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Plains to Acquire 55% Interest in EPIC Crude Holdings, LP
Enhancing Wellhead to Water Strategy HOUSTON, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings
About this update from Plains Gp Holdings, L.p.
[{"type":"text","content":"Enhancing Wellhead to Water Strategy\nHOUSTON, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) (collectively, “Plains”) announced today that a wholly owned subsidiary has entered into a definitive agreement to acquire from subsidiaries of Diamondback Energy, Inc. and Kinetik Holdings Inc., a 55% non-operated interest in EPIC Crude Holdings, LP (“EPIC Crude Holdings”), the entity that owns and operates the EPIC Crude Oil Pipeline (“EPIC Pipeline”), in a transaction valued at approximately $1.57 billion, inclusive of approximately $600 million of debt. 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. The transaction is expected to be immediately accretive to distributable cash flow with synergistic opportunities expected to result in mid-teens unlevered returns. The remaining 45% interest in EPIC Crude Holdings is owned by a portfolio company of Ares Management Corporation (“EPIC Management”), which also serves as operator. 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 PipelineOperating capacity of over 600,000 barrels per day with low-cost expansion capabilitiesApproximately 7 million barrels of operational storageOver 200,000 barrels per day of export capacity Transaction Highlights: Ability to provide customers with additional upstream connectivity and enhanced downstream market connectivity and optionalityEnhances and expands Plains’ existing Permian wellhead to water strategySynergy potential and Permian growth improves acquisition multiple over the next few yearsSystem underpinned by long-term minimum volume commitments from high-quality customersExpect pro forma leverage ratio to remain within target range (excluding NGL divestiture proceeds); strong balance sheet utilized to finance transaction with cash and debtExpected to be immediately accretive to distributable cash flow, supporting additional return of capital opportunities “We are excited to work with the EPIC Management team. This transaction st...