WaterBridge Partners with BPX Energy for Sustainable Solutions

WaterBridge Partners with BPX Energy for Sustainable Solutions

WaterBridge Operating LLC, along with NDB Midstream LLC, has announced significant long-term commercial agreements with BPX Production Company to support the expansion of their operations in the Delaware Basin. This strategic partnership focuses on enhancing produced water handling capabilities to facilitate BPX's ongoing development plans.

WaterBridge is poised to construct and operate 400,000 barrels per day (bbls/d) of new capacity for produced water handling over the next three years, with plans to potentially increase this capacity to 600,000 bbls/d. This development aims to bolster BPX Energy’s production efficiency and sustainability in the region.

An important advantage for WaterBridge comes from its strong affiliate relationship with LandBridge Company (NYSE: LB). This partnership allows BPX Energy to sustainably grow its production footprint. The agreements also include plans for the construction of a sizable gathering and transportation system to ensure the safe and efficient removal of water from BPX Energy’s operational sites.

"We are thrilled to deepen our commercial relationship with BPX Energy. This agreement enhances our ability to provide sustainable produced water handling solutions as BPX continues its development efforts in the Delaware Basin," remarked Jason Long, CEO of WaterBridge Operating LLC. He highlighted the company’s innovative approach to midstream water management combined with LandBridge's extensive resources, which enables the creation of scalable infrastructure for major operators.

According to Kyle Koontz, CEO of BPX Energy, the development of long-term sustainable water management solutions is vital within the Permian Basin. He noted that WaterBridge’s operational expertise aligns well with BPX Energy's focus on long-term operational excellence, saying, "Long-haul solutions present a reliable method for managing water as we operate in the region's rich resource landscape over the coming decades."

The scale of this agreement reflects the necessity for well-positioned surface access in the region. Michael Reitz, COO of WaterBridge, emphasized the strategic relationship with LandBridge as a crucial aspect of their business model. "Our surface access and pore space capacity enable us to manage produced water volumes effectively across a wide geographic area, which is essential for meeting the unique needs of BPX Energy," Reitz stated.

Legal advisory for WaterBridge was provided by Vinson & Elkins LLP while Locke Lord LLP served as BPX Energy’s legal counsel. This partnership reflects a larger trend in the industry, where companies are increasingly collaborating to ensure sustainable and efficient water management systems that are critical in energy production.

Understanding the Companies Involved

NDB Midstream LLC is a strategic partnership comprised of Five Point Energy and Devon Energy Corp. (NYSE: DVN). This partnership specializes in the transportation, handling, recycling, and reusing of produced water in crucial basins such as the Delaware Basin and the Eagle Ford Basin. With a handling capacity of 2.0 million bpd, NDB Midstream leverages its resources effectively in an increasingly challenging environment.

WaterBridge Operating LLC is also a key player in full-cycle produced water management, aiming to create sustainable solutions. Under the umbrella of Five Point Energy and GIC, WaterBridge operates in the southern regions of the Delaware Basin and has the capability to handle approximately 2.2 million bpd of produced water.

WaterBridge’s Market Position

Together, these entities form the largest pure play produced water midstream business in the sector. Headquartered in Houston, Texas, WaterBridge stands out with a first-mover advantage, backed by a management team with vast expertise in this specific segment of the energy industry, further promising progress toward more effective water solutions.

Detailed Insights on BPX Energy

BPX Energy, operating primarily in the Permian, Eagle Ford, and Haynesville basins, is dedicated to producing high-margin barrels safely while focusing on reducing emissions. The company's strategy emphasizes responsible production practices that align with industry trends toward sustainability and efficiency.

A Closer Look at LandBridge

Since establishment in 2021, LandBridge has excelled as a land management company within the Delaware Basin. Owning over 273,000 surface acres, LandBridge focuses on fostering efficient oil and natural gas production alongside broader industrial developments, including infrastructure needs in the digital space.

Five Point Energy, with a rich history in midstream infrastructure, targets investments aimed at building sustainable businesses in environmental water management and related sectors. With around $7 billion in assets under management, Five Point is strategically positioned to lead in developing energy-efficient solutions.

Frequently Asked Questions

What is the significance of the agreements between WaterBridge and BPX Energy?

The agreements emphasize sustainable produced water handling, helping BPX Energy expand its efficiency in the Delaware Basin operations.

How much produced water handling capacity will be constructed by WaterBridge?

WaterBridge plans to construct 400,000 bbls/d of new capacity, with potential expansion to 600,000 bbls/d.

Who are the main companies involved in these agreements?

The main companies involved are WaterBridge, BPX Energy, and LandBridge Company.

What regions are impacted by these agreements?

The agreements primarily impact operations in the Delaware Basin, especially in Reeves County, Texas.

What role does Five Point Energy play in this development?

Five Point Energy is a key investment partner for WaterBridge, supporting its growth and operational strategies in environmental water management.

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