Devon Energy subsidiary and WaterBridge NDB form strategic partnership

WaterBridge NDB, a portfolio company of Five Point Energy, announced the formation of NDB Midstream, a strategic partnership with WPX Energy Permian, a subsidiary of Devon Energy. The partnership between two technical leaders, WaterBridge NDB within the produced water handling sector and Devon with 50-plus years of innovation in oil and gas, yields the largest private water infrastructure system in the prolific Stateline region of the Delaware Basin in Loving County, Texas and Lea and Eddy counties in New Mexico. In connection with the transaction, Devon and NDB Midstream entered into a long-term agreement pursuant to which Devon has committed all of its produced water within a large area of mutual interest, including an initial dedication of ~52,000 acres, and contributed to NDB Midstream 18 SWDs with ~375,000 bpd of permitted capacity and ~210 miles of produced water pipelines for gathering, transportation, disposal and reuse. As part of the transaction, Devon received a 30% equity interest in NDB Midstream as well as a commitment by Five Point to fund a portion of the initial build of the system expansion. Latham & Watkins and Winston & Strawn served as legal counsel to WaterBridge NDB and White & Case served as legal counsel to Devon.