WaterBridge Resources acquires Arkoma Water Resources

WaterBridge Resources, through its affiliate WaterBridge Resources II, has closed on the purchase of Arkoma Water Resources, from USG Surface Facilities I.

WaterBridge II was set up along with the acquisition and is supported by $300m in equity commitments from Five Point Capital Partners and its affiliates (Five Point), increasing Five Point's total equity commitments to WaterBridge to $500m.

Arkoma Water Resources operates around 110 miles of produced water pipeline and 95 miles of gas lift pipeline infrastructure, in addition to three water transfer facilities and five saltwater injection facilities in Hughes and Pittsburg Counties, Oklahoma.

With regard to the acquisition, USG and its affiliates have dedicated present and future leasehold exploration and production activities within a 1.1 million acre area of mutual interest pursuant to 10-year, fixed-fee produced water gathering and disposal agreements that comprise some minimum volume commitments.

WaterBridge intends to expand the system in support of the development programme and plans to use its surplus transportation and disposal capacity to handle the transport and disposal of produced water volumes from third-party producers in the Arkoma Basin.

The purchase bolsters WaterBridge's operating presence into several basins, where its other key focus is in the southern Delaware Basin.

The equity commitment to WaterBridge II bolsters Five Point's total equity commitments to the WaterBridge platform to $500m.

WaterBridge CEO Stephen Johnson said: "This strategic acquisition complements our existing produced water, supply water, transportation pipeline and SWD infrastructure businesses, and enables WaterBridge to provide additional services for producers in Oklahoma.

"With the increased drilling activity and extremely encouraging well results from area producers, the Arkoma basin is a key focus area for WaterBridge. Notably, the acquisition expands upon WaterBridge's existing asset footprint and multi-basin portfolio strategy, providing an excellent platform for future system expansion."

Five Point Managing Partner and CEO David Capobianco said: "We are pleased to support WaterBridge's continued growth as it acquires and develops state-of-the-art water midstream assets in the southern Delaware Basin.

"WaterBridge continues to take definitive steps towards becoming a leading water midstream services provider in basins throughout North America."