Blackstone has announced that funds managed by Blackstone Energy Partners have formed Waterfield Midstream, a full-cycle provider of water management services, including water gathering, treatment, recycling and disposal, to provide solutions to producers in the Permian Basin. Waterfield is Blackstone’s water midstream platform in the Permian Basin and has a $500 million equity commitment to pursue greenfield development and acquisitions of water-related infrastructure, helping producers minimize the environmental impact and operating cost of oil and gas production.
Waterfield is led by co-chief executive officers Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform.
Recently, Waterfield signed a 15-year contract with Guidon Energy to construct a new system to handle Guidon’s water gathering and disposal needs across its roughly 40,000-acre position in Martin County, Texas. In Martin County, Waterfield is targeting deeper disposal zones, as opposed to shallow disposal zones, to provide long-term flow assurance and to support optimal drilling conditions for its upstream customers. Additionally, Waterfield has entered into an agreement with EagleClaw Midstream to operate EagleClaw’s water assets in Reeves County, Texas. These assets consist of 58 miles of gathering lines and 390,000 barrels per day of permitted water disposal capacity.
Blackstone Energy Partners is Blackstone's energy-focused private equity business. Blackstone has invested and committed approximately $16 billion of equity globally across a broad range of sectors within the energy industry.