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Solaris Midstream Holdings is ready to challenge the market with an IPO driven by environmentally friendly values at its core.

Solaris Midstream Holdings is ready to challenge the market with an IPO driven by environmentally-friendly values at its core.

An initial public offering (IPO) is in the works for ConocoPhillips affiliated with Solaris Water Midstream, a company whose water pipelines serve the oil and gas fracking industry in the U.S. The Texas-based company seeks to attract the attention of sensible investors with its sustainability pitch in the aim to expand its scale of operation and recycling capacity.

Extensive environmental degradation caused by fracking has gradually become a boiling point in the energy-linked industries. Fracking relies on water-bound chemicals and sand in order to release oil and gas, which caused it to be accused of destroying and polluting freshwater resources.

In the arid areas of the Permian Basin where Solaris operates, the consequences of such pollution are a life-threatening risk. In New Mexico and Texas in particular water shortages worsen as energy companies use huge amounts of groundwater while consumers struggle with droughts.

In the meantime Solaris has pledged to recycle up to 60% of the water it provides for fracking by 2022, an increase from 42.1% in 2020, and will continue to improve further. The company is confident that with its proposed water recycling system damages caused by fracking can be negated, with the hopes of making the process essentially environmentally friendly by 2030.

Solaris outlined these goals as part of a $400 million sustainability-backed bond that is issued in March. This makes Solaris the only company among its peers with concrete targets to increase recycled produced water.

Solaris is set to go public in New York in a confidential initial public offering (IPO). The listing may come as early as this year-end with a speculated value of more than 1 billion dollars. The company intends to attract investors who adhere to environmental, social, and corporate governance (ESG) initiatives. Not just in fracking, but in the energy sector as a whole, water is becoming an increasingly important issue.

Should they succeed, this would be the first public U.S. pipeline company to be listed in three years. The last one was Rattler Midstream in 2019 since the sector has been shunned by many investors because of its poor returns over the years, particularly among other industries such as technology.

While the water recuperation rates between U.S. companies and shale plays may shift significantly, the whole US industry nevertheless is expected to create a lot of challenges for the environment. According to a number of industry professionals, a large portion of the wastewater leaving the oil field in 2022 still won't be reused, instead being infused into disposal wells, and Solaris stands to revolutionize this practice.

For its part in this change, the Rextag platform also strives to include water produced from oil and gas wells. Water conservation is a key concern for oil & gas companies and their service providers. Connect with us to learn more about how Rextag's asset intelligence can contribute to your ESG performance.

If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.

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The green trend: TC Energy pledges to be carbon-free by 2050

TC Energy, the Canadian gas giant, recently announced its environmental, social, and governance goals, as well as emission reduction strategies. The company aims to become 100% emission-free by 2050 while promising to cut greenhouse gas emissions intensity from its operations by 30% by 2030 as an interim measure.

ESG considerations are becoming increasingly essential for companies operating in the upstream sector. Failure to address ESG concerns may result in financial and reputational risks, given the growing focus from investors, regulators, and other stakeholders. Companies must prioritize ESG performance and engage with stakeholders to address concerns and mitigate risks. By doing so, they can improve their reputation, attract investment, and contribute to a more sustainable future

Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.

The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.

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