Delaware Basin Expansion: WaterBridge and BPX Energy Lock in Major Produced Water Infrastructure Deal

WaterBridge, comprising NDB Midstream LLC and WaterBridge Operating LLC, has finalized a strategic partnership with BPX Energy to scale produced water handling capabilities across the Delaware Basin’s Stateline region. The agreement represents a significant commitment to long-term midstream development in one of North America’s most active energy production zones.

Agreement Scope and Capacity Expansion

Under the new commercial framework, WaterBridge will establish 400MBbls/d of produced water handling capacity within three years, with expansion potential reaching 600MBbls/d as operations scale. The arrangement includes a 10-year minimum volume commitment from BPX Energy, providing WaterBridge with substantial revenue visibility and operational planning certainty. This scale of capacity represents a tailored response to BPX Energy’s multi-decade production trajectory in the Permian Basin.

The infrastructure build-out centers on constructing large-diameter gathering and transportation systems in Reeves County, Texas, designed to efficiently move produced water away from BPX Energy’s development locations while maintaining operational safety and environmental standards.

Strategic Advantage Through Surface Access

A critical differentiator in this partnership stems from WaterBridge’s affiliate relationship with LandBridge, a surface land management platform controlling over 273,000 acres across the Delaware Basin. This extensive contiguous acreage provides WaterBridge with substantial pore space access and geographic flexibility—advantages that were central to designing a customized solution for BPX Energy’s operational needs.

Michael Reitz, Chief Operating Officer of WaterBridge, emphasized this strategic positioning: “Our unmatched surface and pore space capacity and our ability to disperse produced water volumes across a broad geographic footprint were critical elements in designing a tailored water-handling solution that is perfectly suited to bpx energy’s needs.”

Industry Context and Company Profiles

WaterBridge’s Integrated Platform: Collectively, WaterBridge operates as the largest pure-play produced water midstream business in the sector. NDB Midstream manages approximately 1.2 million barrels per day of produced water with 2.0 million bpd of handling capacity across the northern Delaware Basin and Eagle Ford formations. WaterBridge Operating LLC handles a similar 1.2 million bpd volume while owning 2.2 million bpd of total capacity in the southern Delaware Basin and Arkoma Basin. The company benefits from first-mover advantage in the water midstream space, backed by a management team with deep industry expertise.

BPX Energy’s Production Focus: BP’s onshore U.S. business operates across the Permian, Eagle Ford, and Haynesville basins with headquarters in Denver. The company prioritizes high-margin barrel production while advancing emissions reduction initiatives.

Five Point Energy’s Role: The private equity firm backing both WaterBridge and LandBridge manages approximately $7 billion in assets across multiple funds, focusing specifically on environmental water management, surface management, and sustainable infrastructure development within energy basins.

Strategic Implications

This agreement underscores growing recognition within the energy industry that produced water management represents a critical competitive advantage. By securing long-term midstream infrastructure capacity, BPX Energy gains operational flexibility and sustainable water handling solutions essential for extended resource development. Meanwhile, WaterBridge strengthens its market position as a full-cycle water transportation, handling, recycling, and reuse operator with unique geographical reach and infrastructure assets.

The ten-year commitment signals confidence from major operators in the continued production economics of the Delaware Basin and the importance of purpose-built water infrastructure to support scale operations across vast, strategically positioned acreage.