Gravity, a leading water and energy infrastructure company backed by affiliates of Clearlake Capital Group LP has signed a definitive agreement on Nov. 6 to acquire On Point Oilfield Holdings LLC from White Deer Energy.
On Point is a contracted produced water midstream company focused on gathering and disposal operations in the Midland Basin. Gravity’s acquisition of On Point will create the largest commercial produced water disposal company by injection volumes in the Midland Basin.
On Point’s water infrastructure asset base adds 17 new saltwater disposal wells and more than 432,500 barrels per day (bbl/d) of permitted disposal capacity to Gravity’s existing water midstream business. On Point has obtained saltwater disposal permits for 120,000 bbl/d of additional permitted disposal capacity and the right to develop disposal permits for an additional 305,000 bbl/d of capacity targeting the Ellenburger formation. Financial terms of the transaction are not being disclosed.
Pro forma for the acquisition, Gravity will own and manage more than 50 active saltwater disposal wells with more than 1 MMbbl/d of permitted disposal capacity. In connection with the closing of the acquisition, Trace Hight, founder and CEO of On Point, will join Gravity as its chief commercial officer of water infrastructure.
“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. We are excited to expand our platform and welcome On Point and its proven management team to Gravity,” Rob Rice, Gravity's president and CEO, said.
Three oil and gas technology firms have joined forces to offer the global oil and gas industry an integrated and boundary-pushing approach to well lifecycle integrity and production optimization.
Nine Energy Service Inc. said that Clinton Roeder, senior vice president and CFO has departed the company by mutual consent effective on March 31.
Apache said it would cut 85 people in its Midland, Texas office, while oilfield firm FTS International said it would lay off 35 workers in Fort Worth, Texas and 85 workers in Hobbs, N.M.