The ConocoPhillips affiliate Solaris Midstream Holdings is reported to have made an initial public offering.
Reuters reported the IPO, explaining that ConocoPhillips has a 30% holding in Solaris.
The company supplies water for oil and gas fracking operations and has operations in Texas and New Mexico.
The IPO is expected to attract possible investors who support sustainability in the hydrocarbon spectrum according to Reuters.
ConocoPhillips acquired its holdings in Solaris after Concho Resources divested water assets to the company in 2019 and acquired a 20% stake in the company in return. Then ConocoPhillips acquired Concho Resources in an all-stock transaction valued at nearly $9.7 billion.
It has been reported Solaris filed an IPO in New York, resulting in the company having a value of more than $1 billion. While environmental organizations are critical of fracking, Solaris executives believe they can still attract their interest through its water treating processes and recycling capacity.
In April of this year, Solaris Midstream Holdings, LLC, the parent company to Solaris Water Midstream, LLC finished the issuance of $400 million in senior unsecured notes in a landmark issuance.
Over the past year, Solaris also began operations at New Mexico’s newest large-scale water reuse complex. Ten months ago, the company also expanded its water infrastructure joint venture with Concho Resources.
Source: Reuters