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Brentwood-based Delek Logistics Partners LP announced the completion of its $285 million acquisition of Texas company Gravity Water Intermediate Holdings LLC.
Abigal Sorek
The transaction was announced in a release and follows Delek US Holdings, Inc.’s completion of the $385 million sale of its retail business to Mexico’s FEMSA FMX in October (see here).
Delek US Holdings, which describes itself as an energy company specializing in oil refining, asphalt, renewable fuels, and logistics, owns a general partner interest and a majority limited partner interest in Delek Logistics Partners, and is also a major customer. there is.
Delek Logistics provides gathering, pipeline, and transportation services related to crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminaling, water treatment, and recycling.
Gravity’s operations include integrated full-cycle water systems in the Permian Basin (Texas and New Mexico). Gravity Water is based in Houston.
The $285 million deal includes $200 million in cash, the release said.
“The acquisition of Gravity represents another important step in DKL’s commitment to becoming a full-suite provider of midstream oil, gas and water services in the Permian Basin,” said Avigal Solek, president of Delek Logistics. stated in a release.
“Gravity’s primary operations are located in Howard County in the Midland Basin, and together with the recent acquisition of H2O Midstream, it provides DKL customers with a strong opportunity for integrated crude oil and water services,” Sorek said. I added. A combination of yield and growth in the midstream sector. As mentioned earlier, DKL seeks to derive more than 70% of its EBITDA from third-party sources. ”
Delek stock (ticker: DK) was trading down $0.06, or 0.33%, at $18.39 in late afternoon trading on Friday. The stock, which trades on the New York Stock Exchange, was valued at about $26.33 12 months ago.
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