Ares Management Plunges 1.62% on $2.8B Volume Rank 320 as $2.5–$3.5B Pipeline Sale Looms Over Strategic Asset

Generated by AI AgentAinvest Market Brief
Monday, Aug 25, 2025 7:44 pm ET1min read
Aime RobotAime Summary

- Ares Management fell 1.62% on $280M volume as its 45% stake in the EPIC Crude pipeline faces potential $2.5–$3.5B sale.

- Analysts split on valuation: 9.77% upside vs 10.87% downside, with bidders like Enterprise Products Partners speculated to target its strategic 1M bpd capacity and 2035 MVCs.

- Ares' decision to retain or divest could reshape midstream benchmarks and Permian takeaway dynamics amid June 2025 export infrastructure upgrades.

- High-volume trading backtests showed 6.98% CAGR (2022–2025) but 15.46% max drawdown, highlighting liquidity-driven market volatility risks.

On August 25, 2025,

(ARES) closed down 1.62% with a trading volume of $280 million, ranking 320th in the stock market by volume. The firm’s 45% stake in the EPIC Crude pipeline, a 700-mile transport system linking Permian Basin production to Corpus Christi export hubs, is reportedly under review for a potential $2.5–$3.5 billion sale. The asset’s strategic value lies in its expandable 1 million barrel-per-day capacity, long-term minimum volume commitments (MVCs) through 2035, and proximity to key export infrastructure recently upgraded in June 2025.

Analysts highlight diverging views on the stock’s valuation. Thirteen Wall Street analysts project a 9.77% upside to an average price target of $195.54, while GuruFocus estimates a 10.87% downside to a GF Value of $158.76. The dual-track appeal of the pipeline—stable cash flows from MVCs for defensive investors and expansion-driven growth for aggressive buyers—has attracted speculation about potential bidders like

, which could pay a premium for its scale and strategic location. Ares’ decision to retain or divest its stake will likely influence midstream sector valuation benchmarks and Permian takeaway capacity dynamics.

Backtest results for a high-volume trading

show a compound annual growth rate (CAGR) of 6.98% from 2022 to 2025, with a maximum drawdown of 15.46% recorded in mid-2023. The strategy, which involved holding the top 500 volume stocks daily, demonstrated steady returns but underscored the risks of volatility in liquidity-driven markets.

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