Along with the acquisition, Delek also announced a final investment decision had been reached on a new gas processing plant in the Delaware Basin. (Source: Shutterstock)
Delek Logistics announced its acquisition of Permian-based H2O Midstream in its second-quarter earnings report, released Aug. 6.
H2O Midstream, a portfolio company of EIV Capital, is the largest pure-play water midstream company in the Permian Basin, with more than 250 miles of pipe. The company has more than 3.75 MMbbl of owned and third-party storage, according to its web site.
Headquartered in Knoxville, Tennessee, Delek owns assets in five states. With the $230 million deal, the midstream company adds to its capabilities to provide a full stream of services to customers in the Permian, according to the earnings announcement.
Latham & Watkins LLP represented EIV Capital and H2O Midstream in the transaction.
Along with the acquisition, Delek also announced a final investment decision had been reached on a new gas processing plant in the Delaware Basin.
Delek is also acquiring interest in the Wink to Webster Pipeline, which can move 1 MMbbl/d of crude from the Permian to Southeast Texas.
“These actions also move Delek Logistics toward becoming an independent, largely third-party cash flow company with a strong growth profile and extremely competitive distribution yield,” said Avigal Soreq, president of Delek Logistics’ general partner, in the release.
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