NGL & Mesquite. Rattler & Diamondback. KKR, Spur & Percussion. Oasis Midstream. There’s certainly no shortage of deal news involving water assets these days…
As the following news recap shows, the oilfield water space continued to deliver a steady stream of healthy transactions last week. We believe that other ongoing processes involving oilfield water infrastructure will soon be revealed to have attracted strong bids. This sector is being reshaped by bankers and corporate strategists in board rooms across the industry even as this email hits your inbox.
So it’s a good time to be working in a business, procurement, or finance role in oilfield water. It’s also a good time to register for the first-ever oilfield water event entirely focused on market structure and finance aspects of oilfield water.
Since our last newsletter, we have added some immensely knowledgeable speakers to the star-studded lineup. Have you checked out the speaker list and agenda lately? As a reminder, registration is now open for both attendees and sponsors.
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And now for this week’s top oilfield water handling headlines…
NGL Water Solution's $890mm Combination With Mesquite Made Waves Yesterday
The Mesquite acquisition makes NGL the largest water transportation and disposal company in the Delaware Basin, providing multiple transportation, disposal and recycling options to E&P customers.
Enlarged Map Of NGL & Mesquite's Combined Water Infrastructure
This map shows the combined company's constellation of pipeline and SWD assets. Their infrastructure blankets Lea and Eddy Counties on down to Reeves and Loving.
First-Ever Oilfield Water Business And Finance Conference Opens For Registration
"For the first time in history, the biggest business uncertainties facing the U.S. oil industry relate to a liquid other than crude," said Oilfield Water Connection co-founder Joseph Triepke. Oilfield Water Connection co-founder Pete Cook said: "Industry leaders have reacted enthusiastically to how the event examines the procurement, financial and business model options in midstream water today."
Rattler Midstream Announces IPO Launch
The road show is on! On May 13, Rattler Midstream LP, a subsidiary of Diamondback Energy, and Diamondback announced the launch of Rattler’s initial public offering of 33,333,333 common units representing limited partner interests at an anticipated initial offering price between $16-$19 per common unit.
Ex-WildHorse CEO Backed By KKR To Buy Permian Upstream Assets
Spur Energy Partners LLC and KKR said May 14 that they formed a partnership to buy the Permian Northwest Shelf assets of Percussion Petroleum. The deal includes interests in about 380 gross producing wells and 22,000 net acres situated in the core of the Yeso formation in Eddy & Lea Counties, New Mexico, as well as associated water and midstream assets. Spur intends to apply its proven expertise to acquire and enhance assets across the Lower 48 by combining strong commercial capabilities with a focus on operational efficiency and technical execution.
An Invitation To Join Us To Discuss Oilfield Water Management Finance And Business Model Trends
This June 21st in Downtown Houston, US oil industry leaders will gather to discuss oilfield water’s evolving business model, market structure, and finance trends.
Pioneer Shares Their Evolving Thoughts On Separating A Critical Path Function
Some interesting water midstream deals have come to pass over the past six months – deals that have been hard for all operators who handle their own water to ignore. Here’s a look at what Pioneer said this week vs. six months ago. They’ve clearly thought alot about what to do with water between November 2018 and May 2019 given the robustness of last week’s discussion vs. limited discussion in the past.
Pioneer Natural Resources To Slash Executive Ranks
Pioneer Natural Resources said on Tuesday it has asked nearly a third of its executives to leave as the U.S. shale producer continues to trim costs and considers selling more assets.
Ector County Utility District Approves Land Expansion Purchases
The multiple tracts of land are one of the first stages that will help bring the district’s master water plan to life. The master water plan has been approved by TCEQ to adequately serve Odessa’s current population and projected rate of growth for the next 25 years. The estimated cost to revamp ECUD’s system is $47 million.
Oasis Dedicating Permian Delaware Acreage To Midstream Subsidiary
Oasis Petroleum Inc., a newcomer to the Permian Basin, plans to dedicate acreage in the Delaware sub-basin to its midstream subsidiary for crude oil and produced water infrastructure development, but is holding firm on drilling and completion activity despite improving commodity prices. The Houston-based independent said Oasis Midstream Partners LP (OMP) expects to spend an additional $53-57 million in 2019 on building out additional infrastructure, which includes purchases from Oasis for existing midstream assets in the Delaware.
