Lagoon Water Midstream closed on the acquisition of Midland Basin water management company Double Drop Resources LLC on Sept. 20, marking Lagoon’s entry into the Permian.
Founded in 2017 with a small footprint in the northern STACK area, Lagoon has since continued to grow its footprint, including a partnership with Macquarie Infrastructure Partners for a total commitment of up to $500 million. Terms of the Double Drop acquisition weren’t disclosed.
“Lagoon’s acquisition of Double Drop Resources is a key part of our continued growth strategy as we enter the Permian Basin,” Kevin Lafferty, president and CEO of Lagoon Water Midstream, commented in a company release.
In the past year, Double Drop Resources has commissioned three new disposal wells with a fourth under construction, all connected by a large diameter trunkline in Midland and Martin counties, Texas. Additionally, the Double Drop assets are capable of sourcing over 300,000 bbl/d of water for completion operations.
Lagoon stated in the release that it has absorbed all Double Drop employees, will maintain an office in downtown Midland and has near-term plans to add additional disposal and water recycling facilities in the Midland Basin.
John Mahaffey, CEO of Double Drop Resources, added in the release: “I am proud of our dedicated team which has doubled our produced water volumes since January, and we anticipate volumes will double again over the next 12 months. As we enter the next phase of growth, we are excited to join Lagoon and leverage the team’s technical and management experience in sustainable water management.”
With the expansion into a new basin, Lagoon will continue to operate and grow its core footprint in the Anadarko Basin, where the company said its market share has grown rapidly as the rig count in the Midcontinent recovers.
“The strategic decision to have a multibasin presence,” Lafferty said, “strengthens the portfolio and builds upon our platform to sustainably offer full-cycle water management solutions.”
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