H2O Midstream Sells Midland Basin Water Midstream Assets to Delek Logistics
H2O Midstream and EIV Capital have announced the sale of H2O Midstream to Delek Logistics Partners (NYSE: DKL). H2O Midstream provides comprehensive water management solutions in Howard County, Texas. The acquisition creates a fully integrated multi-commodity midstream platform in the Midland Basin.
H2O Midstream's system includes 250+ miles of buried pipe, ~4 million barrels of storage, and access to over 900,000 barrels per day of disposal capacity across a ~400 square mile footprint. This sale marks the culmination of an eight-year venture between H2O Midstream and EIV Capital, which began their partnership in 2016 to pursue produced water midstream opportunities in the Permian Basin.
H2O Midstream e EIV Capital hanno annunciato la vendita di H2O Midstream a Delek Logistics Partners (NYSE: DKL). H2O Midstream offre soluzioni complete per la gestione dell'acqua nella Contea di Howard, Texas. L'acquisizione crea una piattaforma midstream multi-commodity completamente integrata nel Midland Basin.
Il sistema di H2O Midstream include oltre 250 miglia di tubazioni interrate, circa 4 milioni di barili di capacità di stoccaggio e accesso a oltre 900.000 barili al giorno di capacità di smaltimento su una superficie di circa 400 miglia quadrate. Questa vendita segna il culmine di un'iniziativa durata otto anni tra H2O Midstream e EIV Capital, che hanno avviato la loro partnership nel 2016 per perseguire opportunità midstream di acqua prodotta nel Permian Basin.
H2O Midstream y EIV Capital han anunciado la venta de H2O Midstream a Delek Logistics Partners (NYSE: DKL). H2O Midstream proporciona soluciones de gestión del agua de manera integral en el Condado de Howard, Texas. La adquisición crea una plataforma midstream multi-commodity completamente integrada en la Cuenca de Midland.
El sistema de H2O Midstream incluye más de 250 millas de tuberías enterradas, aproximadamente 4 millones de barriles de almacenamiento y acceso a más de 900.000 barriles por día de capacidad de eliminación en una superficie de aproximadamente 400 millas cuadradas. Esta venta marca la culminación de una aventura de ocho años entre H2O Midstream y EIV Capital, que iniciaron su asociación en 2016 para explorar oportunidades de midstream de agua producida en la Cuenca de Permian.
H2O Midstream와 EIV Capital은 H2O Midstream을 Delek Logistics Partners (NYSE: DKL)에게 판매한다는 발표를 하였습니다. H2O Midstream은 텍사스 하워드 카운티에서 종합적인 물 관리 솔루션을 제공합니다. 이번 인수는 미드랜드 분지에서 완전히 통합된 다중 상품 미드스트림 플랫폼을 생성합니다.
H2O Midstream의 시스템은 250마일 이상의 매설 파이프, 약 400만 배럴의 저장 용량, 그리고 약 900,000 배럴의 하루 처리 용량에 접근할 수 있는 약 400 평방 마일의 지역을 포함합니다. 이번 판매는 H2O Midstream과 EIV Capital 간 8년 간의 여정을 마무리하는 것으로, 이들은 2016년에 퍼미안 분지에서의 생산된 물 미드스트림 기회를 추구하기 위해 파트너십을 시작했습니다.
H2O Midstream et EIV Capital ont annoncé la vente de H2O Midstream à Delek Logistics Partners (NYSE: DKL). H2O Midstream fournit des solutions complètes de gestion de l'eau dans le comté de Howard, au Texas. L'acquisition crée une plateforme midstream multi-commodity entièrement intégrée dans le Midland Basin.
Le système de H2O Midstream comprend plus de 250 milles de tuyaux enfouis, environ 4 millions de barils de capacité de stockage, et un accès à plus de 900 000 barils par jour de capacité d'élimination sur une superficie d'environ 400 miles carrés. Cette vente marque l'aboutissement d'une aventure de huit ans entre H2O Midstream et EIV Capital, qui ont commencé leur partenariat en 2016 afin de poursuivre des opportunités midstream d'eau produite dans le Permian Basin.
