Blackbuck Resources LLC on Oct. 1 closed the acquisition of water infrastructure assets from Cimarex Energy Co. in the Permian Basin, where the Houston-based water management company focuses.
The acquisition, which comprised of Cimarex Energy’s Whites City water infrastructure in New Mexico’s Eddy County, significantly grows Blackbuck’s platform in the Delaware Basin, Blackbuck CEO Justin Love said.
“This investment represents another significant milestone for Blackbuck, further validating our unique value proposition and industry-leading platform,” Love said in a statement.
The acquired Whites City assets include approximately 65 miles of pipeline and 100,000 bbl/d of installed and permitted disposal capacity. Terms of the transaction weren’t disclosed.
As part of the sale, Cimarex also agreed to a 15-year acreage dedication in the Whites City area. The agreement encompasses more than 40,000 acres, for the gathering, disposal and recycling of its produced water.
“We are excited to establish long-term alignment with Cimarex, a company which continues to demonstrate and build on its strong reputation as a thought leader in our industry,” Love added in his statement.
Kirkland & Ellis LLP served as legal advisers to Blackbuck Resources on the transaction. Blackbuck is backed by private equity sponsor Cresta Funds Management.
Check out Blackbuck Resources CEO Justin Love’s recent interview with Hart Energy.
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