WaterBridge Announces Long-Term Commercial Agreements with BPX Energy to Support Delaware Basin Development
WaterBridge has announced long-term commercial agreements with BPX Energy to support development in the Delaware Basin. WaterBridge will construct and operate 400MBbls/d of new produced water handling capacity over the next three years, with potential expansion to 600MBbls/d. This agreement includes a 10-year minimum volume commitment by BPX Energy.
WaterBridge’s affiliate relationship with LandBridge Company enables sustainable development, leveraging over 273,000 surface acres in the Delaware Basin. The agreements include constructing a large-diameter gathering and transportation system to efficiently transport water from BPX Energy’s development sites in Reeves County, Texas.
WaterBridge’s CEO, Jason Long, emphasized the strategic expansion of their relationship with BPX Energy, highlighting their resources and scalable infrastructure. BPX Energy’s CEO, Kyle Koontz, praised WaterBridge’s operational expertise and sustainable water solutions. Michael Reitz, COO of WaterBridge, noted the importance of surface access and their ability to disperse water volumes across a broad area.
WaterBridge ha annunciato accordi commerciali a lungo termine con BPX Energy per sostenere lo sviluppo nel Delaware Basin. WaterBridge costruirà e gestirà una nuova capacità di trattamento delle acque reflue di 400MBbls/d nei prossimi tre anni, con un potenziale ampliamento a 600MBbls/d. Questo accordo include un impegno di volume minimo di 10 anni da parte di BPX Energy.
La relazione di affiliazione di WaterBridge con LandBridge Company consente uno sviluppo sostenibile, sfruttando oltre 273.000 acri di superficie nel Delaware Basin. Gli accordi includono la costruzione di un sistema di raccolta e trasporto di grande diametro per trasportare efficientemente l'acqua dai siti di sviluppo di BPX Energy nella contea di Reeves, in Texas.
Il CEO di WaterBridge, Jason Long, ha sottolineato l'espansione strategica della loro relazione con BPX Energy, evidenziando le loro risorse e l'infrastruttura scalabile. Il CEO di BPX Energy, Kyle Koontz, ha lodato l'expertise operativa di WaterBridge e le soluzioni sostenibili per l'acqua. Michael Reitz, COO di WaterBridge, ha osservato l'importanza dell'accesso alla superficie e della loro capacità di disperdere volumi d'acqua su un'ampia area.
WaterBridge ha anunciado acuerdos comerciales a largo plazo con BPX Energy para apoyar el desarrollo en la Cuenca de Delaware. WaterBridge construirá y operará una nueva capacidad de manejo de agua producida de 400MBbls/d durante los próximos tres años, con una posible expansión a 600MBbls/d. Este acuerdo incluye un compromiso de volumen mínimo de 10 años por parte de BPX Energy.
La relación de afiliación de WaterBridge con LandBridge Company permite un desarrollo sostenible, aprovechando más de 273,000 acres de superficie en la Cuenca de Delaware. Los acuerdos incluyen la construcción de un sistema de recolección y transporte de gran diámetro para transportar eficientemente el agua de los sitios de desarrollo de BPX Energy en el condado de Reeves, Texas.
El CEO de WaterBridge, Jason Long, destacó la expansión estratégica de su relación con BPX Energy, resaltando sus recursos y la infraestructura escalable. El CEO de BPX Energy, Kyle Koontz, elogió la experiencia operativa de WaterBridge y las soluciones sostenibles de agua. Michael Reitz, COO de WaterBridge, comentó sobre la importancia del acceso a la superficie y su capacidad para dispersar volúmenes de agua en una amplia área.
WaterBridge는 BPX Energy와 함께 델라웨어 분지에서의 개발을 지원하기 위한 장기 상업 계약을 발표했습니다. WaterBridge는 향후 3년간 400MBbls/d의 새로운 생산된 물 처리 용량을 구축하고 운영할 예정이며, 600MBbls/d로의 잠재적 확장도 고려하고 있습니다. 이 계약은 BPX Energy에 의한 10년 최소 물량 약정을 포함합니다.
