H2O Midstream – midstream water infrastructure for oil and gas operations

We understand the challenge of water.

Water logistics are a critical area of focus for producers. Water related costs typically comprise between 10%-30% of a well’s up front capital expense and can represent 50% or more of the operating expenses over the life of the well.

For unconventional development in the Permian, 2 to 10 barrels of water are produced alongside each barrel of oil equivalent (BOE). More specifically, in the Midland Basin it’s 2:1 to 5:1 BOE and the Delaware Basin is 3:1 to 10:1 BOE.

Our team works hand in hand with producers to develop comprehensive water management strategies to deal with some of their most acute water challenges.

We understand the operational, financial and organizational challenges that can hinder efficient water management. Collectively, our team brings a successful track record building and operating gas, oil and water infrastructure over the past 35 years.

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We believe in a long-term, partnership approach.

“Legacy made the decision to enter into a long-term relationship with H₂O Midstream to outsource a portion of our produced water needs due to the reliability and efficiency of their water hub infrastructure and interconnected water gathering system. We expect this agreement to improve our full-cycle water costs, reduce our environmental footprint, and promote safety.”
– Dan Westcott, Legacy’s President and Chief Financial Officer

We create long-term value by offering unique and customized contracting structures and operational approaches to address complex water related challenges.

H₂O Midstream prides itself on honest, straightforward and equitable relationships with all of our customers, partners and vendors. Whether a producer is seeking a midstream partner to manage produced or flowback water from ‘source to sink’ or wants to retain operational control over its water infrastructure under a flexible capital arrangement, H₂O Midstream can tailor the appropriate structure to meet their individual goals and achieve a win/win solution.

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We utilize midstream best practices for safety, operational excellence and environmental compliance.

Safe, reliable and environmentally sound operations are our top priority. Based on decades of industry experience, H₂O Midstream has developed best practices for water which parallel those utilized by best in class midstream operators for hydrocarbons.

Key elements of these best practices include:

Comprehensive pipeline maintenance programs, including pressure and integrity testing, corrosion protection, leak detection, regular pipeline maintenance and pigging
Ongoing outreach and education for landowners and other local stakeholders
Compliance with all state and federal requirements and industry standards

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Data Sources:

CapEx and OpEx percentages and water to oil ratios for Permian and Eagle Ford obtained from DigitalH₂O. Injury statistic was drawn from the Manhattan Institute’s June 2013 Issue Brief on Pipeline Safety.