Diamondback Energy, Kinetik, EPIC announce transformative transactions

Diamondback Energy (FANG), Kinetik Holdings (KNTK), and EPIC Midstream announced a series of transactions to support the continued growth and strengthened financial profile of EPIC Crude Holdings, an affiliate of EPIC Midstream, including: Diamondback and Kinetik acquired a 30% equity interest in EPIC Crude. The Partners now each own 27.5% of EPIC Crude. EPIC Midstream continues to own a 45% equity interest in and manage the operations of EPIC Crude. Diamondback is converting its existing commitment on EPIC Crude into a significantly larger volume commitment of 200 MBpd to accommodate additional crude barrels from Diamondback’s newly completed merger with Endeavor Energy Resources. As a result of that merger, Diamondback is the third largest crude producer in the Permian Basin. Kinetik is also entering into a new transportation arrangement with EPIC Crude and a new connection between Kinetik’s crude gathering system and the EPIC Crude pipeline. The combined long-term volume commitments from the Partners are expected to commence in 2025 and extend until 2035, fully supported by minimum volume commitments and representing over 33% of EPIC Crude’s volume capacity. EPIC Crude and its Partners are continuing to focus on reducing controllable costs and enhancing financial returns which will further maximize value for all stakeholders of EPIC Crude. Taken together, these actions will position EPIC Crude for long-term success while increasing its long-term strategic alignment with Diamondback and Kinetik.