John R. Durand, XRI President, describes XRI’s recent acquisition of Fountain Quail Water Management and its impact on the company as the industry increasingly looks to recycling to handle growing volumes of produced water

May 2019
Global Water Intelligence

In a departure from its water supply-only strategy, oilfield water services firm XRI has acquired the treatment assets of Fountain Quail Energy Services in a bid to meet growing client demand for produced water recycling services in the US.

XRI’s organic growth since 2013 has seen it focus on the supply of non-potable brackish groundwater for hydraulic fracturing operations in the Permian’s Midland and Delaware basins, where the firm has developed over 300 miles of permanent pipeline handling approximately 700,000 bbl/d of source water, and serves major E&Ps such as Pioneer Natural Resources.

The new deal marks XRI’s first acquisition since private equity house Morgan Stanley Energy Partners took a majority stake in the business in 2016, and is a bold move for a firm without any saltwater disposal well (SWD) assets. Despite the fact that XRI only handles very limited volumes of produced water, president John Durand – who joined the company last month after serving as president and COO of Water- Bridge Resources — maintains that bolting on recycling capabilities to XRI’s existing water sourcing offering is a strategic fit.