H2O Midstream
H2O Midstream is a private Houston-based water midstream company operating the largest independent, fully integrated produced water network in the Midland Basin, providing pipeline gathering, storage, recycling, disposal, and transportation services to Permian oil and gas E&P operators under fee-based, acreage-dedicated contracts.
- Company typePrivate
- Founded2016
- HeadquartersHouston, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What H2O Midstream does
H2O Midstream is a private, Houston-based water midstream company founded in 2016 that operates the largest independent, fully integrated produced water network in the Midland Basin of the Permian. The company serves oil and gas exploration and production operators with a full-cycle platform comprising five interconnected services: produced water gathering via 250 miles of permanent, buried, contiguous pipeline; owned storage of 3.2 million barrels plus 0.75 million barrels of third-party storage; recycling deliverability targeted at 200,000 barrels per day; salt water disposal through 14 owned wells (295,000 bpd permitted) plus 13 third-party interconnects (500,000 bpd takeaway); and transportation/redelivery services that permit producers to deliver water in one location and receive it elsewhere (transportation swaps).
The business model is fee-based and contract-driven: H2O Midstream secures acreage dedication agreements with E&P operators and provides services under short-term and long-term arrangements, generating usage-based revenue across gathering, recycling, disposal, and transportation (subscription-style revenue on committed storage capacity). The customer base comprises at least seven enterprise Permian producers, including SM Energy, Ovintiv (formerly Encana), and Laredo Petroleum (formerly Sabalo), with the largest concentration in the Northern Midland Basin's Howard County and Big Spring areas. Operational technology is anchored on a cloud-based ERP from W Energy Software that aggregates measurement data from over 250 meters and tracks transactions across the pipeline network; field operations are run from a Houston headquarters plus a Big Spring field office.
H2O Midstream was capitalized by EIV Capital with a $100 million platform commitment in 2016 and grew through acquisitions of the Ovintiv water assets in Howard County (2017) and the Sabalo/Laredo system in the northern Midland Basin (2019), alongside organic asset additions including the Newton Hub (2018) and the El Dorado recycling facility plus Sinclair system (2020). The company has been recognized by the Texas Railroad Commission for highest inspection compliance among its peer group. As of 2025/2026, H2O Midstream has been acquired by and integrated into Delek Logistics Partners' gathering and processing segment, with Delek reporting a 36.6% increase in segment revenue attributable to the addition.
H2O Midstream firmographics
Firmographics- Name
- H2O Midstream
- Legal name
- H₂O Midstream LLC
- Website
- https://h2omidstream.com
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- H2O Midstream is a private Houston-based water midstream company operating the largest independent, fully integrated produced water network in the Midland Basin, providing pipeline gathering, storage, recycling, disposal, and transportation services to Permian oil and gas E&P operators under fee-based, acreage-dedicated contracts.
- Ownership category
- akta.pro rank
H2O Midstream industry classification
Industry- Product category
- Water Midstream Services
- NAICS
- General Warehousing and Storage (493110), Waste Management and Remediation Services (562)
- SIC
- Oil & Gas Field Services, Nec (1389), Public Warehousing & Storage (4220)
- akta.pro primary industry
- Oil & Gas Midstream & Pipeline O&M (Pipelines, Compressor Stations) (EUAEAGAF)
- akta.pro secondary industry
- Tank Leasing & Third-Party Storage Operators (EUALAEAF)
Keywords
Where H2O Midstream is headquartered
LocationHeadquarters
- HQ city
- Houston
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
H2O Midstream business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Infrastructure, Operations, Personnel, Supply Chain, Technology or R&D, Marketing or Sales
Revenue model
- Gathering and Transportation Services: Fee-based revenue from gathering and transporting produced water through 250-mile pipeline network. Volumes peaked at 205,000 barrels per day in 2019. Pricing under acreage dedication and fee-based agreements.
- Storage Services: Revenue from providing produced water storage capacity (3.2 million barrels owned plus 0.75 million third-party). Storage used for peak flow management, system reliability, hydraulic relief, recycling staging, and banking.
- Recycling Services: Revenue from treating and recycling produced water for redelivery to customers for fracturing operations. Target to deliver >40% of total gathered volume back to customers. Two water qualities offered: raw water skimmed free of hydrocarbons, and clean brine treated to producer specifications.
