Delek Logistics expands Permian basin assets with 3Bear Energy acquisition

DKL Delaware Gathering LLC, a newly formed subsidiary of Delek Logistics Partners LP, agreed to acquire 100% of the equity interests of 3Bear Delaware Holding – NM LLC, an indirect subsidiary of 3Bear Energy LLC, related to 3Bear's crude oil and gas gathering, processing, and transportation businesses in the northern Delaware basin in New Mexico.

The $624.7-million cash deal includes water disposal and recycling operations.

3Bear's assets are anchored by about 350,000 dedicated acres and long-term fixed fee contracts, according to the Apr. 11 release. The asset base includes about 485 miles of pipelines, 88 MMcfd of cryogenic natural gas processing capacity, 120,000 bbl of crude storage capacity, and 200,000 b/d of water disposal capacity.

Delek’s existing Permian gathering system saw average daily volumes increase to 135,000 b/d exiting this year’s first quarter (last 7-day average) from 83,000 b/d in fourth-quarter 2021, providing confidence to move forward with the acquisition, said Uzi Yemin, chairman, president, and chief executive officer of Delek Logistics General Partner.

This transaction is expected to close mid-year, subject to customary regulatory approvals.