A Houston-based company specializing in water and power infrastructure has announced the sale of its water management oil services linked to the Midland Basin. The buyer is a Brentwood, Tennessee-based operator.
Gravity Oilfield Services Inc. has agreed to sell its Gravity Water Midstream division to Delek Logistics Partners, LP, as reported by a news service. Beyond the Midland Basin, this service provides gathering, transportation, recycling, storage, and disposal solutions for produced water in the Williston Basin in North Dakota.
The Society of Petroleum Engineers reported that the deal is valued at $285 million and will add over 200 miles of permanent water pipeline to Delek's existing infrastructure.
Gravity CEO Rob Rice said that the acquisition will facilitate the continued operation of the water midstream platform in the Midland Basin. "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," he said. "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."
According to a news release, Gravity will continue operating its power infrastructure assets while divesting its water midstream assets. In 2017, Gravity entered into a joint venture with Clearlake Capital Group to pursue produced water midstream endeavors. This collaboration has been successful as its water business segment quickly became one of the largest commercial operators of disposal wells in the Midland Basin.