On Point Oilfield Secures $250 Million Line of Credit
AUSTIN, Texas, Oct. 4, 2017 /PRNewswire/ — On Point Oilfield Holdings, LLC, (“On Point”) has successfully closed on a $250 million senior credit facility with Texas Capital Bank. On Point is an oilfield fluids waste solutions company that acquires, develops, and operates saltwater disposal wells and saltwater pipeline infrastructure in the Permian Basin.
On Point was formed in October 2016 with an equity commitment from White Deer Energy and an initial Permian platform acquisition of seven saltwater disposal assets (118,000 Bbls/d total permitted capacity) and eight saltwater disposal permits (152,000 Bbls/d capacity). To date, On Point has drilled three deep disposal permits into the Ellenberger formation in Howard County, acquired an SWD from a third party, and added an additional 75,000 Bbls/d of permitted capacity to its asset base.
On Point owns and operates 11 disposals with 205,500 Bbls/d of permitted capacity and has the rights to develop 15 additional disposal permits with over 300,000 Bbls/d of permitted capacity. On Point plans to use the growth capital to continue drilling new deep disposal wells to increase capacity while also constructing long-term pipeline infrastructure to keep up with strong market demand from its customers in the Permian Basin. The company is also evaluating opportunities to acquire existing disposal and pipeline infrastructure from E&P companies.
The company is led by co-founders Trace Hight, chief executive officer, and McCabe Turner, chief operating officer. Hight and Turner have collectively been involved in more than 57 saltwater disposal wells from either an operational, ownership, or advisory standpoint. Mike Christensen, vice president of operations, has more than 30 years of experience in the design, construction, and operation of over 120 disposal wells and over 40 gathering systems.
“McCabe, Mike and I are very excited to partner with Texas Capital. Their lending experience in this industry, combined with the capital and expertise from White Deer, gives us the resources we need to keep up with customer demand as On Point grows into an industry-leading midstream company,” said Hight.
ABOUT TEXAS CAPITAL BANK
Texas Capital Bank® is a commercial bank that delivers highly personalized financial services to businesses and entrepreneurs. We are headquartered in Texas working with clients throughout the state and across the country. Texas Capital Bank is a wholly owned subsidiary of Texas Capital Bancshares, Inc. and is recognized as a Forbes Best Banks in America and the Dallas Morning News’ Top 100 Places To Work company. To find out why we’re the Best Business Bank in Texas®.
ABOUT WHITE DEER ENERGY
White Deer Energy is an energy private equity firm focused on the exploration and production, oilfield service and equipment manufacturing, and midstream sectors of the oil and gas industry. With $2.2 billion of capital commitments across two private equity funds, White Deer Energy is a long-term investor targeting equity investments of $50 to $150 million. With offices in Houston and New York, White Deer Energy has a combination of industry expertise and capital that makes it an attractive partner for rapidly growing energy companies.