Select Water Solutions added disposal and recycling capacity in the Rockies and the Haynesville with $90 million in M&A. (Source: Shutterstock)
Houston-based Select Water Solutions Inc. bolted on new water infrastructure assets to add scale in the Haynesville Shale and the Rockies.
Select, a water and chemicals provider for the upstream energy sector, closed three water infrastructure acquisitions in January for approximately $90 million in cash.
The acquisitions of Tri-State Water Logistics LLC and Iron Mountain Energy LLC added disposal assets and operations in East Texas, near the Louisiana border.
The acquisitions will add around 450,000 bbl/d of incremental disposal capacity to Select’s water infrastructure portfolio across 21 active disposal wells, two slurry injection wells and a solids treatment facility.
Tri-State’s portfolio adds around 155,000 bbl/d of active permitted disposal capacity; another five approved permits for 75,000 bbl/d or new capacity were also included in the deal. Iron Mountain’s portfolio adds 159,000 bbl/d of disposal capacity.
“With the additions of Iron Mountain and Tri-State Water's disposal operations, we have a tremendous opportunity to efficiently integrate these assets into our existing 60-plus mile gathering pipeline system in the Haynesville Shale, expanding our overall water handling capacity and extending the geographic footprint of the network,” said Select’s Chairman, President and CEO John Schmitz in a news release.
In the Rockies, Select acquired 20,000 bbl/d of active disposal capacity and another 40,000 bbl/d of permitted disposal and recycling capacity.
“"In the Rockies, our latest addition provides long-term contracted produced water streams and disposal solutions, with approximately 85% of the volumes received in 2023 covered under long-term contracts,” Schmitz said. “When coupled with our current recycling capabilities in the Rockies, the additional permitted recycling capacity from this acquisition will enhance our ability to provide expanded comprehensive produced water management solutions to our customers.”
RELATED
Select Water Solutions, Endeavor Energy Resources Complete Water Recycling Job
Recommended Reading
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.
Utah’s Ute Tribe Demands FTC Allow XCL-Altamont Deal
2024-04-24 - More than 90% of the Utah Ute tribe’s income is from energy development on its 4.5-million-acre reservation and the tribe says XCL Resources’ bid to buy Altamont Energy shouldn’t be blocked.
Mexico Presidential Hopeful Sheinbaum Emphasizes Energy Sovereignty
2024-04-24 - Claudia Sheinbaum, vying to becoming Mexico’s next president this summer, says she isn’t in favor of an absolute privatization of the energy sector but she isn’t against private investments either.
Venture Global Gets FERC Nod to Process Gas for LNG
2024-04-23 - Venture Global’s massive export terminal will change natural gas flows across the Gulf of Mexico but its Plaquemines LNG export terminal may still be years away from delivering LNG to long-term customers.