Gravity has signed an agreement on November 6, 2019 to acquire On Point Oilfield Holdings from White Deer Energy and become the largest produced water disposal company by injection volume in the Midland basin. On Point's water infrastructure asset base adds 17 new saltwater disposal wells and more than 432,500 bbl/d of permitted disposal capacity. On Point has obtained saltwater disposal permits for 120,000 bbl/d of additional permitted disposal capacity and the right to develop disposal permits for an additional 305,000 bbl/d of capacity targeting the Ellenburger formation.
Pro forma for the acquisition, Gravity will own and manage more than 50 active saltwater disposal wells with more than 1 million bbl/d of permitted disposal capacity. In connection with the closing of the acquisition, Trace Hight, founder and CEO of On Point, will join Gravity as its Chief Commercial Officer of Water Infrastructure. The acquisition closed on December 10, 2019. Vinson & Elkins served as legal counsel to Gravity, and Barclays acted as Gravity's financial advisor and arranged debt financing for the transaction.