Funds managed by Blackstone’s Blackstone Energy Partners have formed and funded Waterfield Midstream, a water management service provider in the Permian Basin, armed with a $500 million equity commitment.
Waterfield will provide water gathering, treatment, recycling and disposal services. The $500 million commitment from the private equity firm will be used to pursue greenfield development and acquisitions of water-related infrastructure, Kallanish Energy reports.
Waterfield is led by co-CEOs Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform.
Recently, Waterfield signed a 15-year contract with Guidon Energy to construct a new system to handle Guidon’s water gathering and disposal needs across its roughly 40,000-acre position in Martin County, Texas.
Additionally, Waterfield has entered into an agreement with EagleClaw Midstream to operate EagleClaw’s water assets in Reeves County, Texas. These assets include 58 miles of gathering lines and 390,000 barrels per day of permitted water disposal capacity.
“We are excited to have partnered with Blackstone,” said Mitchell. “Blackstone shares our vision of developing a long-term and sustainable water business focused on flow assurance in the Permian Basin.:
“We believe that Waterfield addresses a critical need of producers in the Permian Basin both in terms of infrastructure and quality of service,” said Erik Belz, a Blackstone principal. “Waterfield’s subsurface capabilities and engineering track record set it apart from other offerings in the market.”
This post appeared first on Kallanish Energy News.