WhiteWater Midstream Company Profile

Background

Overview

WhiteWater Midstream is an Austin-based, independent midstream company specializing in the transportation, gathering, treating, and processing of natural gas and natural gas liquids (NGLs) in the United States. Established in 2016, the company has rapidly expanded its operations, focusing primarily on the Permian Basin, a key area for oil and gas production. WhiteWater Midstream is backed by several private equity firms, including Ridgemont Equity Partners, Denham Capital Management, First Infrastructure Capital, and the Ontario Power Generation Inc. Pension Plan.

Mission and Vision

WhiteWater Midstream is committed to providing efficient and reliable midstream infrastructure solutions that support the growth and development of domestic oil and gas resources. The company's vision is to be a leading provider of midstream services, delivering value to its customers, investors, and communities through operational excellence and strategic partnerships.

Primary Area of Focus

The company's primary focus is on the development and operation of natural gas and NGL transportation systems, with a significant emphasis on the Permian Basin. WhiteWater Midstream aims to address infrastructure constraints in key production areas by offering scalable and efficient solutions that facilitate the movement of natural gas and NGLs to market.

Industry Significance

In the rapidly evolving energy sector, WhiteWater Midstream plays a crucial role in enhancing the capacity and reliability of midstream infrastructure. By developing and operating pipelines and storage facilities, the company contributes to the efficient transportation of energy resources, thereby supporting the broader energy supply chain and economic growth.

Key Strategic Focus

Core Objectives

• Infrastructure Development: Designing and constructing pipelines and storage facilities to meet the growing demand for natural gas and NGL transportation.

• Operational Excellence: Ensuring the safe, reliable, and efficient operation of midstream assets.

• Strategic Partnerships: Collaborating with industry leaders and stakeholders to enhance service offerings and expand market reach.

Specific Areas of Specialization

• Natural Gas Transportation: Developing pipelines that facilitate the movement of natural gas from production sites to processing facilities and end-users.

• NGL Transportation: Establishing systems for the efficient transport of NGLs, including ethane, propane, and butane, to fractionation facilities.

• Storage Solutions: Providing storage capacity to manage supply and demand fluctuations in the natural gas market.

Key Technologies Utilized

• Pipeline Engineering: Employing advanced engineering techniques to design pipelines that maximize capacity and minimize environmental impact.

• Monitoring Systems: Implementing state-of-the-art monitoring and control systems to ensure pipeline integrity and safety.

• Data Analytics: Utilizing data analytics to optimize operations and predict maintenance needs.

Primary Markets or Conditions Targeted

WhiteWater Midstream primarily targets the Permian Basin, focusing on regions with high natural gas and NGL production. The company aims to alleviate infrastructure bottlenecks and provide reliable transportation solutions to producers and consumers in these areas.

Financials and Funding

Funding History

Since its inception, WhiteWater Midstream has secured significant funding from various private equity firms, enabling the development of substantial midstream infrastructure projects. The company's financial backers include Ridgemont Equity Partners, Denham Capital Management, First Infrastructure Capital, and the Ontario Power Generation Inc. Pension Plan.

Total Funds Raised

WhiteWater Midstream has reached final investment decisions on approximately $3 billion in greenfield development projects, reflecting strong investor confidence and the company's growth trajectory.

Recent Funding Rounds

In February 2019, First Infrastructure Capital acquired WhiteWater Midstream, including its 60% stake in the Agua Blanca pipeline system. This acquisition provided the company with additional capital and resources to expand its operations and service offerings.

Notable Investors

• Ridgemont Equity Partners: A Charlotte-based middle-market buyout and growth equity investor.

• Denham Capital Management: A global private equity firm focused on energy and resources.

• First Infrastructure Capital: An investment firm specializing in midstream and infrastructure projects.

• Ontario Power Generation Inc. Pension Plan: A Canadian pension fund investing in energy infrastructure.

Intended Utilization of Capital

The capital raised has been utilized to fund the development and expansion of midstream infrastructure projects, including pipelines and storage facilities, to enhance the transportation capacity for natural gas and NGLs in key production areas.

Pipeline Development

Agua Blanca Pipeline

• Description: A natural gas residue pipeline servicing the Delaware Basin, consisting of approximately 90 miles of 36-inch diameter pipeline and 70 miles of smaller diameter pipeline.

• Capacity: Initial capacity of approximately 1.4 billion cubic feet per day (Bcf/d), with significant expansion plans underway.

• Target Conditions: Designed to transport natural gas from production sites in Culberson, Loving, Pecos, Reeves, Ward, and Winkler counties to the Waha Hub.

• Milestones:

• April 1, 2018: Commencement of commercial operations.

• November 2020: Substantial completion of a 1.8 Bcf/d expansion, doubling system capacity to over 3 Bcf/d.

Whistler Pipeline

• Description: A planned 42-inch diameter pipeline designed to transport approximately 2 Bcf/d of natural gas through approximately 475 miles from Waha, Texas, to the Agua Dulce area in South Texas.

• Capacity: 2 Bcf/d upon completion.

• Target Conditions: Intended to alleviate transportation constraints in the Permian Basin by providing additional takeaway capacity.

• Milestones:

• June 2019: Final investment decision to proceed with design and construction.

Gateway Pipeline

• Description: A 24-inch pipeline extending approximately 24 miles from Reeves County, Texas, into the Carlsbad area of New Mexico, connected to the Agua Blanca pipeline system.

• Capacity: Specific capacity details not disclosed.

• Target Conditions: Serves as a residue gas outlet for producers in the northern Delaware Basin.

• Milestones:

• August 2021: Acquisition of the Gateway Pipeline from Sendero Midstream Partners LP.

Technological Platform and Innovation

Proprietary Technologies

• Pipeline Engineering: Utilizing advanced engineering techniques to design pipelines that maximize capacity and minimize environmental impact.

• Monitoring Systems: Implementing state-of-the-art monitoring and control systems to ensure pipeline integrity and safety.

• Data Analytics: Utilizing data analytics to optimize operations and predict maintenance needs.

Significant Scientific Methods

• Environmental Studies: Conducting detailed environmental assessments to minimize ecological impact and ensure compliance with regulatory standards.

• Hydraulic Modeling: Employing hydraulic modeling to design efficient pipeline systems and predict flow characteristics.

AI-Driven Capabilities

• Predictive Maintenance: Utilizing machine learning algorithms to predict equipment failures and schedule proactive maintenance, reducing downtime and operational costs.

Leadership Team

Executive Profiles

• Christer Rundlof: Chief Executive Officer (CEO).

• Background: Founder and CEO of WhiteWater Midstream, with extensive experience in the energy sector.

• Contributions: Led the development and expansion of key pipeline projects, including Agua Blanca and Whistler.

• Caleb Ryan: Senior Vice President of Operations.

• Background: Over 20 years of experience in operations and project management within the energy industry.

• Contributions: Oversees the operational aspects of WhiteWater's pipeline systems, ensuring efficiency and safety.

• Bryan Willoughby: Director of Business Development.

• Background: Expertise in business development and strategic partnerships in the midstream sector.

• Contributions: Responsible for identifying and securing new business opportunities and partnerships.

Competitor Profile

Market Insights and Dynamics

The midstream sector is characterized by significant capital investment and long-term contracts. Companies in this space face competition in terms of infrastructure development, operational efficiency, and customer service. The Permian Basin, in particular, has seen a surge in production, leading to increased demand for reliable and scalable midstream solutions.