Gravity To Acquire Permian Water Midstream Company

Gravity, a water and energy infrastructure company, has announced it has signed a definitive agreement to acquire On Point Oilfield Holdings, LLC (On Point) 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 of permitted disposal capacity to Gravity’s existing water midstream business. On Point has obtained saltwater disposal permits for 120,000 barrels per day of additional permitted disposal capacity and the right to develop disposal permits for an additional 305,000 barrels per day 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 million barrels per day 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.

Rob Rice, Gravity’s President and Chief Executive Officer, stated, “We are excited to expand our platform and welcome On Point and its proven management team to Gravity.”

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