#United States #Canonsburg #HydroEdge #RES Water #WET Tech

HydroEdge Solutions and RES Water: A New Era in Water Management

HydroEdge Solutions, LLC, has made headlines with its recent acquisition of the majority interest in Reserved Environmental Services, known as RES Water. This merger aims to establish the premier full-cycle water management platform in the Appalachian Basin, significantly enhancing capabilities in the region. The newly formed parent company, WET Tech, LLC, will drive this ambitious endeavor.

Uniting Forces for Environmental Excellence

Located in Canonsburg, Pennsylvania, HydroEdge Solutions has built a reputation for being at the forefront of water logistics and automation, particularly within hydraulic fracturing operations. By acquiring RES Water, HydroEdge now combines its technology-driven approaches with RES Water's robust infrastructure and expertise. RES Water, established in 2008 and headquartered in Bridgeville, Pennsylvania, is known for its regional predominance in frac water management across the Marcellus and Utica shale regions, operating with deep engineering knowledge and decades of regulatory experience.

Enhancing Capabilities Across the Basin

The merger brings together two highly capable entities, allowing them to manage all aspects of the water lifecycle for natural gas producers efficiently. From pipeline and on-pad water management to hauling, treatment, recycling, and storage, customers will benefit from a single-point solution. Together, they will operate five water facilities in Pennsylvania, boasting a substantial storage capacity of approximately 700,000 barrels and a processing capability of up to 116,000 barrels per day. This amplification of resources underscores the dedication of both companies to serve the evolving needs within the energy sector effectively.

Commitment to Innovation and Efficiency

Matt Brewer, CEO and co-founder of HydroEdge, expressed excitement about working alongside RES Water’s team, particularly under the leadership of Matt Kicinski, President of the combined enterprise. They noted that the consolidation demonstrates the advantages seen within the industry, a trend that has considerably strengthened operators in the basin. HydroEdge and RES Water intend to leverage their shared knowledge and advanced technologies to optimize water usage throughout the production process, promising improved service reliability and reduced operational costs.

Strategic Environmental Benefits

One essential advantage of this merger is the anticipated environmental impact, where the combined company aims to lower the per-barrel costs for its clients. This will be achieved through optimized routing, which will reduce trucking miles significantly. Furthermore, the integration of improved technologies will result in enhanced water reuse and lower freshwater withdrawals, significantly reducing emissions across their operations.

The combined entity sees significant growth potential through the expansion of infrastructure, selective acquisitions in response to market dynamics, and exploring new opportunities for mineral extraction from produced water, contributing to a more sustainable energy future.

Financial Backing and Future Expansion

The acquisition has been financially supported by a senior secured credit facility facilitated by Atlantic Union Bank Capital Markets. This financial backing not only funds the acquisition but also provides additional room for growth, illustrating confidence in the potential of this new water management platform.

Both HydroEdge Solutions and RES Water have established themselves as leaders in their respective fields, and their strategic alignment promises a transformative impact on water management within the Appalachian region. As they navigate this new chapter together, the industry will be watching closely to see how this merger reshapes the future of water services in energy production.

Conclusion

In conclusion, the merger between HydroEdge Solutions and RES Water signifies a major development in water management within the Appalachian Basin. By combining resources, knowledge, and technologies, the two companies are set to redefine industry standards, optimize costs for producers, and advance sustainable practices in energy services. With a keen eye towards innovation and growth, this partnership marks a noteworthy chapter in environmental stewardship and operational excellence in the energy sector.