Hibernia divests Water Infrastructure Asset

by: BusinessWire - May 27, 2021 08:00 AM Eastern Daylight Time

Posted on May 27, 2021 08:00 AM EST


HOUSTON--(BUSINESS WIRE)--XRI Holdings, LLC (“XRI” or the “Company”), the leading full-cycle water management and midstream company with fixed infrastructure owned throughout the Permian Basin, announced today that it has acquired the produced water infrastructure assets of Hibernia Energy III, LLC (“Hibernia”) through its wholly-owned subsidiary, Celtic Disposal, LLC (“Celtic”).

Through this transaction, XRI will become the long-term provider to Hibernia of all water-related services to Hibernia, including delivery of completions water and handling of produced water.

In addition, this acquisition enables XRI to capture significant third-party opportunities in the area with both new and existing customers.

“We are delighted with the acquisition of these first-class produced water infrastructure assets and look forward to a long-term commercial partnership with a premier operator like Hibernia”

Matthew Gabriel XRI CEO

“We are delighted with the acquisition of these first-class produced water infrastructure assets and look forward to a long-term commercial partnership with a premier operator like Hibernia,” said XRI CEO Matthew Gabriel. “Hibernia’s produced water assets directly overlay XRI’s existing midstream infrastructure and recycling assets in the Midland Basin, an area where XRI has significant operating expertise and deep customer relationships that will support further commercialization of the acquired produced water infrastructure assets.”

Embry Canterbury, CEO of Hibernia, stated, “The disposition of our Celtic infrastructure assets will support the development of Hibernia’s high-quality acreage position, and we look forward to XRI’s operational and commercial expertise that will optimize the existing produced water system for reliability, flexibility, and expansion.”

Gabriel added, “The direct tie-in to XRI’s existing Midland Basin midstream infrastructure and recycling assets is something that we’re very excited about. The combination of veteran operations teams and high-quality resources will support our operational plans to recycle more than 185 million barrels of water in the Permian Basin this year.”

Celtic was formed in 2019 to serve the saltwater disposal needs of both Hibernia and other leading operators. Hibernia, a portfolio company of NGP Natural Resources XII L.P. (“NGP”) is a leading oil producer in the Midland Basin, with 35,000 gross / 33,000 net acres in Reagan and Upton Counties, Texas.

Hibernia is uniquely positioned to quickly grow production with a supportive equity sponsor, low leverage, a veteran operations team, and a deep inventory of highly economic drilling locations.

Sidley Austin LLP served as legal counsel to XRI on the transaction and Baker Botts LLP served as legal counsel to Hibernia.


About XRI

XRI is the leading full-cycle water management and produced water midstream company with advanced water recycling and sustainable water infrastructure. XRI operates over 350 miles of permanent pipelines, with an aggregated system capacity to run approximately 1.25 million barrels per day. XRI is revolutionizing the water midstream industry by focusing on the recycling of produced water, reducing industry reliance on potable water sources, and by engaging in and providing ESG-focused solutions for the benefit of all stakeholders. XRI is a portfolio company of Morgan Stanley Energy Partners. For more information, please visit xriwater.com and follow us on LinkedIn.


About Hibernia and Celtic

Hibernia is an acquisition and development company focused on the exploration, growth and production of oil and natural gas assets. It is a portfolio company of NGP. Celtic is a fully owned subsidiary of Hibernia that was formed in 2019 to serve the saltwater disposal needs of both Hibernia and regional operators in Reagan and Upton Counties, TX.


About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and buildup of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com.


About NGP

Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $17 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For more information on NGP, please visit www.ngpenergycapital.com.


Hibernia Energy III, LLC Announces Partnership with NGP

by: BusinessWire - August 08, 2017 03:59 Eastern Daylight Time

Posted on August 8, 2017 at 2:00 PM CST


HOUSTON--(BUSINESS WIRE)--Hibernia Energy III, LLC (“Hibernia III”) is pleased to announce it has raised $250 million of new equity commitments from NGP through NGP Natural Resources XII, L.P., the most recent NGP private equity fund focused on natural resources.

In addition to the commitment from NGP, Hibernia management and members will be committing in excess of $21 million in equity. Hibernia III’s strategy is to acquire and prudently develop unconventional oil and gas assets in Texas, leveraging its proprietary relationships and operational expertise. The Houston, Texas based Hibernia team previously acquired, operated and developed assets in Martin County, Texas within the Midland Basin, divesting assets to both Athlon Energy and Eagle Energy Trust.

Hibernia III is led by P. Embry Canterbury, Sean Keenan and John Blevins. Embry previously co-founded Hibernia Energy, LLC (“Hibernia I”) and Hibernia Energy II, LLC (“Hibernia II”), which originally partnered with NGP in July 2010 and May 2013. Embry will be joined by Sean Keenan and John Blevins who will act as CFO and COO, respectively. Additional management team members have served in various roles at Permian-focused companies as reservoir engineers, operations engineers, geologists and land and business development managers. Carl Carter III, who co-founded Hibernia I and II, will act as a Strategic Advisor to the Hibernia III team. The senior management team has developed a strong track record in the Permian and other unconventional basins throughout the United States and brings 60+ years of industry experience to Hibernia III.

"NGP is excited and grateful to partner with the Hibernia III team."

Patrick McWilliams Partner at NGP

P. Embry Canterbury, CEO of Hibernia III, commented, “After two successful partnerships in the Midland Basin, we are excited to again be working with NGP on building another oil and gas company focused on creating significant value for our partners and team members. We believe there are tremendous opportunities in today’s market to acquire, develop, and realize value in multiple, unconventional resources and we have assembled a best-in-class team to execute this strategy.”

“NGP is excited and grateful to partner with the Hibernia III team,” Patrick McWilliams, Partner at NGP, said. “We are thrilled to get to work again with such an energetic, disciplined and skilled company and could not be happier to continue the partnership. We have known Embry and the Hibernia III team for years, and respect the dynamic culture, top-tier operating capabilities, and deep local relationships that will make Hibernia III truly successful.”


About NGP

Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $17 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors.

For more information on NGP, please visit www.ngpenergycapital