InstarAGF acquires Oilfield Water Logistics

Toronto-based InstarAGF Asset Management Inc has acquired Oilfield Water Logistics, a provider of midstream water infrastructure and services primarily within the Permian Basin. No financial terms were disclosed. Canadian and international co-investors from NGP Energy Capital Management and NGP Energy Technology Partners are among the investors that participated in the deal. Scotiabank and King & Spalding LLP advised InstarAGF on the transaction while Morgan Stanley and Thompson & Knight LLP advised OWL.

PRESS RELEASE

TORONTO and DALLAS, Oct. 28, 2019 (GLOBE NEWSWIRE) — InstarAGF Asset Management Inc. (“InstarAGF”) today announced it has acquired Oilfield Water Logistics (“OWL”) alongside its Canadian and international co-investors from NGP Energy Capital Management and NGP Energy Technology Partners and other private shareholders. OWL’s seasoned management team will invest in and continue with the business, which is a leading provider of midstream water infrastructure and services primarily within the Permian Basin.

Founded in 2014, OWL’s growing midstream water infrastructure platform provides essential infrastructure supporting oil production across the midstream water value chain, including produced water gathering, transportation, reuse and disposal primarily in the Delaware Basin, one of the most active and economic oil and gas basins in North America with one of the highest water-to-oil ratios in the United States. OWL provides long-term stability and volume predictability for its exploration and production (“E&P”) customers and is strongly positioned to meet increasing customer demand and to further expand its footprint and service offering.

InstarAGF invests in mid-sized essential infrastructure businesses in North America in the energy, utilities and civil infrastructure sectors, including high quality energy and midstream service providers, aviation infrastructure, district energy, renewable energy, and specialty ports and logistics businesses, among others, and seeks to add value and support growth with an emphasis on best-in-class responsible operations and service.

“E&P companies increasingly face operational and logistical challenges related to produced water,” said Jonathan Stone, Partner, InstarAGF. “We are delighted to partner with OWL to address North America’s growing water management demands through safe, sustainable solutions. This is a unique opportunity to invest alongside a proven, strongly aligned management team to execute the next phase of OWL’s growth strategy.”

“Within North America’s highest growth production areas, OWL plays a vital role transporting and disposing of the significant water volume created,” said Chris Cooper, President and Chief Executive Officer of OWL. “InstarAGF shares our commitment to safety, quality, sustainability and customer service, and is the ideal partner to help elevate and expand our platform, support North American producers and maintain best practices within the energy sector.”

InstarAGF was advised by Scotiabank and King & Spalding LLP on the transaction. OWL was advised by Morgan Stanley & Co. LLC and Thompson & Knight LLP.

About InstarAGF Asset Management
InstarAGF, which makes direct investments and co-investments with like-minded investors and strategic partners, is an independent alternative asset management firm focused on North American middle-market opportunities in the infrastructure sector and other alternative real asset categories. InstarAGF’s growing footprint spans North America with a portfolio that includes aviation infrastructure, district energy, renewable energy, midstream energy services, and specialty ports and logistics businesses that deliver essential services and value to communities, partners and investors. InstarAGF is a signatory to the United Nations-supported Principles for Responsible Investment. For more information: www.instaragf.com

About Oilfield Water Logistics
OWL is a leading provider of midstream water infrastructure and services to the energy industry in Texas, New Mexico, Colorado, Utah and Wyoming, with offices in Midland, Denver and Dallas. OWL is an established leader in the Permian Basin and owns and operates the largest commercial produced water gathering and transportation system in the Northern Delaware Basin. For more information about OWL: www.oilfieldwaterlogistics.com.