Diamondback Energy and Kinetik have jointly acquired a 30% equity stake in Epic Crude, a key pipeline operator and a unit of Epic Midstream.
The financial terms of the deal were not disclosed.
This move sees Diamondback Energy and Kinetik each owning 27.5% of Epic Crude, bolstering their presence in the oil transportation sector.
Epic Crude, established in 2017, is responsible for the 1,126km Epic Crude Oil Pipeline, which connects Orla, Texas, to the Port of Corpus Christi.
This pipeline, which traverses the Midland, Delaware and Eagle Ford basins, is currently operating above 600,000 barrels per day (bpd) and has a maximum capacity of 1,000,000bpd.
Additionally, Epic Crude boasts operational storage of around 7.5 million barrels.
The pipeline network of Epic Crude includes terminals in Crane, Gardendale, Helena, Midland, Orla, Pecos, Saragosa and Wink, offering connectivity to the Port of Corpus Christi and export capabilities.
Epic Crude has secured contracts for approximately 90% of its 2025 total volumes.
Epic Midstream retains a 45% equity interest and continues to manage the operations of Epic Crude.
Concurrently, Diamondback has increased volume commitment from Epic Crude to 200,000bpd to accommodate additional crude from its merger with Endeavor Energy Resources.
Kinetik is also establishing a new transportation arrangement with Epic Crude, alongside a new connection between its crude gathering system and the Epic Crude pipeline.
Diamondback president and CFO Kaes Van’t Hof said: “This series of transactions signifies a major step in ensuring reliable, cost-effective takeaway out of the basin for our expanded crude portfolio for a significant period of time, and positions EPIC Crude to be our preferred crude pipeline given our increased ownership stake and expanded governance role in the joint venture.”
Kinetik president and CEO Jamie Welch said: “We are excited to partner with Diamondback, Ares Management funds and EPIC Midstream on these transactions.
“Our volume commitment, alongside Diamondback, will generate incremental value for our crude customers seeking access to a premium market.”
The acquisition of Endeavor Energy Resources by Diamondback, valued at $26bn, has created a leading entity focused on the Permian Basin, with a combined production of 816,000bpd of oil and gas and a pro forma footprint of approximately 838,000 net acres.