The Brazos Valley Region: What’s Your Groundwater Potentially Worth?
Texas Farm Bureau hosted Gabe Collins in Franklin on 7 May 2019 for a groundwater valuation town hall and Bob Harden shared his hydrological expertise.
Kurt Knewitz Shares An Important PDF Of Operating Guidelines For Permitting SWDs
The new scoring system takes multiple factors into consideration to generate an A, B or C rating which will determine the maximum daily injection capacity of a particular well to be developed. See attached SOG.
Permian Land/Water Title Bout Goes MMA-Style… & Judgement Day Gets Delayed
As the vote on the vacant Texas Pacific Land Trust Trustee seat approaches, there are no holds-barred in this proxy contest. The big news since our last update a week ago is that the shareholder vote has been delayed to June 6 from May 22. This article summarizes the jabs thrown by each side so far.
Produced Water For Dust Control, De-Icing? Another Bakken County Says Yes!
Oilfield companies have been helping with dust control all along, Nelson told the Williston Herald after the meeting, and will continue to do so. The donated water will be in addition to those efforts. It will be spread by county workers using county equipment. That should help increase the area where dust is being controlled, but it will be limited by the availability of county workers and equipment.
Bakken Produced Water Spill
The North Dakota Department of Environmental Quality (NDDEQ) has been notified of a produced water spill resulting from a pipeline leak in McKenzie County. The pipeline is owned and operated by Caliber Midstream North Dakota LLC. The incident occurred about 8 miles north of Alexander on May 10, and it was reported the same day.
Pacific Oil & Gas Ltd. To Acquire Canbriam Energy Inc.
Canbriam is focused on applying technology to enhance its environmental performance including significant investments in water sourcing, distribution and recycling infrastructure that has minimized trucking requirements across its operations. Canbriam's investments in technology, which include vapor recovery, waste heat recovery, solar power for electricity and utilizing recycled water, demonstrate the responsible approach to development that Canbriam has taken to minimize GHG and fugitive emissions across its operations.
Titan Logix And Pedigree Technologies Form Industrial IoT Solution Partnership For Management Of Produced Water At the Wellsite
The two companies have entered into a formal partnership to provide supply chain management solutions (SCM) for the management of all produced water at the wellsite, as well as fresh and wastewater during drilling and fracking operations.
Energy Department Announces $5M For Produced Water Treatment Technologies
The U.S. Department of Energy’s (DOE) Office of Fossil Energy has announced up to $5 million in federal funding for cost-shared research and development (R&D) projects under the funding opportunity announcement (FOA) DE-FOA-0002004, Low Cost, Efficient Treatment Technologies for Produced Water.
Electrocoagulation Provides Economical Solution For Produced Water To Oil & Gas Companies
Electrocoagulation has grown in its recognition for its efficient and cost-effective treatment of waste water in many industries, but the oil and gas industry, in particular, is a prime example. EC has many qualities that make it part of an economical solution for oil and gas companies looking to lower their capital and operational costs while increasing the efficiency of their extraction operations.
Scientists Just Found a 'Radical' Way to Create More Drinking Water
"Our technology has the potential to enhance the ability to manage challenging waste streams," he said, pointing to the brackish wastewater generated by the oil and gas industry and inland desalination plants.
Mexico Shale Ban Could Hit NatGas Production, Increase Need for U.S. Imports, Says Baker Institute
Banning hydraulic fracturing (fracking) and the development of the country’s vast shale resources could defeat Mexican President Andrés Manuel López Obrador’s policy aims of limiting natural gas imports, according to an issue brief put together by Rice University’s Baker Institute for Public Policy.
Trump Opens Another 730K Acres Of California To Oil And Gas Drilling
A 2015 report from the California Council on Science and Technology found fracking in California happens at dangerously shallow depths that are close to underground drinking water reservoirs, leaching chemicals into water supplies that are dangerous to human health and the environment.
And Across The Globe.. Oman Looks At Turning Oilfield Water Into Steam
The solar facility uses an enclosed trough technology, with large mirrors set up within a self-cleaning, greenhouse-style structure, which focus the sun’s rays on boiling oilfield water to create steam.