- Disposal Services: Revenue from salt water disposal through 14 owned SWDs (295,000 bpd permitted capacity) plus 13 third-party interconnects (500,000 bpd takeaway capacity). Operates deep (Ellenburger) and shallow disposal wells managed as baseload, intermediate, and peaking units.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Usage-based | Multi-year contract | Fee-based water management services |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels5 records
H2O Midstream product offering
Product offeringCore offering
H2O Midstream provides produced water gathering, transportation, storage, recycling, treatment, and disposal services to oil and gas E&P operators through a 250-mile integrated, pipeline-interconnected network in the Midland Basin. The full-cycle platform spans 14 owned salt water disposal wells (295,000 bpd permitted capacity), 3.2 million barrels of owned storage plus 0.75 million barrels of third-party storage, and recycling deliverability targeted at 200,000 bpd, delivered under acreage dedication and fee-based commercial arrangements.
Product overview
H2O Midstream offers a full-cycle, integrated water management platform for oil and gas operators in the Permian Basin. The platform is built around five core services — Produced Water Gathering (via 250 miles of buried, contiguous pipeline), Produced Water Storage (3.2 million barrels owned plus 0.75 million third-party), Water Recycling (up to 200,000 barrels per day deliverability), Salt Water Disposal (14 owned SWDs with 295,000 bpd capacity, plus 500,000 bpd via 13 third-party interconnects), and Transportation/Redelivery Services — all interconnected via pipeline across a ~300 square mile footprint in the Northern Midland Basin. The platform is supplemented by an ESG Scorecard module for KPI tracking aligned with company objectives and compensation. H2O Midstream was founded in 2016 and is a portfolio company of EIV Capital.
Differentiator
Problem solved
Functional benefit
Products and services
- Produced Water Gathering Pipeline-based gathering of produced water from oil and gas wells across the Midland Basin via a 250-mile permanent, buried, contiguous pipeline network with all facilities 100% interconnected, enabling simultaneous flowbacks from multiple customers.
- Produced Water Storage Owned storage capacity of 3.2 million barrels plus 0.75 million barrels of third-party storage, all connected via pipeline and co-located next to treatment facilities and disposal wells, used for peak flow management, system reliability, hydraulic relief, recycling staging, and producer banking.
- Water Recycling Treating and recycling produced water for redelivery to customers for hydraulic fracturing operations at up to 200,000 barrels per day deliverability, targeting over 40% of total gathered volume back to customers. Two qualities offered: raw water skimmed of hydrocarbons, and clean brine treated to producer specifications.
- Salt Water Disposal (SWD) Salt water disposal through 14 owned SWDs (295,000 bpd permitted capacity) plus 13 third-party interconnects (500,000 bpd takeaway capacity), with 19 disposal permits giving access to over 600,000 bpd of total capacity across deep (Ellenburger) and shallow wells.
- Transportation and Redelivery Services Water transportation and redelivery services across H2O Midstream's pipeline network (transportation swaps) enabling producers to deliver water in one location and receive it back in another, optionally combined with storage for redelivery at later dates for fracturing operations.
Quantifiable outcome
- Eliminated over 1.3 million truck loads of produced water, preventing over 100,000 metric tons of CO2 emissions
- +5 more outcomes
Companies that use H2O Midstream
Customer profileNamed customers4 records
Segments1 record
Ideal customer profiles1 record
H2O Midstream technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
Feature4 records
H2O Midstream partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core and minor.
- W Energy SoftwarecoreH2O Midstream partnered with W Energy Software for cloud-based logistics and transaction management software. The unified ERP solution enables tracking of complex customer contracts, aggregation of measurement data from 250+ meters, and recording transactions across produced water pipeline systems. Financial and liquids transportation solutions are fully integrated on the cloud for real-time decision making.
- B3 InsightcoreH2O Midstream is a founding member of B3 Insight's Oilfield Water Stewardship Council (OWSC), an ESG-focused membership program for water management in oil and gas. The OWSC addresses challenges in standardized metrics, reporting, and frameworks for sustainable water management investments.
- Texas Produced Water ConsortiumcoreH2O Midstream is a member of the Texas Produced Water Consortium, working to advance sustainable and beneficial use of produced water.
- University of Texas Permian Basin (UTPB) Texas Water Energy InstituteminorH2O Midstream serves as a Board Member of the UTPB Texas Water Energy Institute, advancing research and development in water management.
