Layne Water Midstream

What Layne Water Midstream does

Layne Water Midstream, LLC is a privately held, full-cycle water midstream company founded in 2016 as a subsidiary of Layne Christensen, operating exclusively in the Permian Basin of West Texas. The company serves upstream oil and gas producers in the Delaware and Midland Basins by providing source water delivery, produced water gathering and disposal, and produced water treatment, recycling, and redelivery services. Its infrastructure includes nearly 200 miles of produced water pipeline, 17 salt water disposal facilities with over 450,000 barrels per day of permitted disposal capacity, the 26-mile Hermosa Pipeline with 18 delivery points, and a source water platform comprising more than 5 million barrels of storage and 500,000 barrels per day of brackish water recharge capacity.

The company's revenue model is usage-based and contract-anchored, driven by long-term producer dedications covering nearly 100,000 acres in the Southern Delaware Basin and an exclusive 20-year partnership with the Texas General Land Office (signed November 2017 and expanded January 2020) covering approximately 88,000 acres in Reeves and Culberson counties. Under the GLO agreement, LWM develops, owns, and operates water infrastructure to deliver non-potable water and produced water services, with revenues shared between LWM and the Permanent School Fund managed by the GLO. Go-to-market is enterprise field sales targeting large E&P operators on GLO and dedicated acreage, supported by a Houston-area headquarters in The Woodlands and a field operations office in Midland.

Operationally, LWM combines source water sourcing (groundwater and brackish), high-capacity pipeline transportation, centralized disposal, and recycling/redelivery into a single integrated platform, an approach intended to reduce truck traffic, lower per-barrel costs, and provide regulatory compliance for customers operating under Texas Railroad Commission oversight. The company has continued to scale through infrastructure investment, additional SWD permitting on GLO lands, and a $200 million growth-equity financing in April 2019 led by Genesis Park and Post Oak Energy Capital.

Name

Layne Water Midstream

Legal name

Layne Water Midstream, LLC

Website

https://laynewatermidstream.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Ownership category

akta.pro rank

Product category

Oilfield Water Midstream Services

NAICS

Pipeline Transportation of Crude Oil (4861), Water, Sewage and Other Systems (2213), Crude Petroleum Extraction (21112)

SIC

Pipe Lines (No Natural Gas) (4610), Oil & Gas Field Machinery & Equipment (3533), Water Supply (4941)

akta.pro primary industry

Produced Water Gathering & Disposal Pipelines (TLAGAJAD)

akta.pro secondary industries

Wellsite Gathering & Header Systems (Manifolds, Trunklines) (TLAGAJAI), Brine/Concentrate & Produced Water Conveyance Pipelines (Long-Distance) (TLAGAHAG), Raw Water Conveyance & Transmission (Aqueducts, Mains, Pumping Stations) (EUANAAAB), Non-Potable/Industrial Water Conveyance Pipelines (Bulk/Interbasin) (TLAGAHAC)

Keywords

• Water midstream services
• Produced water management
• Oilfield water infrastructure
• Salt water disposal
• Source water delivery

Headquarters

HQ city

The Woodlands

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain

Revenue model

1. Water Sales and Services: Layne Water Midstream generates revenue through the sale and provision of non-potable source water for hydraulic fracturing operations, produced water gathering and disposal services, and water treatment and recycling services. Revenues from water sales and services are shared between Layne Water Midstream and the Permanent School Fund (managed by the Texas General Land Office) under their exclusive partnership agreement.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Layne Water Midstream operates a full-cycle water midstream platform for upstream oil and gas operators in the Permian Basin. The company owns and operates nearly 200 miles of produced water gathering pipeline, 17 salt water disposal facilities with permitted capacity of more than 450,000 barrels per day, the Hermosa high-capacity source water pipeline, and one of the largest source water storage and recharge platforms in the Delaware Basin (5+ million barrels of storage, 500,000 barrels per day of brackish water recharge capacity). Services span source water delivery, produced water gathering, treatment, recycling, and disposal.

