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Five Point Energy sells minority equity stake in water midstream company Waterbridge Resources

  • Five Point Energy sells minority equity stake in water midstream company Waterbridge Resources

About the entity

Five Point Energy
Founded in 2012, Five Point is an energy investment firm focused on building businesses within the midstream and energy infrastructure sectors.

Themes

Five Point Energy LLC, a leading private-equity firm focused exclusively on the midstream energy sector, has sold a minority equity stake in WaterBridge Resources LLC (together with its subsidiaries, "WaterBridge") to affiliates of GIC, Singapore's sovereign wealth fund ("GIC"). The minority equity position was acquired from funds affiliated with Five Point Energy and WaterBridge management. The transaction has closed and is not subject to any additional conditions. The purchase price implies a WaterBridge enterprise value of approximately $2.8 billion.

Under the terms of the transaction, GIC and Five Point Energy have committed to a framework to provide incremental equity capital to facilitate WaterBridge's current pipeline of accretive acquisition and organic growth opportunities.

  • Following the closing of the recently signed definitive agreement with PDC Energy, Inc., WaterBridge will own and operate 550 miles of pipeline connecting 56 water handling facilities with approximately 1.4 million bpd of produced water disposal capacity throughout the southern Delaware Basin. 
  • WaterBridge’s Delaware platform has long-term contracts from thirteen leading producers in the Delaware basin covering approximately 420,000 dedicated acres and 2.4 million acres under AMI with a weighted-average remaining contract life of 15 years.
  • WaterBridge’s Arkoma platform consists of 10 SWDs with 170,000 bpd of produced water disposal capacity. The facilities are connected via 175 miles of pipeline services under longterm contracts from five producers covering approximately 378,000 dedicated acres with 1.7 million acres under AMI. The weighted-average remaining contract life for Arkoma Basin customers is 15 years. ​

WaterBridge is leading the energy industry in handling produced water from the oilfield in an environmentally responsible manner. WaterBridge's integrated infrastructure provides safe and reliable transportation and treatment of water produced in association with oil and gas production, and facilitates recycling and reuse of oilfield water for leading oil and gas producers.

David Capobianco, CEO and Managing Partner of Five Point Energy LLC, said, "Since its founding three years ago, WaterBridge has rapidly established itself as the leading builder, owner and operator of permanent integrated water infrastructure networks."

Mr. Capobianco continued, "This announced transaction is a reflection of WaterBridge's accomplishments to date and the significant growth opportunities that the Company is optimally positioned to pursue in the near-term. Now, more than ever, there is tremendous demand for the development of large, integrated, environmentally responsible, produced water handling networks that offer producers the capacity and redundancy necessary to scale their development programs."

Stephen Johnson, Chief Executive Officer of WaterBridge, said, "We are very pleased to partner with such a reputable financial institution that shares our vision in building the premier water midstream company. Through our combined resources, WaterBridge has unparalleled access to the capital needed to continue executing the Company's growth strategy."

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