Bison does yet another deal to handle water for an exploration and production company active in Oklahoma
Bison continues to soak up water infrastructure systems.
The Oklahoma City-based company announced Thursday it has agreed to buy Gulfport Energy Corp.’s water handling assets in the SCOOP play of the Anadarko Basin. While Bison didn’t disclose a purchase price, Gulfport announced it had sold the system for $50 million.
Both parties also announced Gulfport could earn additional revenue related to the sale (Gulfport indicated as much as another $50 million) if the exploration and production company meets future development and water production level guideposts within the field.
Simultaneously, Bison announced it and Gulfport also entered into a 15-year agreement where Bison will exclusively manage all of Gulfport's water gathering, recycling, storage, reuse, disposal, transportation, logistics and sourcing needs within a dedicated area across Grady, Garvin and Stephens counties.
Specifically, assets involved in the sale include a multiline water gathering and delivery system, 2.3 million barrels of storage capacity, 40,000 barrels per day of recycling capacity, 55,000 barrels per day of freshwater supply capacity, associated real property and a pending saltwater disposal permit.
Officials expect the deal to close in January.
"Today's announcement is another major milestone for our company, which has grown exponentially throughout the year and now serves over 12 exploration and production customers dedicated to our infrastructure under long-term agreements,” Bison CEO North Whipple said.
“In addition to serving Gulfport's development for the next 15 years, these assets will allow us to bring new recycling and reuse solutions to our customers throughout the SCOOP."
Bison’s deal with Gulfport is the latest in a series it recently has announced. In October, it announced it had reached a deal to exclusively manage all of Chaparral's produced water logistics across a dedicated area of the STACK and SCOOP plays that involve about 1.9 million acres covering parts of Canadian, Grady and Blaine counties, and that it had acquired other water handling assets from and had executed a water handling agreement with Tapstone Energy in the northwest portion of the STACK play.
In September, it announced a 15-year water handling agreement it had reached with Houston-based Paloma Operating Co. and its affiliates for areas Paloma operates within inside the STACK play. In August, Bison announced it has acquired Overflow Energy's water infrastructure, permits and development plans that it held in the SCOOP and Merge plays.
And in July, it announced it had entered a 15-year deal with Marathon Oil Co. to handle its produced water operations in the Anadarko Basin.
Other Gulfport news
Gulfport also announced Thursday it had agreed to sell non-operated interests in the Utica Shale for about $29 million in cash in a transaction it expects to close before the end of this year.
Plus, company officials stated in the announcement that it had repurchased $85.6 million of unsecured senior notes for $60.1 million in cash during the final quarter of the year, bringing the total amount of unsecured senior notes repurchased in 2019 to $190.1 million at a total discount of $49.6 million.