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
January 21, 2025 08:00 AM Eastern Standard Time
HOUSTON–(BUSINESS WIRE)–NDB Midstream LLC and WaterBridge Operating LLC (collectively, “WaterBridge”) today announced they have executed long-term commercial agreements with BPX Production Company (“bpx energy”) to support their long-term development plans in the Stateline region of the Delaware Basin. WaterBridge will initially construct and operate 400MBbls/d of new produced water handling capacity over the next three years, with the ability to increase capacity to 600MBbls/d.
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 Delaware Basin, enables bpx energy to sustainably develop its production footprint. The commercial agreements contemplate the greenfield construction of a large-diameter gathering and transportation system to safely and efficiently transport water away from bpx energy’s development locations in Reeves County, Texas.
“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 Delaware Basin in West Texas and New Mexico and the Eagle Ford Basin in South Texas. NDB Midstream LLC handles approximately 1.2 million bpd of produced water and owns 2.0 million bpd of produced water handling capacity.
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 Delaware Basin in West Texas and the Arkoma Basin in Oklahoma. WaterBridge Operating LLC handles approximately 1.2 million bpd of produced water and owns 2.2 million bpd of produced water handling capacity.
WaterBridge collectively comprises the largest pure play produced water midstream business in the industry. Headquartered in Houston, Texas, WaterBridge benefits from a first-mover advantage in the emerging water midstream sector with a management team with extensive experience in the water midstream industry. For further information, please visit www.h2obridge.com.
About BPX Energy
bpx energy, bp’s US onshore business, operates in the Permian, Eagle Ford, and Haynesville basins. Headquartered in Denver, bpx focuses on safely producing high-margin barrels while lowering emissions.
About LandBridge
Since its founding in 2021, LandBridge has served as a leading land management business within the Delaware Basin. The company currently owns approximately 273,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-basin in the Permian Basin, the most active region for oil and natural gas exploration and development in the United States. LandBridge actively manages its land and resources to support oil and natural gas production and broader industrial development, including digital infrastructure. LandBridge was formed by Five Point Energy LLC, a private equity firm with a track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin. For more information, please visit: www.landbridgeco.com
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 Houston, Five Point targets equity investments up to $1 billion and has approximately $7 billion of assets under management across multiple investment funds. For more information about Five Point Energy, please visit: www.fivepointenergy.com.
Contacts
Scott McNeely
Chief Financial Officer
NDB Midstream LLC
WaterBridge Operating LLC
[email protected]
Media
Daniel Yunger / Nathaniel Shahan
Kekst CNC
[email protected] / [email protected]