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July 30, 2020MMMM d, yyy Q2 2020 Earnings Presentation
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Press Release Details

Solaris Water Midstream Expands Water Infrastructure Joint Venture with Concho Resources

07/29/2020

Trilantic North America, Yorktown Partners, HBC Investments and management increase their equity commitments to Solaris Water Midstream.


HOUSTON – July 29, 2020 – Solaris Water Midstream, LLC ( “Solaris Water”) announced today the company has expanded its existing joint venture with Concho Resources Inc. (NYSE: CXO) (“Concho”).

Solaris Water and Concho have extended and increased the scope of their long-term produced water management agreement, which previously covered all of Concho’s acreage in Eddy County, New Mexico, to also include all of Concho’s acreage in Lea County, New Mexico. Under the terms of the agreement, Solaris Water now manages Concho’s produced water gathering, transportation, disposal and recycling for a 2.3 million-acre area of mutual interest located in Eddy and Lea counties in New Mexico.

With  the  completion  of  this  transaction  last  month,  Solaris  Water  took  ownership  of  nine  additional saltwater  disposal  wells  and  approximately  80  additional  miles  of  existing  large-diameter  produced water gathering pipelines from Concho. Solaris Water’s infrastructure in the northern Delaware Basin now includes more than 500 miles of high-capacity water pipelines in service or under construction, over 1  million  barrels  per  day  of  disposal  capacity,  more  than  2.2  million  barrels  per  day  of  additional permiaed disposal capacity and 500,000 barrels per day of water treatment and recycling capacity. The integrated  system  spans  approximately  1  million  acres  in  Eddy  and  Lea  counties  in  New  Mexico  and Culberson, Loving and Reeves counties in Texas. The system currently serves 24 oil and gas producers, including Concho.


From Concho

“This  new  agreement  provides  a  comprehensive  water  solution  for  our  northern  Delaware  Basin footprint and advances our water recycling efforts,” said Concho President Jack Harper. “We are excited to broaden our partnership with Solaris Water to include effective water management solutions in Lea County, New Mexico.”


From Solaris Water

“The growth of Solaris Water’s relationship with Concho provides us with a long-term partner and the scale to continue to provide effective water management services for our customers across the entire northern Delaware Basin, including the rapidly increasing use of our extensive infrastructure for water treatment and recycling for water reuse.“ said Solaris Water Chief Executive Officer Bill Zartler.

 

“The Solaris Water team has proven its ability to deliver complete, integrated water management solutions to the industry, including large-scale produced water recycling.  We are excited to work with all our customers, including Concho, as we identify and implement sustainable water solutions that support our customer’s needs,” said Solaris Water Chief Operating Officer and Chief Commercial Officer Amanda Brock.


Sponsors Increase Equity Commitments

In  conjunction  with  the  new  transaction  with  Concho,  Solaris  Water’s  private  equity  sponsors  and management have increased their capital commitments to the company. Additional commitments from funds sponsored by Trilantic Capital Management L.P. (“Trilantic North America”), Yorktown Partners, LLC (“Yorktown”),  HBC  Investments  and  Solaris  Water  management  will  be  used  to  support  the  continued expansion of  Solaris Water’s infrastructure systems in New Mexico and Texas.


“On behalf of Trilantic North America, Yorktown, HBC Investments and the rest of the investor group, I am delighted to join Yorktown’s Founding Partner Howard Keenan and HBC Investments Founding Partner Joe Colonneaa to announce an increase in our equity capital commitments to Solaris Water Midstream,” said Trilantic North America Managing Partner Christopher Manning. “Since we partnered with management to start the business in 2016, Solaris has become one of the leading water solutions providers in the U.S. by building a “cradle to grave” water infrastructure system in the core of the Delaware  Basin.  With  this  additional  capital,  the  team  will  be  able  to  take  advantage  of  a  number  of compelling  organic  and  inorganic  opportunities  that  we  see  in  an  otherwise  challenging  business environment.”


About Solaris Water Midstream, LLC

A wholly owned subsidiary of Solaris Midstream Holdings, LLC, Solaris Water is an independent, growth- oriented company based in Houston with offices in Midland, Texas, and Carlsbad, New Mexico. Solaris Water owns, operates and designs crucial water infrastructure assets across the Permian Basin. Solaris Water currently operates cost-effective, efficient and reliable produced water gathering, transportation, disposal, recycling and storage infrastructure and frac-water sourcing and infrastructure in the Midland and Delaware basins. For more information on Solaris Water please visit www.solarismidstream.com.


About Concho Resources Inc.

Concho  Resources  (NYSE:  CXO)  is  one  of  the  largest  unconventional  shale  producers  in  the  Permian Basin,  with  operations  focused  on  safely  and  efficiently  developing  and  producing  oil  and  natural  gas resources. We are working today to deliver a beaer tomorrow for our shareholders, people and communities. For more information about Concho, visit www.concho.com.


Media Contacts:

For Solaris Water Midstream For Concho Resources
Casey Nikoloric
Managing Principal, TEN|10 Group
303.433.4397 x 101 o
303.507.0510 m
casey.nikoloric@ten10group.com
Megan P. Hays
Vice President of Investor Relations & Public Affairs
432.685.2533 o

MEDIA
Mary T. Starnes
Manager of Public Affairs & Corporate Responsibility Strategy
432.221.0477 o

Concho Resources Inc. is an independent exploration and production company engaged in the acquisition, development and exploration of oil and natural gas properties. Concho’s operations are concentrated in the Permian Basin of Southeast New Mexico and West Texas.