Page 11 - NorthAmOil Week 22 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

what will be a seamless transition for all DOWNSTREAM to expect to pay down significant amounts
customers.” outstanding under our credit facility for
MAGELLAN MIDSTREAM PARTNERS AND Shell completes acquisition the remainder of 2022. With the extension
BUCKEYE PARTNERS, June 02, 2022 of the tenor of our credit facility, we have
no debt maturities until 2027, providing
Delek Logistics Partners of Landmark fuel and Earthstone with continued financial flexibility
convenience network
as we continue to pursue consolidation
announces closing of Shell Retail and Convenience Operations, a opportunities in the Permian Basin.”
EARTHSTONE ENERGY, June 02, 2022
acquisition from 3Bear wholly owned subsidiary of Shell Oil Products Veteran Renewable Natural
US, has completed the acquisition of certain
Energy company-owned fuel and convenience retail
sites from the Landmark group of companies.
Delek Logistics Partners announced today The acquisition also includes supply Gas Management Team
the closing of the previously announced agreements for the independently operated Forms Viridi Energy with
acquisition of 3Bear Delaware Holding – NM, fuel and convenience sites.
an indirect subsidiary of 3Bear Energy. The Building on the strength of its existing Equity Commitment from
3Bear operations include crude oil and gas networks, this acquisition brings Shell closer
gathering, processing and transportation to its customers and enhances Shell’s market Warburg Pincus
businesses, as well as water disposal and presence by growing its mobility footprint in
recycling operations in the Delaware Basin a key region in the US, which is one of the Viridi Energy, a full-service renewable natural
in New Mexico. Total cash consideration largest fuels and convenience retail markets in gas (RNG) platform, today announced
is $624.7mn (excluding customary closing the world. an approximately $320mn line of equity
adjustments) and the acquisition is expected With this acquisition, Shell is advancing its commitment led by Warburg Pincus, a leading
to result in an investment multiple of Powering Progress strategy in three ways: by global growth investor. The investment will
approximately 6.25 times preliminary growing its retail footprint in a core market, allow Viridi to build a leading energy platform
forecasted 2023 EBITDA. The transaction is by providing opportunities to offer customers of scale focused on developing RNG sourced
being funded with cash and debt financing. expanded fuelling options (including electric from landfill, dairy, and food waste feedstocks.
3Bear has built a premier crude, gas and vehicle charging, hydrogen, biofuels and Viridi is led by chief executive officer
water gathering, processing and disposal lower-carbon premium fuels) and by allowing Andy Kelleher, who brings to the company
business in the Northern Delaware Basin. for the growth of non-fuel sales through an a deep experience founding and leading
3Bear’s assets are anchored by ~350,000 enhanced convenience offering. companies in energy and environmental
dedicated acres and long-term fixed SHELL, June 01, 2022 commodities, and also serves as managing
fee contracts. The asset base includes partner at Green Rock Energy Partners.
approximately 485 miles of pipelines, 88mn In addition to Mr. Kelleher, the founding
cubic feet per day of cryogenic natural gas MOVES management team includes Chet Benham,
processing capacity, 120,000 barrels of crude Matt Atkins, Jake Crouse, Dana Husnay,
storage capacity and 200,000 barrels of water Earthstone Energy and Bill Keller. Together, the team has over
disposal capacity. The acquired entity will 75 years of experience developing and
be part of a newly formed, wholly owned announces extension of operating energy assets and has successfully
subsidiary of Delek Logistics Partners named developed more than 30 projects in the RNG
“DKL Delaware Gathering Company, LLC”. revolving credit facility and space. Management plans to leverage their
Uzi Yemin, chairman, president and chief biogas expertise to develop projects across
executive officer of Delek Logistics’ general increased borrowing base the landfill, dairy, and food waste sectors
partner stated: “This acquisition substantially with a focus on best-in-class operations and
increases our third-party revenue at DKL, Earthstone Energy, announced today it technology.
per our stated goals, and allows DKL to entered into an amendment to the company’s “Viridi has a truly differentiated approach,
become a more diversified and less sponsor senior secured revolving credit facility, with the unique ability to handle all parts of
dependent entity. Additionally, 3Bear expands extending the maturity of the credit facility the RNG value chain, spanning development,
our product mix to natural gas and water, to June 2027, increasing the borrowing operations, financing, and commercial
which will prove useful to customers within base from $1.325bn to $1.4bn and reducing strategy. Our mission is to work closely with
our legacy Permian gathering business. The the interest rate for amounts outstanding, a broad base of stakeholders to develop RNG
geographic diversification into the Delaware amongst other things. Elected commitments that will replace higher emission fuel in a
Basin provides a broader platform for future under the credit facility remain at $800mn. cost-friendly and environmentally effective
growth and includes some of the most prolific Robert J. Anderson, Earthstone’s president way,” said Andy Kelleher, CEO, Viridi Energy.
acreage in the Permian Basin. Finally, the and chief executive officer, commented: Prior to Green Rock Energy Partners, Mr.
outlook for strong free cash flow should “Our lending group has been a critical part Kelleher was the head of US oil trading at
allow us to rapidly reduce leverage while of providing funding for the six acquisitions Glencore and president of supply and trading
maintaining our 5% distribution growth target we have consummated in the past year and at ConocoPhillips.
for 2022.” a half, and we are greatly appreciative of VIRIDI ENERGY, June 02, 2022
DELEK LOGISTICS PARTNERS, June 01, 2022 their ongoing support. Our liquidity under
the credit facility is strong and we continue

Week 22 02•June•2022 www. NEWSBASE .com P11