Plains To Acquire 55% Interest In EPIC Crude

(RTTNews) - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) said 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, the entity that owns and operates the EPIC Crude Oil Pipeline, in a deal valued at approximately $1.57 billion, inclusive of approximately $600 million of debt.

Also, Plains All American Pipeline, and Plains GP 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.