HOUSTON, Feb. 25, 2020 /PRNewswire/ -- WaterBridge
Holdings LLC (together with its subsidiaries, "WaterBridge")
announced today that it has signed a definitive agreement to
acquire the Southern Delaware
Basin produced water infrastructure of Centennial Resource
Production, LLC, a subsidiary of Centennial Resource Development,
Inc. (NASDAQ: CDEV) ("Centennial"). Contemporaneous with
closing, WaterBridge and Centennial will enter into a 15-year
produced water management agreement at market rates for
Centennial's operated acreage within an extensive area of mutual
interest. The transaction is valued at $225 million, consisting of $150 million in upfront cash and an additional
$75 million payable to Centennial
over a three-year period based on Centennial achieving certain
incentive thresholds. The transaction is subject to certain
regulatory approvals and other customary closing conditions, and is
expected to close in March 2020.
Upon closing of this transaction, WaterBridge will have over
600,000 acres operated by over 23 blue-chip producers under
long-term dedication in the Southern Delaware
Basin. WaterBridge's extensive integrated water infrastructure
network provides nearly two million bpd of water handling capacity
via 1,140 miles of large-diameter pipelines and 87 handling
facilities.
David Capobianco, CEO of Five
Point Energy and Chairman of the Board of WaterBridge, said "In
2016, Five Point Energy funded the formation of WaterBridge with a
well-defined strategy of being a first mover in progressively
addressing the produced water needs of the Permian Basin. With
the addition of Centennial's produced water handling assets to
WaterBridge's network, the company has expanded the capabilities of
its system and firmly established itself as the largest pure play
water midstream company in the industry." Mr. Capobianco
continued, "The capacity and redundancy offered by our systems will
continue to be instrumental in supporting current and future
customers' development programs in the Southern
Delaware Basin."
Jason Long, Co-President and COO
of WaterBridge stated, "Today's announced transaction represents
another key milestone for WaterBridge, further validating our
unique value proposition and industry leading
platform. Centennial has been an important partner to us from
the very beginning and is widely regarded as one of the best
operators in the Permian. We are very excited to grow our
relationship to handle all of Centennial's Southern Delaware produced water."
Advisors
Winston & Strawn LLP served as legal advisor to WaterBridge
in connection with the transaction.
About Five Point Energy LLC
Five Point Energy is a leading private equity firm focused on
the midstream energy sector. The firm was founded by industry
veterans who have had successful careers investing in, building and
running midstream companies. Five Point's strategy is to
acquire and develop in-basin assets, provide value-added growth
capital, and build world-class midstream companies with premier
management teams and industry-leading E&P partners. The
firm is focused on providing in-basin crude oil, natural gas,
liquids and water management midstream solutions to E&P
companies in the Permian Basin, Eagle Ford, Mid-Continent and
Rockies. Based in Houston,
Texas, Five Point Energy manages approximately $3.5 billion of capital across multiple
investment funds. For further information, please visit
www.fivepointenergy.com.
About WaterBridge
WaterBridge is the largest pure play produced water midstream
company in the industry, and a portfolio company of Five Point
Energy. Headquartered in Houston,
Texas, WaterBridge operates in the Southern Delaware Basin in west Texas and the Arkoma Basin in southeast
Oklahoma. WaterBridge develops, owns and operates permanent,
integrated water infrastructure networks that handle full-cycle
produced water requirements of its blue-chip customer base under
long-term, fee-based contracts. WaterBridge benefits from a
first-mover advantage in the emerging water midstream sector with
the most experienced management team in the industry. For
further information, please visit www.h2obridge.com.
Contacts:
Scott McNeely, 832-703-1433
Vice President, Finance
WaterBridge Holdings LLC
scott.mcneely@h2obridge.com
Daniel Yunger for Five Point
Energy LLC
Kekst CNC
212-521-4800
Daniel.yunger@kekstcnc.com
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SOURCE WaterBridge Holdings LLC