H2O Midstream Sells Midland Basin Water Midstream Assets to Delek Logistics
August 06 2024 - 4:30PM
Business Wire
H2O Midstream, LLC (“H2O Midstream”) and EIV Capital, LLC (“EIV
Capital”) are pleased to announce the execution of definitive
agreements for the sale of H2O Midstream to Delek Logistics
Partners, LP (NYSE: DKL) (“Delek Logistics”). H2O Midstream
provides gathering, transportation, recycling, storage, and
disposal solutions for produced water in Howard County, Texas.
“The acquisition of H2O Midstream by Delek Logistics creates a
fully integrated multi-commodity midstream platform in the Midland
Basin and represents the realization of our vision that produced
water can be managed as a true midstream business,” said Jim
Summers, co-founder and CEO of H2O Midstream. “This successful
eight-year venture was only possible thanks to the incredible
support and partnership of EIV Capital and the professionalism and
dedication of all H2O Midstream management and employees, who
represent some of the best this industry has to offer. I am excited
to welcome this new era for oilfield water management under the
capable leadership of Delek Logistics.”
EIV Capital and H2O Midstream partnered in 2016 to pursue
produced water midstream opportunities in the Permian Basin.
Through greenfield development, organic growth and the integration
of several strategic acquisitions, H2O Midstream developed a system
comprised of 250+ miles of buried pipe, ~4 million barrels of owned
and third-party storage, and access to over 900,000 barrels per day
of owned and third-party disposal capacity across a ~400 square
mile footprint.
“We valued the opportunity to partner with the H2O Midstream
team as they executed a vision to build a leading water midstream
platform in the Midland Basin,” said David Finan, Managing Partner
of EIV Capital. “We’d like to thank Jim Summers and the entire H2O
Midstream team for their hard work and dedication.”
Latham & Watkins served as legal counsel to H2O Midstream in
connection with the transaction.
About H2O Midstream, LLC
Based in Houston, Texas, with a field office near Big Spring,
Texas, H2O Midstream is committed to reducing the cost of water for
producers and improving environmental and safety conditions through
the use of permanent infrastructure and interconnected gathering,
disposal, storage and re-use facilities. H2O Midstream is funded
via a private equity commitment from EIV Capital and co-investments
from several of EIV Capital’s institutional partners. For more
information, visit www.H2Omidstream.com.
About EIV Capital, LLC
Founded in 2009, EIV Capital is a Houston, Texas-based private
equity firm specializing in providing growth equity to the North
American energy industry. EIV Capital focuses on investments in
businesses which create value through infrastructure, innovation or
efficiency. The firm’s management has extensive experience leading
and investing in successful companies across the energy value
chain. For more information, visit www.eivcapital.com.
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Meredith Hargrove Howard Redbird Communications Group
210-737-4478 meredith@redbirdpr.com