HydroEdge Solutions has combined with RES Water to create a full-cycle water management platform serving natural gas producers across the Marcellus and Utica shale regions.
WET Tech, the newly formed parent company of HydroEdge, acquired Reserved Environmental Services and its affiliated operating companies.
Financial terms were not disclosed.
The combined platform spans pipeline and on-pad water management, hauling, treatment, recycling and storage across Pennsylvania, Ohio and West Virginia.
The business has approximately 350 employees and operates five water treatment, recycling and storage facilities across Pennsylvania.
Those facilities provide roughly 700,000 barrels of water storage capacity and as much as 116,000 barrels per day of combined processing capacity.
The platform also operates an automated transfer and trucking network designed to provide coverage throughout the Appalachian Basin.
By combining HydroEdge’s technology and logistics capabilities with RES Water’s storage infrastructure, the company plans to offer natural gas producers a single provider across both completion and production water requirements.
Management expects the integration to reduce customers’ total cost per barrel through improved routing and fewer trucking miles.
The combined operation also plans to improve service reliability through around-the-clock facility and fleet coverage.
Environmental initiatives include increasing reuse of produced water, reducing freshwater withdrawals and lowering transportation-related emissions.
Management sees additional growth opportunities through infrastructure investments, bolt-on acquisitions and potential extraction of minerals from produced water.
The acquisition was financed through a senior secured credit facility arranged by Atlantic Union Bank Capital Markets.
Atlantic Union Bank is serving as administrative agent and sole lead arranger, with EagleBank and Dollar Bank participating as lenders.
The facility financed the acquisition and provides additional capacity for future growth.
KEY QUOTES:
“We are thrilled to be working with Matt Kicinski and the entire RES team. The basin has seen firsthand how consolidation on the E&P side has strengthened the operators working here. This transaction creates the platform to do the same in energy services, and we will continue to pursue both organic and acquisitive growth across Appalachia.”
Matt Brewer, Chief Executive Officer of the Combined Company and Co-Founder of HydroEdge
“This transaction is a testament to the business our team has built as the basin’s leader in water storage infrastructure. Incorporating HydroEdge’s technology and logistics capabilities into that footprint creates immediate opportunities for the combined business and for the operators we serve.”
Matt Kicinski, President of the Combined Company
