WaterBridge Resources signs revolving credit facility to fund water projects

WaterBridge Resources’s subsidiary WaterBridge Operating has signed a $200m revolving credit facility led by SunTrust Bank along with a group of nine financial institutions.

The credit facility will be utilised by the firm for corporate purposes as well as to invest in water infrastructures in the Permian Basin in west Texas and the Arkoma Basin in southeast Oklahoma.

Following the closing of the credit facility, WaterBridge and its affiliates have over $700m in committed capital, including $500m  from Five Point Energy, to fund ongoing growth and expansion efforts.

WaterBridge executive vice president and CFO Steve Jones said: “WaterBridge is pleased to have the support of our banking partners as we continue to grow to meet our customers’ needs of our revolving credit facility, together with $500 million in equity commitments from Five Point Energy, provides us significant resources to continue expanding our leading position in the water management sector.”

Credit facility closing coincides with the firm’s fifth acquisition this year. Through purchases and organic development, WaterBridge has built a water midstream system in the Delaware region of the Permian Basin.

The firm’s Permian Basin infrastructure supports multiple upstream operators in Reeves and Ward counties and  includes 19 salt water disposal facilities, over 70 miles of water pipelines and more than 500 MBbls/d of disposal capacity.

WaterBridge also owns and operates water midstream infrastructure in the Arkoma Basin. It includes five salt water disposal facilities, 115 miles of produced water pipelines and over 80 Mbbls/d of disposal capacity.

WaterBridge Resources focuses on the water management requirements of oil and gas producers in high-growth basins.