Layne Water Midstream Holdings LLC (LWM), which provides upstream Permian Basin operators with full-cycle water services, has obtained $200 million in private equity (PE) commitments to expand services.
Houston-based Post Oak Energy Capital LP and Genesis Park LLC, through investment partnerships each one manages, led the commitment to fund growth. The LWM management team invested alongside the two PEs.
“Through our upstream investments in the Permian and our crude infrastructure buildout at Oryx Midstream, we recognized the immediate and growing need for integrated water infrastructure and are fortunate to be partnering with the experienced executives at LWM,” Post Oak managing director Frost Cochran said.
Earlier this month, Post Oak and Quantum Energy Partners agreed to sell most of Oryx Midstream Services assets to Stonepeak Infrastructure Partners. LWM, which began its Permian operations in 2017, provides water sourcing, gathering, disposal and recycling infrastructure and services in the Delaware and Midland sub-basins.
LWM began as a subsidiary of Layne Christensen Co. and merged with Granite Construction Inc. in 2018. It said it now has a footprint of more than 1 million barrels/day of water sourcing, gathering and disposal capacity that is online, under construction and in various stages of the permitting process.
LWM also has water infrastructure partnerships in the Permian with the State of Texas General Land Office on its 88,000 acre position in Reeves and Culberson counties, and with the State of Texas University Lands organization on its 160,000 acre position in Loving, Ward and Winkler counties.