EPIC Crude Pipeline Sale Considered by Owners, Valued at $3B Including Debt

EPIC Crude pipeline owners, including Ares Management, Diamondback Energy, and Kinetik, are considering a sale of the asset, with a valuation of around $3B including debt. The owners have engaged investment bankers and begun sounding out potential buyers.

The owners of the EPIC Crude pipeline, a major oil transport asset in Texas, are considering a sale. The pipeline, which connects the Permian and Eagle Ford basins to export facilities on the U.S. Gulf Coast, is owned by private equity group Ares Management (45%), Kinetik Holdings, and Diamondback Energy, each holding 27.5% of the asset [2].

The decision to sell is driven by the expressed interest of Kinetik and Diamondback in divesting their stakes. Jamie W. Welch, CEO and president of Kinetik, indicated on an Aug. 7 earnings call that the company is open to a sale if a suitable buyer presents the right offer [2]. Diamondback CEO Kaes Van’t Hof described the pipeline as a non-core asset and hinted at an update in the next quarter or two [2].

The EPIC Crude pipeline, with a stated nameplate capacity of 600 Mb/d, has consistently exceeded this capacity since early 2024, averaging 651 Mb/d for the first six months of 2025 [2]. The pipeline's design allows for quick, capital-efficient expansions, and its 30-inch diameter suggests potential for significant throughput increases with relatively modest upgrades [2].

Investment bankers have been engaged to facilitate the sale, with a valuation of around $3B including debt. Potential buyers are being sounded out, indicating a strategic move to maximize the asset's value [1].

References:
[1] https://seekingalpha.com/news/4488985-epic-crude-pipeline-owners-weighing-3b-sale-reuters
[2] https://rbnenergy.com/analyst-insights/epic-crude-pipeline-owners-considering-sale