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Gravity to acquire On Point
Posted on Wednesday, 06 November 2019 14:17
Clearlake Capital Group-backed Gravity is buying US-based oilfield fluids waste company On Point Oilfield Holdings from White Deer Energy for an undisclosed sum.

While no financial details have been disclosed, the deal is expected to create the largest commercial saltwater disposal business by injection volumes in the Midland Basin.

Headquartered in Texas, On Point focuses on providing fluid waste removal and infrastructure services for upstream oil and gas companies.

The group also builds, operates and acquires saltwater disposal wells (SWDs) and pipelines across the Midland Basin.

On Point has obtained SWD permits for an additional disposal capacity of 120,000 barrels per day, as well as a further 305,000 barrels per day to target the Ellenburger formation, the deepest oil repository in North Texas.

Rob Rice, chief executive of Gravity, 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.”

Following the completion of the deal, the buyer will own and manage over 50 active SWDs with a disposal capacity of more than 1.00 million barrels per day.

Jose E Feliciano, co-founder of Clearlake, noted: “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.”

Furthermore, On Point’s water infrastructure asset base will also add 17 SWDs and a permitted disposal capacity of over 432,500 barrels per day to the purchaser’s existing water midstream business.

There have been 141 deals targeting waste treatment and disposal companies announced globally since the beginning of 2019, according to Zephyr, the M&A database published by Bureau van Dijk.

In the largest of these so far, Zhefu Holding Group agreed to purchase China-based Zhejiang Shenlian Envionrmental Protection Group for CNY 12.92 billion (USD 1.84 billion).

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