Aris Water Solutions and Chevron Announce Long-Term Water Management Agreement for Part of the Delaware Basin

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Chevron strengthens its business with Aris Water Solutions.

The two companies this week announced a long-term, full-cycle water management agreement under which Aris will provide treatment and recycling services for produced water in part of Chevron’s central position in the basin. of Delaware, including areas in Eddy and Lea counties, New Mexico, and Culberson and Reeves counties, Texas.

“This is a significant expansion and extension of our relationship with Chevron,” said David Tuerff, senior vice president, finance and investor relations at Aris.


Speaking to the Reporter-Telegram by phone, he said he believed the company’s relationship with Chevron made the multinational giant more comfortable expanding its work with Aris.

Chevron’s General Manager of Mid-Continent Operations, Brent Gros, told The Reporter-Telegram via email, “Chevron is excited to continue working with Aris Water Solutions, Inc. This agreement is a key catalyst in helping us to realize our aspirations for growth in the Permian while we continue to prioritize and protect people and the environment.

He continued, “The agreement, which will help us increase our use of reclaimed water in the Delaware Basin, is consistent with our surface water use philosophy of maximizing the use of reclaimed water in our operations, to the extent possible. In fact, Chevron’s 2021 water demand in the Permian Basin was 99% met from brackish or recycled sources, which included no use of fresh water for hydraulic fracturing.

Tuerff said the demand for water recycling has increased over the past two years. In fact, he said, Aris recycled four times more water in the first quarter of this year than in the first quarter of 2021.

“We’ve seen explosive growth,” he said, as customers seek more sustainable and reliable water sources.

Tuerff said the company is increasing its capital expenditures to build its recycling facilities, water lines and water treatment capabilities — partly to service the Chevron contract, but also to other existing and new customers.

While Aris’ customers include multinational giants like Chevron and large independents, he said the company also serves smaller operators, some backed by private equity. He cited a producer with operations about a mile and a half from the Aris infrastructure. It made more sense, Tuerff said, for this operator to leverage Aris’ infrastructure rather than build its own.

“We are building our backbone, our infrastructure, for large customers like Chevron, but also for smaller customers who will also benefit,” he said.

As it builds its infrastructure, Tuerff said the company is seeing extended delivery times for some equipment as well as inflationary pressure, “which we both anticipated. We see that the delivery times are pushed back, but there is nothing that was not planned and that we cannot accept. »

Approximately 90% of Aris’ business is in the Delaware Basin, but the company has a smaller footprint in the Midland Basin, primarily in Midland and Martin counties.

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