Blackbuck Resources Acquires Whites City Water Infrastructure from Cimarex Energy Co.

 Source: Blackbuck Resources

Houston, Oct. 01, 2020 (GLOBE NEWSWIRE) — Blackbuck Resources LLC (“BBR”), which designs, builds and operates water infrastructure, announced it has closed on a transaction to purchase Cimarex Energy Co.’s (“Cimarex”) Whites City water infrastructure in Eddy County, New Mexico. The acquired assets include approximately 65 miles of pipeline and 100,000 barrels per day of installed and permitted disposal capacity. As part of the sale, Cimarex has agreed to a 15-year acreage dedication in the Whites City area, which encompasses more than 40,000 acres, for the gathering, disposal and recycling of its produced water.

“This investment represents another significant milestone for Blackbuck, further validating our unique value proposition and industry-leading platform,” said Justin Love, CEO of Blackbuck Resources. “We are excited to establish long-term alignment with Cimarex, a company which continues to demonstrate and build on its strong reputation as a thought leader in our industry. This acquisition will significantly grow our Delaware Basin platform and overall footprint, further enhancing Blackbuck’s ability to provide our customers economic and reliable water management solutions.”

Kirkland & Ellis LLP served as legal advisers to BBR on the transaction.

About Blackbuck Resources

Based in Houston and Midland, BBR designs, builds, and operates water infrastructure and provides services for the oil and gas industry, with a primary focus on the Permian Basin. The team is comprised of professionals with experience in water disposal and treatment, pipeline management and oil and gas operations. BBR is backed by private equity sponsor Cresta Funds Management. For more information, visit www.blackbuckresources.com.

About Cimarex Energy Co.

Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the U.S.

About Cresta Fund Management

BBR is a portfolio company of Cresta Fund Management (“Cresta”), a middle-market focused infrastructure firm with a conservative, value-added approach to investing in hard assets that transport, store, process or sequester basic materials. Founded in 2016 and headquartered in Dallas, Texas, Cresta’s founding partners are seasoned industry veterans who bring value across the investment cycle from initial diligence through business operations. For more information, please visit: www.crestafunds.com.

Whites City Water Infrastructure – Eddy County, New Mexico

Premier water infrastructure in the Whites City, NM area including approximately 65 miles of pipeline and 100,000 barrels per day of installed and permitted disposal capacity. The expansive system allows BBR to provide our customers the most economic, environmental friendly, and reliable water management solutions in the industry.

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