Delek Logistics Partners has announced the closing of the previously announced acquisition of Gravity Water Intermediate Holdings. The Gravity operations include integrated full-cycle water systems in the Permian Basin along with produced water gathering and transportation assets in the Bakken. And the total consideration for the transaction is $285 million comprising of $200 million in cash (excluding customary closing adjustments) and about 2.175 million DKL units.
This acquisition is synergistic to DKL’s recent acquisition of H2O Midstream and supplements DKL’s integrated crude and produced water gathering and disposal offering in the Midland Basin. This acquisition also presents an opportunity to extract significant synergies through cost and commodity sale optimization.
KEY QUOTE:
“The Gravity acquisition represents another significant step in DKL’s commitment of being a full suite crude, gas and water midstream services provider in the Permian Basin. Gravity’s primary operations are in Howard County in the Midland Basin, and along with our recent H2O Midstream acquisition, provide a strong opportunity for integrated crude and water services to DKL’s customers. We believe Delek Logistics continues to provide the best combination of yield and growth in the midstream sector. As previously indicated, DKL will be approaching greater than 70% of its EBITDA coming from third-party sources. We are excited about the prospects for DKL and the value it continues to bring to all of its stakeholders.”
- Avigal Soreq, President at Delek Logistics
