Water Solutions Company Paying Big for West Texas Ranch
(P&GJ) – A water solutions company out of Forth Worth, TX is ready to spend $450 million for water underneath a West Texas ranch.
The 67,500-acre Hanging H Ranch is in fact a conglomeration of several parcels of land across three separate Texas counties. The man who pieced it all together, Roy O. Lindsay Sr., raised cattle on the land until his death in 2012.
The five members of his family with legal ownership of the ranch have been debating over the property since Lindsay Sr. passed away and recently unanimously agreed to sell the land. A letter of intent has been signed with the family and the sale is set to close in late June.
RRIG Water Solutions is an end-to-end water solutions company for oil and gas operators in the Permian Basin co-founded in 2016 by the CEO’s of RRIG Energy, a mineral a royalty rights purchasing company. The young company purchased a 475-mile pipeline in 2017 and has been actively looking to expand its freshwater and wastewater offerings to Permian operators.
Research firm Oilfield Water Connection predicts Permian players to spend $18 billion by 2021 on water alone and this purchase would uniquely position RRIG to capitalize on that investment. Aside from the vast water reserves, the ranch shares a border with New Mexico, the other Permian state. Texas water laws are more relaxed than its neighbor’s which would make RRIG attractive to New Mexico operators.
The purchase follows other major water deals in recent months. Reuters reported earlier this month that Five Point Energy recently sold its stake in WaterBridge Resources, another Permian water operator, for almost $3 billion. Another Texas ranch with vast water reserves about half the size of Hanging H sold earlier this year for over $30 million.
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