Gravity Water Intermediate Holdings LLC is now a part of midstream oil and gasoline participant Delek Logistics Companions LP (DKL), after the conclusion of a $285 million cash-and-equity transaction.
“The Gravity acquisition represents one other vital step in DKL’s dedication of being a full suite crude, gasoline and water midstream companies supplier within the Permian Basin”, Delek Logistics president Avigal Soreq mentioned in a web-based assertion.
Gravity owns built-in full-cycle water techniques within the Permian Basin, in addition to produced water gathering property and transportation property within the Bakken. Delek Logistics in the meantime supplies gathering, pipeline and different companies for oil and gasoline clients within the Permian and the Gulf Coast area.
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“Gravity’s major operations are in Howard County within the Midland Basin, and together with our latest H2O Midstream acquisition, present a powerful alternative for built-in crude and water companies to DKL’s clients”, Soreq added.
The full worth comprised $200 million in money and about 2.175 million in widespread items representing fairness pursuits in Delek Logistics. Brentwood, Tennessee-based Delek US Holdings Inc. owns the overall associate curiosity and a majority restricted associate curiosity in Delek Logistics and can be a major buyer, in keeping with the latter.
“We consider Delek Logistics continues to offer one of the best mixture of yield and development within the midstream sector”, Soreq mentioned. “As beforehand indicated, DKL can be approaching larger than 70 % of its EBITDA coming from third-party sources”.
On September 12, 2024, Delek Logistics mentioned it had accomplished its acquisition of H2O Midstream, a portfolio firm of Houston, Texas-based EIV Capital LLC. H2O Midstream affords water gathering, transportation, recycling, storage and disposal companies within the Midland Basin in Texas.
“The acquisition of H2O Midstream helps our core technique of offering a full midstream service resolution to our current and third-party clients within the prolific Permian Basin”, Delek Logistics mentioned then. “H2O Midstream operations have vital overlap with our current Midland, Texas operations.
“The acquisition additionally presents a possibility to extract vital synergies via price optimization and cross product gross sales”.
The full consideration was $230 million, consisting of $160 million in money and $70 million in convertible most well-liked redeemable fairness.
To contact the creator, e-mail jov.onsat@rigzone.com
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