Gravity Oilfield Services Announces Sale of Water Midstream Division to Delek Logistics
On December 12, 2024, Gravity Oilfield Services Inc. announced a significant transition in its business structure by agreeing to sell its Gravity Water Midstream division to Delek Logistics Partners, LP. This strategic move comes as part of Gravity's growth-oriented focus on energy infrastructure services. The sale is expected to accelerate the development of a robust water midstream platform in two strategically important regions: the Midland Basin of Texas and the Williston Basin in North Dakota.
Rob Rice, CEO of Gravity, expressed optimism regarding this acquisition, stating, "The acquisition of Gravity Water Midstream by Delek Logistics creates a path to continue to build incredible scale in our water midstream platform." He further acknowledged the dedication of Gravity's employees, emphasizing their commitment to establishing one of the largest commercial water management platforms in these two basins.
Despite shedding its water midstream assets, Gravity remains steadfast in its commitment to energy infrastructure. The company will retain ownership of its power generation assets, ensuring that they continue to support critical infrastructure needs in the industry. This dual focus on water and power solutions highlights Gravity's versatile capabilities in addressing the varied challenges of oil and gas production.
The partnership between Clearlake Capital Group, L.P., and Gravity, established in 2017, has been pivotal in driving forward various midstream opportunities. Over the past years, Gravity has successfully expanded its water infrastructure operations, making substantial advancements to support local producers. The Gravity Water Midstream division has rapidly established itself as a leading commercial operator within the Midland Basin, backed by an extensive system consisting of over 200 miles of permanent pipelines, 46 saltwater disposal (SWD) facilities, and 14 freshwater facilities, with the ability to store more than six million barrels of water.
This acquisition reflects not only the success of Gravity's operational strategies but also the growing demand for efficient water management solutions within the oil and gas sectors. As pressures mount to enhance sustainability practices and optimize resource management, companies like Delek Logistics are stepping up to face these challenges head-on.
José E. Feliciano and Colin Leonard, partners at Clearlake Capital, conveyed their appreciation for Gravity's hard work and the fruitful relationship formed through this partnership. They noted, "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."
Piper Sandler Co acted as the exclusive financial advisor for Gravity during this transaction, while Vinson & Elkins LLP provided legal counsel, ensuring a smooth transition for both parties involved.
Gravity Oilfield Services remains a key player in the sector, offering comprehensive energy infrastructure solutions that also include critical power generation services. With its vast operational footprint across major U.S. resource plays, including the Permian Basin, Eagle Ford, and Bakken, Gravity continues to position itself as a pivotal service provider within the energy sector moving forward.
The sale to Delek Logistics marks a new chapter in the water management aspect of the oil and gas industry, with expectations that this move will lead to improved operational efficiencies and expanded capabilities for all stakeholders involved in the regions serviced.
For more information about Gravity Oilfield Services and their offerings, interested parties can visit their official website at www.gvty.com.
Rob Rice, CEO of Gravity, expressed optimism regarding this acquisition, stating, "The acquisition of Gravity Water Midstream by Delek Logistics creates a path to continue to build incredible scale in our water midstream platform." He further acknowledged the dedication of Gravity's employees, emphasizing their commitment to establishing one of the largest commercial water management platforms in these two basins.
Despite shedding its water midstream assets, Gravity remains steadfast in its commitment to energy infrastructure. The company will retain ownership of its power generation assets, ensuring that they continue to support critical infrastructure needs in the industry. This dual focus on water and power solutions highlights Gravity's versatile capabilities in addressing the varied challenges of oil and gas production.
The partnership between Clearlake Capital Group, L.P., and Gravity, established in 2017, has been pivotal in driving forward various midstream opportunities. Over the past years, Gravity has successfully expanded its water infrastructure operations, making substantial advancements to support local producers. The Gravity Water Midstream division has rapidly established itself as a leading commercial operator within the Midland Basin, backed by an extensive system consisting of over 200 miles of permanent pipelines, 46 saltwater disposal (SWD) facilities, and 14 freshwater facilities, with the ability to store more than six million barrels of water.
This acquisition reflects not only the success of Gravity's operational strategies but also the growing demand for efficient water management solutions within the oil and gas sectors. As pressures mount to enhance sustainability practices and optimize resource management, companies like Delek Logistics are stepping up to face these challenges head-on.
José E. Feliciano and Colin Leonard, partners at Clearlake Capital, conveyed their appreciation for Gravity's hard work and the fruitful relationship formed through this partnership. They noted, "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."
Piper Sandler Co acted as the exclusive financial advisor for Gravity during this transaction, while Vinson & Elkins LLP provided legal counsel, ensuring a smooth transition for both parties involved.
Gravity Oilfield Services remains a key player in the sector, offering comprehensive energy infrastructure solutions that also include critical power generation services. With its vast operational footprint across major U.S. resource plays, including the Permian Basin, Eagle Ford, and Bakken, Gravity continues to position itself as a pivotal service provider within the energy sector moving forward.
The sale to Delek Logistics marks a new chapter in the water management aspect of the oil and gas industry, with expectations that this move will lead to improved operational efficiencies and expanded capabilities for all stakeholders involved in the regions serviced.
For more information about Gravity Oilfield Services and their offerings, interested parties can visit their official website at www.gvty.com.
Topics Energy）
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