HOUSTON, Dec. 12,
2024 /PRNewswire/ -- Gravity Oilfield Services Inc.
("Gravity" or the "company"), a growth-oriented water and power
infrastructure company backed by affiliates of Clearlake Capital
Group, L.P. ("Clearlake"), announced today that it has agreed to
sell its Gravity Water Midstream division to Delek Logistics
Partners, LP (NYSE: DKL) ("Delek Logistics"). Gravity Water
Midstream provides gathering, transportation, recycling, storage,
and disposal solutions for produced water in the Midland Basin in
Texas and the Williston Basin in North Dakota.
"The acquisition of Gravity Water Midstream by Delek Logistics
creates a path to continue to build incredible scale in our water
midstream platform in the Midland Basin," said Rob Rice, CEO of Gravity. "I am thankful to the
employees of Gravity for their focus on service and dedication to
building one of the largest commercial water management platforms
in the Midland and Williston Basins. Building this water midstream
platform would not be possible without the incredible support and
partnership of Clearlake. I am excited to welcome in this new era
for water management in the Midland and Williston Basins under the
capable leadership of Delek Logistics."
While Gravity is divesting its water midstream assets, the
company will retain ownership and operation of its power
infrastructure assets, continuing its commitment to providing
critical power generation offerings.
Clearlake and Gravity partnered in 2017 to pursue produced water
midstream opportunities. Over the last several years, Gravity has
focused on organically growing its water infrastructure business to
support producers in the Midland and Williston basins, and its water business
segment has quickly grown into one of the largest commercial
operators of disposal wells in the Midland Basin. Gravity Water
Midstream developed a system comprised of 200+ miles of permanent
pipeline, 46 SWD facilities, and 14 fresh water facilities
with over six million barrels of storage capacity, all of which
form an extensive and interconnected network.
"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," said José E. Feliciano,
Co-Founder and Managing Partner, and Colin Leonard, Partner
and Managing Director, of Clearlake. "We'd like to thank Rob and
the entire Gravity Water Midstream team for their hard work and
commitment to growing the business organically over the last
several years."
Piper Sandler & Co served as
exclusive financial advisor and Vinson & Elkins LLP served as
legal counsel to Gravity in connection with the transaction.
About Gravity
Gravity is a growth-oriented provider of
energy infrastructure services to U.S. onshore oil and natural gas
exploration and production companies, providing water midstream
solutions, critical power generation offerings and other production
focused services. Gravity has significant coverage density in the
Permian Basin and benefits from a national footprint supported by
facilities, operations and management personnel in several other
key domestic resource plays including the Bakken, Eagle Ford,
SCOOP/STACK, DJ Basin, Haynesville and Marcellus, among others.
More information is available at www.gvty.com.
About Clearlake Capital Group
Founded in 2006,
Clearlake Capital Group, L.P. is an investment firm founded
operating integrated businesses across private equity, credit and
other related strategies. With a sector-focused approach, the
firm seeks to partner with management teams by providing patient,
long-term capital to businesses that can benefit
from Clearlake's operational improvement
approach, O.P.S.® The firm's core
target sectors are industrials, technology, and
consumer. Clearlake has over $85 billion of assets
under management, and its senior investment principals have led or
co-led over 400 investments. The firm is headquartered
in Santa Monica, CA with affiliates in Dallas,
TX, London, UK, Dublin,
Ireland, Singapore, and
Abu Dhabi, UAE. More information
is available at www.clearlake.com and on
X @Clearlake.
Media Contacts:
For Gravity
Heather Heacock, (281) 640-3043
Marketing Communication Manager
heather.heacock@gvty.com
For Clearlake
Jennifer Hurson, (845) 507-0571
Lambert
jhurson@lambert.com
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SOURCE Gravity Oilfield Services Inc.; Clearlake Capital
Group
