Layne Christensen Announces New Energy Infrastructure Business And High-Capacity Water Pipeline In The Delaware Basin
"Layne's 135 years of experience in water sourcing, drilling and treatment provides us with a unique advantage over many industry competitors. This new investment is part of our longer-term strategy to leverage our substantial know-how in providing water infrastructure solutions to our clients. Our process of supplying water to energy producers through large capacity infrastructure under the Layne banner is a logical extension of our diversified end-market strategy serving clients in the municipal, agricultural and industrial sectors."
The water infrastructure system, which is currently in the final stages of construction, is anchored by nearly 1,000 acres of Company-owned, highly-productive water-producing land near
Water sales are expected to commence during Layne's fiscal third quarter. Once operational, financial returns from the system are anticipated to be immediately accretive to cash flow and earnings. Layne's returns are back-stopped through an initial four-year contract containing minimum volume purchases from a large publicly-traded independent oil and gas producer that is actively drilling in the area. While the initial contract is expected to ensure adequate financial returns for Layne, the Company anticipates being able to deliver additional water volumes to other producers in the area and expand its capacity over time.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. Such statements may include, but are not limited to, statements of plans and objectives, statements of future economic performance and statements of assumptions underlying such statements, and statements of management's intentions, hopes, beliefs, expectations or predictions of the future. Forward-looking statements can often be identified by the use of forward-looking terminology, such as "should," "intend," "continue," "believe," "may," "hope," "anticipate," "goal," "forecast," "plan," "estimate" and similar words or phrases. Such statements are based on current expectations and are subject to certain risks, uncertainties and assumptions, including but not limited to: prevailing prices for various commodities,
unanticipated slowdowns in the Company's major markets, the availability of credit, the risks and uncertainties normally incident to the industries of operation, the impact of competition, the effect of any deregulation or other initiatives by the
Layne is a global water management, infrastructure services and drilling company, providing responsible solutions to the world of essential natural resources — water, minerals and energy. We offer innovative, sustainable products and services with an enduring commitment to safety, excellence, and integrity.
Chief Financial Officer
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