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XRI Holdings Acquires Water Infrastructure in the Permian Basin


Full-cycle water management and midstream company XRI Holdings LLC today announced the expansion of its footprint through the acquisition of Celtic Disposal LLC. Accordingly, XRI will now leverage the expertise of the produced water infrastructure subsidiary of privately held Permian Basin operator Hibernia Energy III LLC.

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Moreover, through this acquisition, XRI will become the long-term provider of all water-related services to Hibernia. In fact, these services include delivery of water and handling of produced water.


According to XRI CEO Matthew Gabriel; “Hibernia’s produced water assets directly overlay XRI’s existing midstream infrastructure and recycling assets in the Midland Basin.”  

Additionally, Gabriel stressed in a statement that the Midland Basin is; “an area where XRI (already) has significant operating expertise and deep customer relationships. Thus, these elements will support further commercialization of the acquired produced water infrastructure assets.”

Similarly, Embry Canterbury, CEO of Hibernia, commented in a release; “The direct tie-in to XRI’s existing Midland Basin midstream infrastructure and recycling assets is something that we’re very excited about.”

Moreover, “the combination of veteran operations teams and high-quality resources; will further support our operational plans to recycle more than 185 million barrels of water in the Permian Basin this year;” Canterbury added.  

Accordingly, Hibernia’s CEO stressed that the disposition of the Celtic infrastructure assets to XRI would also support the development of Hibernia’s acreage position in the Midland Basin.

About XRI, Hibernia and Celtic

Worth noting, XRI’s full-cycle water management, and midstream company is backed by Morgan Stanley Energy Partners. Thus far, the company operates over 350 miles of permanent pipelines throughout the Permian Basin. Particularly, it has aggregated system capacity to run approximately 1.25 million bbl/d.

Remarkably, the acquisition of Celtic Disposal from Hibernia will also enable XRI to capture significant third-party opportunities in the Midland Basin area.

On the other hand, Celtic was formed in 2019 to serve the saltwater disposal needs of both Hibernia and other operators in the Midland Basin. Thus far, Hibernia has 35,000 gross (33,000 net) acres in Reagan and Upton counties, Texas.

According to the release, the company was able to sign this agreement due to a supportive equity sponsor, low leverage, a veteran operations team, and a deep inventory of highly economic drilling locations.

Finally, the companies commented Sidley Austin LLP provided legal counsel to XRI on the transaction. Also, Baker Botts LLP was Hibernia’s legal counsel.

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