Deal Description: Delek Logistics Partners, LP (NYSE: DKL) announced today that one of its subsidiaries has signed a definitive purchase agreement for the acquisition of 100% of the equity interests of 3Bear Delaware Holding – NM, LLC, an indirect subsidiary of 3Bear Energy, LLC (“3Bear”), related to 3Bear’s crude oil and gas gathering, processing and transportation businesses, as well as water disposal and recycling operations in the Delaware Basin in New Mexico, for cash consideration of $624.7 million, subject to customary closing adjustments. Delek Logistics is executing the transaction through a newly formed, wholly owned subsidiary, DKL Delaware Gathering, LLC. The acquisition is expected to result in an investment multiple of approximately 6.25 times 2023 EBITDA.
3Bear is a premier crude, gas and water gathering, processing and disposal business in the Northern Delaware Basin. 3Bear’s assets are anchored by ~350,000 dedicated acres and long-term fixed fee contracts. The asset base includes approximately 485 miles of pipelines, 88 million cubic feet per day of cryogenic natural gas processing capacity, 120 MBbl of crude storage capacity and 200 MBbl/d of water disposal capacity.
Baker Botts is serving as legal advisor to Delek Logistics on the transaction. The company’s press release can be found here.
Baker Botts Lawyers/Offices:
Global Projects: Dan Mark (Partner, Houston), Kyle Doherty (Senior Associate, Houston), Ryan Chastain (Associate, Houston), Andrew Crayden (Associate, Houston), Megan Young (Associate, Houston)
Corporate: Jim Marshall (Partner, Houston), Josh Davidson (Partner, Houston)
Environmental: Kimberly White (Partner, Houston)
Tax: Michael Bresson (Partner, Houston), Jared Meier (Senior Associate, Houston)
Litigation: Amy Hefley (Partner, Houston)
Antitrust: Jeffrey Oliver (Partner, Washington, D.C.), Michael Bodosky (Special Counsel, Washington, D.C.)
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