Scale indicators13 records
Recent moves9 records
Expansion highlights6 records
H2O Midstream competitors and assessment
Company assessmentDirect peers
- Aris Water Solutions: NYSE-listed pure-play Permian produced water midstream operator with integrated gathering, recycling, and disposal infrastructure — directly comparable to H2O Midstream's core offering in the same basin.
- Select Water Solutions: NYSE-listed provider of water management and oilfield services with significant produced water infrastructure in the Permian Basin — competes directly with H2O Midstream on gathering, recycling, and disposal.
- Solaris Water Midstream: Privately held Permian-focused produced water midstream company offering gathering, recycling, and disposal services to operators — directly comparable business model and customer base to H2O Midstream.
- WaterBridge NDB: Large Permian Basin produced water midstream operator with integrated gathering, recycling, and saltwater disposal — competes head-to-head with H2O Midstream for acreage dedications from Permian E&Ps.
Emerging players
- Bison Water Solutions: Permian-focused produced water midstream company with growing gathering and disposal infrastructure — operates in the same basin and serves similar oil & gas customers, though smaller in scale.
- PetroLegacy Energy: Privately held produced water midstream operator active in the Permian Basin — offers gathering and disposal services comparable to H2O Midstream's core offerings.
Broad incumbents
- Delek Logistics Partners: Public MLP that recently acquired H2O Midstream as part of its gathering and processing strategy — a broader midstream operator with hydrocarbon logistics plus integrated water assets.
- Energy Transfer: Large diversified midstream operator with water handling assets in Texas/Permian — competes indirectly in produced water and offers an integrated suite of gathering, processing, and disposal services.
- Occidental Petroleum (Oxy / Permian Resources): Major Permian operator with significant owned produced water infrastructure including post-WaterBridge assets — competes in produced water handling at scale and is both a potential customer and competitor.
Regional players
- Summit Midstream Partners: Midstream operator with gathering and processing assets in Texas basins — provides comparable midstream infrastructure services, though primarily focused on natural gas and NGLs rather than produced water.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks5 records
Key highlights7 records
Customer concentration
H2O Midstream social profiles
Digital presenceH2O Midstream compliance and trust
Trust signalCompliance1 record
H2O Midstream financial estimates
Financial estimateRevenue estimate
Valuation estimate
H2O Midstream leadership team
Management profileNumber of profiles
Profiles17 records
H2O Midstream funding detail
Funding detailFunding overview
Funding rounds1 record
Investors1 record
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
H2O Midstream M&A and investment
M&A and investmentM&A1 record
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about H2O Midstream
What does H2O Midstream do?
H2O Midstream provides produced water gathering, transportation, storage, recycling, treatment, and disposal services to oil and gas E&P operators through a 250-mile integrated, pipeline-interconnected network in the Midland Basin. The full-cycle platform spans 14 owned salt water disposal wells (295,000 bpd permitted capacity), 3.2 million barrels of owned storage plus 0.75 million barrels of third-party storage, and recycling deliverability targeted at 200,000 bpd, delivered under acreage dedication and fee-based commercial arrangements.
Is H2O Midstream a public or private company?
H2O Midstream is a private company. It is classified as private equity controlled and is currently operating.
When was H2O Midstream founded?
H2O Midstream was founded in 2016. It employs 11 to 50 people.
Where is H2O Midstream based?
H2O Midstream is headquartered in Houston, United States, in the North America region.
How does H2O Midstream make money?
Four revenue lines are on record. Gathering and Transportation Services are the primary driver. The others are storage Services, recycling Services and disposal Services.
Who are H2O Midstream's main competitors?
Direct peers on record are Aris Water Solutions, Select Water Solutions, Solaris Water Midstream and WaterBridge NDB. Emerging players are Bison Water Solutions and PetroLegacy Energy. Broad incumbents are Delek Logistics Partners, Energy Transfer and Occidental Petroleum (Oxy / Permian Resources). Summit Midstream Partners is listed as a regional player.
Does H2O Midstream have an API?
No public API is recorded for H2O Midstream.
What industry is H2O Midstream in?
H2O Midstream's product category is Water Midstream Services. Its primary akta.pro industry code is EUAEAGAF, Oil & Gas Midstream & Pipeline O&M (Pipelines, Compressor Stations), with a secondary code of EUALAEAF, Tank Leasing & Third-Party Storage Operators. Its NAICS code is 493110 and its SIC code is 1389.