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 capacità di stoccaggio superiore a sei milioni di barili. Gravity conserverà i propri beni infrastrutturali energetici. Il segmento commerciale dell'acqua è cresciuto fino a diventare uno dei più 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 división Water Midstream a Delek Logistics Partners (NYSE: DKL). Esta división proporciona soluciones de gestión del agua en la Cuenca de Midland (Texas) y la Cuenca de Williston (Dakota del Norte). La infraestructura incluye más de 200 millas de tuberías permanentes, 46 instalaciones SWD y 14 instalaciones de agua dulce con más de seis millones de barriles de capacidad de almacenamiento. Gravity retendrá sus activos de infraestructura energética. El segmento de negocios del agua ha crecido hasta convertirse en uno de los mayores operadores comerciales de pozos de eliminación en la Cuenca de Midland desde la asociación con Clearlake en 2017.
Gravity Oilfield Services는 Water Midstream 부문을 Delek Logistics Partners (NYSE: DKL)에 매각하기로 합의했습니다. 이 부문은 미들랜드 분지(텍사스)와 윌리스톤 분지(노스다코타)에서 물 관리 솔루션을 제공합니다. 인프라에는 200마일 이상의 영구 파이프라인, 46개의 SWD 시설, 14개의 담수 시설이 포함되며, 600만 배럴 이상의 저장 용량을 갖추고 있습니다. Gravity는 에너지 인프라 자산을 유지할 것입니다. 물 사업 부문은 2017년 Clearlake와의 파트너십 이후 미들랜드 분지에서 가장 큰 상업적 폐기물 처분 업체 중 하나로 성장했습니다.
Gravity Oilfield Services a convenu de vendre sa division Water Midstream à 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 capacité de stockage de plus de six millions de barils. Gravity conservera ses actifs d'infrastructure énergétique. Le segment commercial de l'eau a grandi pour devenir l'un des plus grands opérateurs commerciaux de puits d'élimination 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 Lösungen für das Wassermanagement im Midland-Becken (Texas) und im Williston-Becken (North Dakota). Die Infrastruktur umfasst über 200 Meilen permanente Pipeline, 46 SWD-Einrichtungen und 14 Frischwasseranlagen mit einer Speicherkapazität von über sechs Millionen Barrel. Gravity wird seine Energieinfrastrukturvermögen behalten. Das Wassergeschäft ist seit der Partnerschaft mit Clearlake im Jahr 2017 zu einem der größten kommerziellen Betreiber von Entsorgungsbohrlöchern 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 José E. Feliciano, Co-Founder and Managing Partner, and 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
Founded in 2006, Clearlake Capital Group, L.P. is an investment firm founded operating integrated businesses across private equity, credit and other related strategies. 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 Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are industrials, technology, and consumer. Clearlake has over
Media Contacts:
For Gravity
Heather Heacock, (281) 640-3043
Marketing Communication Manager
heather.heacock@gvty.com
For Clearlake
Jennifer Hurson, (845) 507-0571
Lambert
jhurson@lambert.com
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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?
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