H2O Midstream und EIV Capital haben den Verkauf von H2O Midstream an Delek Logistics Partners (NYSE: DKL) angekündigt. H2O Midstream bietet umfassende Lösungen für das Wassermanagement im Howard County, Texas. Die Akquisition schafft eine vollständig integrierte Multi-Commodity-Midstream-Plattform im Midland Basin.
Das System von H2O Midstream umfasst über 250 Meilen vergrabene Rohre, etwa 4 Millionen Barrel Lagerfähigkeit und Zugang zu über 900.000 Barrel pro Tag Entsorgungskapazität über eine Fläche von etwa 400 Quadratmeilen. Dieser Verkauf markiert den Höhepunkt eines achtjährigen Unternehmens zwischen H2O Midstream und EIV Capital, die ihre Partnerschaft 2016 begonnen haben, um Chancen im Bereich der produzierten Wasser-Midstream im Permian Basin zu verfolgen.
- Acquisition creates a fully integrated multi-commodity midstream platform in the Midland Basin
- H2O Midstream's system includes 250+ miles of buried pipe and ~4 million barrels of storage
- Access to over 900,000 barrels per day of disposal capacity across a ~400 square mile footprint
- None.
The sale of H2O Midstream to Delek Logistics Partners represents a significant consolidation in the Midland Basin's water midstream sector. This acquisition is strategically important for Delek Logistics, as it creates a fully integrated multi-commodity midstream platform in the region.
While financial details weren't disclosed, the deal likely involves a substantial transaction value given H2O Midstream's extensive assets, including 250+ miles of pipeline, ~4 million barrels of storage and access to over 900,000 barrels per day of disposal capacity. This acquisition should enhance Delek Logistics' revenue streams and potentially improve its operational efficiency in the Permian Basin.
For investors, this deal signals continued consolidation in the midstream sector, particularly in water management services, which are important for oil and gas operations. The transaction may positively impact Delek Logistics' stock (NYSE: DKL) as it expands its service offerings and strengthens its market position.
This acquisition highlights the growing importance of water management in the oil and gas industry, particularly in the Permian Basin. H2O Midstream's infrastructure provides important services for handling produced water, which is a significant challenge and cost factor in hydraulic fracturing operations.
The deal allows Delek Logistics to vertically integrate its operations, potentially leading to cost savings and operational efficiencies for its customers in the Midland Basin. This move could give Delek a competitive advantage by offering a more comprehensive suite of midstream services.
From an industry perspective, this transaction underscores the trend towards integrated service offerings in the midstream sector. It also reflects the increasing value placed on water management infrastructure, which is essential for sustainable and cost-effective oil and gas production in water-stressed regions like the Permian Basin.
“The acquisition of H2O Midstream by Delek Logistics creates a fully integrated multi-commodity midstream platform in the Midland Basin and represents the realization of our vision that produced water can be managed as a true midstream business,” said Jim Summers, co-founder and CEO of H2O Midstream. “This successful eight-year venture was only possible thanks to the incredible support and partnership of EIV Capital and the professionalism and dedication of all H2O Midstream management and employees, who represent some of the best this industry has to offer. I am excited to welcome this new era for oilfield water management under the capable leadership of Delek Logistics.”
EIV Capital and H2O Midstream partnered in 2016 to pursue produced water midstream opportunities in the Permian Basin. Through greenfield development, organic growth and the integration of several strategic acquisitions, H2O Midstream developed a system comprised of 250+ miles of buried pipe, ~4 million barrels of owned and third-party storage, and access to over 900,000 barrels per day of owned and third-party disposal capacity across a ~400 square mile footprint.
“We valued the opportunity to partner with the H2O Midstream team as they executed a vision to build a leading water midstream platform in the Midland Basin,” said David Finan, Managing Partner of EIV Capital. “We’d like to thank Jim Summers and the entire H2O Midstream team for their hard work and dedication.”
Latham & Watkins served as legal counsel to H2O Midstream in connection with the transaction.
About H2O Midstream, LLC
Based in
About EIV Capital, LLC
Founded in 2009, EIV Capital is a
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Meredith Hargrove Howard
Redbird Communications Group
210-737-4478
meredith@redbirdpr.com
Source: H2O Midstream, LLC
FAQ
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