racewell LLP represented COG Operating LLC, a subsidiary of Concho Resources Inc. on the deal
Concho Resources Inc. (NYSE: CXO) and Solaris Water Midstream, LLC completed the formation of a strategic joint venture focused on optimizing produced water logistics at scale in the Northern Delaware Basin. The joint venture includes a long-term produced water management agreement between Concho and Solaris Water.
Under the terms of the agreement, Solaris Water will manage Concho’s produced water gathering, transportation, disposal and recycling for an area covering approximately 1.6 million acres located primarily in Eddy County, New Mexico. Concho will contribute 13 salt water disposal wells and approximately 40 miles of large-diameter produced water gathering pipelines in exchange for cash and an equity ownership in Solaris Midstream Holdings, LLC, the parent of Solaris Water.
The assets contributed by Concho will be incorporated into Solaris Water’s growing integrated Pecos Star System, which currently includes more than 300 miles of large-diameter gathering pipelines, more than 500,000 barrels per day of disposal capacity, storage and recycling facilities and water supply pipelines that serve nearly 20 oil and gas operators. This high-capacity water infrastructure network brings significant scale to producers that lowers operating and well completion costs while providing environmental benefits such as reduced truck traffic and less reliance on brackish or fresh water supplies. Solaris Water will deliver to Concho blended reuse source water, enabling a significant increase in the use of recycled water in Concho’s operations.
Bracewell advised with a team including W. Cleland Dade (Picture), Lytch T. Gutmann, Dale D. Smith, Elizabeth L. McGinley, Steven J. Lorch, Aaron P. Roffwarg, Daniel E. Hemli, Timothy A. Wilkins, Tamara L. McKinzie, Jacqueline R. Java, Catherine B. Engell and W. Jared Berg.
Involved fees earner: Jared Berg – Bracewell; Cleland Dade – Bracewell; Catherine Engell – Bracewell; Lytch Gutmann – Bracewell; Daniel Hemli – Bracewell; Jacqueline Java – Bracewell; Steven Lorch – Bracewell; Elizabeth McGinley – Bracewell; Tamara McKinzie – Bracewell; Aaron Roffwarg – Bracewell; Dale Smith – Bracewell; Timothy Wilkins – Bracewell;
Law Firms: Bracewell;
Clients: Concho Resources Inc.;