Porter Hedges Represents WaterBridge Resources LLC in its $200 Million Acquisition of Water Infrastructure Assets from Halcón Resources Corporation

Firm News
12.21.2018

Porter Hedges represented WaterBridge Resources LLC (together with its subsidiaries, “WaterBridge”) in the acquisition of existing water infrastructure assets from Halcón Resources Corporation (“Halcón”). The assets are located in Pecos, Reeves, Ward, and Winkler counties, Texas. Details of the transaction include:

  • $200 million in cash at closing, subject to customary closing adjustments, with up to an additional $25 million per year in each of the next five years based on the achievement of certain development thresholds by Halcón
  • Acquisition of ~60 miles of water gathering pipelines, ten disposal wells with total permitted capacity of 120,000 bpd, freshwater wells and water recycling facilities
  • 15-year produced water dedication for Halcón's existing ~75,000 gross acre position and any additional acreage within a ~209,000 acre area of mutual interest ("AMI")
  • 15-year water supply agreement pursuant to which WaterBridge will be Halcón's sole supplier of fresh and recycled water for drilling and completion operations within the AMI

WaterBridge Resources LLC is a portfolio company of Five Point Energy that develops, owns and operates permanent, integrated water infrastructure networks to address the long-term produced water management requirements of E&P companies.

Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.

For additional information, please see the WaterBridge press release here.