The acquisition to add 17 new saltwater disposal wells along with a permitted disposal capacity over 432,500 barrels per day to the Gravity’s existing water midstream business
Image: Gravity to acquire On Point from White Deer Energy. Photo: courtesy of rawpixel from Pixabay.
US-based water and energy infrastructure company Gravity, backed by affiliates of Clearlake Capital Group, has agreed to acquire On Point Oilfield Holdings from White Deer Energy.
Financial details of the transaction are not disclosed.
On Point is an US-based midstream water company that acquires, develops, and operates saltwater disposal wells and saltwater pipeline infrastructure in the Permian Basin.
According to Gravity, the acquisition of On Point is expected to create one of the largest commercial produced water disposal companies by injection volumes in the Midland Basin.
Upon completion of the deal, Gravity will add 17 new saltwater disposal wells along with a permitted disposal capacity over 432,500 barrels per day to its existing water midstream business.
On Point has obtained saltwater disposal permits for an additional permitted disposal capacity of 120,000 barrels per day and the right to develop disposal permits for an additional capacity of 305,000 barrels per day.
Gravity will own and manage over 50 active saltwater disposal wells
Gravity president and CEO Rob Rice said: “This acquisition is transformational for Gravity and enables the company to offer expanded water handling infrastructure for producers operating in the core of the Midland Basin.
“Gravity continues to focus on providing the most reliable and efficient produced water gathering and disposal infrastructure for its customers.”
Upon completion of the deal, Gravity will own and manage more than 50 active saltwater disposal wells with a permitted disposal capacity of more than one million barrels per day.
Clearlake Capital Group co-founder and managing partner and Gravity chairman José E. Feliciano said: “This transaction represents a critical step in Gravity’s continued evolution into a premier, integrated water midstream platform with leading scale in the Permian Basin.
“Gravity is the dominant produced water platform in the core of the Midland Basin, which is one of the most active oil and gas regions in the country.
“We are excited to leverage Gravity’s enhanced scale to fuel organic growth by capitalizing on significant business development opportunities driven by Gravity’s customers’ desire to address their rapidly expanding produced water handling needs through contracted, long-term agreements.”
In 2018, Gravity completed two deep Ellenburger saltwater disposal wells in the Midland Basin.