Lagoon Water Midstream announced Monday that it has closed on the acquisition of Double Drop Resources, a water management company located in the Midland Basin.
With ongoing support from Macquarie Infrastructure Partners, this acquisition significantly expands Lagoon’s operations and establishes it as a multi-basin water management company with a presence in the heart of the Permian. Lagoon stated in the announcement that it has absorbed all Double Drop employees, will maintain an office in downtown Midland, and has near-term plans to add additional disposal and water recycling facilities in the basin.
“Lagoon’s acquisition of Double Drop Resources is a key part of our continued growth strategy as we enter the Permian Basin. The strategic decision to have a multi-basin presence strengthens the portfolio and builds upon our platform to sustainably offer full-cycle water management solutions,” said Kevin Lafferty, President and CEO of Lagoon Water Midstream.
As the company expands into a new basin, it will continue to operate and grow its core footprint in the Anadarko Basin, where the company’s market share has grown rapidly as rigs continue returning to the Mid-continent.
In the past year, Double Drop Resources has commissioned three new disposal wells with a fourth under construction, all connected by a large diameter trunkline in Midland and Martin Counties. Additionally, the Double Drop assets are capable of sourcing over 300,000 barrels per day of water for completion operations, and Lagoon plans to invest in continued growth of its sourcing capability by installing recycling facilities.
John Mahaffey, CEO of Double Drop Resources stated, “I am proud of our dedicated team which has doubled our produced water volumes since January, and we anticipate volumes will double again over the next 12 months. As we enter the next phase of growth, we are excited to join Lagoon and leverage the team’s technical and management experience in sustainable water management.”
“Lagoon has established itself as a leading water management company in Oklahoma. We are excited to bring to the Midland Basin our track record of customer support, industry-leading safety culture and performance, and operational excellence,” said Caitlyn Jackson, Chief Commercial Officer. “This acquisition is a significant and positive step for Lagoon by not only expanding our operational footprint but also increasing our role in the stewardship of water resources.”