Delek Logistics Partners LP is expanding its foothold into the northern part of the Permian Basin with a $624.7 million deal to acquire the equity interests of privately held 3Bear Delaware Holding-NM LLC.

Delek’s newly formed subsidiary DKL Delaware Gathering LLC is set to acquire 3Bear’s crude oil and natural gas gathering, processing and transportation businesses, as well as water disposal and recycling operations in the New Mexico portion of the Delaware sub-basin. 

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

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