Formation of Waterfield Midstream

Kirkland & Ellis LLP advised Blackstone Energy Partners L.P. on the deal

Funds managed by Blackstone Energy Partners L.P. have formed Waterfield Midstream, a full-cycle provider of water management services, including water gathering, treatment, recycling and disposal, to provide solutions to producers in the Permian Basin. Waterfield is Blackstone’s water midstream platform in the Permian Basin and has a $500 million equity commitment to pursue greenfield development and acquisitions of water-related infrastructure, helping producers minimize the environmental impact and operating cost of oil and gas production.

Waterfield is led by Co-Chief Executive Officers Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform. Since partnering with Blackstone last summer, Waterfield has put together a highly skilled team that brings together upstream and midstream technical expertise with a deep understanding of the subsurface and operating characteristics of the Permian Basin. This expertise positions Waterfield to provide reliable, turn-key services for its customers.

Recently, Waterfield signed a 15-year contract with Guidon Energy (“Guidon”) to construct a new system to handle Guidon’s water gathering and disposal needs across its ~40,000 acre position in Martin County, Texas. In Martin County, Waterfield is targeting deeper disposal zones, as opposed to shallow disposal zones, to provide long-term flow assurance and to support optimal drilling conditions for its upstream customers. Additionally, Waterfield has entered into an agreement with EagleClaw Midstream (“EagleClaw”) to operate EagleClaw’s water assets in Reeves County, Texas. These assets consist of 58 miles of gathering lines and 390,000 barrels per day of permitted water disposal capacity.

Kirkland & Ellis LLP advised Blackstone Energy Partners L.P. on the deal with a team including Rhett Van Syoc (Picture), Chad Smith and Kyle Watson and associates Tom Hillebrand, Michelle Williamson and Morgan Moore.

Involved fees earner: Thomas Hillebrand – Kirkland & Ellis; Morgan Moore – Kirkland & Ellis; Chad Smith – Kirkland & Ellis; Rhett Van Syoc – Kirkland & Ellis; Kyle Watson – Kirkland & Ellis; Michelle Williamson – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Blackstone Energy Partners;