WaterBridge와 LandBridge Company의 제휴 관계는 273,000 에이커 이상의 땅을 활용하여 지속 가능한 개발을 가능하게 합니다. 계약에는 텍사스 주 리브스 카운티에 있는 BPX Energy의 개발 사이트에서 물을 효율적으로 운반하기 위한 대구경 수집 및 운송 시스템 구축이 포함됩니다.
WaterBridge의 CEO인 제이슨 롱은 BPX Energy와의 관계의 전략적 확장을 강조하며 자원과 확장 가능한 인프라에 대해 이야기했습니다. BPX Energy의 CEO인 카일 쿤츠는 WaterBridge의 운영 전문성과 지속 가능한 물 솔루션을 칭찬했습니다. WaterBridge의 COO인 마이클 라이츠는 표면 접근의 중요성과 넓은 지역에 물의 양을 분산할 수 있는 능력의 중요성을 언급했습니다.
WaterBridge a annoncé des accords commerciaux à long terme avec BPX Energy pour soutenir le développement dans le Bassin du Delaware. WaterBridge construira et opérera une nouvelle capacité de traitement des eaux produites de 400MBbls/d au cours des trois prochaines années, avec une extension potentielle à 600MBbls/d. Cet accord comprend un engagement de volume minimum de 10 ans de la part de BPX Energy.
La relation d'affiliation de WaterBridge avec LandBridge Company permet un développement durable, en exploitant plus de 273 000 acres de surface dans le Bassin du Delaware. Les accords comprennent la construction d'un système de collecte et de transport de grand diamètre pour transporter efficacement l'eau depuis les sites de développement de BPX Energy dans le comté de Reeves, au Texas.
Le PDG de WaterBridge, Jason Long, a souligné l'expansion stratégique de leur relation avec BPX Energy, mettant en avant leurs ressources et leur infrastructure évolutive. Le PDG de BPX Energy, Kyle Koontz, a loué l'expertise opérationnelle de WaterBridge et ses solutions durables en matière d'eau. Michael Reitz, COO de WaterBridge, a noté l'importance de l'accès à la surface et de leur capacité à disperser les volumes d'eau sur une vaste zone.
WaterBridge hat langfristige Handelsverträge mit BPX Energy angekündigt, um die Entwicklung in der Delaware Basin zu unterstützen. WaterBridge wird über die nächsten drei Jahre 400MBbls/d an neuer Kapazität zur Behandlung von produzierter Wasser aufbauen und betriebsbereit machen, mit einer möglichen Erweiterung auf 600MBbls/d. Dieser Vertrag beinhaltet ein 10-jähriges Mindestvolumenverhältnis von BPX Energy.
Die Affiliate-Beziehung von WaterBridge mit LandBridge Company ermöglicht eine nachhaltige Entwicklung, indem sie über 273,000 Morgen im Delaware Basin verfügt. Die Vereinbarungen umfassen den Bau eines großdurchmesserigen Sammel- und Transportsystems, um Wasser effizient von den Entwicklungsstandorten von BPX Energy im Reeves County, Texas zu transportieren.
Der CEO von WaterBridge, Jason Long, betonte die strategische Erweiterung ihrer Beziehung zu BPX Energy und hob deren Ressourcen sowie die skalierbare Infrastruktur hervor. Der CEO von BPX Energy, Kyle Koontz, lobte die betrieblichen Fachkenntnisse von WaterBridge sowie deren nachhaltige Wasserlösungen. Michael Reitz, COO von WaterBridge, bemerkte die Bedeutung des Zugangs zur Oberfläche und deren Fähigkeit, Wasser auf einem breiten Gebiet zu verteilen.
- WaterBridge will develop up to 600MBbls/d of new water handling capacity, enhancing infrastructure.
- The agreement includes a 10-year minimum volume commitment from BPX Energy, providing long-term stability.
- WaterBridge’s strategic relationship with LandBridge leverages over 273,000 surface acres for sustainable development.
- None.
Insights
This commercial agreement marks a strategic expansion in LandBridge's (LB) water management capabilities through its affiliate WaterBridge. The 10-year minimum volume commitment from BPX Energy represents a significant long-term revenue stream and validates LB's business model in the Delaware Basin.
