Pilot Water Solutions and Oilfield Water Logistics have announced a new partnership, merging the two businesses to create the premier water midstream operator in the Northern Delaware Basin. The significantly scaled water midstream company will be led by members of PWS's executive leadership and OWL's management team, with operations continuing under the PWS brand.
"This partnership furthers our goal of becoming the most reliable water midstream, reuse and recycling company in the United States," Anuj Sharma, CEO of PWS, stated. "Bringing together our complimentary systems will extend our best-in-class service to producers across the Northern Delaware Basin and offer increased reach, reliability, and capacity in seismically quiet areas of the basin. Additionally, our expansive combined footprint will enable us to reliably meet our customers' growing recycling needs in New Mexico."
Together, PWS will have a nationwide footprint of 129 saltwater disposal wells, 850 miles of pipelines, 2.5 million barrels of water per day of disposal capacity, and 34 source, recycling, and evaporation facilities across the Permian, Eagle Ford, Marcellus, Utica, Haynesville, and Rockies.
"We are delighted to partner with a team that shares our commitment to safety, quality, sustainability and customer service," said Todd Abbott, Executive Chair of OWL. "Through the combined strength of our new platform, we are well-positioned to meet the challenges of rising produced water volumes and to provide enhanced value for our customers."
Scotiabank acted as an exclusive financial advisor to PWS. Bracewell LLP acted as legal advisor to PWS. Truist Securities, Inc. acted as exclusive financial advisor to OWL. King & Spalding LLP acted as legal advisor to OWL.
The transaction is expected to close in the third quarter of 2022, following the completion of regulatory review.
