are loaded and ready to go.

In the race to gain the White House, the importance of this resource to the Commonwealth cannot be ignored or understated.

The Marcellus/Utica shale drillers (and one water company) receiving a green light from SRBC included BKV (3 requests), EQT, Keystone Clearwater Solutions, Seneca Resources, and Southwestern Energy.