The infrastructure development, capable of handling up to 600MBbls/d of produced water, leverages LB's extensive 273,000+ surface acres in the region. This asset-light model allows LB to generate recurring revenue without substantial capital expenditure, as WaterBridge handles the infrastructure investment.
For investors, this deal enhances LB's competitive moat in the Permian Basin. The long-term nature of the contract provides steady cash flow visibility and demonstrates the company's ability to monetize its surface rights through strategic partnerships. The scalability of the project, from 400MBbls/d to 600MBbls/d, also provides embedded growth potential.
The scale of this water handling agreement is particularly notable in the context of Delaware Basin operations. A capacity of 400-600MBbls/d represents a substantial portion of regional water management infrastructure, positioning WaterBridge and LandBridge as critical service providers in the area.
The greenfield construction of a large-diameter gathering system in Reeves County addresses a important operational challenge in the region - the sustainable management of produced water. This infrastructure development reduces operational risks for both parties and provides environmental benefits through proper water handling and potential reuse opportunities.
The strategic value of LandBridge's surface acreage becomes evident in this deal, as it enables the company to offer comprehensive solutions that competitors cannot easily replicate. This competitive advantage should translate into sustained pricing power and higher margins for water handling services.
Up to 600MBbls/d of new produced water handling capacity to be developed, including up to 400MBbls/d on LandBridge surface
Agreement includes a 10-year minimum volume commitment by BPX Energy
WaterBridge’s abundant access to pore space through its affiliate relationship with LandBridge Company LLC (NYSE: LB), a leading land management platform that owns 273,000+ surface acres in the
“We’re excited to expand our commercial relationship with bpx energy. Our new agreement provides enhanced and sustainable produced water handling solutions as bpx advances its development plans in the Stateline region,” said Jason Long, Chief Executive Officer of WaterBridge. “As pioneers of midstream water management, and through our affiliate relationship with LandBridge, we have unparalleled resources to develop and support purpose-built scalable infrastructure for blue chip operators, including produced water handling and reuse networks across vast and contiguous surface acreage.”
“It’s important to develop long-term sustainable water solutions in the Permian Basin. The WaterBridge executive team has the scale and operational expertise to match our focus on operational excellence, and long-haul solutions represent a valuable and responsible way to manage water through our multiple decades of Permian resource,” said Kyle Koontz, Chief Executive Officer of bpx energy.
“The scale of this multi-year agreement is a testament to the importance of strategically located surface access and the symbiotic relationship we have with LandBridge,” said Michael Reitz, Chief Operating Officer of WaterBridge. “Our unmatched surface and pore space capacity and our ability to disperse produced water volumes across a broad geographic footprint were critical elements in designing a tailored water-handling solution that is perfectly suited to bpx energy’s needs.”
Vinson & Elkins LLP served as legal counsel to WaterBridge and Locke Lord LLP served as legal counsel to bpx energy.
About NDB Midstream and WaterBridge Operating LLC
NDB Midstream LLC is a strategic partnership between Five Point Energy and Devon Energy Corp. (NYSE: DVN) that operates full-cycle produced water transportation, handling, recycling and reuse assets in the northern
WaterBridge Operating LLC is a portfolio company of Five Point Energy and GIC that operates full-cycle produced water transportation, handling, recycling and reuse assets in southern
WaterBridge collectively comprises the largest pure play produced water midstream business in the industry. Headquartered in
About BPX Energy
bpx energy, bp's US onshore business, operates in the Permian, Eagle Ford, and Haynesville basins. Headquartered in
About LandBridge
Since its founding in 2021, LandBridge has served as a leading land management business within the
About Five Point
Five Point Energy is a private equity firm focused on building businesses within the environmental water management, surface management and sustainable infrastructure sectors. The firm was founded by industry veterans who have had successful careers investing in, building, and running midstream infrastructure 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121837767/en/
Scott McNeely
Chief Financial Officer
NDB Midstream LLC
WaterBridge Operating LLC
Contact@h2obridge.com
Media
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Kekst CNC
daniel.yunger@kekstcnc.com / nathaniel.shahan@kekstcnc.com
Source: NDB Midstream and WaterBridge Operating LLC
FAQ
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