Plains to buy stake in EPIC Crude in $1.6 billion oil pipeline deal
Plains All American Pipeline and Plains GP Holdings have agreed to acquire a 55% stake in EPIC Crude Holdings for $1.57 billion, including debt. The deal involves purchasing from Diamondback Energy and Kinetik Holdings. EPIC Crude operates a major pipeline transporting oil from Texas' Permian and Eagle Ford basins to Gulf Coast export facilities, with a current capacity of 600,000 barrels per day, expandable to 1 million. The transaction is expected to close by early 2026.
Sept 2 (Reuters) - Plains All American Pipeline (PAA.O) and Plains GP Holdings (PAGP.O) on Tuesday said it has agreed to buy a 55% stake in pipeline operator EPIC Crude Holdings from units of Diamondback Energy (FANG.O) and Kinetik Holdings for $1.57 billion, including debt.
Reuters in August reported the owners of the pipeline were looking for a sale, according to sources familiar with the matter.
EPIC Crude is one of the major pipelines that brings oil from the Permian and Eagle Ford shale basins of Texas to export facilities on the U.S. Gulf Coast.
It has a capacity of 600,000 barrels per day (bpd), which is expandable up to 1 million bpd, and has around 7 million barrels of operational storage.
The transaction is expected to be completed by early 2026.
