DKL Delaware Gathering, newly formed subsidiary of Brentwood, Tenn.-based Delek Logistics Partners, agreed to acquire 3Bear Delaware Holding-NM, subsidiary of 3Bear Energy with crude oil and gas gathering, processing and transportation businesses in Lea County in northern Delaware Basin. The cash deal of $624.7 million, which marks Delek’s entry into Delaware Basin, also includes water disposal and recycling operations. 3Bear’s assets, anchored by 350,000 dedicated acres and long-term contracts, include 485 miles of pipelines, 88 million cubic feet of cryogenic natural gas processing capacity, 120,000 barrels of crude storage capacity and 200,000 barrels per day of water disposal capacity.
Uzi Yemin, chairman, president and CEO of Delek Logistics, said, “The 3Bear management team has developed strong producer relationships and a world class asset base in the heart of the Delaware Basin. We are excited to expand our operations in one of the most prolific oil- and gas-producing basins, providing long-term growth that is highly complementary to Delek Logistics’ current asset footprint.” Closing is expected by mid-year.
After exiting 2021Q4 at 83,000 b/d, Delek’s existing Permian gathering system exited 2022Q1 at 135,000 b/d. “We are witnessing significant growth in our existing Permian gathering system,” Yemin added.