(Source: Shutterstock.com)
Delek Logistics has closed its acquisition of Permian Basin water midstream company H2O Midstream for $230 million in cash and stock.
Delek acquired H2O Midstream’s water gathering, transportation, recycling, storage and disposal assets. H2O is the largest pure-play water midstream company in the Permian Basin, with more than 250 miles of pipeline, Delek said in a Sept. 12 press release. Delek first announced the acquisition in August.
Delek is a Tennessee-based water midstream company with assets located throughout the Permian Basin.
The $230 million deal included $160 million in cash at closing and $70 million of preferred redeemable equity, Delek said in the press release announcing the closing. The acquisition will be funded through cash and debt financing.
“The acquisition of H2O Midstream supports our core strategy of providing a full midstream service solution to our existing and third-party customers in the prolific Permian Basin,” the company said. “H2O Midstream operations have significant overlap with our existing Midland, Texas operations. The acquisition also presents an opportunity to extract significant synergies through cost optimization and cross product sales.”
Recommended Reading
Pair of Large Quakes Rattle Texas Oil Patch, Putting Spotlight on Water Disposal
2025-02-19 - Two large earthquakes that hit the Permian Basin, the top U.S. oilfield, this week have rattled the Texas oil industry and put a fresh spotlight on the water disposal practices that can lead to increases in seismic activity, industry consultants said on Feb. 18.
Novel EOR Process Could Save Shale from a Dry Future
2024-12-17 - Shale Ingenuity’s SuperEOR, which has been field tested with positive results, looks to remedy the problem of production declines.
Afterthought to Asset: How Data has Transformed Oil, Gas Decision-Making
2024-12-05 - Digital data points have transformed from a byproduct of operations to the main driver of innovation in the energy industry, says Fabricio Sousa, president of Worley Consulting.
Pioneer Energy’s Tech Offers More Pad Throughput, Fewer Emissions
2025-01-14 - Pioneer Energy’s Emission Control Treater technology reduces emissions and can boost a well’s crude yield by 5% to10%, executives say.
Momentum AI’s Neural Networks Find the Signal in All That Drilling Noise
2025-02-11 - Oklahoma-based Momentum AI says its model helps drillers avoid fracture-driven interactions.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.