Ownership of Oilfield Water Logistics LLC (OWL), a midstream water infrastructure company with a leading position in the Permian Basin, changed hands in late October.

In a joint release on Oct. 28, InstarAGF Asset Management Inc., an alternative asset management firm based in Toronto, Ontario, said it had acquired OWL from affiliates of Natural Gas Partners LP (NGP). The terms of the transaction were not disclosed.

NGP helped form OWL in 2014 to acquire, develop and manage water-related and other oilfield fluids infrastructure and services in the energy industry. The value of NGP’s equity commitment in OWL was not disclosed. OWL had also secured a $250 million credit facility with Texas Capital Bank in January 2015.


“Hooking Up The Oil Patch’s Water Value Chain” featured in the October 2018 issue of Oil and Gas Investor.

Through the partnership with the Dallas-based private-equity firm, OWL grew its water footprint, both organically and through A&D, across Texas, New Mexico, Colorado, Utah and Wyoming.

OWL first established its position in the Permian Basin through a series of acquisitions that included deals in 2014 with AggieTech Operating LLC and GP II Energy Inc. The company later expanded into Colorado, Utah and Wyoming through the acquisition of water infrastructure assets from WestWater Energy in November 2014.

Currently, OWL owns and operates the largest commercial produced water gathering and transportation system in the Northern Delaware Basin, according to the company press release.

The company, which has offices in Midland, Denver and Dallas, also has operations in the Haynesville/Cotton Valley, Powder River, Niobrara, Denver-Julesburg, Uinta and Piceance basins.

OWL’s management team will invest in and continue with the business, the release said.

“InstarAGF shares our commitment to safety, quality, sustainability and customer service, and is the ideal partner to help elevate and expand our platform, support North American producers and maintain best practices within the energy sector,” Chris Cooper, president and CEO of OWL, said in a statement.

InstarAGF invests in mid-sized essential infrastructure businesses in North America in the energy, utilities and civil infrastructure sectors, including high quality energy and midstream service providers, aviation infrastructure, district energy, renewable energy, and specialty ports and logistics businesses, among others, and seeks to add value and support growth with an emphasis on best-in-class responsible operations and service.

Commenting on the acquisition, Jonathan Stone, partner at InstarAGF, said the firm is delighted to partner with OWL to address water management demands E&P companies are increasingly facing.

“This is a unique opportunity to invest alongside a proven, strongly aligned management team to execute the next phase of OWL’s growth strategy,” Stone said in a statement.

InstarAGF was advised by Scotiabank and King & Spalding LLP on the transaction. OWL was advised by Morgan Stanley & Co. LLC and Thompson & Knight LLP.