Product overview

Layne Water Midstream provides a unified full-cycle water midstream platform for the oil and gas industry in the Permian Basin. The platform integrates three core service areas: produced water gathering and disposal, source water delivery, and produced water treatment and recycling. Key infrastructure products include the Delaware Basin Water Management System (nearly 200 miles of pipeline and 17 salt water disposal facilities with 450,000+ barrels per day capacity), the Hermosa Pipeline (26+ miles with 18 delivery points), and one of the largest source water platforms in the Delaware Basin (5+ million barrels storage, 500,000 barrels per day recharge capacity). These components work together to deliver comprehensive water management solutions from source water provision through produced water disposal and recycling.

Differentiator

Problem solved

Functional benefit

Products and services

• Delaware Basin Water Management System An extensive produced water management system in the Delaware Basin comprising nearly 200 miles of pipeline and 17 salt water disposal facilities with permitted capacity of over 450,000 barrels per day, providing comprehensive water infrastructure for oil and gas operators.
• Hermosa Pipeline A high-capacity water pipeline spanning more than 26 miles with 18 delivery points that forms part of the source water system serving oil and gas operators in the Delaware Basin.
• Source Water Platform One of the largest source water platforms in the Delaware Basin, featuring brackish water and produced water pond storage of more than five million barrels and 500,000 barrels per day of brackish water recharge capacity to supply hydraulic fracturing operations.
• Produced Water Gathering, Treatment, Recycling and Disposal Services Full-range produced water midstream services including gathering, transportation, treatment, recycling, and disposal of water produced from oil and gas operations on Texas General Land Office acreage in Reeves and Culberson counties.

Quantifiable outcome

• 450,000+ barrels per day permitted disposal capacity to accommodate customer growth
• +2 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

One partnership is on record.

• Texas General Land OfficeflagshipStrategic or Co-development Partner · 1 November 2017Layne Water Midstream has an exclusive 20-year water midstream partnership with the Texas General Land Office covering GLO acreage in Reeves and Culberson counties. The partnership was established in November 2017 and expanded in January 2020 to include additional reuse and disposal rights. Under the agreement, LWM develops, constructs, owns and operates water infrastructure to provide non-potable water to oil and gas companies in the Delaware Basin. Revenues from water sales and services are shared between Layne Water Midstream and the Permanent School Fund managed by the GLO.

Scale indicators9 records

Recent moves3 records

Expansion highlights5 records

Direct peers

• Solaris Water Midstream: Howard Energy Partners-owned Permian Basin water midstream company operating produced water gathering, recycling, and source water infrastructure in the Delaware Basin. Directly competes with LWM for producer dedications and GLO-adjacent acreage.
• Aris Water Solutions: NYSE-listed Permian Basin water midstream operator providing produced water gathering, recycling, and disposal plus source water delivery. Closest direct competitor to Layne Water Midstream with overlapping Delaware Basin footprint and similar full-cycle integrated platform.
• Goodnight Midstream: Permian-focused produced water midstream operator with extensive saltwater disposal and produced water gathering infrastructure. Competes for oil and gas operator water dedications across the Delaware and Midland sub-basins.
• WaterBridge NDB: Permian Basin produced water midstream operator with integrated gathering, recycling, and disposal systems serving E&Ps in the Delaware Basin. Closely comparable business model and customer base to LWM.

Broad incumbents

• NGL Energy Partners: Master limited partnership with a water solutions segment providing produced water gathering, recycling, and disposal services. Competes with LWM on saltwater disposal capacity and produced water infrastructure in multiple basins.
• Select Water Solutions: NYSE-listed provider of water handling and treatment solutions for the oil and gas industry with a broader geographic and service footprint than LWM. Overlaps on produced water handling, recycling, and source water but serves basins beyond the Permian.

Others

• Layne Christensen: Parent company of Layne Water Midstream, providing water well drilling, mineral exploration, and large-diameter water infrastructure. Provides operational and technical support to LWM and shares the Layne water solutions heritage.

Regional players

• Franklin Mountain Energy: Permian-focused operator and water midstream participant; while primarily an E&P, its development patterns drive demand for LWM-style water infrastructure in overlapping Delaware Basin acreage.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/layne-water-midstream

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Layne Water Midstream