Delek Logistics Closes $285 Million Gravity Water Acquisition

(P&GJ) — Delek Logistics Partners LP has completed its $285 million acquisition of Gravity Water Intermediate Holdings LLC, expanding its midstream capabilities in the Permian Basin.

Gravity's primary operations are in Howard County within the Midland Basin and include full-cycle water systems, produced water gathering, and transportation assets. The deal also extends to assets in the Bakken region.

This acquisition complements Delek’s recent purchase of H2O Midstream, creating opportunities for integrated crude and water services in the Midland Basin.

“The Gravity acquisition represents another significant step in DKL’s commitment to being a full-suite crude, gas, and water midstream services provider in the Permian Basin," said Avigal Soreq, President of Delek Logistics. "Along with our recent H2O Midstream acquisition, [this deal] provides a strong opportunity for integrated crude and water services to DKL’s customers."

The transaction includes $200 million in cash, excluding customary closing adjustments, and approximately 2.175 million Delek Logistics units.

Delek anticipates the deal will boost EBITDA contributions from third-party sources to over 70%, reinforcing its strategy for growth and value creation.

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