Basin Properties Completes Strategic Sale in Delaware Basin
Basin Properties has successfully announced the sale of its interests in two expansive ranches along with its service subsidiary, Accelerated Water, for a significant total of $180 million. The buyer remains undisclosed, yet the sale marks a pivotal moment for the company, which has been central to water sourcing and transfer services in the region.
Details of the Transaction
The ranches encompass nearly 72,000 surface acres within the Delaware Basin, an area recognized for its geological advantages and promise for oil and gas activity. Accelerated Water, which is integral to reputable operations, reported sales of over 43.5 million barrels of water specifically allocated for oil and gas operations throughout the previous year.
The Origins of Basin Properties
Basin Properties was formed in 2018, stemming from a merger with the previously established Accelerated Water. The joint venture was fueled by capital investment from Lime Rock Partners and included management personnel from various private exploration and production companies that are actively engaged in the prolific Permian Basin region.
The Importance of Water in Energy Development
J McLane, Managing Director and Chief Investment Officer at Lime Rock Partners, shared insights into the rationale behind the initial formation of Basin Properties, stating that a growing demand for water and the necessary infrastructure were observed on the New Mexico side of the Delaware Basin. This area represents one of the most active regions for oil and gas development across the United States, supporting the realization of robust water sales and revenue generated through surface-related assets.
About Basin Properties
Basin Properties operates mainly in Midland and has positioned itself as a key player in the water midstream sector. Their expertise lies in ensuring reliable sources and transfer services throughout the Delaware Basin, with a vision focused on sustainability and efficiency in energy resource management.
Partnerships and Advisory Roles
Over the years, Lime Rock Partners has demonstrated a strong commitment to the energy industry. Since its founding in 1998, the firm has successfully raised more than $10 billion in private equity funds tailored for investment in various energy ventures. Their strategy spans across growth investments in exploration and production companies, oilfield service providers, and even initiatives geared towards the energy transition.
Legal and Financial Advisors
In alignment with the sale, Vinson & Elkins LLP provided comprehensive legal counsel to Basin Properties. Additionally, financial guidance was offered by Raymond James Investment Banking, facilitating a seamless transaction.
Frequently Asked Questions
What was the total amount for the sale announced by Basin Properties?
The total sale amount was $180 million.
Which subsidiary was included in the sale along with the ranches?
The sale included Accelerated Water, Basin's service subsidiary.
What geographical area is primarily involved in Basin Properties' operations?
Basin Properties primarily operates in the Delaware Basin.
Who acted as the financial advisor for Basin Properties during the sale?
Raymond James Investment Banking acted as the financial advisor for the transaction.
What year was Basin Properties established?
Basin Properties was established in 2018.
