Casillas Petroleum Resource Partners And Energy Water Services Announce Formation Of Woody Creek Midstream
Tulsa, OK and Oklahoma City, OK /PRNewswire/ – Casillas Petroleum Resource Partners, LLC (“Casillas”), a portfolio company of Kayne Anderson Energy Funds (“Kayne Anderson”), and Energy Water Services, LLC (“EWS”), a water infrastructure company owned by Halmos Capital Partners (“Halmos”), announce a partnership to jointly form Woody Creek Midstream (“Woody Creek”), a midstream company focused on providing water management services to producers in the SCOOP.
Woody Creek has initiated construction of over 25 miles of wastewater gathering pipeline in Garvin and McClainCounties, Oklahoma. Upon completion in the fourth quarter of 2019, the system will connect to 60,000 barrels per day of permitted water disposal capacity owned and operated by EWS. In 2020, Woody Creek expects to expand the trunk line to tie into a total of 130,000 barrels per day of permitted EWS water disposal capacity.
Woody Creek and EWS have signed a long-term contract to handle all of Casillas’ wastewater transportation and disposal needs across its ~56,000 net acres in the SCOOP. Additionally, Woody Creek intends to expand services to other operators in the SCOOP to transport and dispose of wastewater.
“The formation of Woody Creek Midstream is very accretive to our valuable asset in the SCOOP,” said Casillas Petroleum Resource Partners CEO, Greg Casillas. “As Casillas moves forward with our full development phase, this midstream investment will allow us to increase our margins through an economically advantageous water disposal system. In addition to Casillas’ operations, Woody Creek’s footprint is suited to allow several other companies operating in the SCOOP access to the system to handle their disposal needs. The complex has been designed to manage a significant amount of wastewater volume safely and efficiently while protecting the surrounding communities and environment.”
“We are excited to partner with Casillas to build the primary water gathering infrastructure in the SCOOP,” said Andrew Cohan, Chief Executive Officer of EWS and Founder of Halmos. “This transport system, combined with EWS’s disposals, will allow all producers in the SCOOP to handle their wastewater safely and cost effectively.”
Daniel Adan, Chief Financial Officer of EWS and Partner at Halmos, added, “Our partnership with Greg and the team at Casillas is illustrative of our strategy of collaborating with best-in-class management teams to build unique platforms.”
Headquartered in Tulsa, Oklahoma, Casillas is a private exploration and production company committed to the further development of onshore domestic oil and gas reserves through exploration and development of drilling projects as well as acquisitions of existing producing assets within the Mid-Continent region. Casillas Petroleum Corp. has been engaged in the oil and gas industry since 1986.
About Kayne Anderson
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on energy, infrastructure, real estate, credit, and growth equity. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne manages approximately $30 billion in assets (as of 6/30/2019) for institutional investors, family offices, high net worth and retail clients and employs 350 professionals in five offices across the U.S.
Through Kayne Anderson Energy Funds (“KAEF”), the firm has raised over $7.3 billion of committed capital dedicated to private equity investments in primarily upstream and midstream oil and gas companies. Currently, KAEF has 25 active portfolio companies focused on upstream and midstream oil and gas assets across North America.
About Energy Water Services
Energy Water Services is a leading provider of wastewater logistics services in the SCOOP. EWS operates through its Kybenco Disposals, LLC and Advantage Oilfield Services, LLC subsidiaries to provide a range of services to the oil and gas industry including water disposal, trucking, and pipeline operations.
About Halmos Capital Partners
Halmos Capital Partners, LLC is a private equity firm focused on partnering with best in class management teams to build companies in niche markets. Halmos strives to generate attractive returns through opportunistic situations with an operational focus. Specifically, Halmos’ goal is to transform small capitalization, entrepreneurial businesses into institutional platforms positioned for continued growth. Halmos’ open mandate allows it to deploy capital without the constraints of traditional private equity funds.
SOURCE: Halmos Capital Partners, LLC
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