WaterBridge Resources LLC kicked off the New Year by continuing its deal making spree. This time buying the produced water assets of Concho Resources Inc. (NYSE: CXO) in the Southern Delaware Basin.
WaterBridge said Jan. 3 it acquired the produced water assets comprised of three disposal wells with 45,000 barrels per day (bbl/d) of permitted capacity and about 44 miles of pipeline from COG Operating LLC, a subsidiary of Concho, for an undisclosed amount. The company also entered a long-term produced water management services agreement for the Permian Basin producer’s Southern Delaware Basin operations.
The Concho transaction follows a series of acquisitions WaterBridge, a Houston-based portfolio company of private-equity firm Five Point Energy, has made in recent months as it works to build out its Southern Delaware system to meet the produced water needs of shale producers in the region.