Overview

• Plains valued the deal at about $1.57 billion including roughly $600 million of debt, with closing targeted by early 2026 pending HSR clearance and other customary conditions.
• The agreement provides for up to $193 million in earnouts if an expansion to at least 900,000 barrels per day is formally sanctioned before the end of 2027.
• Diamondback agreed to sell its 27.5% interest for approximately $500 million in upfront cash plus a potential $96 million tied to the same expansion milestone.
• EPIC Crude’s system spans about 800 miles with operating capacity above 600,000 barrels per day, roughly 7 million barrels of storage, and export capability at Corpus Christi.
• Plains expects immediate accretion to distributable cash flow, plans to finance the purchase with its balance sheet within its leverage target, and notes Ares’ EPIC Management will continue to operate the remaining 45% stake.