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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.

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It’s all about the ESG (and RSG): Southwestern Energy and Kinder Morgan stroke a deal for gas transportation

Southwestern Energy Co. signed an agreement with Kinder Morgan Inc. for the transportation of responsibly sourced natural #gas (RSG) to the Northeast markets. Tennessee Gas Pipeline, a subsidiary of Kinder Morgan, will be carrying out this notion come November. This move proves yet again, that the energy market is tilting towards sustainability and renewability.

Whitewater Midstream Acquires 24-mile 24-inch Gateway Pipeline from Sendero to transport dry gas to its Agua Blanca intrastate pipeline network.

Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.

The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.

No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.

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