A subsidiary of Delek US Holdings, the Brentwood-based American arm of Israeli energy firm Delek, has announced it will purchased 3Bear Energy for $624.7 million, according to a release filed with federal regulators.

3Bear owns crude oil and gas extraction, processing and transportation operations in New Mexico’s Delaware Basin. The 3Bear assets include approximately 485 miles of pipelines and the capacity to process 88 million cubic feet of cryogenic natural gas per day.  

The purchase is expected to close by mid-year and is subject to regulatory approvals. Delek paid a deposit of $31.2 million, according to the release.

The release noted that the acquisition would be funding primarily by existing credit facilities and debt financing. RBC Capital Markets and Baker Botts advised Delek on the transaction, while 3Bear worked with Tudor, Pickering, Holt & Co. and Vinson & Elkins.

"We are pleased to announce the acquisition of 3Bear,” Delek US CEO and President Uzi Yemin said in the release. “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."

Yemin will be replaced as CEO by Avigal Soreq at the end of June.