Diamondback Power, Inc. and Kinetik Holdings Inc. have acquired a 30 % fairness curiosity in EPIC Crude Holdings, LP, an affiliate of EPIC Midstream Holdings LP.
Diamondback and Kinetik now every maintain a 27.5 % stake in EPIC Crude, based on a joint information launch. EPIC Midstream continues to personal a forty five % fairness curiosity in and handle the operations of EPIC Crude. The monetary particulars weren’t disclosed.
Diamondback stated it’s changing its current dedication on EPIC Crude right into a considerably bigger quantity dedication of 200,000 barrels per day (bpd) to accommodate further crude barrels from its lately accomplished merger with Endeavor Power Assets, which makes Diamondback the third largest crude producer within the Permian Basin.
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Kinetik can be getting into into a brand new transportation association with EPIC Crude and a brand new connection between Kinetik’s crude gathering system and the EPIC Crude pipeline, based on the discharge.
The mixed long-term quantity commitments from Diamondback and Kinetik are anticipated to start in 2025 and lengthen till 2035, totally supported by minimal quantity commitments (MVC) and representing over 33 % of EPIC Crude’s quantity capability.
EPIC Crude continues to move greater than 600,000 bpd and has secured MVCs or contracts for roughly 90 % of 2025 whole volumes whereas considerably extending the weighted common contract life. EPIC Crude’s differentiated technique helps its prospects achieve entry to all markets and docks in Corpus Christi, along with the Dated Brent market via the EPIC dock, based on the discharge.
“Together with our execution over the previous couple of years, these transactions place EPIC Crude for continued strategic and monetary success,” EPIC Midstream CEO Brian Freed stated. “The enterprise continues to be remodeled, and the strategic significance of this asset is supported by our Companions’ long-term commitments. EPIC Crude continues to be a crucial asset for Permian Basin crude manufacturing egress to the Corpus Christi market”.
“This collection of transactions signifies a significant step in guaranteeing dependable, cost-effective takeaway out of the basin for our expanded crude portfolio for a major time frame, and positions EPIC Crude to be our most well-liked crude pipeline given our elevated possession stake and expanded governance function within the three way partnership,” Diamondback President and CFO Kaes Van’t Hof stated.
“We’re excited to associate with Diamondback, Ares Administration funds and EPIC Midstream on these transactions,” Kinetik President and CEO Jamie Welch stated. “Our quantity dedication, alongside Diamondback, will generate incremental worth for our crude prospects searching for entry to a premium market”.
EPIC Crude has the one remaining alternative for a large-scale, extremely financial crude oil pipeline growth within the Permian, based on the discharge. The potential growth undertaking is very financial given its restricted capital necessities, principally centered on further pumps for the present pipeline. EPIC Crude expects the potential growth undertaking to be carried out with totally underwritten contracts, with Diamondback and Kinetik having an choice for roughly one-third of the growth capability.
EPIC was fashioned in 2017 to construct, personal and function midstream infrastructure within the Delaware, Midland and Eagle Ford basins. EPIC’s Crude Oil Pipeline and NGL Pipeline every span roughly 700 miles and transport crude and pure gasoline liquids for supply from the Permian and Eagle Ford basins into the Corpus Christi market. The Crude Oil Pipeline connects to the Port of Corpus Christi, together with EPIC’s Marine Terminal, third-party export terminals and native refineries. EPIC’s NGL Pipeline has connectivity to EPIC’s operated fractionation complicated in Robstown, Texas in addition to Gulf Coast refiners, petrochemical firms and export markets.
EPIC Crude Holdings, LP was fashioned in 2017 to construct and function the EPIC Crude Oil Pipeline, a 700-mile, 30” crude oil pipeline that extends from Orla, Texas to the Port of Corpus Christi and companies the Midland, Delaware and Eagle Ford basins. The Crude Oil Pipeline is presently working at a capability of higher than 600,000 bpd and has a most capability of 1 million bpd, in addition to whole operational storage of roughly 7,500,000 barrels. EPIC Crude consists of terminals in Orla, Pecos, Saragosa, Crane, Wink, Midland, Helena and Gardendale, with Port of Corpus Christi connectivity and export entry.
Diamondback describes itself as an impartial oil and pure gasoline firm headquartered in Midland, Texas, centered on the acquisition, growth, exploration and exploitation of unconventional, onshore oil and pure gasoline reserves primarily within the Permian Basin in West Texas.
Kinetik describes itself as a totally built-in, pure-play, Permian-to-Gulf Coast midstream C-corporation working within the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik gives complete gathering, transportation, compression, processing and treating companies for firms that produce pure gasoline, pure gasoline liquids, crude oil and water.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
