#United States #Midland #Lime Rock Partners #Basin Properties #Accelerated Water

Basin Properties Completes Significant Sale

Basin Properties, based in Midland, Texas, has announced the successful sale of its interests in two ranches located in Lea County, New Mexico, along with its subsidiary, Accelerated Water. This deal, valued at $180 million, marks a substantial move for the company, which has been a player in the water sourcing and transfer sector since its establishment in 2018.

The ranches involved in this transaction encompass nearly 72,000 surface acres situated in one of the most geologically favorable areas of the Delaware Basin. As part of this deal, Accelerated Water sold over 43.5 million barrels of water that was utilized in oil and gas operations throughout 2024. The complete sale signals Basin Properties' exit from the ranching sector, which had been part of its business plan since its inception.

Founded in 2018, Basin Properties emerged as a joint venture financed by Lime Rock Partners and a management team composed of private equity executives experienced in the energy sector. J McLane, Managing Director and Chief Investment Officer at Lime Rock Partners, expressed that the growing demand and necessity for water and infrastructure on the New Mexico side of the Delaware Basin provided a viable business model. This area is recognized for its productive capabilities in the oil and gas industry, making water supply an essential commodity in such operations. McLane stated, “Our observations in 2018 about the critical need for water infrastructure have indeed proven correct, resulting in robust sales and revenues for the company.”

Over the years, Basin Properties has carved out a niche in water management, essentially becoming a cornerstone in the oil and gas field operations that continue to flourish in southern New Mexico and across state lines into Texas. Their acquisition of strategic assets allowed adequate resource allocation to effectively meet the ever-growing demands of oil extraction processes, which rely heavily on water.

As part of this significant sale, legal counsel was provided by Vinson & Elkins LLP, while financial advisory services were rendered by Raymond James Investment Banking. The collaboration showcases the intricate web of support required in such high-value transactions, reflecting industry trust and teamwork in complicated deals.

With this latest sale, Basin Properties continues to reaffirm its commitment to strategic divestitures as it focuses on maximizing value for its investors while navigating the complex terrain of industry demands. This exit allows them to channel efforts elsewhere, potentially exploring new opportunities in energy or water-related ventures.

In conclusion, the sale of the ranches and Accelerated Water signifies a transition for Basin Properties as it adapts to the evolving energy landscape. The company’s move emphasizes the importance of flexibility in business strategy and the necessity of innovation in resource management within the ever-changing dynamics of the oil and gas industry. As they step away from ownership, the management team remains grateful for the pioneering spirit and dedication that has fueled the company's growth since its founding.