MIDLAND, Texas — Texas Department of Public Safety investigators have arrested Pablo Hernandez Jr., 31, of Midland, who now faces a first-degree felony charge for engaging in organized criminal activity tied to the theft of nearly $115,000 worth of crude oil.
According to an arrest affidavit obtained by the Reporter-Telegram, the theft involved 1,920 barrels of oil allegedly siphoned from Western Midstream’s Cobra CTF East Pipeline site near U.S. Highway 285 and County Road 427. Using oil prices from April 21, investigators estimated the total value of the stolen crude at $114,355.20.
Hernandez is being held at the Midland County Detention Center on a $150,000 bond.
The investigation began when DPS responded to reports of suspicious activity at the pipeline maintenance site. Surveillance footage showed a red semi-truck with a white vacuum trailer entering the area under the cover of darkness, turning off its lights, and connecting to the pipeline.
Officers found oil spills and tampered connections at the site, indicating theft. One suspect detained at the scene claimed he believed he was doing legitimate contract work. Investigators later determined that unwitting third-party companies may have been used to carry out the thefts, a common tactic in organized oil theft rings.
Companies such as Znergen Operating LLC and LDJL Trucking were named in the affidavit, with records showing time billed and assignments passed down through third-party brokers. DPS contacted these companies and confirmed that the job had been dispatched under false pretenses.
In one case, a co-conspirator told investigators he had been recruited by Hernandez and was paid $45,225 via check to coordinate the drivers involved in the heist. A photo of the check was recovered from the individual’s phone.
The stolen oil was reportedly transported to frac tanks behind M&W Hot Oil in Reeves County — a site previously flagged in other investigations as a destination for illicit crude.
The affidavit notes that the method of theft — hooking up to pipelines at night without authorization or company oversight — is well outside industry norms. Fraudulent tickets referencing the defunct company Anadarko were also presented as part of the cover.
Authorities say the check from Hernandez constitutes evidence of money laundering and movement of criminal proceeds related to the oil theft operation.
The investigation remains ongoing, and further arrests or charges could follow.
