Oilfield Water Weekly

Before we get to this week’s headlines (and there are plenty good reads, views, and listens this week), a quick note about our lead story below. 

We’ve been talking to Wells Fargo’s head midstream analyst Michael Blum about potentially speaking at one of our executive conferences next year. A couple weeks ago, he sent his clients a deep-dive industry note titled “The Next Big Wave” on the emergence of water midstream. 

It’s a good read, so we asked if we could share it with Oilfield Water Connection readers and Michael graciously agreed. After you read his piece, I think you’ll see why we are excited about potentially having him take our stage in 2020.

In the research note, Michael addresses current debates around oilfield water business model evolution, valuation and transactions. He also shares a primer on water handling, perspective on SWD economics, and a risk assessment. Plus there are tons of useful stats and graphs along the way…

Special thanks to Michael for making this resource available to Oilfield Water Connection readers (you can download it below).

We wish all readers a safe and enjoyable July 4th holiday.

And now for this week’s top oilfield water industry headlines…

PS: if you attended our June 21 conference and have not been able to access the slides, please drop us an email at hello@oilfieldwater.com and we’ll be sure that you get them. 


News Digest

DOWNLOAD: The Next Big Wave For Midstream: An Emerging Midstream Asset Class

Oilfield Water Connection has been granted permission by Wells Fargo analyst Michael Blum to share with our readers this 22-page deep dive industry note sent to his institutional investor clients several weeks ago. It's a great read with plenty of perspective and graphics on the emerging water midstream sector...

PHOTOS: Pics From Oilfield Water Connection's First Event Have Been Posted

Check out the who's who of oilfield water on stage and gathered at the Houston Petroleum Club on June 21, 2019 at the Oilfield Water Connection's inaugural event...

SPE Oil And Gas Facilities Files Report From The Oilfield Water Connection Conference

Gauri Potdar, senior vice president of strategy and analytics at H2O Midstream, said that building water midstream for the long term will require further discussions between companies and stakeholders to create the flexibility that allows for different uses of the water, wrote Stephen Whitfield...

Upstream Magazine Covers Oilfield Water Connection's First Event

Caroline Evans writes: "While a number of water-focused players have already built out a number of pipelines, disposal wells, recycling projects and other facilities to provide water solutions to operators, more infrastructure will be needed, experts said at the Oilfield Water Finance conference in Houston..."

PLAYLIST: Oilfield Water Connection Releases Reception Soundtrack

At the end of our first event, attendees enjoyed networking and drinks while some classic water jams played in the background. We've made the reception playlist available on Spotify (please use the "read more" link below to access with your phone or desktop). From Neil Young to the Doobie Brothers to Willie - we hope you enjoy these water classics on your next drive into the field or the office...

As WaterBridge Pulls The Plug On IPO… More Oilfield Water Finance Conference Takeaways

The inaugural Oilfield Water Connection event delivered a corporate finance focused agenda at a time of elevated financial engineering activity in this sector. For example, WaterBridge’s deal-packed news release last week disclosed the consummation of multiple transactions (debt financing and M&A) as well as the withdrawal of their confidential IPO filing...

WaterBridge Announces Significant Transactions

WaterBridge announced last week the closing of significant transactions that provide additional expansion capital and operational scale in the Southern Delaware Basin...

Solaris Water Midstream Expands Revolver To $350mm To Fund Permian Growth

Solaris Water negotiated an increase in the size of their revolving credit facility to $350 million from $250 million. The expanded facility will be used for general corporate purposes and to support Solaris Water’s continued growth initiatives in the Permian Basin...

CarboNet Is Hiring For... "Chief Water Czar"

An interesting position opened this week at CarboNet with a big title. The company wrote on its website: "The Water Czar is a unique role that blends strategy, thought leadership, and market advocacy...."

Aqua Terra Growing & Hiring For Biz Dev VP

Cory Hall, CEO, said: "I’m very proud to announce Aqua Terra is strategically growing recently securing over 30,000 acres to develop water management systems throughout the Midland Basin. We are now looking for a Houston based VP of Project Development...."

The Top Ten Infill Thinking Updates Of 2Q19 In Sand & Water

For the first time, Infill Thinking research team broke their quarterly "top ten" post up into two categories: i) frac supply chain and ii) oilfield water management as both coverage universes now have a steady stream of original pieces from this market intelligence platform...

Lawsuit Over Alleged Frac Water Deal Breach

Lindale Pipeline LLC has sued Statoil (now Equinor), claiming it is owed at least $4mm by the operator per a June 2011 contract...

Milestone CEO: "A Site Within One Hour Of Every Permian Rig..."

"We hope to have a site within a 1-hour drive of every rig in the Permian Basin within the next two years..."

Anadarko's Midstream Assets On The Divestiture Block?

Key quote in this story: "Oxy is rumored to be marketing some of Anadarko’s stake in its pipelines business, Western Midstream Partners LP, which would let it realize some cash and deconsolidate the subsidiary’s debt."

Oxy Jet Trip To Shell Home Sparks New Anadarko Speculation

A report that Occidental Petroleum’s corporate jet traveled to the Hague, one of Shell’s two home towns, has sparked a fresh flare-up of speculation regarding its proposed acquisition of Anadarko, CNBC reports, citing an unnamed source....

Canadian Growth And "Water Midstream" Rebranding For Catapult

Catapult Environmental announced the opening of the Berland Complex, its third water management facility, southwest of Fox Creek, Alberta. The company also changed their name to Catapult Water Midstream, demonstrating the company's commitment to build a fully connected pipeline network among its complexes and to operators' facilities across the Montney and Duvernay....

New Kid On The Treatment Block

Leveraging the combination of industry/field experience from business partners Infinity Resources and Mobile Data, along with River Birch's commitment to leadership in global clean water projects, Quantum Water Services Corp. is focusing on comprehensive wastewater treatment in the oilfield...

4-Year Old Water Treatment Player Gets Growth Funding Round

Streamline's Valkyrie technology removes H2S from natural gas, produced water, and wastewater. A new partnership with Pearl Energy Investments and Energy Innovation Capital gives Streamline access to capital to fuel expansion of this technology...

Sentiment High Around Oilfield Water As U.S. Tackles Permian Challenges

While running the traps on our go-to list of oilfield water buzzwords, we couldn’t help but notice the positive sentiment with which the industry is discussing the water issue....

MidCon Drilling Slowdown Means Challenges, Opportunities For Service Providers

“Water is a big piece of their lifting costs,” a Bosque Systems executive said. “If we can help an operator figure out where to get the water, how to treat it more efficiently and how to best use it to optimize a producing well on the front end, that is what is real sticky for us with the operators.”

SWD Consolidation In The MidCon

A new loan facilitated the acquisition of Bullet Energy Services, LLC, an established energy service company focusing on salt water disposal, rig work, and transportation operations. With over 65 years of combined experience in a broad range of industries including real estate development, oilfield services, logistics, and commercial trucking, co-owners, Ron Fraze, James Lemons, and Michael Lemons, are executing their plan to consolidate multiple salt water disposal sites, where they expect to capitalize on economies of scale and improved operational efficiency....

Blackbuck Resources Shares Introduction Video

Blackbuck provides E&P companies with a one-stop shop for all things water including transfer, treatment, storage and disposal.

SMG Industries Closes Trinity Services Acquisition

SMG has closed the previously announced acquisition of Trinity. In the Completions market segment, SMG's frac water management division, know as Momentum Water Transfer, focuses in frac water management...

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