HOUSTON, Aug. 7, 2023
/PRNewswire/ -- WaterBridge NDB LLC (together with its
subsidiaries, "WaterBridge NDB"), a portfolio company of Five Point
Energy LLC ("Five Point"), announced today the formation of NDB
Midstream LLC, a strategic partnership with WPX Energy Permian, LLC
("Devon"), a subsidiary of Devon
Energy Corp. (NYSE: DVN). The partnership between two technical
leaders, WaterBridge NDB within the produced water handling sector
and Devon with 50-plus years of
innovation in oil and gas, yields the largest private water
infrastructure system in the prolific Stateline region of the
Delaware Basin in Loving County, Texas and Lea and Eddy
counties in New Mexico.
In connection with the transaction, Devon and NDB Midstream entered into a
long-term agreement pursuant to which Devon has committed all of its produced water
within a large area of mutual interest, including an initial
dedication of ~52,000 acres, and contributed to NDB Midstream 18
SWDs with ~375,000 bpd of permitted capacity and ~210 miles of
produced water pipelines for gathering, transportation, disposal
and reuse. As part of the transaction, Devon received a 30% equity interest in NDB
Midstream as well as a commitment by Five Point to fund a portion
of the initial build of the system expansion.
"We are excited about this partnership which will provide
Devon with a significant increase
in permitted water handling capacity, delivering both reliable flow
assurance and access to abundant resources and infrastructure to
support Devon's future drilling
plans and the company's produced water reuse and recycling
operations" said Greg Horne, Vice
President, Marketing & Midstream, of Devon and Board member of NDB Midstream.
As part of the transaction, NDB Midstream is developing a
large-scale water transportation, handling and recycling system in
the Stateline region, primarily located on land owned by Five
Point's land management platform, DBR Land LLC.
David Capobianco, CEO of Five
Point Energy and Chairman of WaterBridge NDB, said: "Our joint
venture with Devon is one of the
largest in the water sector to date, and is transformative for
WaterBridge as it significantly expands our industry-leading
platform's scale, commercial reach and strategic value." Mr.
Capobianco continued, "Since WaterBridge's founding in 2016, we
have been pioneers of midstream water management, progressively
addressing the produced water needs of our blue-chip clients and
reducing reliance on freshwater sources for drilling and completion
activities. The future of WaterBridge could not be brighter
as we work to bring incredibly innovative solutions to market in
the near future, including desalination hubs."
Latham & Watkins LLP and Winston & Strawn LLP served as
legal counsel to WaterBridge NDB and White & Case LLP served as
legal counsel to Devon.
About WaterBridge NDB LLC
WaterBridge NDB is a portfolio company of Five Point Energy that
operates full-cycle produced water transportation, handling,
recycling and reuse and disposal under long-term contracts with
customers in the northern Delaware
Basin, and the Eagle Ford Basin. WaterBridge NDB and its
affiliate WaterBridge Holdings LLC, a portfolio company of Five
Point Energy and GIC that operates in the southern Delaware Basin in West Texas and the Arkoma Basin in Oklahoma, together comprise the largest pure
play produced water midstream business in the industry.
Headquartered in Houston,
Texas, WaterBridge benefits from a first-mover advantage in
the emerging water midstream sector with the most experienced
management team in the industry. For further information, please
visit www.h2obridge.com.
About DBR Land LLC
DBR Land is a premier actively managed land and resource company
with substantial holdings strategically positioned in the most
active regions of the Permian Basin in Texas and New Mexico. DBR's land holding
is a non-depleting asset that generates diverse revenue streams
from a well-capitalized customer base under long-term
contracts. DBR's customers and tenants rely heavily on the
use of its land to support all stages of production and development
of energy to supply growing global demand. DBR owns an
aggregate of approximately 76,000 surface acres in Texas and New
Mexico, largely positioned along the Texas-New
Mexico border. DBR is a portfolio company of Five
Point Energy, headquartered in Houston,
Texas.
About Devon Energy Corp.
Devon is a leading oil and gas
producer in the U.S. with a premier multi-basin portfolio headlined
by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model
is designed to achieve strong returns, generate free cash flow and
return capital to shareholders, while focusing on safe and
sustainable operations. For more information, please visit
www.devonenergy.com.
About Five Point Energy LLC
Five Point Energy is a leading private equity firm focused on
building businesses within the water management and sustainable
infrastructure sectors. The firm was founded by industry veterans
who have had successful careers investing in, building and running
midstream companies. Five Point's strategy is to buy and build
assets, create companies and grow them into sustainable enterprises
with premier management teams and industry-leading E&P
partners. Based in Houston, Five
Point targets equity investments up to $1
billion and has approximately $3
billion of capital under management across multiple
investment funds. For further information, please visit
www.fivepointenergy.com.
Contacts:
Scott McNeely
Senior Vice President, Finance
WaterBridge Holdings LLC
832-703-1433
scott.mcneely@h2obridge.com
Trey Mattson
Senior Director, Finance & Strategy
WaterBridge Holdings LLC
713-858-2456
trey.mattson@h2obridge.com
Media:
Daniel Yunger
Kekst CNC
917.574.8582
daniel.yunger@kekstcnc.com
View original
content:https://www.prnewswire.com/news-releases/waterbridge-ndb-and-devon-energy-form-strategic-delaware-basin-produced-water-partnership-301894844.html
SOURCE WaterBridge NDB LLC
