Casillas, a portfolio company of Kayne Anderson, and Energy Water Services, a water infrastructure company owned by Halmos Capital Partners, announce a partnership to jointly form Woody Creek Midstream, a midstream company focused on providing water management services to producers in the SCOOP.
Woody Creek has initiated construction of over 25 miles of wastewater gathering pipeline in Garvin and McClain Counties, Oklahoma. Upon completion in the fourth quarter of 2019, the system will connect to 60,000 barrels per day of permitted water disposal capacity owned and operated by EWS. In 2020, Woody Creek expects to expand the trunk line to tie into a total of 130,000 barrels per day of permitted EWS water disposal capacity.
Woody Creek and EWS have signed a long-term contract to handle all of Casillas' wastewater transportation and disposal needs across its ~56,000 net acres in the SCOOP. Additionally, Woody Creek intends to expand services to other operators in the SCOOP to transport and dispose of wastewater.
"The formation of Woody Creek Midstream is very accretive to our valuable asset in the SCOOP," said Casillas Petroleum Resource Partners CEO, Greg Casillas. "As Casillas moves forward with our full development phase, this midstream investment will allow us to increase our margins through an economically advantageous water disposal system. In addition to Casillas' operations, Woody Creek's footprint is suited to allow several other companies operating in the SCOOP access to the system to handle their disposal needs. The complex has been designed to manage a significant amount of wastewater volume safely and efficiently while protecting the surrounding communities and environment."
"We are excited to partner with Casillas to build the primary water gathering infrastructure in the SCOOP," said Andrew Cohan, Chief Executive Officer of EWS and Founder of Halmos. "This transport system, combined with EWS's disposals, will allow all producers in the SCOOP to handle their wastewater safely and cost effectively."
Daniel Adan, Chief Financial Officer of EWS and Partner at Halmos, added, "Our partnership with Greg and the team at Casillas is illustrative of our strategy of collaborating with best-in-class management teams to build unique platforms."