HOUSTON, Oct. 4, 2022 /PRNewswire/ -- Gravity, a growth-oriented water and power infrastructure company backed by affiliates of Clearlake Capital Group, L.P. ("Clearlake"), today announced its water midstream segment executed a new long-term produced water gathering and disposal agreement with a premier Permian operator in the Midland Basin. Financial terms of the agreement were not disclosed.
The agreement will add approximately 12,000 acres of core Tier 1 acreage to Gravity's industry leading Midland Basin commercial position and is forecasted to add over 50 million bbls of produced water in near-term development. To service the contract, Gravity will be constructing new pipelines transporting a minimum of 50,000 bbls/d of produced water for delivery into its Midland Basin Super System, which has more than 500,000 bbls/d of permitted disposal capacity among 16 interconnected saltwater disposal wells and over 1 million bbls/d of sourcing capacity. The new pipelines will allow for bilateral flow of produced water to the customer for reuse on future completions planned on the committed acreage, reducing the demand for fresh water in the area.
"We are pleased with the performance of our Midland Basin Super System, which recently processed over 600,000 bbls/d of water for sourcing, reuse, gathering and disposal operations. This new contract expands our water midstream solutions into a new core area of the Midland Basin, adding a significant amount of undrilled inventory to facilitate our future organic growth," stated Trace Hight, Gravity's Chief Commercial Officer of Water Midstream.
Gravity owns and manages more than 50 active saltwater disposal wells with more than 1.5 million bbls/d of permitted disposal capacity in the United States. With the addition of its cost-effective produced water reuse services, Gravity has provided over 150 million barrels of midstream sourcing, reuse, gathering and disposal water solutions in multiple Basins to its customers to date in 2022.
"It is exciting to see the continued organic growth in our Midland Basin water midstream system," said Rob Rice, Gravity's President and Chief Executive Officer. "This contract is another important step in the maturity of our water midstream business and allows us to access more acreage and customers with our ESG-friendly water reuse, gathering and disposal solutions."
Gravity is a growth-oriented provider of energy infrastructure services to U.S. onshore oil and natural gas exploration and production companies, providing water midstream solutions, critical power generation offerings and other production focused services. Gravity has significant coverage density in the Permian Basin and benefits from a national footprint supported by facilities, operations and management personnel in several other key domestic resource plays including the Bakken, Eagle Ford, SCOOP/STACK, DJ Basin, Haynesville and Marcellus, among others. More information is available at www.gvty.com.
About Clearlake Capital Group
Clearlake Capital Group, L.P. is an investment firm founded in 2006 operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with management teams by providing patient, long-term capital to businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are industrials, technology, and consumer. Clearlake currently has over $70 billion of assets under management, and its senior investment principals have led or co-led over 400 investments. The firm is headquartered in Santa Monica, CA with affiliates in Dallas, TX, London, UK and Dublin, Ireland. More information is available at www.clearlake.com and on Twitter @Clearlake.
Heather Heacock, (281) 640-3043
Marketing Communication Manager
Jennifer Hurson, (845) 507-0571
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