Produced Water Transfer has announced a strategic financial partnership with Orion Energy Partners LP to grow PWT’s existing midstream platform in the Cotton Valley and Haynesville shale plays. The senior secured credit facility from Orion Energy will provide the capital to support the expansion of PWT’s existing water disposal network in Shelby County, Texas and to fund the acquisition of an existing water gathering and disposal system.
“Our partnership with Orion Energy will provide PWT with a long-term strategic and financial partner who can support the ongoing expansion of our business and our goal to serve the increased needs for sustainable water infrastructure in the Cotton Valley and Haynesville,” said Steven Kent II, PWT’s president and chief executive officer. “The additional water midstream system acquired is synergistic to our existing platform and will offer future organic expansion opportunities.”
Gerrit Nicholas, managing partner of Orion Energy, said: “PWT is a proven developer with an exceptional track record in the Cotton Valley and Haynesville and we are pleased to pursue this new financial partnership in support of their growth. More importantly, providing flexible capital to support PWT’s initial water infrastructure assets is only the beginning of a larger relationship. We look forward to supporting the Company as it creates a leading midstream water platform with a strong foundation and tremendous potential.”
PWT develops, owns, and operates a network of water gathering pipelines and disposal facilities, initially to support natural gas production from the Cotton Valley and Haynesville shale regions. PWT is focused on acquiring, building, and operating water midstream assets, including gathering systems and disposal facilities, which serve the water infrastructure needs of producers.
Shearman & Sterling LLP and Jones Walker LLP acted as legal counsel to Orion Energy. Gray Reed & McGraw LLP acted as legal counsel to PWT.