Plains to acquire 55 percent interest in EPIC pipeline from Diamondback, Kinetik

A subsidiary of Plains All American Pipeline and Plains GP Holdings agreed to acquire the 55 percent non-operated interest in the EPIC crude oil pipeline held by subsidiaries of Midland’s Diamondback Energy and Kinetik Holdings. The deal announced Tuesday is valued at $1.57 billion, including the assumption of $600 million in debt.

The remaining 45 percent interest is held by a portfolio company of Ares Management, which also serves as operator.  EPIC pipeline includes about 800 miles of long-haul crude oil takeaway from Permian Basin and Eagle Ford to Gulf Coast markets in Corpus Christi with capacity of more than 600,000 barrels per day.

Willie Chiang, chairman, CEO and president, said, “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.”