Winston & Strawn LLP served as legal advisor to WaterBridge in connection with the transaction.
WaterBridge Holdings LLC (together with its subsidiaries, “WaterBridge”) entered into a definitive agreement to acquire the Southern Delaware Basin produced water infrastructure of Centennial Resource Production, LLC, a subsidiary of Centennial Resource Development, Inc. (NASDAQ: CDEV) (“Centennial”).
Contemporaneous with closing, WaterBridge and Centennial will enter into a 15-year produced water management agreement at market rates for Centennial’s operated acreage within an extensive area of mutual interest.
The transaction is valued at $225 million, consisting of $150 million in upfront cash and an additional $75 million payable to Centennial over a three-year period based on Centennial achieving certain incentive thresholds. The transaction is subject to certain regulatory approvals and other customary closing conditions, and is expected to close in March 2020.
Upon closing of this transaction, WaterBridge will have over 600,000 acres operated by over 23 blue-chip producers under long-term dedication in the Southern Delaware Basin.
WaterBridge is the largest pure play produced water midstream company in the industry, and a portfolio company of Five Point Energy. Headquartered in Houston, Texas, WaterBridge operates in the Southern Delaware Basin in west Texas and the Arkoma Basin in southeast Oklahoma.
Winston & Strawn team was led by Partner Isaac Griesbaum (Picture), with support from Monica Diddell, Associate, Chris Cottrell, Associate, Alexander Tanner, Associate, John Niedzwiecki, Associate, Andrew Betaque, Partner, Danielle Marr, Associate, Richard Falek, Partner, Conor Reidy, Partner.
Involved fees earner: Andrew Betaque – Winston & Strawn; Christopher Cottrell – Winston & Strawn; Monica Diddell – Winston & Strawn; Richard Falek – Winston & Strawn; Isaac Griesbaum – Winston & Strawn; Danielle Marr – Winston & Strawn; John Niedzwiecki – Winston & Strawn; Conor Reidy – Winston & Strawn; Alec Tanner – Winston & Strawn;
Law Firms: Winston & Strawn;
Clients: WaterBridge Holdings;