WaterBridge NDB and Devon Energy Form Strategic Delaware Basin Produced Water Partnership
- WaterBridge NDB and Devon Energy Corp. form strategic partnership to create the largest private water infrastructure system in the Delaware Basin.
- Devon commits all of its produced water within a large area of mutual interest, including an initial dedication of ~52,000 acres.
- Devon receives a 30% equity interest in NDB Midstream and funding from Five Point for system expansion.
- None.
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
"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
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
About Devon Energy Corp.
Devon is a leading oil and gas producer in the
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
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
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SOURCE WaterBridge NDB LLC
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