HOUSTON -- H2O Midstream LLC ("H2O Midstream") announced today the execution of a 15-year acreage dedication and produced water gathering and disposal services agreement with Sinclair Oil & Gas Company, a wholly-owned exploration and production subsidiary of Sinclair Oil Corporation ("Sinclair").
Sinclair entered the Midland Basin with the acquisition of mineral interests covering multiple locations adjacent to H2O Midstream's operations in Howard County, Texas with first production to be online in the first half of 2021. H2O Midstream has begun expansion of their existing 200-mile water gathering, disposal, and recycling network to ensure Sinclair is able to move 100% of their produced water via pipeline, eliminating the need for trucks.
"We appreciate the flexibility and creativity of the Sinclair team as we negotiated the terms of this agreement during an uncertain business climate with commodity prices in flux," stated Jim Summers, Chief Executive Officer of H2O Midstream. "We look forward to supporting Sinclair's development plans in the Permian Basin for years to come".
About H2O Midstream
H2O Midstream was founded on the vision that water should be treated as a commodity, not a waste, and partners with producers, landowners, and other stakeholders to improve the efficiency, reliability and safety of water operations while lowering costs across the entire value chain. Based in Houston with a field office near Big Spring, Texas, H2O Midstream is committed to providing best in class water midstream services to its customers through the use of permanent infrastructure and interconnected gathering, disposal, storage and recycling facilities.
Led by an executive team with over 200 years of collective oil and gas upstream and midstream experience, H2O Midstream owns and operates the Permian's only truck-free, third-party produced water hub and pipeline network consisting of more than 1,000,000 barrels of storage and 560,000 bpd of permitted disposal capacity from 16 owned and 8 third-party SWDs, 40,000 bpd recycling facility, all interconnected via 200 miles of pipeline.
H2O Midstream is funded via a private equity commitment from EIV Capital and co-investments from several of EIV's institutional partners collectively representing more than $100 billion in assets under management. For more information, visit h2omidstream.com.
About Sinclair Oil Corporation
Sinclair is a privately held Wyoming company with executive offices in Salt Lake City, Utah and approximately 2,000 employees across several states. Sinclair Oil & Gas Company is a wholly-owned exploration and production subsidiary of Sinclair Oil Corporation, and manages its E&P portfolios by only participating in major oil and gas development projects in the U.S. For more information, visit SinclairOil.com.