Gravity Agrees to Sell Water Midstream Business to Delek Logistics
Gravity Oilfield Services has agreed to sell its Water Midstream division to Delek Logistics Partners (NYSE: DKL). The division provides water management solutions in the Midland Basin (Texas) and Williston Basin (North Dakota). The infrastructure includes 200+ miles of permanent pipeline, 46 SWD facilities, and 14 fresh water facilities with over six million barrels of storage capacity. Gravity will retain its power infrastructure assets. The water business segment has grown to become one of the largest commercial operators of disposal wells in the Midland Basin since Clearlake's partnership in 2017.
Gravity Oilfield Services ha accettato di vendere la propria divisione Water Midstream a Delek Logistics Partners (NYSE: DKL). Questa divisione offre soluzioni di gestione dell'acqua nel bacino di Midland (Texas) e nel bacino di Williston (Dakota del Nord). L'infrastruttura include oltre 200 miglia di pipeline permanenti, 46 impianti SWD e 14 impianti di acqua dolce con una capacit脿 di stoccaggio superiore a sei milioni di barili. Gravity conserver脿 i propri beni infrastrutturali energetici. Il segmento commerciale dell'acqua 猫 cresciuto fino a diventare uno dei pi霉 grandi operatori commerciali di pozzi di smaltimento nel bacino di Midland da quando Clearlake ha avviato la partnership nel 2017.
Gravity Oilfield Services ha acordado vender su divisi贸n Water Midstream a Delek Logistics Partners (NYSE: DKL). Esta divisi贸n proporciona soluciones de gesti贸n del agua en la Cuenca de Midland (Texas) y la Cuenca de Williston (Dakota del Norte). La infraestructura incluye m谩s de 200 millas de tuber铆as permanentes, 46 instalaciones SWD y 14 instalaciones de agua dulce con m谩s de seis millones de barriles de capacidad de almacenamiento. Gravity retendr谩 sus activos de infraestructura energ茅tica. El segmento de negocios del agua ha crecido hasta convertirse en uno de los mayores operadores comerciales de pozos de eliminaci贸n en la Cuenca de Midland desde la asociaci贸n con Clearlake en 2017.
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Gravity Oilfield Services a convenu de vendre sa division Water Midstream 脿 Delek Logistics Partners (NYSE: DKL). Cette division fournit des solutions de gestion de l'eau dans le bassin de Midland (Texas) et le bassin de Williston (Dakota du Nord). L'infrastructure comprend plus de 200 miles de pipelines permanents, 46 installations SWD et 14 installations d'eau douce avec une capacit茅 de stockage de plus de six millions de barils. Gravity conservera ses actifs d'infrastructure 茅nerg茅tique. Le segment commercial de l'eau a grandi pour devenir l'un des plus grands op茅rateurs commerciaux de puits d'茅limination dans le bassin de Midland depuis le partenariat avec Clearlake en 2017.
Gravity Oilfield Services hat zugestimmt, seine Wasser-Midstream-Division an Delek Logistics Partners (NYSE: DKL) zu verkaufen. Diese Division bietet L枚sungen f眉r das Wassermanagement im Midland-Becken (Texas) und im Williston-Becken (North Dakota). Die Infrastruktur umfasst 眉ber 200 Meilen permanente Pipeline, 46 SWD-Einrichtungen und 14 Frischwasseranlagen mit einer Speicherkapazit盲t von 眉ber sechs Millionen Barrel. Gravity wird seine Energieinfrastrukturverm枚gen behalten. Das Wassergesch盲ft ist seit der Partnerschaft mit Clearlake im Jahr 2017 zu einem der gr枚脽ten kommerziellen Betreiber von Entsorgungsbohrl枚chern im Midland-Becken gewachsen.
- Acquisition creates opportunity for expanded scale in water midstream operations
- Infrastructure includes extensive network of 200+ miles of pipeline and 60 facilities
- Six million barrels of storage capacity demonstrates significant operational scale
- Divestment of entire water midstream division reduces company's market presence
- Loss of significant revenue stream from water management operations
Insights
This acquisition marks a significant strategic move in the water midstream sector. The deal involves substantial infrastructure assets, including 200+ miles of pipeline, 46 SWD facilities and 14 fresh water facilities with over 6 million barrels of storage capacity. For Delek Logistics, this acquisition represents a major expansion of their midstream capabilities in key oil-producing regions. The Midland Basin infrastructure is particularly valuable due to its strategic location in the Permian Basin, one of North America's most prolific oil-producing regions. This vertical integration should enhance DKL's operational efficiency and create new revenue streams through water management services, potentially leading to improved margins and cash flow stability.
The acquisition strengthens Delek Logistics' position in the critical water management sector of oil and gas operations. Water handling infrastructure is becoming increasingly valuable as produced water volumes grow with oil production. The extensive interconnected network acquired provides significant operational advantages and economies of scale. The Williston Basin assets add geographic diversification to DKL's portfolio. This infrastructure's strategic value lies in its essential nature - producers must have reliable water management solutions to maintain operations, creating stable, long-term revenue potential for DKL through various market conditions.
"The acquisition of Gravity Water Midstream by Delek Logistics creates a path to continue to build incredible scale in our water midstream platform in the Midland Basin," said Rob Rice, CEO of Gravity. "I am thankful to the employees of Gravity for their focus on service and dedication to building one of the largest commercial water management platforms in the Midland and Williston Basins. Building this water midstream platform would not be possible without the incredible support and partnership of Clearlake. I am excited to welcome in this new era for water management in the Midland and Williston Basins under the capable leadership of Delek Logistics."
While Gravity is divesting its water midstream assets, the company will retain ownership and operation of its power infrastructure assets, continuing its commitment to providing critical power generation offerings.
Clearlake and Gravity partnered in 2017 to pursue produced water midstream opportunities. Over the last several years, Gravity has focused on organically growing its water infrastructure business to support producers in the Midland and
"We valued the opportunity to partner with the Gravity team as they executed a vision to build a leading water midstream platform in the Midland and Williston Basins," said Jos茅 E. Feliciano, Co-Founder and Managing Partner, and听Colin Leonard, Partner and Managing Director, of Clearlake. "We'd like to thank Rob and the entire Gravity Water Midstream team for their hard work and commitment to growing the business organically over the last several years."
Piper Sandler & Co served as exclusive financial advisor and Vinson & Elkins LLP served as legal counsel to Gravity in connection with the transaction.
About Gravity
Gravity is a growth-oriented provider of energy infrastructure services to
About Clearlake Capital Group听
Founded in 2006, Clearlake Capital Group, L.P. is an investment firm founded operating integrated businesses across private equity, credit and other related strategies.听With a sector-focused approach, the firm seeks to partner with management teams by providing patient, long-term capital to businesses that can benefit from听Clearlake's听operational improvement approach,听O.P.S.庐听The firm's core target sectors are industrials, technology, and consumer.听Clearlake has over听
Media Contacts:
For Gravity
Heather Heacock, (281) 640-3043
Marketing Communication Manager
heather.heacock@gvty.com听
For Clearlake
Jennifer Hurson, (845) 507-0571
Lambert
jhurson@lambert.com听
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SOURCE Gravity Oilfield Services Inc.; Clearlake Capital Group
FAQ
What assets are included in DKL's acquisition of Gravity Water Midstream?
How will the Gravity Water Midstream acquisition impact DKL's market position?
What operations will Gravity retain after selling its water midstream business to DKL?
When was Gravity's water midstream business established with Clearlake?
