Plains All American Pipeline to Acquire Diamondback, Kinetik’s Stake in EPIC for $1.57 Billion
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Plains All American Pipeline entered into a definitive agreement to acquire Diamondback Energy and Kinetik 55 percent non-operated interest in EPIC Crude Holdings valued at approximately $1.57 billion. The remaining 45 percent interest in EPIC Crude Holdings is owned by a portfolio company of Ares Management which also serves as operator.
Additionally, Plains has agreed to a potential $193 million earnout payment should an expansion of the pipeline to a capacity of at least 900,000 barrels per day be formally sanctioned before year-end 2027.
“We are excited to work with the EPIC management team. This transaction strengthens our position as the premier crude oil midstream provider, complements our asset footprint and enhances our customer offering. The combination of our stake in EPIC Crude Holdings coupled with our existing integrated Permian and Eagle Ford assets enhances our commitment to offering a high level of connectivity and flexibility for our customers,” said Willie Chiang, chairman, CEO, and president.
“By further linking our Permian and Eagle Ford gathering systems to Corpus Christi, we are enhancing market access and ensuring our customers have reliable, cost-effective routes to multiple demand centers,” added Chiang.
The EPIC Pipeline provides long-haul crude oil takeaway from the Permian and Eagle Ford basins to the Gulf Coast market at Corpus Christi. EPIC Crude Holdings’ assets include:
• Approximately 800 miles of long-haul pipelines, including the EPIC Pipeline
• Operating capacity of more than 600,000 barrels per day with low-cost expansion capabilities
• Approximately 7 million barrels of operational storage
• More than 200,000 barrels per day of export capacity
Plains All American Pipeline (PAA) owns and operates midstream energy infrastructure and provides logistics services its crude oil and natural gas liquids (NGL). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles approximately eight million barrels per day of crude oil and NGL.
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