#United States #Dallas #Delaware Basin #Goodnight Midstream #Estacado Pipeline

Goodnight Midstream Expands Delaware Basin Operations

Goodnight Midstream, a notable player in the water infrastructure sector, has recently announced its plans to expand operations within the Delaware Basin. This strategic move aims to not only increase its capacity for handling produced water but also to secure a stronger position in the competitive oil and gas landscape.

The centerpiece of this expansion is the construction of the Estacado Pipeline. This new high-pressure water system will be situated in Eddy and Lea Counties, New Mexico, and is designed to significantly enhance water management for oil and gas producers in the area. With the Estacado Pipeline, Goodnight is set to add a remarkable 550,000 barrels per day of transportation capacity. This development reflects both the strategic planning and operational excellence that Goodnight prides itself on.

Meeting Industry Demands

The need for effective produced water handling solutions has grown immensely, driven by the booming oil and gas industry. Goodnight's CEO, Grant Adams, emphasized that the company's existing assets are well-aligned to meet this increasing demand. He expressed excitement regarding Goodnight's trajectory for growth and its goal to solidify its status as a leader in produced water infrastructure solutions.

The Estacado Pipeline project will be integrated with Goodnight's already established Llano Pipeline, which has been operational since 2019 and has provided reliable out-of-basin disposal options. This integration promises to offer clients a unique combination of large-scale transportation and diversified disposal capacity, ensuring flow assurance and choice for customers. This super system, which encompasses both the Llano and Estacado systems, is anticipated to furnish over 900,000 barrels per day of takeaway capacity for producers in the Northern Delaware Basin.

Record Performance and Future Plans

In addition to the pipeline expansion, Goodnight also reported impressive growth across its operations, achieving a 25% increase in quarterly growth rates across various basins, including Delaware, Midland, Eagle Ford, and Bakken. This growth has been further augmented by acquisitions that diversify the company's customer base and amplify its market presence.

Furthermore, Goodnight has successfully extended its credit facility, enhancing its financial flexibility to support ongoing strategic initiatives. This extension signifies robust backing from existing financial partners, highlighting confidence in Goodnight's growth strategy.

Commitment to Sustainability and Innovation

Goodnight's commitment to environmental sustainability is evident in its operations. The company has pioneered a solution that allows for the reuse of produced water in enhanced oil recovery (EOR) operations, showcasing its dedication to responsible resource management. This innovative approach further reinforces Goodnight's reputation as a leader in sustainable disposal services and underscores its commitment to minimizing environmental impact while improving operational reliability for its clients.

Looking ahead, Goodnight is poised for significant advancements in the Delaware Basin, capitalizing on its established infrastructure and strategic expansions. With a solid foundation in place, the company is well-prepared to facilitate the next phase of growth for its clients, ensuring they have access to efficient and effective produced water management solutions.

In conclusion, Goodnight Midstream's expansion in the Delaware Basin not only reflects its growth ambitions but also its ongoing dedication to customer service, sustainable practices, and innovative solutions in the evolving energy landscape. The Estacado Pipeline is set to play a crucial role in this journey, further solidifying Goodnight's position as a key infrastructure provider for the oil and gas industry.