Lagoon Water Midstream expanded its operations in the Permian Basin with its recent Midland Double Drop Resources acquisition.
The expansion positions the company as a multi-basin water management company in the oil-rich Southwestern basin.
"Lagoon's acquisition of Double Drop Resources is a key part of our continued growth strategy as we enter the Permian Basin,” President and CEO of Lagoon Water Midstream, Kevin Lafferty, said in a release. “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. 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,” Lafferty said.
The company’s assets are able to source 300,000 barrels per day for completion operations, which correlate with Lagoon’s plans to invest in its recycling capabilities.
The deal follows three disposal wells commissioned by Double Drop Resources, with a fourth under construction. The four-year-old Oklahoma City-based Lagoon has already taken in Double Drop's workforce and plans to maintain an office in downtown Midland, according to NGI.
"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,” Chief Commercial Officer Caitlyn Jackson said.