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.
Recommended Reading
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela and Suriname.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Baltimore Port Closure Could Dent US Coal Export Volumes, EIA Says
2024-03-28 - Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports.