Brentwood, Tenn.-based Delek Logistics Partners said last week it has agreed to purchase the water midstream division of Gravity Oilfield Services for $285 million ($200 million cash). The Gravity unit provides gathering, transportation, recycling, storage and disposal of produced water in Midland Basin in west Texas and Williston Basin in North Dakota. The acquisition adds more than 200 miles of permanent pipeline, 46 saltwater disposal facilities, and 14 freshwater facilities with more than 6 million barrels of storage capacity to Delek’s inventory.
Gravity will retain ownership and operation of its power infrastructure assets.
Delek said Dec. 12 the acquisition “is synergistic to DKL’s recent acquisition of H2O Midstream and supplements DKL’s integrated crude and produced water gathering and disposal offering in Midland Basin.” Avigal Soreq, president, added, “We are committed to executing our strategy of being the preferred oil, gas and water midstream services provider in the Permian Basin.”