Blackstone Energy Partners Announces Its Partnership with Waterfield Midstream – a Permian Basin Oil and Gas Water Management Platform

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. Since partnering with Blackstone last summer, Waterfield has put together a highly skilled team that brings together upstream and midstream technical expertise with a deep understanding of the subsurface and operating characteristics of the Permian Basin. This expertise positions Waterfield to provide reliable, turn-key services for its customers.

Recently, Waterfield signed a 15-year contract with Guidon Energy (“Guidon”) to construct a new system to handle Guidon’s water gathering and disposal needs across its ~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 (“EagleClaw”) 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.

“We are excited to have partnered with Blackstone,” said Co-CEO Scott Mitchell. “Blackstone shares our vision of developing a long-term and sustainable water business focused on flow assurance in the Permian Basin. We are confident that Waterfield can deliver high quality and cost-effective outcomes for our customers. The opportunity to build Waterfield with the commitment and support of Blackstone’s upstream expertise, capital, industry relationships and successful track record greatly enhances our ability to execute this vision.”

“In addition, we are excited to work with Guidon and EagleClaw,” said Co-CEO Mark Cahill. “They are both exceptional companies with technical expertise, operating excellence, financial discipline and integrity. We believe Waterfield Midstream brings those same qualities to the water management market in the Permian Basin.”

Angelo Acconcia, Senior Managing Director at Blackstone who oversees its upstream investments, said, “Our partnership with Scott and Mark is illustrative of our strategy of enabling and building best-in-class management teams with proven technical and operational expertise. We are excited to work with them to build the leading water management platform in the basin and to provide unique, long-term water solutions of scale to upstream companies in the Permian.”

Erik Belz, Principal at Blackstone, added, “We believe that Waterfield addresses a critical need of producers in the Permian Basin both in terms of infrastructure and quality of service. Waterfield’s subsurface capabilities and engineering track record set it apart from other offerings in the market.”

Blackstone Energy Partners is Blackstone’s energy-focused private equity business, with a successful track record built on our industry expertise and partnerships with exceptional management teams. Blackstone has invested and committed approximately $16 billion of equity globally across a broad range of sectors within the energy industry.