Gravity, a leading water and energy infrastructure company backed by affiliates of Clearlake Capital Group, L.P., has acquired On Point Oilfield Holdings, LLC, creating the largest commercial produced-water disposal company by injection volumes in the Midland Basin.
Gravity now owns and manages more than 50 active saltwater disposal wells with more than 1 million barrels per day of permitted disposal capacity. Trace Hight, founder and CEO of On Point, has joined Gravity as its chief commercial officer of water infrastructure, reporting to Rob Rice, Gravity’s president and chief executive officer. Financial terms of the transaction were not disclosed.
Vinson & Elkins served as legal counsel to Gravity, and Barclays acted as Gravity’s financial adviser and arranged debt financing for the transaction. 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.
Rice 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. We are excited to welcome On Point to the Gravity family and look forward to continuing to build out our water infrastructure offering as producers continue to look to Gravity to manage their critical gathering and disposal needs.”