Subsidiaries of Diamondback Energy and Kinetik Holdings have agreed to sell a 55% interest in EPIC Crude Holdings to Plains All American Pipeline in a transaction valued at about $1.57 billion. That’s inclusive of approximately $600 million of debt.
“This is a great outcome for Diamondback, generating a meaningful return on our invested capital,” Kaes Van’t Hof, chief executive officer and director of Diamondback, said in a statement. “We look forward to maintaining our strong commercial relationship with the EPIC Crude and Plains teams as an anchor shipper on the EPIC Crude pipeline.”
Jamie Welch, Kinetik’s president and CEO, said in a statement: “The transaction represents a compelling opportunity to advance our commitment to maximize long-term shareholder value by recycling proceeds from non-core asset sales to attractive growth projects and potential acceleration of shareholder returns.” The cash proceeds will be used for general corporate purposes…