Goodnight Midstream has entered into a multi-year partnership with Callon Petroleum Company to provide pipeline disposal services in the southern Delaware Basin.
Under the terms of the agreement, Goodnight will construct, own and operate a produced water pipeline connecting Callon’s Spur acreage in Ward County, Texas to saltwater disposal wells in the Central Basin Platform. The new pipeline will reliably move produced water volumes out of the Delaware Basin, providing Callon assurance of sufficient disposal capacity at a low cost per barrel.
“We are pleased to continue our expansion in the Permian with this unique partnership with Callon, a leading operator in the basin,” said Patrick Walker, Chief Executive Officer of Goodnight Midstream. “By piping produced water out of the Delaware Basin at large scale, we are leading the way in providing a long-term, sustainable outlet for the growing volumes of produced water generated by our producers. The shallow, porous and depleted formations of the Central Basin Platform provide the ideal disposal reservoirs for the millions of barrels of saltwater the Delaware Basin will produce in the decades to come.”