TULSA, Okla.--(BUSINESS WIRE)--Cypress Energy Partners, L.P. (NYSE:CELP) today reported that it has acquired a salt water disposal facility from an affiliate of its North Dakota partner SBG Energy Services, LLC (“SBG”) for a total cost of approximately $2.6 million in cash. The new facility is located in McKenzie County in ND and is designed to accept both produced water for the life of the oil & gas wells connected to the gathering system as well as trucked produced and flowback water from surrounding wells.
The acquisition, which includes a minimum volume guarantee and a long-term contract for piped produced water delivery from a publicly traded major E&P customer, expands CELP’s footprint in the Bakken. Peter C. Boylan III, CELP's chairman, president and chief executive officer, stated, “We are pleased to announce the addition of our first fully automated facility in the Bakken that further expands the number of SWD’s with piped produced water. The facility is connected to a 26 mile produced water gathering system/pipeline developed by our North Dakota partner SBG. This will further build upon our focus on produced water for the life of the completed oil and gas well as is the case with our current portfolio that enjoys over 80% of its volume from existing completed and producing wells. We continue to evaluate our service offerings to our E&P customers and are pleased with the relationships we continue to build in the development of water gathering systems.”
“We continue to evaluate a number of interesting acquisition opportunities while being very disciplined with regard to valuation, and hope to complete one or more of such additional opportunities in the next quarter. Our management team’s focus remains building a great company that will create long term value and distributable cash flow growth for our unit holders,” said Boylan.
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While CELP believes its expectations as reflected in the forward-looking statements are reasonable, CELP can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in CELP’s Annual Report filed on Form 10-K and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” CELP undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
About Cypress Energy Partners, L.P.
Cypress Energy Partners, L.P. is a growth-oriented master limited partnership that provides saltwater disposal and other water and environmental services to U.S. onshore oil and natural gas producers and trucking companies in North Dakota and west Texas. Cypress also provides independent pipeline inspection and integrity services to producers and pipeline companies throughout the U.S. and Canada. In both of these business segments, Cypress works closely with its customers to help them comply with increasingly complex and strict environmental and safety rules and regulations and reduce their operating costs. Cypress was founded by Cypress Energy Holdings, LLC, an entity controlled by the family of Charles C. Stephenson, Jr. and by Peter C. Boylan III, the Chairman, President and CEO of Cypress. Cypress is headquartered in Tulsa, Oklahoma.