Macquarie commits $500m to oilfield water outfit

Published September 13th, 2018

In what is one of the largest single private equity commitments to the US oilfield water midstream market to date, investment firm Macquarie Infrastructure Partners announced this week that it will commit up to $500 million to Oklahoma water midstream outfit Lagoon Water Solutions.

The investment will support the build-out of oilfield water infrastructure to serve producers in Oklahoma’s Anadarko Basin, where Lagoon expects to expand its existing assets by the end of this year to include more than 350,000 bbl/d of disposal capacity and 150 miles of water-gathering pipeline.

Much of the investment flowing into the water midstream space in the US to date has supported firms focused on the Permian Basin, although sustained activity in other oil and gas plays has resulted in a slew of recent deals elsewhere. Last month, PE firm Apollo committed $200 million to Freestone Midstream, which is active in Wyoming’s Powder River Basin.