Texas-based private equity firm Five Point Capital Partners announced the formation and funding of WaterBridge Resources, LLC, with an equity commitment of up to $200 million.
WaterBridge is a brand new startup which will develop, acquire and manage water infrastructure for upstream oil and gas energy producers, and will pursue brownfield and greenfield development and acquisition opportunities in conventional and emerging resource plays throughout North America.
The startup is led by its founding principals: Stephen Johnson, CEO, and Andrew (Andy) Stephens, CFO. Messrs. Johnson and Stephens have demonstrated track records of success, with over 75 years of collective industry experience across the energy value chain, including operating expertise within the upstream, midstream and oilfield service sectors.
“With Five Point’s financial support and our collective midstream experience, we look forward to capitalizing on opportunities to develop, acquire and manage strategic infrastructure in the sector,” said Johnson.
“We are proud to partner with Steve and Andy, two highly regarded energy executives with vast experience and long-standing relationships with producers and other stakeholders in the energy supply chain,” said Matt Morrow, COO and managing partner of Five Point.
The oil industry is commonly categorized and identified by the three energy markets of upstream, midstream and downstream. The midstream sector involves the processing, transportation, storage, and wholesale marketing of crude or refined petroleum products, natural gas and natural gas liquids. Pipelines and other transport systems can be used to move crude oil from production sites to refineries and deliver the various refined products to downstream distributors. Natural gas pipeline networks aggregate gas from natural gas purification plants and deliver it to downstream customers, such as local utilities. The midstream sector of the oil industry has a major economic impact on a varied array of people, companies, and even countries worldwide. It is a huge, vital sector which handles one of the most difficult logistical challenges in the world.
Technological advancements in hydraulic fracturing and horizontal drilling techniques have enabled the industry to economically produce shale reserves of crude oil and natural gas. The exploitation and development of these new shale producing basins has resulted in North American crude oil and natural gas production growth. Oil and gas production growth creates a need for new energy infrastructure to bring new production from new shale wells to end markets, according to Five Point.
“Over the next 20 years, over $500 billion will be spent to build new midstream systems, as well as to expand, debottleneck and repair legacy infrastructure. Five Point will seek to construct, develop, acquire and expand crude oil, natural gas, natural gas liquids and water infrastructure assets connecting shale producing regions to demand markets,” says Five Point. The firm is seeking to construct, develop, acquire and expand crude oil, natural gas, natural gas liquids and water infrastructure assets connecting shale producing regions to demand markets
WaterBridge Resources is a midstream development company focused on developing, acquiring and operating flowback and produced water infrastructure for oil and gas producers, including gathering, pipeline infrastructure, separation, and disposal infrastructure solutions. WaterBridge was founded by Stephen Johnson and Andy Stephens, in partnership with Five Point Capital Partners.
Johnson previously served as president and COO at Nabors Well Services Inc., a leading production services, completion services and fluids management business, until Nabors Completion & Production Services Co.’s (NCPS) $2.9 billion merger (initial transaction value) with C&J Energy Services, Inc. He previously served as co-founder, president and COO of Stonegate Production Co., an independent E&P company that was an early entrant and led the development of the Eagle Ford shale.
Stephens previously served as VP Finance at NCPS. In addition, he brings a depth of leadership experience gained while holding senior financial and commercial executive roles with Halliburton and Tetra Technologies.
Five Point Capital Partners is a private equity firm focused on midstream energy infrastructure and energy sector investments across North America. Its investment strategy is to partner with, develop and support strong management teams through buyouts and growth capital investments within the midstream energy sector. Based in The Woodlands, Texas, Five Point is currently investing from Five Point Capital Midstream Fund II L.P. and manages more than $450 million of capital commitments.