Reeves: Hub of the Delaware Basin
Reeves County is The Hub of the booming Delaware Basin, which makes industrial property in Reeves County so in demand. Once a sleepy town on the periphery of the Permian Basin, it ascended into the limelight when modern completion techniques were applied to rock out in the Delaware sector of the legendary Permian Basin. By the early 2010s, the Delaware was emerging as its own important drilling province (see the maps below). Reeves County’s rig count ascended from the 20s in 2013 into the 70s by the peak of 2018. During the pandemic recession, rig counts slumped significantly, but the bounce-back that got underway in late 2020 was swift and dramatic. And since then, it has fluctuated in the high 20s and low 30s, making it one of the top counties in Texas for O&G drilling. Similarly, there is solid and stable activities going on in development of midstream infrastructure. Indeed, over the last few years, Reeves has jumped way out in front of every Texas county in terms of natural gas production. The infamous WaHa Hub is in Reeves as it symbolizes the importance of the massive infrastructure that gathers this output and moves it to the Gulf Coast and other points east.
Reeves County is also known as a hub because all the counties contiguous to it, also being part of the Delaware Basin, have their own intensive drilling activities. The number of rigs make the industrial buildings in Reeves County that we have available particularly enticing. For example, those contiguous counties had a rig count in September 2022 of 72.
County Rig Count
This Texas-sector of the world-class Delaware Basin constitutes 15% of the entire country’s rig count. To put these statistics in perspective, Reeves County was once asleep and is now the county with the most intensive activity in the U.S. And that means that industrial sites for warehousing and repairing of equipment as well as storing inventory makes Reeves County the go-to location. (See the maps below.) And, Pecos is the largest and best-located community in this region. These maps also clearly depict the Pecos advantage — as wells as First Keystone’s — as a transport hub (see next section). Moreover, Pecos is committed to upgrading its housing and schools. Thus, there is no better locale to situate a service facility other than Reeves County to serve the Delaware Basin.
There is another huge advantage with Reeves County as a location for industrial sites and that would be transportation. As these maps indicate, it is bisected by two important east/west interstate highways and has two critical north/south highways in US-285 and SH-17. These roads are the main spokes cutting through Reeves that make Reeves County the critical hub for industrial sites serving the hard-working industries of the Delaware. And, TXDOT has big plans for this area (https://ftp.dot.state.tx.us/pub/txdot-info/fed/build/2018/reeves-and-loving-county.pdf). Thus, today’s congested highways are tomorrow’s arteries ensuring that Reeves will remain the best site for industrial and warehousing activities. And, of course, the Union Pacific RR bisects Reeves County.