NGL Energy Partners LP (NYSE: NGL) (“NGL” or the “Partnership”) announced today that the Partnership has successfully completed the first of two large scale Delaware Basin wastewater recycling projects in Lea County, NM. The initial project, which began in late May, supported one of our customers’ highly efficient simultaneous fracturing, or “simul-frac”, completion activities. Utilizing our own produced water, the Partnership treated and provided approximately 130,000 barrels per day, with peak volumes of up to 140,000 barrels per day. This project eliminated the need for over 5,000,000 barrels of fresh water. The second large scale recycling project will begin later this month. It is expected to provide 200,000 to 250,000 barrels per day, and potentially up to 350,000 barrels per day of recycled wastewater to a leading independent oil and gas producer.
NGL continues to see increasing demand for delivery of raw produced and recycled wastewater for customers’ completion activities in the Delaware Basin. Combined sales of raw produced wastewater for reuse and recycle are expected to average between 180,000 and 190,000 barrels per day through the first six months of this fiscal year, representing more than 85% of estimated total water sales.
This raw produced and recycled wastewater is efficiently delivered through NGL’s integrated pipeline network and treated using a proven and simplified mobile system that is positioned to take full advantage of its comprehensive integrated wastewater pipeline system providing support to producer activity throughout the Delaware Basin.
“We are committed to full lifecycle water management for our customers while keeping a keen focus on the environment,” commented Doug White, EVP of NGL Water Solutions. “As the leader in sales of raw produced and recycled wastewater in the Delaware Basin, we believe our simplified approach is the best way for us to continue to provide safe, efficient, reliable and ESG friendly solutions to our customers. In addition to conserving fresh water, we are also avoiding the need for water trucks, which eliminates air emissions, leads to fewer traffic accidents and reduces the wear and tear on the roads and highways in the areas where we operate.”
NGL owns and operates the largest integrated network of large diameter wastewater pipelines, disposal wells and raw produced reuse and recycling system in the Delaware Basin. The Partnership’s Water Solutions segment operates in a number of the most prolific crude oil and natural gas producing basins, including the Delaware, Midland, Eagle Ford and DJ Basins.
Forward Looking Statements
Certain matters contained in this press release include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, treats, recycles and disposes of produced water generated as part of the energy production process as well as transports, stores, markets and provides other logistics services for crude oil and liquid hydrocarbons.
For further information, visit the Partnership’s website at www.nglenergypartners.com.
Investor Relations, 918-481-1119
Christian Holcomb, 303-815-1010
Senior Vice President & Chief Operating Officer – NGL Water Solutions