Canonsburg, Pa.-based HydroEdge Solutions, LLC announced its newly formed parent company, WET Tech, LLC, had acquired Reserved Environmental Services, LLC, and its affiliated operating companies.
The two combined companies would merge into one of the largest independent water management platforms serving the Marcellus and Utica shales in Pennsylvania, Ohio and West Virginia, operating five Pennsylvania water facilities with an estimated 700,000 barrels of storage and up to 116,000 barrels of processing capacity each day.
“We are thrilled to be working with Matt Kicinski and the entire RES team,” Matt Brewer, CEO of the combined company and co-founder of HydroEdge, said. “The basin has seen firsthand how consolidation on the E&P side has strengthened the operators working here. This transaction creates the platform to do the same in energy services, and we will continue to pursue both organic and acquisitive growth across Appalachia.”
Officials said the combination unites the two businesses into a single operator spanning the water lifecycle from pipeline to hauling, treatment, recycling and storage. Together the companies will offer natural gas producers a single-point solution across the completion and production cycle, backed by 350 employees, five water treatment, recycling and storage facilities, an automation-enabled transfer and trucking network with full basin coverage.
“This transaction is a testament to the business our team has built as the basin’s leader in water storage infrastructure,” Matt Kicinski, president of the combined company, said. “Incorporating HydroEdge’s technology and logistics capabilities into that footprint creates immediate opportunities for the combined business and for the operators we serve.”
Officials said the expect the merger will lower the total cost per barrel for customers, improve service reliability, and enhance environmental performance by increasing water reuse, reducing freshwater withdrawals, and lower emissions.